FOR IMMEDIATE RELEASE
Date: June 13, 2006

CONTACT: LEWIS FEIN
Telephone: 310-472-0520



PUBLIC WATCHDOG ANNOUNCES COMPLAINTS AGAINST
CALIFORNIA RECLAMATION DISTRICT 348

"Apparent violations of state and federal tax, open records and open meeting laws"
Public Interest Watch details "Complex Web of Apparent Wrongdoing"

LOS ANGELES - Public Interest Watch (PIW) announced today it has filed a series of state and federal tax, open records and open meeting laws complaints against a powerful, but obscure California Reclamation District located in Northern San Joaquin County known as RD-348.

"We have brought to light numerous acts of wrongdoing by so-called charitable organizations and public entities. By any objective measure, this situation is one of the most troubling," said Lewis Fein, Executive Director of Public Interest Watch.

PIW's formal California complaints were filed with the Franchise Tax Board (FTB) and the Employment Development Department (EDD), as well as the Internal Revenue Service (IRS).

The filings addressed concerns brought to the attention of PIW and allege "systemic wrongdoing over a number of years" as well as "naked efforts to conceal the right of the public to know what its government is doing," said Fein.

Among the most serious charges are that RD-348 maintains an improper employer-employee relationship with individuals outside the strict guidelines set forth by state law and EDD regulations. Also, PIW alleges that RD-348 maintains "slipshod recordkeeping, inadequate public records and a seemingly reckless disregard for transparency."

"The potential for widespread corruption – or worse – within RD-348, and other entities like this throughout California and the U.S. is just too great to be ignored any longer," said Fein.

Reclamation District 348 is located on approximately 9,000 acres of agricultural land in the northern sector of California's San Joaquin Valley. First organized in the 1900s, the legal responsibility of RD-348 is to preserve a system of levees that prevent the San Joaquin town of Thornton from being flooded by the Mokelume River.

"This year has already seen widespread corruption and serious ethical scandals in both our state and nation," said Fein. "There is nothing less than a total urgency to be even more vigilant on behalf of those who rely on their government to protect their interests."

A California public agency, RD-348 is governed by a three-member board of trustees that are elected by the owners of land within the district, apportioned by a formula of one vote per acre owned of land. There is no limit on the number of votes that any landowner can collect.

"This arcane and anti-democratic setup practically guarantees the arrogance that absolute power can bring about," said Fein. "As this situation was brought to our attention by a member of the public, we welcome any additional information on this or other reclamation districts and their practices. As always, we look forward to exposing those who would harm the public interest."




PIW is a 501(c)4 tax-exempt organization, which means contributions to PIW are not tax-deductible.

How to Contribute