Assemblymember Avelino Valencia, a former Anaheim councilmember, is requesting a state audit of public money received by the Anaheim Chamber of Commerce and Visit Anaheim.
The request asks for a look into all the sources of public funds given by the city of Anaheim to the chamber and the tourism bureau throughout the past 10 years and how they were used, as well as public funds allocated by Anaheim to entities affiliated with those organizations and the no-bid contracts the city awarded to the chamber and Visit Anaheim.
Valencia’s request asks for contracts, initiatives and projects approved by the city in which the chamber or Visit Anaheim received public funds to be analyzed to determine the source of the money, parameters of the funds and how it was all spent.
The two organizations received a lot of ink in the 353-page, city-commissioned investigation report into questions of corruption and city dealings that was released Monday, with investigators from the JL Group saying that it appeared “as if the city was merely subsidizing the Anaheim Chamber with infusions of money on a near-yearly basis.”
Investigators described a close relationship with the chamber under former CEO Todd Ament, who was previously flagged by an FBI investigation that alleged a cabal of business and political leaders wielding influence in City Hall and who has pleaded guilty to several counts of fraud.
Valencia asked for the audit to find out if any public funds given to the chamber or Visit Anaheim were used for staff increases or compensation for professional services such as consultants, contractors or lobbyists during the pandemic shutdown.
The JL Group investigators also alleged $1.5 million was diverted to the chamber from a $6.5 million grant city officials gave Visit Anaheim, but they could not determine how the money was used in the end.
The tourism bureau was given the money during the early months of the coronavirus pandemic to help promote the city’s reopening, though the investigators noted the scope of the contract was “vague and lacked oversight.”
The audit should also, Valencia requested, identify the COVID funds given to the organizations, including the amount and how those dollars were spent.
Current Chamber of Commerce CEO Laura Cunningham participated in interviews with the investigators, but the chamber did not provide documents; Jay Burress CEO of Visit Anaheim did participate in interviews, the JL Group report said.
“The potential funneling of tax dollars by these organizations, as highlighted in the independent investigation, demands the need for further examination,” said Valencia, a member of the California Joint Legislative Audit Committee. “Residents deserve to know the extent of the corruption that took place in the city of Anaheim. It is a critical step in restoring transparency and public trust.”
When he was a councilmember, Valencia supported hiring the JL Group to do the investigation, which ended up taking nearly a year and costing $1.5 million. He was also interviewed by the investigators.
Valencia was elected to the state Assembly in 2022 to represent the 68th Assembly district. He is a member of the Joint Legislative Audit Committee which, along with the State Auditor’s Office, oversees operations and finances of governments and public entities. Its goal is to improve government performance, the committee’s website says, and it can review and take action on audit requests.
The letter, first shared with the Southern California News Group, was sent to Assemblymember David A. Alvarez, chair of the committee, on Thursday, Aug. 3.
Anaheim Mayor Ashleigh Aitken said she intends to help audit any potential abuse of tax dollars.
“The diverted $1.5 million in taxpayer money was one of the most troubling items that the investigators uncovered,” she said. “I have a lot of questions for the Anaheim Chamber of Commerce, and I was really disappointed they chose not to fully cooperate with the investigation. I also want a report from Visit Anaheim.”
Rep. Lou Correa, D-Anaheim, expressed anger and frustration this week with the report’s allegations that pandemic funds may have been misappropriated.
“Seeing corruption in my hometown breaks my heart,” said Correa. “Elected officials are supposed to fight for the best interests of hard-working taxpayers, not the other way around.”
Anaheim Councilmember Carlos Leon, who joined the dais following the November election, said in a statement this week that “we are again marred by the transgressions of previous leaders and how they decided that advancing a hidden political agenda was more important than serving the residents of Anaheim.”
“I remain committed to analyzing, and exploring policy recommendations and actions, including a potential review of our city charter, that ensure our city does not, and can not, go through this again,” Leon said.
This story was updated to reflect Laura Cunningham's participation in interviews with the JL Group.
