2019 LSB elections are another pseudo-election: no public evidence that the elector rolls are materially accurate

1) The 2019 Local Station Board elections, for half the seats, got underway whilst the nominal 2018 pseudo-elections were still in progress. All ten elections run this year, listener & staff for each of the five stations – last time there was no WPFW-listeners election as there were only five verified candidates for the nine vacated seats (please see https://pacificaradiowatch.home.blog/2019/07/19/nominal-2018-pseudo-election/).

But are these 2019 elections bona fide, are they genuine? Or are they pseudo-elections? Yes, there’s lots of activity, 128 verified wannabe delegates, but what’s it based on? Station staff rolls are derived from employment records. On a much greater scale, how accurate is the most basic building block, the Pacifica membership list, used to generate the elector roll for each station’s listener-election? Are the elector rolls adequate?

Well, they weren’t at 29Oct2018, during the nominal 2018 election process. Yet, with a different National Elections Supervisor (NES), they were claimed to be accurate. No evidence has ever been publicly presented as to how this magical transformation was achieved – a turnaround to be immensely proud of, yes? Crucially, given Pacifica’s long history of lacking credibility, this magical transformation has never been independently verified. (One must say ‘nominal 2018 election’ because the voting was in 2019, 18Jan through 5Mar; the election used a ‘record date’ at 19Nov2018.)

So what about this year’s election? The record date is at Su30June. The elector roll gives name & contact details. That of a reasonably sized town: c. 46 000. How plausible is it that the famously dysfunctional Pacifica is as efficient as a Springfield city council, maintaining, without material inaccuracy, such information? Well, only if Homer were in charge – which makes my point.

2019 is the same as 2018: no evidence has been publicly presented that the 30June elector rolls are materially accurate. None. This creates a reasonable & strong doubt. The only rational conclusion: based on the balance of probabilities, the 2019 process is another pseudo-election.

To help restore credibility to Pacifica elections, an action, necessary but insufficient, is an independent evaluation of the material accuracy of both the membership list & the elector roll. Obviously this won’t happen: politically, the PNB majority would oppose it; economically, Pacifica, last making an annual net income in FY2006, has bills to pay before it can think about reputation.

2) So what happened in 2018? How was it revealed that materially accurate elector rolls didn’t exist? Moreover, how was it revealed that there was no expectation of their imminent creation, certainly not within the time constraint of the 2018 election cycle?

In Aug2018, ED Tom Livingston hired a firm, Drew North Consulting. Graeme Drew, an experienced elections supervisor, became the NES. He & his team started work, in the National Office & the five stations. They soon found what the reality was, & it halted them in their tracks: on M29Oct, he found himself with no alternative but to abandon the job. Why?

The membership records proved inadequate. They weren’t materially accurate: too many errors. Inadequate supporting evidence, of donations made, & of volunteer timesheets. Through a lack of maintenance, the records had become corrupted. The membership list was, in a word, corrupt. It had proven to be unusable, unable to function as the primary source of the elector rolls, the record of those enfranchised to vote. The eligibility of not one candidate could be verified.

The most basic building block was absent. The process had self-destructed. Logically, he terminated the election process. Just as logically, if a NES is empowered to declare a certification of the election results, they are empowered to declare a self-destruction of the election process. And this he was about to do.

He told ED Maxie Jackson, M29Oct. The day after, he also told the PNB, & said he was going to announce this publicly the next day. The PNB called an emergency private meeting for that evening. The PNB majority chose to ignore the considered, evidenced judgment of the elections professional: they wanted voting to happen – any voting.

These are the words of Graeme Drew, the very first sentence, in full, of his (leaked) NES report to the PNB, Tu30Oct2018: “[o]n Monday, October 29, 2018 I informed your Executive Director of my decision to terminate the 2018 election process.” (my emphases). But worse was to come. On the third, & final page, the news the PNB majority really didn’t want to hear: “I plan to announce the end of the 2018 election on Wednesday, October 31, 2018.” (my emphases). Trying to end something, that’s one thing; telling the public, quite another. http://www.mediafire.com/file/s8eu60d26b3ame9/Pacifica_2018_NES_Final_Report.pdf/file

Unbeknown at the time, this set a precedent, one of huge significance for the chances of the Pacifica Foundation being turned around. Over the subsequent months, hearing the wrong news, also caused the PNB majority to plan, then engineer, the ousting of ED Maxie Jackson. If Pacifica is really good at one thing, this is it.

Obviously, hiring a professional elections supervision firm had been a mistake. A big mistake. One not to be repeated. So an individual had to be hired. For credibility purposes, a Local Elections Supervisor has a certain plausibility about it. Enter the LES for KPFT, in Houston, Alma Viscarra. She found the same reality, equivocated to some extent, but tried her best to do the PNB majority’s bidding. But she didn’t pass the test, & so got chopped. In came the LES for all of KPFA, KPFK, & KPFT, Renee Penaloza. A proven superwoman. Now this was different. This changed things. All obstacles suddenly swept away. Unbridled progress on all fronts. Voting duly taking place. Certified results published. This is the sort of proof the PNB majority like.

So no surprise she’s the NES for these 2019 elections. A safe pair of hands. This is efficiency, Pacifica style.

Thing is, no evidence has ever been presented by NES Penaloza, or the PNB, of the adequacy of the elector rolls used in either set of elections. All we have is de facto assertion, a practical assertion, the carrying on of an activity labelled an election. In the absence of evidence, it is a matter of pure faith that the 2019 elections are bona fide.

The membership list has been magically purified. It would be an exaggeration to say Pacifica excels at the application of alchemy. What Pacifica has done, at least since Oct2006 when the annual losses started, is to muddle through, but not in the way dignified by Charles Lindblom in 1959. http://urban.hunter.cuny.edu/~schram/lindblom1959.pdf

And what is the only rational conclusion to draw? The corrupted membership list remains corrupt. It has been used within a year in two sets of elections. This is corruption. It is being perpetrated out of self-interest by two parties, for different reasons: politically, it’s what the PNB majority want; economically, the NES is happy to do it because she keeps getting paid by Pacifica’s members & listeners.

The only honourable & credible remedy is that there is an independent evaluation of the material accuracy of the membership lists & elector rolls used for both the nominal 2018 pseudo-election & the 2019 pseudo-election.

3) The latest NES report on the current pseudo-elections, the sixth, was published Th13June: http://elections.pacifica.org/wordpress/wp-content/uploads/2019/06/Elections-Report-6-6-13-19.pdf (2 pages) [NO LATER PUBLIC REPORT AS OF F19JULY Sa27JULY Tu6AUG (Hiroshima Remembrance Day . . . 8.15am local time, mass murder from six miles up). A report, of sorts, was posted, & although undated is said to be of W28Aug. http://elections.pacifica.org/wordpress/wp-content/uploads/2019/08/Election-Report-08.28.19.pdf]

4) The NES’ public website, with the statements of all 128 verified candidates for the 60 seats: https://elections.pacifica.org/wordpress/ [As of W7Aug, reduced to 123 (details below).]

5) Ever wondered what those disembodied voices come from, what the decision-makers look like? Well, Pacifica has the answer – maybe the only one it has.

Pacifica has hardly publicised it, but an elections YouTube channel was created in July 2015. Oddly, it’s named ‘National Election [sic] Supervisor 2019’ although it carries vids for both the current pseudo-election & the one voted on earlier this year, the nominal 2018 pseudo-election. (Note that these older candidate discussion vids, some chaired by NES Renee Penaloza, are packaged away in playlists; not dated, but the aesthetic is noticeably different.)

As of W7Aug2019, the channel has nine subscribers, & has had 1 298 views; this compares with Pacifica having c. 46k members (also, the enfranchised at the last staff elections numbered 978). The channel has 81 vids: 60 one-minute candidate statements (some are discarded edits), & 21 discussions between candidates (12 from this pseudo-election, nine from the last). Since the weekend, the curator has helpfully aggregated most of the vids as 13 topical playlists.

The discussions, in Pacificanese, are candidate forums, bringing together between two & five wanabee delegates, the Pacificanese for those sitting on the local station board. These pseudo-elections, for each station, are for nine listener-seats & three staff-seats, so half the board.

The number of verified candidates, published by the NES on the elections website, has been reduced by five. Originally 128 were declared: 105 listeners (16 KPFA, 23 KPFK, 21 KPFT, 13 WPFW, 32 WBAI), & 23 staff (6 KPFA, 5 KPFK, 4 KPFT, 4 WPFW, 4 WBAI). As of W7Aug, the only changes in the figures concern listener-candidates: up by two at WPFW; & down by seven, two at KPFK (one being the LSB Chair until March this year), one at KPFT, & four at WBAI.

No explanations have been offered by the NES, & a report is long due: there were six in seven weeks, but nothing in the last eight weeks, nothing since Th13June. This fact has not been mentioned in any public PNB meeting. Queen Grace the First, who ousted King Maxie the Third, has displayed no displeasure. Obviously not a problem for her & her minions. However, the silence does not inspire confidence in either NES Penaloza or, more importantly, the electoral process. All reports are work-in-progress, & there has been progress, not least the verifying of the candidates. Puzzling.

Here on the YouTube silver screen are the Paccywood stars of 2019:

KPFA listeners (16 verified candidates, 11 discussants as of W7Aug): Marilla Arguelles, Fred Cook, Lily Kimura, Mantra Plonsey, & Mark Van Landuyt https://www.youtube.com/watch?v=-uF4dRjuVRo (in-vid caption has ‘Arguiles’, 1:57)

Craig Dunkerley, Christina Huggins, & Akio Tanaka https://www.youtube.com/watch?v=Q7zZXqHCLPk (in-vid caption has ‘Dunklerly’, 4:37)

Marilyn Langlois, Andrea Turner, & Carol Wolfley https://www.youtube.com/watch?v=smOozi_CxpQ (did Carol edit this? The vid is 31:16, & the in-vid caption of her name pops up four times before any other candidate’s, monopolising over 2/3rds of the vid, before Marilyn’s makes an appearance at 21:39! But of course Carol’s comes next, & with less than five mins to go Andrea’s finally makes a showing. Fair’s fair. The last three are Andrea, then Marilyn, with Carol finishing off, just in case we’d forgotten her name. Unbelievable. Who are these people who reproduce Pacifica, day after day?)

