MTA Suffers a Breakdown in Trust

IT had to happen eventually.

The logical conclusion of the ever-growing intersection of financial and political interests is that officials would become so compromised that nothing they do would have any credibility.

That is what happened Thursday when the Metropolitan Transportation Authority board finally decided which of three bidders would get to develop the nearly 16 acres of prime real estate at the North Hollywood subway (Red Line) station - a $1 billion deal.

Showing their contempt for the public, 11 of the 13 board members initially had to disqualify themselves from voting because they had taken campaign contributions from people or companies with a financial stake in the venture, or they were otherwise tied to those companies or their representatives.

Only two members - former state Assemblyman Richard Katz and the San Gabriel Valley's own Duarte City Councilman John Fasana - did not have conflicts of interest and were qualified to vote.

Why anyone - let alone nearly everyone - on the Metro board would be taking money from people doing business with the transportation agency surpasses all understanding. It would be laughable if it wasn't so symptomatic of the L.A.-based
transportation board.

Since a majority of the board is needed to approve contracts, the fact that only two could vote should have caused a serious problem. But always deft at skirting the spirit of ethics laws, the politicians passed legislation years ago that allows the Metro board members to get around conflicts of interest.

Under that legislation, the Metro board chose five of its conflicted members in a random lottery and restored their right to vote, as if they already weren't conflicted.

The five plus Katz and Fasana were "miraculously" unanimous in agreeing to give the lucrative deal to NoHo Art Wave from Lowe Enterprises, a Los Angeles-based real estate company with strong political connections.

Whether there was illegal backroom dealing or collusion in this we will probably never know. But the single most important project ever in the San Fernando Valley ought to start out without a cloud of suspicion hanging over it.

The lottery did not erase the conflicts of interest. People who serve on boards such as the Metro board, with billions of dollars riding on its decisions, should be so far removed from the political dirty-money game that conflicts would be rare. This revelation of so many conflicts calls into question the North Hollywood project decision - and very likely every other decision from such a conflicted body.

Clearly, there are needs for: a thorough and independent investigation of the North Hollywood project process, a repeal of the random-lottery law and a new system created to make sure Metro board members are not - in appearance or in reality - owned by the companies they contract with.