Chinatown Panel Gets $140K Back
September 17, 2004
On a “leap of faith,” the Rev. Norman Fong of the Chinatown Community Development Corp. returned $140,000 to Pius Lee, chairman of the Chinatown Economic Development Group.
Fong himself decided “for the sake of peace and unity” to return the disputed money.
“We’re moving from a fighting mode to a constructive mode,” Fong told AsianWeek. “We’re hoping that Chinatown’s players will take a higher road.”
Bill Lee, city administrator and CEDG board member, whose financial review discovered the controversial $140,000 transaction, was pleased by the development.
“Now we can move on. I’m not looking back at the past. I’m looking forward to the future,” he said. “I’m delighted and pleased that we’re all working together for the betterment of Chinatown.”
The return of the money will shift the spotlight to economic development.
“We’re going to concentrate our time on helping the community,” said Pius Lee, who hopes to draw diners and retail shoppers to Chinatown by sponsoring events at theaters and advertising on television.
He added that they were also considering the Chinatown Koban youth and visitors program as recommended by Fong.
Returned Money
The money was returned after the new CEDG leadership sent an Aug. 24 letter threatening legal action against former Chairman Arnold Chin and three former officers.
In an unusual transaction without board approval, the outgoing officers purchased $140,000 in cashiers checks. The Chinatown Community Development Corporation and Alleyway Improvement Association deposited the check for a July 1 contract to maintain a visitor’s information center, streets and alleys. Fong said he was not aware of the controversial nature of the transaction.
The withdrawal occurred on July 15, the same day Mayor Gavin Newsom had informed Chin and the board that they would be replaced.
Newsom’s new board discovered the transaction, leaving the CEDG without short-term funds for operations or its executive director.
CEDG Reforms
Pius Lee, whose committee is also investigating a $275,000 deposit made in 2001, will install financial safeguards.
“Based on past records, the [past CEDG board] didn’t have minutes,” said Lee, who added that executive director reports were not reflected in meeting minutes.
“Anytime we want to spend a penny, we will get board approval,” he said. Proposals will be reviewed by a finance committee.
“We’re going to hire a CPA firm to handle our books,” he said, with the expectation that the accountant will submit monthly reports.
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