KPFA staff (6 candidates, 2 discussants): Ann Garrison & Steve Zeltzer https://www.youtube.com/watch?v=BBhzZ-qMCg8

KPFK listeners (21, 10): Michael Atkins, Doug Barnett, & Eric Jacobson https://www.youtube.com/watch?v=qpUZ7VvBVyA (misdescribed at YT as ‘KPFA’. The three KPFK listener vids all lack in-vid captions: they were the first discussions to be published, M5Aug)

Jaime Gomez, Jim Osborne, Paul Roberson, & Elizabeth von Gunten https://www.youtube.com/watch?v=6c5qvk4E-mI (however, Jaime isn’t listed as a verified candidate at the NES’ website, & has no statement there; YT has ‘Jamie’, & ‘van’)

Ralph Hawkins, Barbara Marbach, & Robert Payne https://www.youtube.com/watch?v=ymUTbWfkfsU

KPFK staff (5, 0): none

KPFT listeners (20, 11): Anisa Faruqi & Nancy Saibara-Naritomi https://www.youtube.com/watch?v=NByajQCLvsM (YT has ‘Naitomi’)

Robert Gartner, Paula Miller, Rick Pothoff, Ted Weisgal, & Vaniecia Williams https://www.youtube.com/watch?v=za5fwn0sMlc (in-vid caption has ‘Garner’, 3:14; ditto has ‘Vaneicia’, 4:05, & the vid’s title too; the elections site has ‘Potthoff’ but KPFT LSB minutes consistently give ‘Pothoff’)

Raka Ghosh & Susie Moreno https://www.youtube.com/watch?v=ZZ9diZxHumI

Deb Shafto & Richard Uzzell https://www.youtube.com/watch?v=8_f0GnuISYw

KPFT staff (4, 4 – bingo!): Lilian Guttinger Care, Wally James, Mike Lewis, & Sandy Weinmann https://www.youtube.com/watch?v=BU0-00pP5aM (YT has ‘Lillian’)

WPFW listeners (15, 0): none (nor any candidate statements, maybe camera shy)

WPFW staff (4, 0): none (nor any candidate statements)

WBAI listeners (28, 0!): none (but lots of candidate statements)

WBAI staff (4, 0): none (but some candidate statements)

Somewhat worrying, given that the NES is responsible for the accuracy of the elector rolls, & for practising basic human respect, is the number of misspelt names, nine, for 38 people, a 24% error rate – and that’s just the names. Why am I not surprised?

Nominal 2018 LSB pseudo-elections

These elections became a pseudo-election when the PNB obstinately fired the National Elections Supervisor (NES), Graeme Drew, & carried on regardless. This happened Tu30Oct2018, the evening before he was going to publicly declare that he’d called off the elections, having determined that the elections couldn’t take place because the membership list was so poor that “I am unable to reliably verify any of the applicants for candidacy due to the poor quality of elector lists” (his final, leaked, report to the PNB, Tu30Oct, page 2, my emphasis – a week after its publication he kindly sent it to me). He also determined that there was no prospect of this being remedied any time soon. http://www.mediafire.com/file/s8eu60d26b3ame9/Pacifica_2018_NES_Final_Report.pdf/file

Two pieces, one long, one short, downloadable as PDF’s:

http://www.mediafire.com/file/vkr6azyhrjhte1l/PNB-Abandoned_Election-and_Rosemary%2527s_Baby_with_Drew_resignation_letter_addendum_F9Nov18_15pp.pdf/file

http://www.mediafire.com/file/rzeqx0bby1ktr1t/The_Election-Governance-and_the_Houston_Split_Su13Jan19_3pp.pdf/file

A summary of what happened, & what it reveals about the Pacifica ‘leadership’, is given as an introduction to the 2019 LSB pseudo-elections. On the balance of probabilities, these are more sham elections, because they’re also based on a membership list for which there is no publicly available evidence that it is materially accurate: all we have is a practical assertion that there’s no problem, an assertion that’s to be taken on trust. Well, those days are long over. https://pacificaradiowatch.home.blog/2019/07/19/2019-lsb-elections-are-another-pseudo-election-no-public-evidence-that-elector-rolls-materially-accurate/

(The results were declared M18Mar2019. An analysis of the NES’ final report (undated, but said to be M18Mar) will follow. http://elections.pacifica.org/wordpress/wp-content/uploads/2019/03/Pacifica-Election-Final-Report-2018-by-RAP-1-1.pdf)

Pacifica’s $3.7m loan contract with the Foundation for the Jewish Community, FJC, & other docs leaked W26June2019

The Pacifica advocates of the loan from the Foundation for the Jewish Community, FJC, have presented it as a good Samaritan, doing it out of the kindness of its heart. In fact, FJC is in a competitive market as a manager of donor-advised funds, a sector of the charity industry. One of its money-making operations is running a fund that lends at prime-plus, the Agency Loan Fund, ALF. Donors to FJC can lodge money with ALF, as can outsiders, all hungry for those extra percentage points of interest earnt.

FJC had been having problems finding borrowers for these prime-plus loans: only 46% of ALF had been converted into loans at 31Mar2018, the very time of the 2Apr Pacifica loan (its latest auditor’s report, year-end 31Mar2018, page 20; page 22 of the PDF). So, of course, Pacifica was welcomed with open arms. Sentiment this was not. http://fjc.org/uploads/user-uploads/image/FJC%203-31-18%20FINAL.pdf

The greatest aid to Pacifica transparency, on this or any matter, has not come from the National Board, the PNB. No, this came with the documents leaked W26June2019 on a Facebook group, then co-moderated & -administered by Grace Aaron. She was then, as now, Chair of the Pacifica Foundation. Most of the documents concern the loan from FJC. https://www.facebook.com/groups/PacificaRadiowaves/permalink/1264765520345396/

There are 18 unique documents (one is a copy):

https://www.mediafire.com/folder/e1lo0t30pd4wc/ (the original drop)

https://mega.nz/#F!PloCiSqJ!9rLejSkttE7gCVCCq3q86g (convenient one-click download of the folder; also ‘preview’ allows reading online)

The ‘root’ contract, called the “loan agreement”, 2Apr2018, signed by Pacifica Interim Executive Director Tom Livingston & FJC President Lorin Silverman: https://mega.nz/#F!PloCiSqJ!9rLejSkttE7gCVCCq3q86g?b0IBlaiR

There’s also an advertising (underwriting) contract as part of the loan, signed 23Mar2018 by iED Livingston; please see below.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

The $3.7m loan was reduced to $3.265m loan when Pacifica was unable to collateralise the KPFK transmitter site lease, at Mount Wilson. This was because it’s federal land administered by the Dept. of Agriculture Forest Service, & they wouldn’t give the necessary permissions. (The documentary evidence is contrary to the story being told in 2018 by Grace Aaron et al. that the attempt was to collateralise the transmitter, not the site lease – please see the loan agreement, Sec. 2.1(d); p. 5.)

What did the Pacifica National Board (PNB) commit the members to when it accepted FJC’s offer of the money?

  • the signed loan agreement is dated 2Apr2018, & it has a three-year term;
  • significantly, Pacifica directors agreed to a contract that details only two ways to pay the principal by 2Apr2021: selling as many broadcasting licences & station buildings as it takes: “a swap or sale of one or more radio licenses or a sale of other Pacifica owned assets” (Recital B; page 1);
  • annual interest at three percentage points above US prime rate (Section 2.2; p. 5). (So, an annual 7.75% when the loan started; 8%, effective 14June; 8.25%, 27Sep; 8.5%, 20Dec2018. [UPDATE: 8.25%, effective Th1Aug2019.] The three-year interest charge, with the coming recession dragging down the rate, will be less than $800k.);
  • the default rate, such as after a late payment – not least the paying of the principal on time (Sec. 8.1; p. 13) – is the lower of either 18% a year or the maximum under law (Sec. 1.1(10); p. 2);
  • Pacifica directors, with no public discussion, agreed to carry advertising, & on 23Mar2018 signed a contract with an advertising broker, F. Y. Eye, Inc.; FJC chose to make Pacifica do this “in lieu” of its “origination fee” (Sec. 3.1(2); pp. 6-7), & you may wonder why – details below; &
  • FJC never waits for a loan to default: it sells the loan on when it’s only “potentially impaired”, to the Marty & Dorothy Silverman Foundation; details below.

https://mega.nz/#F!PloCiSqJ!9rLejSkttE7gCVCCq3q86g?b0IBlaiR

Pacifica’s immediate future is structured more by this contract than anything else.

As part of the FJC contract, on 23Mar2018 iED Tom Livingston signed an underwriting contract on behalf of Pacifica, for it to carry advertising. This hasn’t been acknowledged publicly by any Pacifica body, not least the Pacifica National Board (PNB). The details now follow.

Appended to the loan agreement, signed by Pacifica & FJC, is an unsigned underwriting contract (pp. 25-7). It is “substantially in the form” that Pacifica has agreed to sign with the NYC advertising broker, F.Y. Eye, Inc. (Sec. 3.1(2); pp. 6-7 & 25-7) – a corporation founded by its president, Lorin Silverman . . . yes, the President & Treasurer of FJC, and President & Treasurer of the Marty & Dorothy Silverman Foundation, which buys FJC loans that are “potentially impaired”, not even in default (FJC policy, disclosed in any of their auditor’s reports & IRS form 990’s – the latest: pp. 10-11, pp. 12-13 of the PDF, http://fjc.org/uploads/user-uploads/image/FJC%203-31-18%20FINAL.pdf; & Schedule O, p. 90 of the PDF, http://fjc.org/uploads/user-uploads/image/file/990%20FY17%20-%20For%20Distribution.pdf). And, yes, it was Lorin’s signature that lent the money to Pacifica.

It should be noted that the chronology in the loan agreement, the talk of ‘Pacifica has agreed to sign’, has to be juxtaposed with the fact that this advertising agreement was actually signed just over a week earlier, on 23Mar2018. It was done by iED Tom Livingston, a contract with F. Y. Eye, Inc., dated 2Apr2018 (linked below). Signing for the latter was its President, Lorin Silverman (yes, a busy guy). Pacifica has publicly issued no document demonstrating that Livingston had been authorised by the PNB to do this. Likewise, there is no public Pacifica document showing that the PNB had agreed to advertising via the FJC loan. Such is the life of a secret society – moreover, one funded directly by the members, members who were never consulted on this matter. Moreover, members who have never shown any evidence, at any time in Pacifica’s 73-year history, of being enamoured to advertising on the Pacifica airwaves. Such is the anti-democratic disposition of the PNB majority. Shameless authoritarians. Eat yer heart out, Lew. https://mega.nz/#F!PloCiSqJ!9rLejSkttE7gCVCCq3q86g?qkxynCxQ

The money

Gabito meets Pacifica . . .

