Emergency Manager Kevyn Orr orders investigation of Detroit pension fund
Updated On: Jun 20 2013 05:31:28 PM EDT
Emergency Manager Kevyn Orr has ordered an investigation into the Detroit Pension Fund for possible waste, abuse, fraud and corruption.
The order signed by Orr on Thursday calls for a joint investigation conducted by the Inspector General and Auditor General into "any possible waste, abuse, fraud, or corruption, including, but not limited to, administrative misfeasance or other impropriety with respect to the administration, operation or implementation of Benefit Programs."
Orr wants the IG and AG to give him a written report within 60 days on preliminary findings of the investigation.
The emergency manager orders all appointed officials, employees, agents, trustees and contractors of Detroit to comply with the investigation.
"There's many questionable investments that have been made by the fund boards," said Orr spokesman Bill Nowling. "And some of those investments have been made without the advice of their hired financial advisor whose job it is to give them sound financial advice on the investments that they are making, and we want to find out why that happened."
Local 4 asked Nowling if this could be a criminal investigation.
"We're going to unearth whatever is there and if we do find evidence of criminal activity we're going to forward that on to the proper state and federal authorities," he said.