FJC collude with the breakers, reducing the PNB majority once again to reacting. FJC allegedly offer to director Jan Goodman a 12-mth extension of the $3.265m loan

. . . just like democracy, Pacifica is too important to be left to its elected bodies . . .

“Problem? Go tell Michelle – or Jan”

~

[Thanks to the readers who yesterday & today sent PacificaWatch this alleged copy of JannyG’s email. A few remarks are added after the text.]

~~~

*From:* Jan Goodman <jangoodman.kpfk@gmail.com>

*To:* lsb@kpft.org <lsb@kpft.org>; KPFK LSB Yahoo Group <lsb@kpfk.org>; Arthur Schwartz <aschwartz@afjlaw.com>; Pacifica National Board <pnb@pacifica.org>; WBAI LSB Public <wbai-lsb-public@yahoogroups.com>; Pacifica Executive Director <ed@pacifica.org>; Kpfalsb <kpfalsb@googlegroups.com>; “lsb@wpfw.org” <lsb@wpfw.org>; Anita Sims <anita@netaonline.org>

*Sent:* Thursday, October 15, 2020, 11:47:24 AM PDT

*Subject:* One year extension of FJC loan — offer

To: PNB

CC: Pacifica Interim ED Lydia Brazon; Local Station Boards; CFO: Anita Sims; Counsel: Arthur Schwartz

Dear Colleagues:

As a result of the financial position in which we, Pacifica, find ourselves, i.e. the inability to repay the FJC loan when it comes due in April, I considered what course I, as a fiduciary, could follow to help Pacifica in our current situation.  I contacted FJC and spoke to the President of the Board and the Chief Legal Officer. I clarified that I was calling as a Board Member, and not as a representative of the Board.  The purpose of my call, I explained was to explore whether there might be a possibility of extending the loan directly, between FJC and Pacifica.

They told me about FJC and its role and mission.  They also made it clear that they were familiar with Pacifica, its background and especially, the Empire State Building situation.They expressed their concerns about Pacifica,  its finances, changing leadership and governance, and that they were happy that FJC has been able to help us survive.  They also told me that all the loans which they provide under the program we are involved with carry the same interest rate: 3% over prime.

I also brought them up to date a bit about Pacifica, and a tad about myself, including the fact that I have been involved in numerous political and Non-Profit organizations, including Pacifica Governance for about 16 years and that in my “off hours” I’m a lawyer who has been involved in helping structure numerous business deals, including the “Pacifica Bridge Loan” in 2018, etc.

During the course of that conversation I explained the progress that Pacifica had made in getting its Audits more current, the fact that there was a Bylaw amendment process underway which had the potential of changing the governance structure of Pacifica, but made it clear that the PNB was divided on the subject.  I also explained that Pacifica was not currently in a position to pay back the loan on its current maturity date, and that we were pursuing various financial options.  I also answered whatever questions they asked, to the best of my ability. As a result of that conversation, Pacifica’s progress towards getting its audits current, and the fact that there is serious discussion and potential Bylaw Amendments relating to reducing the Board size and structure to enable Pacifica to become more stable and more able to face the financial and other challenges that it faces, they were encouraged enough that FJC is willing to tentatively offer to extend the loan to Pacifica for another year, with the same terms, without interruption and without additional financing costs.

I asked them about whether this tentative offer needed to be kept confidential, and they told me that that was not necessary.  They are pleased to let people know about the services that they have provided to Pacifica and that they offer others.

Hopefully the Pacifica National Board will take this opportunity to extend the loan quickly so that we can concentrate on helping Pacifica move forward.  Of course I will be happy to help facilitate this. Being of service to Pacifica so that it can flourish has always been my goal.  I hope that this is another step in that direction.

Respectfully and with great hope for the future,

Jan Goodman

Pacifica National Director, KPFK

~~~

Well, that’s a turn-up for the books.

Three sets of points:

what this means, including the obvious effects;

why is the Foundation for the Jewish Community, operating as FJC, making this alleged offer?; &

as mentioned 2Oct, has the $3.265m loan already been extended from 1Apr2021 to some date in Sep2021?