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

You have to ask yourself, what brought the organisation to this point.

(adaptation of the words of the customs official, opening Exotica, the best film by Atom Egoyan)

~

[This was one of the first posts of this blog. Straight after the ‘Godot’, it was part of a set of four, a marker (auditor’s reports, FY2005+; the leak of the FJC loan documents; & analyses of the 2018 & 2019 Local Station Board pseudo-elections). With more info available, this particular post has been superseded, updated & put in a tab at the top of this page, AUDITOR’S REPORTS, ETC.: 1994+. It’s temporarily at https://pacificaradiowatch.home.blog/auditor-s-reports/auditor-s-reports-from-fy2005/, to be edited & sent on its way to https://pacificaradiowatch.home.blog/auditor-s-reports/auditors-reports-summary-notes-2/notes-explanatory-historical-to-the-auditors-reports/.]

~

These are the auditor’s reports of the period from 1Oct2004, so from fiscal 2005 (FY2005). The run is 13 years, through FY2017.

Prefatorily, I just want to draw attention to how important it is that basic knowledge is widely accessible. Knowledge of this series is necessary for the possibility of informed, rational discussion of Pacifica, not least because the institutional memory of the organisation is largely not lodged in archives but in people’s heads, those who have been involved in Pacifica, some for many, many decades. An important effect, biasing how discussion proceeds, is that knowledge is not shared, not readily available to all, but instead it’s privileged, possessed by the few.

That’s why, for example, Grace Aaron, more often than most attendees of a meeting, will mention a policy, which no-one else may know exists, she can even call it up on the screen, & say she’s quoting from it. And she can’t be challenged, even as to whether it’s still current. Crucially, Pacifica cttees lack induction for new members, & the cttees lack a rudimentary archive, including one that’s publicly available. As another example, she can claim that problems x, y, & z started in 2012, when in fact the record shows, say, that the tardiness in the production of auditor’s reports started in Oct2009, & annual losses started in FY2007. Knowledge claims & accountability require checking against easily accessible primary sources.

The politico-epistemic condition of Pacifica is oligopolistic, of the few. So no surprise that Pacifica’s form of ruling is the oligarchy, a clique within, & outside, the Pacifica National Board. Knowledge is integral to ruling because politics is inherently about control, here control of access to something important for action. (This is one case of the general nature of control, control over the quality of relations, both between people, & between people & what’s important.) Hence the centrality, & vehement defence, of Pacifica’s secrecy culture for those trying to keep the organisation as it is. So, yes, there’s a politics of the (boring) archive. And conceptually it’s not reducible to Francis Bacon’s claim that knowledge is power.

Zip file of the folder: convenient one-click download: https://mega.nz/folder/RU9X0aKL#2UYdQbBOdlNJnzkXf4CBKQ

Individual auditor’s reports: go to the above link, then click on a report; download, or read online by hovering over it, clicking the three horizontal dots, & then ‘preview’. Note that two reports are buried in their PDF: FY2006 is from p. 40; & FY2010 from p. 34. FY2010 also has an important page missing (p. 1), the whole of the auditor’s narrative.

[UPDATE: this page was found elsewhere, & that auditor’s report has been added to the folder.]

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

I had just started writing this paragraph in a slightly different way, but Sa3Aug I went to the financials archive at the Foundation’s website, https://pacifica.org (tab at top), & saw that the archive has been changed significantly, either that day or the day before. I was going to put here, ‘This presentation is more complete & accessible than the audit archive at Pacifica’s site, which has these deficiencies: the FY2009 auditor’s report isn’t there; the FY2010 report lacks a crucial page, the auditor’s narrative (page 1); & the FY2006 & 2010 reports are buried inside the PDF, after the 990. I have sent “National Office” the URL of this PacificaWatch webpage.’ (This topic was appended to a Su4Aug open letter to iED John Vernile on two important matters: his written plan for Pacifica, & the need for Pacifica to explain why Maxie Jackson is no longer at his post.)

The pacifica.org archive index page is obviously being re-written, but on checking the deficiencies I listed, these remain: there is a link labelled ‘FY2009 Audit’ but, unfortunately, it’s to the FY2011 report; the link labelled ‘FY2010 Audit’ leads to “Not Found”; & there’s no link for FY2006, just “Temporarily Unavailable”. I haven’t checked the other links. (The Pacifica worker doing this, perhaps Director & Audit Cttee Chair Eileen Rosin, who’d spoken in Cttee on this topic, can find it at http://pacificana.org/public/files/National/Financials/Audits/PacificaAudit2009.pdf – it’s not at the California Registry of Charitable Trusts; incidently, that records Pacifica’s registry status as “Delinquent”, albeit not giving today’s date but 16Nov2018: pump ‘Pacifica Foundation’ into http://rct.doj.ca.gov/Verification/Web/Search.aspx?facility=Y.) [UPDATE: registry status became “Current” as of Th22Aug.]

Still, I’ve sent the email to the immaterial (in the two senses, regrettably), nominal National Office; hence it had to be addressed to the principal administrator, iED Vernile. He has better things to do, but that’s how it is with an organisational structure that is exemplarily flat, lean, mean.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

The FY2018 audit: iCFO Tamra Swiderski had given August as the expected finish date, but her latest report, at the Th1Aug PNB, is that “I don’t know exactly, urgh, what deadline we’re working on now for the audit, um, but I know we’re working to get something to the auditors that’s as complete as it can be, um, as soon as we can. Um, it’s pretty much all that I’m working on right now” – 10:19, https://kpftx.org/archives/pnb/pnb190801/pnb190801a.mp3. Not her finest moment. The Chair of the PNB Audit Cttee is a Pacifica director, so heard all this. Ms Eileen Rosin did ask a question – on a topic Tamra didn’t address (a handbook). So Eileen pointedly refused to ask (1) why is there no current deadline?, & (2) why was the old deadline not met? The answers are obvious. The transaction & transfer records, & the supporting documentation, are still that incomplete & chaotic. So much so that it’s impossible to rationally decide a deadline. A PacificaWorld Deadline is just words – not so much an aspiration, as it is useful as a sop to a Cttee lacking expertise, lacking nous. (Ms Swiderski is a current, & longstanding, employee of NETA: no conflict of interest? https://www.netaonline.org/OurStaff, penultimate row of controllers. Ditto her predecessor, Larry Dankner, who never attended a recorded public Pacifica meeting, although listed on some draft agendas (‘Our Staff’, top row of controllers).

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

NOTES TO THE SERIES OF AUDITOR’S REPORTS

[These will be shortened, with the excised being included in a commentary on this 13-year run of auditor’s reports, & posted below.]

1. Restatements . . . Be aware that financial statements given in one auditor’s report have on occasion been restated by a subsequent auditor’s report. This happened five times, by the reports of FY2007, 2009, 2010, 2012, & 2015. The most striking was a ‘negative swing’ of $1.5m, restating FY2008’s net income of $1 068 901 as a loss of $433 161 (the FY2009 report; d’oh!). Restatement has been of both size of amounts & their categorisation. Reports detailing the restatements: FY2007 (Note 18, p. 15); FY2009 (Note 18, pp. 23-4); FY2010 (Note 19, p. 18); FY2012 (Note 14, p. 15); & FY2015 (Note 22, p. 20).

2. ‘Substantial doubt about continuing as a going concern’ . . . Five times auditors have given this Black Mark: FY2010, FY2011, FY2015, FY2016, & FY2017. That’s five in the last eight. Each time, given the financial statements & knowledge of post-year-end events, the auditors found it necessary to conclude that there is, to use the standard phrase, ‘a substantial doubt about the ability of the organisation to continue as a going concern’. The test here is being liquid without undergoing structural change; as the FY2010 auditor, Ross Wisdom, put it: “the Foundation’s ability to meet its obligations as they become due without substantial disposition of assets outside the ordinary course of operations, or restructuring of debt, or externally forced revisions of its operations or similar actions” (Note 20, p. 18).

3. Auditor’s modified opinion . . . If auditors aren’t ‘happy’ with financial statements they give, in the jargon, a modified opinion. There are three kinds: a qualified opinion (also termed a scope limitation); an adverse opinion; & a disclaimer of opinion. (Note that some PNB Audit Cttee members have, falsely, treated ‘modified’ & ‘qualified’ as synonyms; they also speak of a ‘clean audit’, presumably financial statements given an unmodified opinion by the auditor, that is, they are judged to be materially accurate.) Please see this well-written explication from the professional body of accountants & auditors: https://www.aicpa.org/content/dam/aicpa/research/standards/auditattest/downloadabledocuments/au-c-00705.pdf (AU-C = Auditing Clarification)

a) Qualified opinion: only once have auditors found it necessary to give this to the offered financial statements, FY2016. The auditors that year, Regalia & Associates, gave two reasons.

First, the FY2015 & 2016 pension audits hadn’t been done, so a materially accurate pensions liability amount hadn’t been provided to Pacifica &, therefore, to the general auditor, Regalia. Regalia concluded, “[w]e were thus unable to obtain sufficient appropriate audit evidence”. This formulation includes something they didn’t spell out: they, & indeed Pacifica, were also unable to reliably estimate the pensions liability, something permissible within accounting standards, which would have removed a reason for having to give a modified opinion on the statements. This inability could only have been because of the poor state of the transaction records & supporting documentation (FY2016 auditor’s report, pages 1a & 1b).

https://mega.nz/file/YEcTRYID#IIQGPCye8yYMqj3_eOf0voVp8aVTcurd93L_D1Lpr30

Second, a familiar refrain, the accounting records & supporting documentation weren’t in the best of health, to put it mildly. Regalia, again: “[a]dditionally, we encountered difficulties in obtaining sufficient supporting documentation from some of the locations. Certain of the stations do not use the same accounting software as the corporate office. Some of the data from these stations could not be fully verified because it was missing.” The next, & last sentence is the killer: “[c]onsequently, we were unable to determine whether any adjustments to the amounts recorded in the accounting records were necessary” (p. 1b, emphases added). Oh.

