Government Funds Mismanagement

Published February 6, 2024 | 11:48am PST

No money will ever be enough when there is mismanagement of city funds. It’s not that different from one’s personal finances.

Governments often outsource public services. Sometimes they privatize public property with the fallacy that it will save costs, but the reality is that with these economic practices, the private sector is the sector that benefits the most. Privatization opens doors to potential corruption, monopolies, loss of citizens' autonomy, and citizens' financial distress.

Cambridge Dictionary defines outsourcing as paying privately-owned companies to get some work or services done for the public. Privatization is selling a service provided by the government to the private sector for their control and management.

Here in Pomona, we can talk about one recent example, the privatization of the city-owned trash company to Athens Co.

Pomona has had its own city trash company since the city was founded, but In 2022, the current Mayor and five city council members decided to transfer the trash service to Athens, a privately-owned trash company. By speaking with hundreds of small business owners, commercial property owners, and residents, I learned that their trash company bills went up from 200% to 400%. In this instance, evidently, Athens Co. charged the citizens more than enough to provide service, they charged them to make a profit, and, in this case, also cover the city’s franchise fees. Athens received an exclusive contract with the City of Pomona. The citizens of Pomona are stuck. Nobody can hire any other trash company apart from Athens, and since the company is not accountable to the citizens, the risk of corruption runs high. 

The City of Pomona has not provided a decent explanation to the citizens about how they have created a monopoly, an aberrant practice that violates the antitrust laws. To learn about antitrust laws, click here. The citizens, businesses, and property owners in this transaction have lost the right to have direct contract with those who are providing their service.

This article was published by the Pomonan online news.