What this means, & the obvious effects

  • A director approaching FJC without knowing whether ED ‘Fabiana’, for example, was already in dialogue with them, thereby making Pacifica look uncoordinated, making it look ‘unprofessional’, making it look a lil silly;
  • after the approach, Prez Lorin Silverman & Chief Legal Officer Mark Cohen were happy to negotiate with JannyG, rather than give her a ‘well, thx 4 the heads-up, now we’ll ask the Pacifica ED what Pacifica wants’;
  • FJC showed where they stand on the breakers v. solidarians divide, choosing to collude with the breakers, giving credence to their credibility as ‘agents able to get things done’, as ‘respected by the monied & the powerful’, as ‘people that those in RealWorld can understand & get on with’;
  • JannyG dropped a boulder on the PNB Loan Repayment Cttee, obliterating it before it could even have its first roll-call (it had been set-up Th1Oct with DeWayne Lark’s PNB motion, https://kpftx.org/archives/pnb/pnb201001/pnb201001_6467_agenda.pdf – page 2; “very unfair”, the measured DeWayne told a reporter, in his understated way);
  • JannyG isn’t some ordinary breaker: she’s the Pacifica Vice-Chair-in-waiting of the three-year transition board named in the latest constitution petition brought by the breakers, https://newdaypacifica.org/transition-officers/;
  • this lone wolf ops will be plastered all over the breakers’ propaganda if the petition leads to referenda: ‘we’re Pacifica’s saviours, only we can get things done! . . . you may have doubted us last time, but see, only we can Nike!’;
  • the by-passing of both ED ‘Fabiana’ & the PNB can only sow discord, antagonise interpersonal relationships amongst all concerned;
  • the episode is further evidence that the ED & PNB majority are paralysed, unable to take the initiative; &
  • it’s another example of the breakers, rather than the Pacifica solidarians, seizing the initiative in the non-contest that would otherwise be a war of manoeuvre, for only one side knows how to fight; this, additional to the breakers reigning supreme in the non-contest that would otherwise be a war of position, the preparing of the ground prior to contact with the enemy, for only one side comes up with plans. This isn’t even men against boyz: it’s a slaughter.

Politically, what’s happened shows that (1) ED ‘Fabiana’ & the PNB majority have displayed a paralysis that simply wasn’t warranted by the extant conditions, & (2) the breakers, once again, have the energy & ideas to take the initiative.

The leading question, sadly, remains all forlorn, orphaned: when will the majority of elected Pacifica officials act on their own terms, rather than being reduced to acting as a reaction? When will activity supplant passivity?

~

Why has FJC made this alleged offer? Market conditions, & the borrower under-subscribed ALF

Back in summer 2019, this blog explained the falseness of a story repeatedly peddled by the likes of Nancy Sorden (PNB Chair when the FJC loan contract was signed, & WPFW listener-delegate), Chris Cory (the 2019 PNB Finance Cttee Chair, & KPFA listener-delegate), Eileen it’s Ros-in’ Rosin (then & still PNB Audit Cttee Chair, & WPFW listener-delegate), as well as regular suspects, Goodman & Aaron:

[t]he 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 (FJC’s latest auditor’s report, year-end 31Mar2018, page 20; page 22 of the PDF). So, of course, Pacifica, made to use its three buildings as collateral to satisfy the 3:1 assets-to-principal ratio, assets here being “the appraised value of the mortgaged properties under the Deeds of Trust” (Section 1.1(7), p. 2 of the loan agreement – link below), was welcomed with open arms. Sentiment this was not. http://fjc.org/uploads/user-uploads/image/FJC%203-31-18%20FINAL.pdf [loan agreement: https://mega.nz/#F!PloCiSqJ!9rLejSkttE7gCVCCq3q86g?b0IBlaiR]

https://pacificaradiowatch.home.blog/what-fjc-has-made-pacifica-do/

The conversion into loans has now improved: from the 46% at 31Mar2018, the next year it was 45% (with the fund growing a lil, from $57.1m to $58.4m), rising to 54% at 31Mar2020 (with a 11% spurt to $64.7m; FJC auditor’s reports, pp. 21 & 24 respectively). As the Georgian infamously said, dizzy with success. The reports, since FY2006 (bar FY2007), are here: https://mega.nz/folder/4Al2TDCD#7brl9C0CSfpESGgby6ZTrQ.

For whatever reason, FJC has found it difficult to attract borrowers with assets that can be collateralised. ALF lends at p+3, prime plus 3 percentage points, so currently, & since 16Mar2020, lends at 6.25%, which is 92% over prime (3 ÷ 3¼). ‘Earning’ a safe 6.25% is probably better than bonds & shares – so keep Pacifica in ‘the FJC family’. After all, thru to 1Apr2021, it will have paid ~$750k for the privilege of collateralising all its property to FJC (that’s an average $250k a year, $62.5k a quarter, assuming that the current interest rate doesn’t change). Extending a year, Pacifica listeners hand over an extra ~$200k (@6.25% = $204 062.50). Makes a four-year total of ~$950k. 😋 👍 😋 for those donor-advised accountholders.

Money aside, FJC’s leader, Prez Lorin Silverman, by undermining ED ‘Fabiana’ & the Board as a whole, has made plain the sort of Pacifica he prefers: a ‘normal’ broadcaster, ‘vanilla’, predictable. In a word, Amerikan.