As mentioned, a qualified opinion is also known as a scope limitation, & the lack of adequate FY2016 accounting records & supporting documentation was limited enough to warrant a qualified opinion, rather than not giving an opinion at all about the material accuracy, & so the fairness, of the financial statements presented to the auditor by Pacifica. FY2017 proved a quite different matter.

b) Disclaimer of opinion: again, only given once, FY2017. This was given by the new auditors, Rogers & Company. Concerning the pensions liability, they replicated wording of the previous year’s auditor’s report, now adding that there were two more absent pensions audits (p. 1).

https://mega.nz/file/EEkzCISb#Ww-QsBJhepdA7jsRqVLVYvOb2YJloPJfyg_5AVyaRDE

Moreover, the auditors declared a general deterioration in Pacifica’s record-keeping compared with the previous year: “[a]dditionally, we were unable to obtain audit evidence to support the amounts and disclosures in the financial statements due to difficulties in obtaining sufficient supporting documentation from some of the locations […] As a result, we were unable to determine whether any adjustments were necessary to make to the Foundation’s statement of financial position[,] and the elements making up the statements” (p. 2, emphases added).

The state of affairs required them to conclude that a scope limitation was unwarranted, & that they had no alternative but to offer no opinion on the financial statements provided by Pacifica: “we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion” (p. 2).

The auditors were unable to vouch for the material accuracy, the fairness, of the FY2017 financial statements presented to them by Pacifica.

The FY2018 financial statements are likely to be treated the same way, according to the auditor at the M19Aug Audit Cttee. Please see the next note.

4. The FY2017 financial statements, in not carrying an auditor’s opinion, cannot be relied upon by anyone, not least potential grantors & donors: their material accuracy, & so being a fair representation of Pacifica’s financial position, was NOT vouched for by the auditors.

The statements are effectively worthless – their only worth is deleterious to Pacifica, telling the reader that that year’s financial records & supporting documentation were so incomplete that the auditors couldn’t offer an opinion about the statements. The FY2017 statements can’t be used for any grant applications or sent to potential donors. I have examined this in more detail at https://pacificaradiowatch.home.blog/2019/07/19/fy2017-auditor-refuses-to-declare-that-the-statements-are-materially-accurate/

Worryingly, half a dozen or so members of PNB cttees, speaking publicly, haven’t grasped this.

The FY2018 financial statements are likely to receive the same treatment, according to the auditor, speaking at the M19Aug Audit Cttee. Jorge Diaz, of Rogers & Co, in response to a question from KPFK staff-delegate Polina Vasiliev (18:19), said:

“I would imagine though, for the 2018, you’re still going to receive a disclaimer given that, that the [pensions] progress is really, ur, to my knowledge, is, um, only been complete, I guess, for 2015 & 2016 [not true: the most advanced audit is the 2015, & that’s only in draft], so, um, you know, really making sure we can see in, um, you know, once those reports are finalised I can kind of take a look as well, to see if there’s any way we can certainly lift that disclaimer, but I would anticipate right now you’re still probably going to be receiving a disclaimer in 2018, um, because, um, you know, those, those, those [pension] audits are still in progress”

20:05, emphases added, https://kpftx.org/archives/pnb/audit/190819/audit190819a.mp3

(Mr Diaz made a serious error when also saying, “you’ve had, um, you know, you’ve had, urgh, disclaimers of opinion in the past – we issued a disclaimer last year for the 2016 audit, um – sorry, 2017 – &, um, um, you know, the previous auditor as well” (19:28, emphases added). No: as noted above, Regalia issued a qualified opinion for FY2016, not a disclaimer of opinion. Pacifica has only ever received a disclaimer once, that from Rogers & Co, for FY2017. Surprisingly sloppy.)

To repeat, a disclaimer has a damning consequence for Pacifica: the financial statements offered by Pacifica for that year’s financial performance cannot be relied upon by a possible grantor, such as the Corporation for Public Broadcasting (CPB), or any large donor. Pacifica will have to wait for Jan or Feb2020 at the earliest, when the FY2019 auditor’s report may be published. This reality hasn’t been recognised in any public meeting of the PNB & its cttees.

5. How does recent total income compare with the past? The latest financial statements to be accepted as materially accurate by the auditors are those for FY2016. (Those for FY2017 were, in effect, rejected, it proving impossible for the auditors to judge their worth.) The FY2016 total income is $10 467 112 (p. 3). But note this important qualification: listener support & donations is given as a net figure.

That accounting policy started with FY2013 (p. 4), & the cost here is premiums, jargon for goods & services used as an incentive, a bribe/sweetener, for donors to come up with the cash (Note 12, p. 16). But why is it reasonable to conceptualise, to treat, this fundraising cost alone not as an expense but a contra against income, as an anti-income, as it were? It’s also an odd policy as it lowers the amount immediately associated in people’s minds with the public’s support for Pacifica. And it’s not a small sum: at its peak, $1 245 590 in 2013, & $1 071 315 in 2014, in both years comparable to fundraising personnel costs (pp. 16 & 18, & pp. 15 & 17; Note 12 in each report).

In the period examined, FY2005 to present, the highest gross income was FY2006, $18 015 548 (p. 4). (Not surprisingly, that year was the highest net income, $1 662 532; not much competition, there’s only one other net income, FY2005.) There has been inflation since then, 19.1% for the decade, so in Sep2016 money that’s c. $21 448 000. FY2016 had premiums of $458 914, making gross income $10 926 026 (pp. 8 & 3); this is 50.9%. Thus, in real terms, Pacifica’s gross income almost halved in the decade starting late 2006. That is the scale of Pacifica’s absolute decline.

6. In similar vein, how has recent listener support & donations measured up? Has it effectively halved during the decade? Yes. It’s over 11 years, because the FY2005 amount is greater in real terms than the next year’s, although it’s c. $68k less (in money terms) – p. 4. So the highest in real terms is FY2005’s $13 705 687 (p. 6), which in Sep2016 money is c. $16 843 000, there having been inflation of 22.9%. FY2016 had a net figure of $8 246 789, plus premiums of $458 914, giving a gross of $8 705 703 (pp. 8 & 3); this is 51.7%. So again, in real terms, Pacifica’s gross listener support & donations almost halved in the 11 years starting late 2005. Even sadder is knowing that what’s diminished by much more than half, denuded, in fact, is Pacifica’s reputation.

7. When did Pacifica last have audited net assets at the balance sheet date? That was 30Sep2012, $495 924. It was wiped out by the FY2013 loss of $2 824 046.

The zenith for net assets was $7 684 012 at 30Sep2006. (Note that the higher figure in the FY2008 auditor’s report was restated downwards in the following year’s report.) FY2006 was indeed Pacifica’s last annual net income. Correlatively, net assets have fallen each subsequent year, turning into net liabilities, a cumulative fall of over $12m. The last audited net liabilities were $4 525 638, at 30Sep2016. (The following year’s financial statements were, in effect, rejected by the auditors: they had to do this because they found insufficient evidence to allow them to offer an opinion on the statements’ material accuracy.)

8. When did Pacifica last have audited net current assets at the balance sheet date, also called working capital or liquidity? Current assets are the assets that are expected to be used up, consumed, in the next financial period, usually a year. Current liabilities are the liabilities due to be paid in that same period. The difference, the net, if it’s a positive amount, is termed working capital, or liquidity. There’s an important point here: don’t confuse working capital with cash in the bank. They’re not the same. Working capital isn’t a sum of money one has ‘to play with’, to pay bills & pay for projects to develop the organisation. No, working capital is a second-order sum, a particular difference, & it’s a measure of the condition of the organisation, the metric termed liquidity.

(I studiously don’t speak of solvency/insolvency in this section because it’s a legal concept, & its meaning varies between jurisdictions. I stick to the concepts used in accounting.)

The last time Pacifica had audited liquidity at the balance sheet date was 30Sep2009, $1 294 733. Yes, 2009.

The last audited figures were at 30Sep2016, & Pacifica was illiquid, having net current liabilities, totalling $6 719 281: current assets were $637 716, & current liabilities $7 356 997. That means $11.55-worth of creditors were chasing every $1 that Pacifica had to pay them. In all honesty, Pacifica doesn’t have a CFO, it has a JIC, a Juggler-in-Chief.

(Pacifica got good news for a change on 12Mar. ED Maxie Jackson told the Finance Cttee (17:53) that Democracy Now! had written-off Pacifica’s broadcasting debt: $2.361m. That’s 32% of the last audited current liabilities figure. Mustn’t grumble. https://kpftx.org/archives/pnb/finance/190312/finance190312a.mp3)

(Inexplicably, this fact didn’t appear in the FY2017 auditor’s report, dated 27June2019, as a post-balance sheet event (a ‘subsequent event’, in the jargon). Passed the PNB Audit Cttee by, & the PNB itself.)

Finally, a worrying development has been instigated by the new bookkeepers & accountants, NETA, the National Educational Telecommunications Association. They’ve chosen, no doubt with the agreement of the PNB Chair, to make the balance sheet less transparent: current liabilities are no longer disclosed (FY2017 auditor’s report, p. 4). It means that Pacifica’s high degree of illiquidity is concealed from view. A silly manoeuvre, not least because anyone wanting that figure will simply be prudent, with every chance of over-estimating the illiquidity. D’oh!

Not being prudent but crude, one can estimate the effects of both the DN! write-off & the ESRT/FJC debt adjustment, the latter giving a liquidity ‘bounce’ by stripping rent payable out of current liabilities, & dumping (temporarily) the FJC debt, due 2Apr2021, into non-current liabilities.

At 30Sep2018, taking rent arrears as $2m, makes current liabilities $5.4m, & the illiquidity quotient 8.1 (5.4 / ⅔). At 30Sep2019, & so including the DN! write-off, current liabilities become $3m, & illiquidity 4.5 (3 / ⅔ ). Looking better. But at 30Sep2020 it more than doubles, with the FJC loan becoming a current liability on 2Apr2020: 6.265 / ⅔ = 9.4, so $9.40-worth of creditors chasing every $1 that Pacifica has to pay them. Oh.

9. The $625 235 deficit of the aggregated permanently-restricted donor endowment fund. This consists in five separate funds created by donors who gave in good faith, with the correlate of Pacifica promising that the specified donor instructions would be respected at all times by Pacifica officers.

Pacifica has never stated orally or in writing (a) whether this deficit violates donor instructions, (b) why this deficit was allowed to arise, (c) who authorised the deficit, & its subsequent augmentation, (d) what the money was spent on, & (e) what is the plan to eliminate the deficit, & by which date. Successive sets of directors have been in office during this period, with no evidence of fiduciary responsibility being exercised.

