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Wednesday, September 25, 1985/The Battalion/Page 7
I
Waldo by Kevin Thomas
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Overruns
Audit raps TDCs high construction costs
Associated Press
HUNTSVILLE — A newly re
leased audit of the Texas Depart
ment of Corrections criticizes the
agency’s construction division for al
lowing huge project overruns before
getting approval for the extra ex
penditures from the prison board.
The 23-page summary of the au
dit released Monday by state auditor
Lawrence F. Alwin says little head
way in cleaning up the prison sys
tem’s construction division has been
made.
The audit is for the 1984-85 TDC
budget for the fiscal year that ended
Aug. 31.
Prison officials said they are try
ing to correct the problems. The
state is planning a $170 million, two-
year building program to expand fa
cilities.
The report says a $2 million con
struction program at the Pack I Unit
near Navasota jumped to more than
$9 million before the TDC board
was notified of the increases last
year.
In February 1984, a private audi
tor found that TDC had been over
charged about $2 million in architec
tural fees on nine projects including
the Pack I prison.
The private auditor found that
the ovemayrnents were probably the
result of sloppy handling of the con
struction projects by the prison sys
tem.
“Budget dealing with construction
projects would be more meaningful
if the original budget estimates were
reviewed by employees capable of
determining that adequate allow
ances have been provided for,” the
report said.
The cost of replacing a gas line at
the Clemens Unit in Brazoria
County rose from $34,000 to
$78,000, and the report said much
of the increase was the result of a
two-year delay in starting the pro-
ject.
“Projects should not be requested
if they cannot be undertaken on a
timely basis,” the report said. “When
changes in priorities cause a long de
lay, a new budget should be pre
pared and approved.”
Jim Lynaugh, TDC financial di
rector, said he is trying to make
changes to improve management in
the construction division. Almost all
of the $170 million in new construc
tion during the next two years will be
done by private contractors, who can
do the work faster and cheaper than
TDC could, he said.
This week, the TDC wrote off 394
items as lost or stolen, worth about
$193,000, Lynaugh said. The report
said about $11.3 million or 8 percent
of the TDC’s fixed assets were not
properly marked and tagged, and
are subject to loss or theft.
Last year, a special investigation
of the TDC showed that $600,000 in
equipment and supplies were miss
ing from prison warehouses and
could not be accounted for.
The auditor’s report suggested
the financial department staff over
see the year-end inventories and
spot-checK the prison warehouses
scattered across tne state.
Austin lawyer named to lead
Texas education committee
Associated Press
AUSTIN — Austin attorney
Larry Temple has been selected
chairman of the special committee
that will study higher education in
Texas.
Sources close to Gov. Mark White
said Tuesday that Temple would
lead the panel. In an interview,
Temple confirmed the report.
Temple, chairman of the College
and University System Coordinating
Board, said he is looking forward to
the close examination of the state
higher education system.
“I don’t believe the reasoning be
hind this study is because the Legis
lature believes there is some radical
change that needs to take place,”
Temple, a University of Texas grad
uate, said. “That’s not to say some
substantial changes may not come
out of this committee.”
White has picked five members of
the special committee, including the
chairman. Lt. Gov. Bill Hobby and
Speaker Gib Lewis each have se
lected four.
The special committee was estab
lished by lawmakers this year. A res
olution passed by the House and
Senate called for “a comprehensive
examination of the critical issues fac
ing and influencing the state’s
higher education system.”
Lawmakers want the committee to
come up with concrete ideas and rec
ommendations. The committee will
report to the 1987 Legislature.
The resolution suggested a long
list of areas that could be studied, in
cluding: funding, curriculum, en
rollment and projected need for fu
ture facilities.
Louisiana will not join
Texas audit of utilities
Associated Press
BATON ROUGE, La. — Loui
siana refused .Tuesday to join with
Texas in sponsoring an audit to see
if Gulf States Utilities was wise in
building a $4 billion nuclear power
plant that must be paid for by con
sumers in both states.
GSU is loading fuel now at its
River Bend plant, located near the
Mississippi River at St. Frhncisville,
La.
The plant is expected to be in
commercial operation within a few
months.
Utility officials, in the mid-1970s,
estimated that the plant could be
built for about $300 million.
Inflation drove construction costs
up and GSU says it was confronted
with problems the company had not
envisioned.
The Louisiana Public Service
Commission was told by its staff
Tuesday that the Texas Public Utili
ties Commission wanted to partici
pate in a management audit — shar
ing the cost.
“I do not think our interests are
necessarily the same,” said commis
sion member Louis Lambert of Gon
zales. “Texas has consumer groups
talking about suit because our rates
are lower.
“To lock us into a joint format
may not be in the best interests of
our rate payers.”
The other four commissioners
agreed with Lambert.
Lambert also told a Gulf States at
torney at the PSC meeting that con
sumers can bear only so much of
what Lambert called the utility’s mis
take in building the nuclear plant.
“I warned you in the 1970s to use
coal,” he snapped.
Tom Phillips, GSU attorney said,
“The decision to build River Bend
was based on what appeared to be
the cheapest source of energy.
“We have a responsibility not to
blight the area.”
The meeting concerned GSU’s co
generation proposal with Uniroyal.
Several industries in Louisiana
plan to join cogeneration pacts,
which mean they will generate their
own electricity and sell the excess to
private utilities such as GSU.
He noted that industry makes up
more than 50 percent of GSU’s cus
tomers in Louisiana.
“The buck has to stop somewhere
and it stops on the Louisiana con
sumer. It’s time to lay it on the line,”
said Lambert.
Phillips said any cogeneration
agreement with industry “will work
to the benefit of the ratepayer.”
Garland man
gets 5 years
for swindle
i
!
Associated Press
DALLAS — A Garland man
faces five years in prison after his
i daughter-in-law and son testified
i he kept foil-wrapped bundles of
J money hidden in a deep freeze,
i and a federal judge says he’ll
| spend more time in jail unless he
reveals where other stolen assets
| are hidden.
, Donald Stines, 50, was found
guilty of one charge of contempt
: and sentenced to five years in
i prison Monday by U.S. District
I Judge Jerry Buchmeyer.
Buchmeyer also sentenced him
to one year in prison for failing to
1 file an income tax return.
In addition, Stines was ordered
! held indefinitely for civil con
tempt for his continued refusal to
uncover outstanding assets from
' a silver scam in which his wife
. bilked about 1,000 investors na
tionwide out of more than $10
million.
Peggy Stines, the man’s wife,
. was convicted last year of operat
ing a fraudulent silver reclama
tion business. Federal prosecu
tors claim the Stines have tried to
conceal the money.
Stines has said he does not
have any knowledge of any assets.