Lawsuit seeks accounting of Fort Ord Reuse Authority money
Posted by defensebaseactcomp on March 6, 2012
Most of $100 Million of Federal Munitions Clean Up Money goes to AIG for Insurance
Open space advocates filed suit Monday to get an accounting of how the Fort Ord Reuse Authority spent nearly $100 million in federal money.
Keep Fort Ord Wild is asking a judge to compel FORA to release documents it first requested under the Public Records Act in December. Molly Erickson, attorney for the group, said FORA responded with incomplete records and said it does not have or has destroyed the rest.
At issue is a $99.3 million grant, the Environmental Services Cooperative Agreement, issued in 2007 for cleanup of munitions and explosives on Fort Ord.
The records supplied say the majority of the money, $82.1 million, purchased an “environmental insurance policy.” Erickson said FORA representatives said they did not have a copy of the policy and didn’t have a right to request one unless a claim were filed.
FORA spokeswoman Candy Ingram said the policy is a fixed-rate contract with Chartis, formerly American International Group, to administer the cleanup work with independent contractors. AON insurance, in turn, underwrote Chartis, guaranteeing the job would be completed at cost by 2015.
Contracts between the two companies are private, she said. With few exceptions, FORA does not have purview over the individual invoices submitted as part of the ongoing work, she added