$625 235 is the balance of the account (corrected, as it had a typo), according to the latest audited financial statements, those for FY2016. (The FY2017 auditors offered no opinion on the material accuracy of the statements provided to them by NETA because, as discussed in note 3(b) above, “we were unable to obtain audit evidence to support the amounts and disclosures in the financial statements […] As a result, we were unable to determine whether any adjustments were necessary to make to the Foundation’s statement of financial position[,] and the elements making up the statements” (Auditor’s Report, p. 2, emphases added). So those statements are effectively worthless.)

At year-end, the FY2016 fund account was $1 116 055, but only had assets with a fair value of $490 820 (Auditor’s Report, Note 11, p. 14, typo corrected). [this note will be completed this week (Tu10Sep)]

Posted Jan2019

. . . not Robert Natkin, Beyond Kaddish – He is Risen, 1999 . . .

Posted Jan2019 at Chris Albertson’s blog:

one comment, & a contemporaneous note:

1) comment, M7Jan2019, re http://wbai-nowthen.blogspot.com/2019/01/pacifica-dance-card-full.html:

Pacifica got the new year off to a great start: the PNB adjourned at 1.40am ET. They had gathered the day before, Th3Jan, nominally at 8pm, but combat didn’t commence until 8.26 because the axe-grinder had run out of wheels. (That’s grinder, not grindr.) But don’t despair, they all meet up again this Thursday.

The question captivating everyone is, for how long will Mrs Maxie let Mr Maxie stay up well past his bedtime? Forget about the $3.265m loan from the Foundation for the Jewish Community (FJC), this is what the people deserve to know.

~

2) Contemporaneous note:

[to be added]

Posted Feb2019

. . . not Robert Natkin, Untitled (Intimate Lighting), 1977 . . .

Posted Feb2019 at Chris Albertson’s blog:

four sets of comments, 12-28Feb:

1) one comment, Tu12Feb2019, re http://wbai-nowthen.blogspot.com/2019/02/a-much-needed-reminder.html:

Mr Hill was mentioned in a recent video that discussed how Pacifica can save itself. Also referred to were Ms Sawaya & Ms Spooner.

The discussants were Ken Freedman (WFMU station manager), Peter Franck (former President of Pacifica), a current Pacifica director (Ms Travis), & a current station treasurer (Ms Adams, KPFA). Mr Freedman said WFMU embraced digital from the 1990s; & listener support is now $2m pa. Wiki say they have a 15-day fund drive. Once a year. That’s it.

On Monday, KPFA’s homepage linked to three election films made by the video company just mentioned. The presenter is a very busy person: Pacifica’s National Elections Supervisor & three-times Local Elections Supervisor (KPFA, KPFK, & KPFT). Yes, the one-and-only Renee Penaloza.

The four encounters:
https://www.youtube.com/user/CMCMtv/videos

Mr Franck has four articles, including two lifeboat plans:
https://culturelaw.com/special-information/

WFMU:
https://wfmu.org/

~~~

2) Three comments, 18-20Feb2019, re http://wbai-nowthen.blogspot.com/2019/02/houston-we-have-problem.html:

2a) M18Feb2019:

Little birdie with access to the system tells me there is a BIG doubt that quorum will be made for three elections: two listener, one staff. Who knew things could be so complicated?

This Thursday the PNB meets at the call of director Outraged Lark and his outraged accomplices. We can all enjoy their public interrogation of the National Elections Supervisor, Reneeeeeeee Penaloza. As she’s also the Local Elections Supervisor for KPFA, KPFT, and KPFT, she won’t be able to fall back on the excuse that the info got mangled passing up the chain/dropping down the sewer. (Once that is disposed of they go private, to rip each other apart with info presented by legal counsel.)

The following Thursday the PNB meets again, this time called by director Ice Maiden Aaron and her Scientologist drones. They’ve assembled the assembly to dissemble on Pacifica’s debts and increasing lack of cash. The failed and currently failing fund-drives at KPFA, KPFK, & WBAI are sending a chill through the corridors of powerlessness. Those in the know are looking to borrow in the summer (after the FY2018 audit) to pay off FJC before declining listener support makes juggling the creditors unsustainable.

The Thursday after is a return to normality, the regular monthly PNB.

No rest for the wicked – especially wicked Scientologists.

~

2b) Tu19Feb2019:

The new lender? Who knows, but the broker for the FJC loan, Marc Hand (whose company also gave FJC an award last year) is on the case, and will soon present options to the PNB. The hope of the Scientologists is that it will be sufficient that (1) all the audits (general and pension) have been done, (2) NETA can declare to a potential lender that the bookkeeping and management accounting functions are under control, and (3) adequate collateral is available.

This hope, however, received blows at Monday’s PNB Audit Committee:

– first, the auditor said the current FY2017 audit won’t be ready until April at the earliest (the original expectation was November last year). One can estimate that the earliest the FY2018 will be completed is August, but with holidays and info delays it’s better to think October. Then, breathlessly, if they have the will, they, or someone else, can start on the FY2019 audit.

– second, ED Jackson said that Business Managers should be appointed at the three stations lacking them: KPFT, WPFW, and WBAI. (In typical unicorn politics style, neither he nor anyone else spoke of the cost, where the $$$ would come from, or the need to put this cost in station budgets.) But wasn’t NETA supposed to be doing everything for Pacifica, and magically saving lots of money at the same time? Well, another blow came at the end of last year: NETA, finding out what they’d got themselves into, insisted on amending the contract, so (1) only taking on the CFO role for three months, and (2) declining the offer to provide station Business Managers. This has made it easier for NETA to extricate themselves when the contract expires, after two years, in September 2020; by happenstance this benefits Pacifica, by stopping it being completely dependent upon NETA.

– oddly the elections came up, with Ice Maiden Aaron saying that, as of Friday, quorum hadn’t been achieved in any election (then 29 days down, 18 days to go to 5 March).

And the collateral? For any new loan it will almost certainly be on the current basis: a value-to-loan ratio of 3:1, so almost $10m, all the Foundation’s property, collateralized for the $3.265m currently borrowed from FJC.

Note that the first quarterly interest payment from Pacifica’s general account is due the very end of December this year; the current interest charge is 8.5%, so, for the privilege of this FJC loan, listeners currently pay $277,525 pa, $69,381 per quarter, to tread the water.

Finally, a correction, I typed ‘KPFT’ twice: Ms Reneeeeeee is LES for KPFA, KPFK, and KPFT.

~

2c) W20Feb2019:

Forgot to mention another blow from Monday: the auditor strongly indicated that the FY2017 financial statements will be given what he called “a scope limitation”. No surprise, as May 31 last year the FY2016 auditor did the same (surprisingly, Pacifica’s first), using as their language “a qualified opinion”. An auditor issues this warning because some of the quantities in the financial statements cannot, in the jargon, be said to be ‘true and fair’, and these feed through to necessarily affect both the net income statement and the balance sheet (and the cash flow statement).

NETA have tried their best to avoid this eventuality, but, as the Audit Committee heard at their previous meeting, NETA could spend more time trying to patch things up and still get a scope limitation, so what would be the point of delaying the audit even more?

The auditor made no mention of the ‘going concern’ test. Why? Because everyone knows the answer: the last two auditor’s reports carried a “substantial doubt about its ability to continue as a going concern”, so with the current facts why would this one be different?

~~~

3) Two comments, 25-28Feb2019, re http://wbai-nowthen.blogspot.com/2019/02/diga-diga-doo-doo.html:

3a) M25Feb2019:

On quilt v. strip programming, no-one on the Prog. Cttee or PNB or LSB’s has mentioned whether anyone, esp. unpaid, is available for a yearly 48 x Mon. thru Fri.

Also no-one has put forward, even as an illustration, a bundle of existing programs (‘shows’ in the infotainment jargon) to fill one hour for M-F. For example, Richard Wolff (Economic Update) – Doug Henwood (Behind the News) – Suzi Weissman (Beneath the Surface) – … where do the other two hours’ come from? Do some double-up? Or doesn’t that theme get an hour slot, instead are their 20 or 30 mins segments distributed under some wider umbrella? In just this one example there are multiple matters to dispute — as if station managers & anyone national has the time to make all these decisions & do all the requisite preparatory work. Without hiring staff the task is beyond the incumbents. And besides that aspect, do they have the management & negotiating skills? What’s likely is the Buns & Gutter approach: administrative order, delivered summarily. Trump-style ‘management’: the workplace as a dictatorship — even when profits, or net income, aren’t at stake. With the prospect of a programmer strike.

~

3b) Th28Feb2019:

Ambiguous is talk of ‘the five inherited properties’, and if this refers to the Federal Communications Commission licenses then we need scare-quotes for both words. That’s because a FCC license, in most circumstances, isn’t property but a permission (a ‘right’ in Legalese), one granted by the FCC. That’s why the licenses aren’t capitalized (as an asset) by Pacifica, and so don’t appear on Pacifica’s balance sheet; and that’s why they couldn’t be collateralized by Pacifica when getting the $3.7m loan last March from the Foundation for the Jewish Community (operating as FJC; its 990 will be filed any day now in NY).

Note that the nature of a license determines, in part, what happens with a signal-swap. If Pacifica is to raise cash this way, it swaps a license with that of another licensee, and it’s no surprise that the FCC must agree to this.

Which brings us to a crucial matter hitherto absent from the public discussion: if Pacifica wants a signal-swap, can it demonstrate to the FCC that it’s a going concern? Licensees are subject to oversight by the FCC. When a licensee wants a change of conditions, such as swapping its license, it attracts greater scrutiny – akin to an audit. Pacifica’s good intentions cut no ice when its last two auditor’s reports carried “a substantial doubt” about it continuing as a going concern. On top of this, the report due in April can only be expected to make it three thumbs-down in a row. This FCC-danger has not been acknowledged by any recorded public meeting of the PNB, its committees, the LSB’s.

And there’s another FCC-danger: the “substantial doubt” will soon enter stage left at the FCC Theater. Why? Because WPFW’s license expires on October 1 this year. Remember, WPFW’s financial performance is irrelevant: the license is Pacifica’s. The going concern test interrogates Pacifica. And public objections can also be made – and not just at renewal time. (The other expiry dates: KPFT, August 1, 2021; KPFA and KPFK, December 1, 2021; WBAI, June 1, 2022.)

WPFW is under threat. And no-one’s talking about it publicly.

