Officials to investigate bankruptsy
WASHINGTON TWP. – Since the Washington Township Supervisors determined that they have ownership of the building where Community Ambulance Service once operated, they have been investigating the reason behind the service’s bankruptcy and a tax lien filed on the building by the IRS in November 2002. According to the IRS, the service owes roughly $140,000 in employee withholding taxes that were not paid in 2001. Bankruptcy proceedings are still ongoing.
Joseph Grata served as chairman of the CAS board and has offered to help the supervisors investigate to find out why the service had to close its doors and why so much money was owed to the IRS. Grata said he recently questioned members of the CAS board and he told the supervisors Wednesday that he believes “poor judgment and bad management” is to blame for the demise of CAS after 24 years or service. He cited examples of a $9,000 copy machine and a $1,400 chair being purchased at a time when CAS was in financial distress.
Grata also said that it seemed federal and state payroll tax payments were prepared, but not mailed in.
“Apparently the checks were being written and signed and put in an envelope, but they were never mailed,” said Grata. “The misrepresentation created false positive bank balances and masked the worsening financial condition of CAS.”
Grata also pointed out that CAS failed to collect money due on delinquent accounts, which also cost the service a lot of money.
Grata said he believes there is “little evidence of fraud,” and the township should look to the future and its working relationship with Rostraver Ambulance Service.
“This was not the outcome that was expected or wanted,” said Grata. “But it’s time to bring closure. I hope that other past board members will concur with my assessment.”
Chairman John Yetsconish said he had sent a letter to the IRS requesting that a fraud investigation be conducted.
In other matters, Supervisor Joann Latkanich said she wanted to address concerns from people in the Gillespie area who she thought were misinformed about the township’s upcoming sewerage project and why they were being left out.
Project manager David Kerchner said the estimated cost of the project was up to $17 million, and bringing service to Gillespie would have driven the cost up further because it is far away from other areas being serviced. He said the Department of Environmental Protection did not mandate that new sewer lines be installed there.
“That’s not to say that they will never get sewerage,” said Kerchner, explaining that the area could be picked up in a later phase of the project.
Yetsconish also assured the public that people in Gillespie will not be charged any tap-in fees or monthly bills because they are not receiving service.
In other matters, the board approved the transfer of a liquor license to allow Dennis Curcio to open a country western dance saloon on Cook Street. Curcio said that he and his wife would be running a bar and restaurant at the location, and he promised local residents that it would be a nice establishment that would not cause any problems in the township.
The supervisors also voted to require local residents to send letters in advance to the supervisors if they wish to speak at a public meeting. Yetsconish and Latkanich voted in favor of the motion because they said they believed public comment portions of the meetings had become too long, but Supervisor Chuck Yusko voted against it.
Yetsconish also announced that the township will receive $15,000 in federal grant money that will be used to make payments on police vehicles.