Assemblymember Avelino Valencia, a former Anaheim councilmember, has formally requested a state audit of the public funds received by the Anaheim Chamber of Commerce and Visit Anaheim. This audit would examine the sources of public funds given by the city of Anaheim to these organizations over the past decade, as well as the allocation of public funds by Anaheim to affiliated entities and the no-bid contracts awarded to the chamber and Visit Anaheim.
Valencia’s request specifically asks for an analysis of contracts, initiatives, and projects approved by the city that involved the chamber or Visit Anaheim receiving public funds. The goal is to determine the source of the money, the parameters for its use, and how it was ultimately spent.
The involvement of both organizations in a recently released investigation report has raised concerns. The report, spanning 353 pages and commissioned by the city, suggests that the city was essentially subsidizing the Anaheim Chamber by consistently providing financial support. Former CEO Todd Ament, who had previously faced allegations of fraudulent activity and was investigated by the FBI, maintained a close relationship with the chamber.
Valencia’s audit request also aims to determine if any public funds given to the chamber or Visit Anaheim were used to increase staff or compensate for professional services during the pandemic shutdown. This request for transparency and accountability is crucial in restoring public trust and shedding light on potential corruption within the city.
Additionally, the JL Group investigators alleged that $1.5 million was diverted from a $6.5 million grant intended for Visit Anaheim, but they were unable to ascertain how the money was ultimately used. The investigators noted that the contract between the tourism bureau and the city lacked oversight and had a vague scope.
Valencia’s audit request also includes an examination of the COVID funds received by the Anaheim Chamber of Commerce and Visit Anaheim, including the amount of money received and how it was utilized during the pandemic.
It is worth noting that the chamber did not provide relevant documents for the investigation, although its CEO Laura Cunningham participated in interviews with the investigators. Jay Burress, the CEO of Visit Anaheim, also participated in the interviews, as mentioned in the JL Group report.
Valencia, serving as a member of the California Joint Legislative Audit Committee, emphasizes the importance of further examination considering the potential funneling of tax dollars by these organizations, as highlighted in the independent investigation. He believes it is critical for residents to be aware of the extent of corruption within Anaheim and considers this audit a vital step in restoring transparency and public trust.
Valencia supported the hiring of the JL Group when he was a councilmember, and he was also interviewed by the investigators. Elected to the state Assembly in 2022, Valencia represents the 68th Assembly district and holds membership in the Joint Legislative Audit Committee, which oversees the operations and finances of governments and public entities. The committee aims to improve government performance and has the authority to review and take action on audit requests.
The letter requesting the audit was sent to Assemblymember David A. Alvarez, the committee’s chair, on Thursday, Aug. 3. Anaheim Mayor Ashleigh Aitken expresses her intention to support the audit and investigate any potential misuse of tax dollars. She finds the diverting of $1.5 million in taxpayer money particularly troubling and desires a report from both the Anaheim Chamber of Commerce and Visit Anaheim.
Representative Lou Correa, D-Anaheim, shares his disappointment and frustration with the allegations in the report regarding possible misappropriation of pandemic funds. He firmly believes elected officials should prioritize the best interests of hard-working taxpayers rather than engaging in corruption.
Anaheim Councilmember Carlos Leon, newly elected, acknowledges the impact of previous leaders’ transgressions and their failure to prioritize the residents of Anaheim. He commits to analyzing and exploring policy recommendations and potential revisions to the city charter to prevent similar occurrences in the future.
In conclusion, the request for a state audit of the Anaheim Chamber of Commerce and Visit Anaheim seeks to uncover potential misallocation and misuse of public funds. The audit aims to bring clarity, transparency, and accountability to the city’s financial dealings, restoring public trust and ensuring that future actions prioritize the best interests of the Anaheim community.
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