King Maxie III has disclosed he has connections with CPB. FCC too?

https://www.sheppardmullin.com/publications-articles-1.html (an olde discussion!)

~~~

4) One comment, Th28Feb2019, re http://wbai-nowthen.blogspot.com/2019/02/mimis-ariastheyre-flat.html:

Small world: Geraldo & Willowbrook . . . who would think this would lead to Pacifica & FJC? The other month I quoted from a puff-piece on FJC which disclosed that the letters denote Foundation for the Jewish Community. This article starts with our intrepid reporter, & before getting to FJC this excerpt refers to the fund that spawned it, the Marty & Dorothy Silverman Foundation – which, as I noted at the time, buys FJC loans that are “potentially impaired” (any FJC auditor’s report):

“[i]n 1972 a relatively unknown reporter named Geraldo Rivera released a documentary highlighting the abuse and neglect of disabled patients at Staten Island’s Willowbrook School. Public outcry led to a signed consent decree by New York State transferring Willowbrook’s patients to 200 smaller group homes for better care. United Cerebral Palsy of New York (UCP), a leading nonprofit organization advancing the rights of people with disabilities, played a key role building the new group homes.

“To finance the construction, UCP received bridge loans from local banks. Upon completion of a group home, New York State would issue bonds to repay the bridge loans. At the height of the Savings & Loan Crisis in the 1980s, the banks providing bridge loans failed, and UCP was in desperate need of financing. UCP leadership turned to their donors for help and [Lorin Silverman] stepped up to provide a bridge loan from his family foundation’s investment capital [the Marty & Dorothy Silverman Foundation] to support the continued construction. The loan was repaid and the foundation began to develop a reputation as a lender to the nonprofit sector.

“A few years later, [Lorin’s] family was approached by United Jewish Appeal (UJA), a philanthropic umbrella organization. As large numbers of Russian Jews were immigrating to the United States, UJA organized a successful fundraising campaign for re-settlement efforts. However, UJA urgently needed cash for housing, food, language training and childcare and couldn’t wait for the collection of pledges. [Lorin’s] family also had a donor-advised fund (a charitable giving vehicle) administered by UJA and he suggested that the fund would be an excellent source of short-term capital to support Russian Jewry. It had long frustrated [Lorin] that the only investment option UJA provided to donor-advised fund holders was two-­year treasury notes. UJA declined his suggestion and instead requested a loan from [Lorin’s] family foundation. The foundation loaned $10 million to UJA against the pledges at a prime plus 3% interest rate, or approximately 10% at the time.

“In light of UJA’s reluctance to use donor-advised fund capital for mission-related investments, [Lorin] decided to pursue the idea on his own. A new community foundation was created to pool donors’ funds and permit investments for social good before the funds were eventually used for charitable donations. [Lorin’s] family and others officially launched FJC (Foundation for the Jewish Community) in 1995.”

Julie Hammerman, JLens Investor Network, Oct 2013
https://www.mediafire.com/folder/mr2t6dtdeknsd

Posted Mar2019

. . . not Robert Natkin, Untitled (Color-Bath), 1978 . . .

Posted Mar2019 at Chris Albertson’s blog:

all the month’s comments, eight of them, referred to one post:

1) eight comments, 4-15Mar2019, re http://wbai-nowthen.blogspot.com/2019/02/is-it-cricket.html:

1a) M4Mar2019 (1 of 2):

Thursday’s PNB revealed that the nominal 2018 pseudo-election chickens are coming home to roost: the KPFK listener pseudo-election will almost certainly have to be extended by upto four weeks (by-law Article 4, Section 5), with even then little prospect of reaching quorum. The KPFA listener pseudo-election may also fail when the polls close at Tuesday midnight (PacificaWorld, for RealWorld interactions, apparently uses Central Time). And as of Thursday’s PNB there were three other deficient pseudo-elections. The cost of each valuable vote? More than $50 (c. $200k / <4k).
https://pacifica.org/indexed_bylaws/art4sec5.html
https://kpftx.org/archives/pnb/pnb190228/pnb190228a.mp3 (14:36, the c. $200k)

Something else has passed most people by: if best practice has been exercised by the Executive Director then he will have started the 2019 elections by Saturday just gone. That’s because according to Art. 4, Sec. 4 he would have appointed the National Elections Supervisor “by a date no less than 90 days before nominations are set to open [on 1 June – Sec. 5]”. As of writing, it’s not publicly known whether the nominal 2018 NES has had the go-ahead from her psychiatrist.

So c. $200k is the estimated cost of the nominal 2018 pseudo-election – unless voting is extended. And now the 2019 is starting. To put these PacificaWorld-RealWorld interactions in perspective, $400k would, at FJC’s current interest rate of 8.5%, pay for 17.3 months of the 18 months’ payments that are due from Pacifica’s general account starting on c. 1Oct this year & running thru to c. 31Mar2021, when Pacifica is contracted to also pay FJC $3.265m. So with the likely KPFK extension, elections cost = FJC interest charge. The time is approaching when FJC decides that the Pacifica loan is “potentially impaired” (the term used in their auditor’s report, pages 12-13 of the PDF), requiring them to sell the loan to the Marty & Dorothy Silverman Foundation. Heady days.
http://fjc.org/uploads/user-uploads/image/FJC%203-31-18%20FINAL.pdf

The info provided by King Maxie III at Thursday’s PNB was perhaps an hour old (22:10). No explanation was given for the NES’ absence – perhaps Reneeeee Penaloza was too busy being the Local Elections Supervisor for KPFA, KPFK, & KPFT (yes, Reneeeee’s own website is in error). Remember, quorum is 10% for listeners, 25% for staff; & there’s no WPFW listener pseudo-election because the nine seats only had five verified candidates (they happen to be all the incumbents up for re-election). The listener turnout: KPFA 8.7%, KPFK 5.8%, KPFT 10.6%, WBAI 9.2%. Staff turnout: KPFA 37.8%, KPFK 19.5%, KPFT 37.2%, WPFW 26.6%, WBAI 23.8%.

So as of last Thursday, using these percentages, how many voters were needed to meet the quora? 884. Listeners: KPFA 205, KPFK 605, WBAI 55. Staff: KPFK 16, WBAI 3. And all in just over five days. It’s not beyond the bounds of possibility that the NES pops out of a KPFA office, inadvertently leaving on her screen the list of staff at KPFK & WBAI who haven’t voted yet . . .
https://elections.pacifica.org/wordpress/nes-responses-2018-election/

What happens to LSB seating if quorum isn’t made? “If no quorum of ballots is obtained by the extended date, then those Delegates whose terms would have expired upon the election of new Delegates shall remain in office until the next regularly scheduled Delegate election” (Art. 4, Sec. 5). In the nominal 2018 KPFK listener pseudo-election, six incumbents are running again: Grace Aaron, Ken Aaron, Jan Goodman, Steve Kaiser, Rob Macon, & Reza Pour. So they would keep their seats (eating into their possible six years in the job), but have to run again in June – disrupting not just their holidays but also making the next cohort of faction members wait until 2021 before they can compete for seats.

So much for the enthusiasm stirred up by the Gorgon faction in their lair, KPFK. So much for the future being safe in their hands.

~

1b) M4Mar2019:

Correction: at the very end, on the KPFK situation, I illogically deduced that it’s likely to make “the next cohort of faction members wait until 2021 before they can compete for seats”. No: the election for that half of the LSB listener-seats is just delayed until the summer, when the whole LSB is then up for election (possibly bar the three staff currently being voted on).

~

1c) M4Mar2019 (2 of 2):

Four other matters:

1) Pacifica’s listener membership seems to be 8.6% less than the estimate given in September by director Sabrina Jacobs (KPFA LSB, 15Sep2018, 2:27:16). She gave KPFA >17k, KPFK >15k, KPFT <6k, WPFW <6k, WBAI <7k. So c. 51k. All have proved to be over-estimates: the NES’ data, Tu26Feb, give perhaps 46 600: KPFA 15 717, KPFK 14 394, KPFT 4 282, WPFW say 5 400 (no pseudo-election), WBAI 6 804. (Let WPFW be 90% of the Jacobs figure, given that KPFT’s is 71% & WBAI’s is 97%.)
https://kpftx.org/archives/pnb/kpfa/180915/kpfa180915a.mp3
https://elections.pacifica.org/wordpress/nes-responses-2018-election/

This makes Californians c. 65% – which serves as the justification for the current by-law amendment making PNB representation proportionate to station-level listener membership. Pacifica’s membership has almost halved since late 2003, a then 90k, when the first LSB elections were held under the current by-laws (Carol Spooner, then Secretary of the interim PNB). Incidently, does anyone have this 15-year time series of Pacifica’s descent into hell in a handcart (albeit now collateralised, with everything else, to FJC)?
https://current.org/2003/9/radio-thats-representative/

2) Two batches of by-law amendments have been published, & can be voted on by the PNB &, if passed, then by the LSB’s. It takes three LSB’s for an amendment to be successful; at the LSB a simple majority is insufficient because it needs “the majority vote of all the Delegates”, so 13 for a full seating (Art. 17, Sec.1). There’s been hardly any LSB movement on the first batch, & the second hasn’t been voted on yet by the PNB.
https://pacifica.org/documents/bylaws_181210/bylaws_amendments_181210.pdf
https://pacifica.org/documents/bylaws_190127/Pacifica_Bylaw_Changes_Jan2019.pdf

3) Some of Thursday’s PNB audio has gone AWOL: the last 22 minutes of the first part of the meeting, the discussion of the failing nominal 2018 pseudo-election. It really comes to something when even the fake fails.

Of course, the web administrator doesn’t tell the visitor. Of course, no explanation is offered. Of course, no apology is offered. Of course, discourtesy prevails, effortlessly.

4) Lastly, a sad note. Bill Eisen, who was standing for election as a KPFK listener, died at the end of December. He was a CPA, & had written repeatedly to FJC asking for information on the $3.7m loan they made to Pacifica. FJC never once acknowledged his requests, let alone replied to them. He particularly wanted to find out why FJC had approved the loan when Pacifica did not satisfy the lending tests published by FJC themselves: what had Pacifica promised to make the loan possible?, were there guarantees made by persons or organisations unknown?, have the parties acted in bad faith, and why?
http://fjc.org/fjc-agency-loan-fund

His death has passed by in silence. There is nothing on KPFK’s website. There is nothing on Pacifica’s website. There is nothing on the NES’ election website – except a created absence: his name was removed from the candidates list, his candidate statement was removed. NES Renee Penaloza (nes@pacifica.org) has chosen not to inform readers of the site that one of their candidates has died. Values are to be practised. Pacifica bosses are showing all too clearly what Pacifica values mean to them, what ‘the Pacifica family’ means to them.
https://elections.pacifica.org/wordpress/kpfk-candidates/

~

1d) M4Mar2019:

I should also have referred to the disastrous way the PNB meeting was ended by Chair Nancy Sorden. But like the antics of the Trumpanzee, after a while one simply loses the will to talk about them. Nevertheless, in defence of decorum, one should report that Wooden-as-a-Chair Chair Nancy flipped out yet again, summarily closing the meeting in a panic, completely disregarding her fellow directors (1:00:44).
https://kpftx.org/archives/pnb/pnb190228/pnb190228d.mp3

She’d done the same at the 20Dec PNB (from 22:45), the infamous ‘FJC/Jehovah’ meeting, when Adriana twice mentioned the taboo word, ‘FJC’, causing Nancy to have a meltdown, summarily ending the public session, which had hardly begun.
https://kpftx.org/archives/pnb/pnb181220/pnb181220a.mp3

At that time, she didn’t apologise to the directors & the public at the next PNB meeting, so she probably won’t do so this Thursday. Displays of ignorance just fuel the dysfunctionality, destroying the trust that springs from common decency.

Her time as Chair can’t end soon enough – which doesn’t mean her successor won’t be worse.

~

1e) Th7Mar2019:

You’re right about the membership lists, but the King is simply exasperated. How close he is to the end of his tether is hard to say. Contra the Gorgon faction, he has to continually defend the station bookkeepers & the multi-tasking Wandra at National Office, repeating again & again that they are all working flat-out in coordination with NETA, getting the FY2017 statements & records ready for the auditor. Grace Aaron et al. think they’re helping, but they’re making things worse. That’s why Maxie admonished her in public at last Thursday’s PNB (57:00, the below ‘b’ audio) when he rebuked her micro-managing motion. (I mistakenly thought this was at Monday’s Audit Cttee.)

It’s worth reflecting on what he said, especially his warning of the coming austerity for Pacifica, which will inevitably affect employees:

“I’ve managed a company in austerity man- [indistinct] – um, protocol before – um, that’s probably where we’re headed – um, I just – the big question to come to mind for me is the people – the person, I should say – who put this motion forward is the same person who negotiated the NETA agreement, um, for the most part, um, & is probably having some second thoughts about he – the amount of money we’re spending on that agreement, considering how inflated it is with respect to what I originally put forward &, um, how little we’re getting in re- exchange for that, um, that is upto this point.” (my emphasis)

He continued immediately, criticising the substantive irrationality of the Board majority, expressing his bewilderment:
“[…] NETA have made it very clear that until they are able to get accurate financial records – that are projecting March, early April – that there’s no value in them providing financial reports to this Board because they would be unreliable. And the fact that this Board wants to proceed with numbers that are not reliable is mystifying to me. Um, but, you know, vote your consciences, &, um, I’ll play the cards that are dealt.” (my emphasis)

His quiet exasperation. He likes a challenge, & he isn’t a quitter. But he needs those above him to behave correctly, he needs to believe that all the work he’s putting in isn’t a waste of time, he needs to be convinced that recovery can be achieved. Like all of us, he has his limits. He’s obviously not getting the support he needs. He’ll stay until he’s lined up his next job. It’s just a question of when.

~

1f) W6Mar2019 [not chronological coz it was in a new comment thread]:

Monday’s PNB Audit Cttee had a surprise: the CFO seems to have walked out into the ocean. Everyone else was there: the National Office bookkeeper/accountant, the ED, NETA, & the auditor. But not Larry Dankner. Not even mentioned. In fact he’s never attended a recorded Pacifica meeting.
https://kpftx.org/archives/pnb/audit/190304/audit190304a.mp3 (two other files too: ‘b’ & ‘c’)

The disappearing Dankner. The 6Dec PNB private session statement disclosed his appointment: “the Pacifica National Board hired an interim CFO, Larry Dankner, as a Pacifica employee”. The final words are there to make explicit what had been said at a meeting now in the archive: he’s seconded from NETA. The meetings archive also says he’s there for three months – so expiring today. Oh. But maybe there’s been an extension, as might also have happened c. 1Oct2018 to the six-month waiver granted by FJC at the very start of the loan (ED Livingston email, c. early April 2018).
https://pacifica.org/documents/pnb_exec_181206.pdf

As Larry’s been seconded from NETA it’s rather odd that, according to the (poorly worded) PNB statement, he was instructed by the PNB to negotiate a contract with . . . NETA: “[the PNB] authorized him, in conjunction with our Pacifica ED and NETA, to negotiate and submit a modified agreement with NETA to the PNB that includes hands[-]on staff to address deficiencies in our financial accounting at the station level and throughout our network.” NETA’s website still lists him as in the second highest stratum in the hierarchy, a Senior Controller, immediately below Anita from NETA. But no doubt NETA can be trusted to maintain that wall to prevent a conflict of interest, especially concerning Larry’s career prospects within NETA. After all, they keep telling us they are full of Southern hospitality. (Maxie also had a dig at Grace: he said she was largely responsible for the content of the NETA contract: a lot has been spent, for not that much.)
http://www.netaonline.org/Contact-Us

Even odder than the prima facie conflict of interest, & perhaps more important in the long run, some guys from the Kalahari seem to have got onto the call. It must be said that recording quality has deteriorated markedly over the last few months.

~

1g) Tu12Mar2019:

Two pieces of election news, courtesy of a coalition website (pejoratively, faction), the Grassroots Community Radio Coalition, which supported the candidature of Bill Eisen, who died in December.

1) The NES declared the day after polls closed that “[w]e have met quorum across the 5 stations”. The GCRC’s homepage used the same formulation: “[t]he election is over and all five Pacifica stations achieved quorom [sic]!”. But what the NES said doesn’t necessarily mean what one may think at first glance: re-read the NES’ words: she didn’t say ‘quorum was met in all nine elections’ (listener, staff – no WPFW listener election) – so what she said admits the possibility that one station, or more, may have met one quorum but failed another.
http://gcrc-socal.org/content/menu/2018_election/election_news.htm
http://gcrc-socal.org/index.htm

2) The site also has documentation on the firing of the second NES, Alma Viscarra, on Sa5Jan, the day after she had sent a revised timeline to the ED & PNB, made to protect, in her judgment, the integrity of the pseudo-election, thereby discharging her prime duty on behalf of the Pacifica membership. Ms Viscarra says she needed the membership lists to be improved, & for the whole pseudo-election process to be protected from the persistent political pressure of well-placed candidates: “[m]y ‘faults’ were to try to resist interference and directives on how to conduct the 2018 elections from individual directors (who are also nominees/candidates)”. (She was also fired as the KPFT LES on 15Jan.)

On 3Jan she obviously upset the ED &, especially, director Grace Aaron by announcing to them that she was revising the pseudo-election timeline, basing herself on the by-laws & “the advice of the Pacifica Counsel, Mr. Ford Greene”. The next day she sent the revised timeline to the ED, the PNB, & Mr Greene. The day after, fired. Makes sense, really. After all, director Grace Aaron seems to be acting as de facto Executive Director, even to the point of running that conversation when the ED called NES Viscarra two days before her firing.
http://gcrc-socal.org/content/menu/2018_election

At the crucial moments, again & again, King Maxie III takes the path of least resistance, towing the line of the Gorgon faction. The other week he provided a Stalinesque public denunciation, rubbishing Alma during a recorded Pacifica meeting, it now enshrined in the Short Course as his ‘AWOL’ speech. No-one stays long as a virgin in PacificaWorld. No wonder WPFW couldn’t even find four more listener candidates to slide straight into those empty LSB seats.

~

1h) F15Mar2019:

Not to hog things, just to say it was announced Tuesday that Pacifica got a $2.361m windfall: Amy’s board of directors unanimously agreed to write-off most of Pacifica’s debt. So Democracy Now! decided to reduce both their own net assets & their net income, causing Pacifica to reduce their net liabilities & to improve their net income/loss.

I had always wondered what was the age structure of Pacifica’s liabilities – the last mention of the DN! debt was in Pacifica’s FY2011 auditor’s report: c. 43% of accounts payable, & DN! causing c. 55% of programming costs (note 10, p. 18 – p. 21 of the PDF).
https://pacifica.org/documents/Audit_FY_2011_final_signed.pdf

The King disclosed the gratifying news at Tuesday’s PNB Finance Cttee (17:53), repeating it at last night’s PNB. DN! did this “in honour of new leadership at Pacifica, & our continued support of Pacifica & community radio”. Incredibly this decision was made in October but only related to Pacifica last week when the King visited NYC. It also seems to be a belated response to a Pacifica begging request made in August 2017 by its auditor, Regalia & Associates. (I say “seems” because the DN! letter, read out by the King, was somewhat garbled at this point.) The write-off is for broadcast fees, presumably through to September or October 2018, not specified by either the letter or the King.
https://kpftx.org/archives/pnb/finance/190312/finance190312a.mp3

Another oddity: the King wasn’t sure whether Pacifica currently has a broadcast contract with DN!. Exclamation mark.

Posted by Chris Albertson Apr2019

. . . Chris Albertson, WBAI studios, 1965 (photographer: Sam Falk, New York Times) . . .

I didn’t make a comment in Apr2019 on Chris’ blog. He had only one post, written by KPFK Commentator: wbai-nowthen.blogspot.com/2019/04/down-and-down-we-go.html. There were four comments, two penned by Chris:

My moving finger points to Pacifica’s broken, corrupt National Board.

Tu16Apr2019

The next day Anonymous said, “Glad to see a new post Chris. I was starting to get worried especially after I saw an updated bio for you on wiki. I don’t hear much about Pacifica anymore. Maybe I’m not getting the press releases. Maybe I got tired of listening to long PNB meetings. The WBAI board met for the first time since June last year. Will they meet again? Who knows? Since Maxie made it clear he wants to get rid of the local boards, it may not really matter.”

Chris replied the same day:

My inertia was/is due to a combination of circumstances, including Pacifica’s stagnation and my own need to take care of health issues. Then, to, there was my need to take a bit of a breather from the circular rut that maps Pacifia’s course from insignificance to tangible oblivion.

That said, I am not going away—the fat lady’s song—out of tune though it is—has become somewhat catching. There also does appear to be a genuine effort afoot to make meaningful program changes—sad to say, however, far to much crap has been afforded further unmerited longevity.

Thanks for worrying over my absence. I hope Indigopirate, Jara Handala and other informed, astute posters will continue to contribute.

W17Apr2019

~

This photo appeared in his obituary published by the New York Times, Th9May2019, written by Richard Sandomir. https://www.nytimes.com/2019/05/09/obituaries/chris-albertson-dead.html

~~~

Welcome!