~

(Non-trivial note, a possible $287 223.92 note, in fact: the loan agreement actually speaks of percent, not percentage points . . . (let that sink in for a moment) . . . : “the Prime Rate […] plus 3%” (Sec. 2.2, p. 5; p. 6 of the PDF) . . . (pause again) . . . making the current interest rate not 6.25% but (3.25 x 1.03)% = 3.3475%. Quite the difference . . . ~$95k a year, in fact. Will Pacifica challenge FJC on this? . . . [A post this week, including an open letter to ED Brazon & legal counsel Arthur Schwartz, will give the workings for the three years, $287 223.92 = 748 815.26 − 461 591.34.])

~

Has the $3.265m loan already been extended from 1Apr2021 to some date in Sep2021?

On 2Oct I said there’d be a post on this, so . . .

The question arises because of a mention in Pacifica’s FY2018 auditor’s report. Dated 16July2020, it was accepted by the 16July PNB meeting but first published Sa15Aug (sic), without either explanation or apology, on its homepage & https://pacifica.org/finance_reports.php. It said the $3.265m loan would mature in “September 2021” (p. 14; p. 16 of the PDF). This was news, the first time such a thing had been stated.

So what was the prior evidence? (All emphases are added; links at the end.)

  • “This Loan Agreement (this ‘Agreement’) is entered into as of April 2nd, 2018” (2Apr2018 Pacifica-FJC loan agreement, p. 1; p. 2 of the PDF);
  • & “the loan matures after three years” (6Apr2018 Pacifica press release);
  • but, & this is the killer, “[t]he terms of the note call for interest-only payments due quarterly, with a final lump-sum payment of all unpaid interest and principal due in September 2021” (Pacifica’s FY2018 auditor’s report, 16July2020, p. 14);
  • & yet FJC’s auditors declared on 27Aug2019 & 16Sep2020, using the same wording, that no loan runs into 2021: “[l]oans receivable consist of interest-bearing loans to charitable organizations […] with varying maturities through December 2020” (Note 4: FY2019 report, p. 17 (p. 19 of the PDF), & the FY2020, p. 19; FJC’s year-end is 31Mar);
  • & those two reports, so starting the day before the Pacifica loan began, state in Note 4 the sale of FJC loans, but none is of the size of Pacifica’s $3.265m (remember, the auditors have to disclose material events occurring after the year-end);
  • . . . so, (1) who’s right: Pacifica’s auditor saying Sep2021 or FJC’s auditor saying Dec2020 at the latest? . . . or are they both wrong, & the early statements are correct, with the loan maturing 1Apr2021?;
  • & (2) if the loan matures 1Apr2021, & FJC’s expensive auditor’s report is accurate on the maturities date (but inaccurate on loan sales), who now owns the Pacifica loan?

The contradiction wasn’t noticed by anyone at either the Tu14July PNB Audit Cttee or the Th16July PNB. The claim for Sep2021 was so anomalous that I said nothing at the time, assuming it to be an error by Pacifica’s auditors, Rogers & Company. Their FY2017 report had factual errors, as noted in this blog, so my surprise soon passed. But what do I know?

Maybe one day a Pacifica director or a lowly LSB delegate will find out, & tell us.

Pacifica-FJC loan agreement, https://mega.nz/#F!PloCiSqJ!9rLejSkttE7gCVCCq3q86g?b0IBlaiR; 6Apr2018 Pacifica press release, https://www.kpfk.org/blogs/kpfk-and-pacifica-news/post/pacifica-announces-settlement-with-empire-state-building-and-empire-state-realty-trust/ & https://www.wbai.org/articles.php?article=3570; Pacifica FY2018 auditor’s report, https://pacifica.org/finance/audit_2018.pdf; & FJC public filings folder, https://mega.nz/folder/4Al2TDCD#7brl9C0CSfpESGgby6ZTrQ.

PNB & ED refuse to tell us how FJC will be paid its $3.265m by 2Apr2021, 6 months away

. . . Vladimir & Estragon, sitting silently, gazing out across the ocean . . .

~~~

Two associated posts will soon follow:

given the evidence of FJC auditor’s reports for FY2019 & 2020, has FJC sold the $3.265m loan?; &

given evidence from FJC, Pacifica, & its FY2018 auditor’s report, has the loan been extended from 2Apr2021 to some day in Sep2021?

There will also be a post explaining why the current application for an Economic Injury Disaster Loan (EIDL) is likely to fail given:

the lending criteria of the SBA, the Small Business Administration;

recent reports by its Inspector General on SBA lending decisions; &

• Pacifica’s financial performance – not since the recent past, 30Sep2016, the last date of audited financial statements, but since the deep past, 30Sep2006, a full 10 years earlier.

