Category: News Briefs Published on Friday, 21 June 2013 09:32 Written by Wall Street Journal
DETROIT—The emergency manager for Detroit on Thursday ordered a financial probe of the city's pension funds, a move that could lead to a takeover of the system in this city on the edge of bankruptcy.
Emergency Manager Kevyn Orr signed the order directing the city's inspector general and auditor general to investigate the city's two pension funds "to identity any waste, abuse, fraud or corruption, including but not limited to, administrative misfeasance or other impropriety."
Under Michigan law, Mr. Orr with other state officials could take over the system by replacing its trustees if he finds that the pension funds are substantially underfunded. Finding gross mismanagement or criminal activity could also strengthen Mr. Orr's hand to appoint new trustees or even become the sole trustee himself, which would let him to manage the assets of the system, according to a person familiar with the matter...Continue to the Wall Street Journal...
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