“Excellent!”, exclaimed Mr Burns . . .

[Please note the convenient tabs at the top of each page of this blog: the blog feed (replicated vertically, top right of each page); sources on Pacifica & its operating environment, with many links; annual auditor’s reports, covering the period from 1Oct2004 to present; &, lastly, details of the $3.7m loan from the Foundation for the Jewish Community, FJC, taken out on 2Apr2018.]

Welcome! This blog started Th18July2019. This was the day the Pacifica ‘leadership’ told the world they’d blown it – again. They’d discarded an executive director, Maxie Jackson, who had been trying to give the radio network a sound foundation, & therefore the possibility of a sustained future, rather than being in perpetual firefighting mode, quenched somewhat by the occasional shower of a bequest. Listeners, after all, can only take so much ZR, Zombie Radio. And they deserve so much better. Pacifica needs its renaissance. Bio-economics, not necro-economics.

Please also note the pages at the top. One is Sources on Pacifica, carrying links to documents that are usually forgotten about – or some wish didn’t exist at all, & certainly not spoken about. You’re welcome to add links or make suggestions (please either make a comment to any post – it’ll be held as pending – or send an email, even with end-to-end encryption, to pacificawatch@tutamail.com).

https://pacificaradiowatch.home.blog/sources-on-pacifica/

When I can make the time, I’m adding, as context, older material that I’ve written. Most of that comes from the blog of Chris Albertson, a former station manager of Pacifica’s WBAI in NYC, https://wbai-nowthen.blogspot.com/. Sadly, Chris died in April this year. He was a gentle man, kind, and decent. This blog is dedicated to him.

. . .

Spreading knowledge to improve transparency & accountability all too often a conceit, a pious hope even. Many know what’s best but refuse to act. But when one cares, other than trying, what else can one rationally do? This is steadfastness, sumud.

So, yes, it’s often banging one’s head up against a brick wall, or the breakfast table. And, yes, given that normal people are quite limited in their incompetence & cock-ups, & for how long they let things go before seriously addressing what’s going wrong, one occasionally does have the sneaky suspicion that just a tad of Pacifica’s dysfunctionality might be intended, simply left to fester, making it easier to break up the network to the benefit of any station happening, against all the odds, to be making an operating surplus. Yes, Mr Burns is the metaphoric elephant in the studio.

This blog will assemble mostly publicly available info on the Pacifica radio network, known legally as Pacifica Foundation, Inc. The info will be commented upon, particularly for the gaps, &, importantly, a special striving will be made to ask the most illuminating questions, especially about what is not being said by decision-makers & the documents.

Pacifica entered a new, critical, phase in its history on 2Apr2018 when it signed the largest loan in its history, with the Foundation for the Jewish Community, known legally as FJC. The loan was $3 700 000 (albeit now reduced to $3 265 000), pretty onerous for a now annual $11m organisation that last made an audited annual net income in fiscal 2006. Yes, 2006. That run of consecutive losses, through fiscal 2017 (the latest statements), has totalled at least $12 745 968. (‘At least’ because the 2017 auditors refused to declare whether the statements were materially accurate: they found insufficient supporting evidence.) Pacifica last had audited net assets at 30Sep2012; & last had audited net current assets (that is, liquidity) at 30Sep2009. Yes, 2009. Not surprisingly, to get the loan, it had to give FJC as collateral all its property, every chair & coffee cup, besides the station buildings used by, not owned by, KPFA, KPFK, & KPFT (those in Berkeley, LA, Houston).

Pacifica decision-makers come & go, but the institution is noted for its obdurate & deep secrecy culture. Nevertheless, the co-signed loan contract between Pacifica & FJC was leaked on W26June2019, published with other documents on a public Facebook group, co-moderated & -administered at the time by Grace Aaron (she chaired her first public Pacifica National Board, PNB, meeting on Th9May this year). As an aside on the matter of info flow & speech advocacy, supposedly Pacifica values, my application to join that FB group, thereby acquiring the right to comment, has remained “pending” for three weeks now; two FB messages have gone unanswered, even unacknowledged; as context, this year just six people have joined. https://www.facebook.com/groups/PacificaRadiowaves/permalink/1264765520345396/ [UPDATE: the remaining gatekeeper let me in M12Aug, as if I’d wandered up the same day – rather than almost 50 days before.]

The leaked documents are linked from the original FB post, plus here: https://www.mediafire.com/folder/e1lo0t30pd4wc/ (the original drop); & https://mega.nz/#F!PloCiSqJ!9rLejSkttE7gCVCCq3q86g (convenient one-click download of the folder; also ‘preview’ allows reading online)

Pacifica power is now even more concentrated because Grace Aaron became the executive director on the evening of F5July: yes, Maxie Jackson left his job that day, “resigning”, according to Aaron’s statement, ‘Executive Director Transition’, at the Th18July PNB (13:18, https://kpftx.org/archives/pnb/pnb190718/pnb190718a.mp3). Committee meetings M8 & Tu9July had quietly disclosed, without using his name, that he had been disappeared. The most contemptuous was from director Mansoor Sabbagh, a KPFK staff delegate, to the PNB Finance Cttee: “we have got rid of our Executive Director” (44:46, https://kpftx.org/archives/pnb/finance/190709/finance190709b.mp3; unbelievably, R Paul Martin, WBAI’s stalwart treasurer, didn’t seem to know that Maxie had gone). With Pacifica being Pyongyang, without word from The Dear Leader this must have been unrestrained hubris. Quite pathetic, really, coming from Pacifica’s Uriah Heep. Yes, all human life, & much more, is found in PacificaWorld.

Well, be that as it may. The Personnel Cttee’s ED evaluation had stitched Maxie up M1July; the next day’s private PNB gave him an offer he couldn’t refuse; & Ken ‘I-can’t-help-it-if-I-sound-like-an-associate-of-Jimmy-Hoffa’ Aaron did the rest.

And being Pacifica, for over two weeks, no public announcement of the dismissal. No press statement. No statement to staff. No statement to listeners. Nothing on the website, https://pacifica.org/ (except ‘Contact>Foundation’ had a change, “Interim Executive Director”, but then gave “Bill Crosier”, which was true upto 23Jan2018 still there as of F19July; no surprise, as the latest item in the ‘News’ section is dated 25Feb2015). And even now there’s no explanation. Contempt for listeners & staff alike. A complete lack of manners. Just milk them for cash. Last night’s words, or lack of them, an insult. The behaviour, cowardly. A board of directors, lacking in integrity. But what’s new?

The Pacifica ‘leadership’ had a real opportunity with Maxie, but didn’t seem to recognise this, & now they have blown it. Despite their repeated words of receptivity, they actually couldn’t cope with the prospect of change, fundamental change. In two posts I have examined what happened & why, & what it means for Pacifica’s future: https://pacificaradiowatch.home.blog/2019/07/24/maxie-jackson-pacifica-the-politics-of-technique-a-tragedy-for-both/ & https://pacificaradiowatch.home.blog/2019/08/01/administrative-measures-not-open-discussion-the-pacifica-way/

Pacifica’s inability to cope with an ED determined to bring industry norms to the network, comes on top of all five Spring Fund-Drives failing, & cashflow becoming seriously more acute than usual in June. Unable to generate an annual net income since FY2006, & now with the added burden of the c. $300k annual FJC interest charge, Pacifica now finds itself descending into necro-economics: relying on rich corpses to offer up bequests.

Pacifica, through its actions, & inactions, is faced with declining & ageing listenership, declining membership, declining listener-fundraising, & grants cut off through lack of listeners & audited financial statements (the FY2017 auditor made things worse Th27June by refusing to declare that the statements were materially accurate, having no alternative given the acute lack of supporting financial records). To cap it all, the PNB majority has now driven out a moderniser & technician, ED Maxie Jackson. He was behaving in a completely, not just un-Pacifican, but anti-Pacifican way: trying to raise standards, trying to lay the basis for Pacifica to improve its competencies, structures, & processes in broadcasting, programming, community involvement, fundraising, bookkeeping & accounting, & governance.

This was never going to end well. Being told home truths, & pushing for best practices rather than the same-olde-same-olde, just ruffled too many feathers, just upset too many people. The whiff of NPR-lite. The ED simply didn’t understand Pacifica. The ED simply had to go.

So what’s the plan? “[The] Pacifica Foundation is in the process of hiring a highly qualified radio, television, & multimedia professional to hold the interim position of executive director. More information will be forthcoming. A formal search for a permanent executive director is already in progress” (‘Executive Director Transition’, Th18July PNB; 14:00, https://kpftx.org/archives/pnb/pnb190718/pnb190718a.mp3). Sounds reasonable. The sort of thing a normal radio network would say. But what are the prospects?

Consider the evidence. There were seven ED’s 2004-2009; since then, with Aaron, there have been another nine. So 16 in 15 years. Maxie lasted nine months. How many other outsiders, since 2009, have lasted longer than Maxie? One: Arlene Engelhardt, 2009-2012. Pacifica is so toxic for outsiders that there were only two others amongst these nine: John Proffitt, five months; Tom Livingston, eight months. Maxie was the second-choice: Numero Uno, at the last minute, decided to tune in to a PNB livestream. He immediately withdrew his application. Today, as yesterday, which media professional will risk their career with Pacifica?

So much for the current goings-on. This blog, in an attempt to give context & coherence, will begin with posts of work written in 2018 & 2019, corrected to remove the few errors pointed out to me. They were kindly published by Chris Albertson, a former station manager of WBAI, at his longstanding blog, https://wbai-nowthen.blogspot.com/. Sadly Chris died in April this year, & his blog cannot be added to. He was a gentle man, kind, and decent. This blog is dedicated to him.

But first I post the materially objective quantitative starting point, the annual auditor’s reports, here those covering the period from 1Oct2004. (These don’t include the reports by the pensions’ auditor, which I have been unable to obtain.)

Readers are heartily invited to comment, of course, & it would be even better if you also submitted posts & shared ideas on what should be covered & discussed. Please email me at pacificawatch@tutamail.com, a provider that allows end-to-end encryption.

For convenience, the main longer pieces I’ve written are downloadable as PDF’s here (I had sent them to all delegates of the five Local Station Boards on 16Nov2018): https://www.mediafire.com/#mr2t6dtdeknsd