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Auditors noted, then ignored, McLaughlin pay

AG investigating repeated failure to act on an outrage that was right in plain view

State auditors did nothing about former Chelsea Housing Authority chief Michael E. McLaughlin’s salary until the gap between his disclosed and true paychecks reached $200,000.

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Comments

Another sad case for taxpayers. This is standard operating practice for this State. We can't even trust the State auditors or the independent? CPAs to do their job. how many more frauds are out there? There is no budget shortfall in this STate that cannot be satisfied by eliminating fraud, abuse, and mismanagement.

This is disgusting, you wonder why people don't trust government. Mass is a very corrupt state. We need two party rule for balance. In 2010, we had the chance to elect a republican auditor and treasurer, but no, everyone continues to vote for business a usual.

In 2010 we could have elected a state auditor who was an actual auditor. Instead the voters went straight. D. Well done Massachusetts.

Great job by the Globe. It should be obvious by now that the culture of Massachusetts state government (if not local government as well) not only allows corruption of all kinds to continue but actually encourages it. If anyone imagines this is a unique case they must be out of their minds. Apparently everyone in on the government "game" knows you don't "rat" anyone out, you don't even question glaring impropriety, job absenteeism or any other unproductive (if not objectively corrupt) activity as you will be made a pariah and lose any hope of rising in any employment fashion. And people lament issues in the private sector! At least a private sector company, eventually, loses as its service or product fails or people who leave do tell the story AND the media is HAPPY to report private sector transgressions. What is the obvious answer? Have the private sector manage as much as possible. They'll have incentives to run operations more efficiently but, more importantly, knowing they can be fired and will be held accountable keeps them (reasonably) honest. No incentives exist in the public sector to keep workers or managers accountable (much less honest). McLaughlin's corruption emerged by accident. There are likely hundreds more out there, no?

This story reflects the excellent investigative reporting by Murphy, Estes and others. The Globe, and the Globe readers, should be proud of these people. But let's face it, in Massachusetts there's plenty to investigate and there's nothing particularly surprising about these findings. Just another in a seemingly endless series of stories about Democrats taking care of Democrats in Massachusetts, the most corrupt state in the country. The real story is not about the incidents of corruption, but about the culture of corruption in this state and why the taxpayers continue to tolerate it.

The state should turn over all the local housing authorities to a private management firm for a fixed fee after a fully compliant open and fair bidding process. Those with existing housing authority jobs may indeed be able to re-apply for their jobs in the private entity and their pensions would be bridged into a mechanism that does not leave them without a reasonable retirement package. There is simply no reason for the state to be in the housing management business and ending it would end any further McLaughlin-type stories and would root out the existing improprieties. There are several capable RE management firms who can run housing for for less 'dollars per unit' without the duplication already in place. Add up the Executive Director and Asst. E.D. salaries for five neighboring agencies - Lynn, Revere, Chelsea, Malden, Everett, Melrose - and you have well over $750,000 dollars annually. If the state is serious about budget cutting, it will need to look at this and other out-scaled economies. Of course politics and patronage being what it is, I won't hold my breath.

And the governor said...???? And the senate president said....???? and speaker of the house said...??? The taxpayer is waiting to hear their position on this and the what seems to be a regular drum beat of corrupt practices infused within government.

These auditors should be fired, and probably their bosses (if they knew about the error).