Unaccounted Funds: Almost $5 Million Disappears Post Central Basin Board's Questionable Power Seizure
In the past few years, Central Basin, a California water agency, has seen a significant drop in its cash reserves, raising concerns about financial management and transparency.
In August 2022, the agency had a cash balance of $14.4 million. However, by May 2025, this balance had dropped to $9.5 million, marking a nearly $5 million loss. This decline occurred following a management change in February 2024, when Dr. Rojas was illegally placed on leave and Victor Ponto, with no operational water experience, was installed as general manager.
Under the new leadership, Central Basin experienced irregularities in financial reporting. For instance, at the January 2025 meeting, multiple months of financial reports were approved all at once, obscuring timely accounting of cash movements. The Treasurer’s Report at that time only showed the December 2024 cash balance.
Interim General Manager Elaine Jeng attributed some cash fluctuations to timing differences in payments and receipts, notably payments to the Metropolitan Water District for potable water purchases. However, this explanation did not fully address the $5 million decline.
Central Basin Director Art Chacon, who was president at the time, has stated that under Dr. Rojas's leadership, there were consistent profits and raised reserves. The mishandling of financial reporting and the opaque circumstances around the firing contribute to suspicion of mismanagement or misallocation of funds during this period.
It's worth noting that despite the financial decline, Central Basin's Standard and Poor's credit rating increased to A3 in 2022-2023. The agency ended the 2020-2021 fiscal year with $15 million, and in 2021-2022, it closed the year with $18 million.
As the situation unfolds, the board and the public are calling for transparency and accountability to ensure the financial stability of Central Basin.
[1] Source: Los Angeles Daily News, "Central Basin's financial decline raises concerns following management change," [link to the article]
- The decline in Central Basin's cash reserve, leading to a loss of nearly $5 million from August 2022 to May 2025, has been a source of concern among the community, as it followed a management change and irregularities in financial reporting.
- Although Central Basin's credit rating increased from A3 in 2022-2023, the financial decline under the new leadership has led to questions about the agency's business practices, particularly in terms of crime and justice, such as the opaque circumstances surrounding the dismissal of Dr. Rojas.
- Amidst calls for transparency and accountability, the ongoing event within Central Basin's management has sparked general-news debate about the responsible allocation of funds, not only for the water agency's operations but also for its obligations to the larger community, including its commitment to providing potable water and maintaining financial stability.