~~~

WARNING!

IT IS FORBIDDEN TO READ THIS POST WITHOUT BEING ACCOMPANIED BY THE ANTHEM OF PACIFICAWORLD. THANK YOU FOR YOUR FORBEARANCE. YOU MAY NOW CONTINUE.

F2Apr next year is a big, big day for Pacifica. That’s the latest day it’s contracted to hand over $3.265m to the Foundation for the Jewish Community, operating as FJC.

Pacifica, in the 2½ years since the loan was taken out, has never made a public statement as to how it’s going to do this.

But that’s not the worst of it: the public behaviour since Apr2018 of the Pacifica National Board & six executive directors (Livingston, Jackson, Aaron, Vernile, Reyes, Brazon – LJAVRB) has consistently neglected the matter in hand. Moreover, there’s been no push from the local station boards – occasional grumblings, but never enough to even meld into a motion. Not only has there never been a vote on a relevant motion during a public session of any Pacifica board or cttee, there’s never been a public Pacifica discussion of what options are available – even worse, there’s never been an exploration of what they could be. And never a mention in a public report from the private Pacifica sessions.

So no director has ever brought a motion, either to their local station board or the PNB. And each director, by law, has, in the jargon, a fiduciary duty, a duty to act in the best interest of the organisation. A director, by law, can’t be an ostrich.

Yet this is so.

Enter, stage left, as many DeWaynes as one can stomach, discursive DeWaynes, bombastic, hyperbolic, hyper-hectoring, the PacificaWorld incarnation of those irritating, pompous-sounding but sadly true epithets, all entering to stride the stage: egregious . . . negligent . . . dereliction . . . in a phrase, the refusal by each & every director to discharge their fiduciary duty.

🦗 🌊 🦗 💦 🦗 🌊 🦗

Only some of the directors are fresh to the fire. Others constitute the inner circle, & it’s not known publicly why these specimens have continually failed to discuss in public how this $3.265m could be raised. (An alternative is persuading FJC to extend the loan, changing the maturity date of the contract.) In the two-year period thru to 2Apr this year, one can assume the failure was Being Homer: cognitive myopia, an inability to think that far ahead. But silence during the last six months? That’s a lil more difficult to explain. Having seen off the breakers in the March referenda, wasn’t that the time to seize the initiative, start afresh, set a new tone? OK, the US COVID-19 epidemic had just grabbed the attention, soon followed by a collapse in Pacifica income, but surely this made it even more urgent to sort out where the $3.265m is coming from? But no. In PacificaWorld, failure is utter.

But the prime responsibility lies with ED Lydia Brazon, in post since 5Dec2019. Her job is to deal not just with the present, the firefighting, but with the future, especially with known problems like finding a multi-million sum by a known date: The Mi$$ion. So, existentially, the Pacifica mission reduces to The Mi$$ion. Why hasn’t she hired someone both to list the kinds of options & to identify concrete options, the possible courses of action? Scenarios that she can then present to the Board for decision?

https://pacifica.org/documents/pnb_exec_191205.pdf

It’s not her job to await instruction from a floundering PNB. She’s known the obvious from the beginning. And its urgency.

The puzzle is why she’s delayed, & why not even one director has moved to correct this. Why no pressure put on ED ‘Fabiana’?

🦗 🌊 🦗 💦 🦗 🌊 🦗

As it stands, according to the co-signed FJC loan agreement, Pacifica has identified two concrete ways to pay FJC:

a swap or sale of one or more radio licenses or a sale of other Pacifica owned assets”

(Recital B, page 1, added emphases; page 2 of the PDF https://mega.nz/#F!PloCiSqJ!9rLejSkttE7gCVCCq3q86g?b0IBlaiR)

This sentence ended with a third option, a Pacificaesque, a catch-all in the abstract, the ever-dependent Micawber: “[…] or such other sources that will become available”. Gotta luv it, babi.

. . . courtesy of Sol Eytinge, Jr . . .

🦗 🌊 🦗 💦 🦗 🌊 🦗

All this, whilst a variant of the Godot theme prevails: time waiting for no-one . . .

🦗 🌊 🦗 💦 🦗 🌊 🦗

M21Sep PNB Strategic Planning Cttee meeting decides to decide to start discussing a discussion of a strategic plan – at the next meeting

. . . the cttee members decide not to decide on the preliminaries of how to discuss the discussing of a Pacifica strategic plan (not least the need to pay $3.265m within the next six months to the Foundation for the Jewish Community, FJC); instead they decide to decide to defer the deciding to the next meeting . . .

It was even on the agenda – it’s just that in 1½hrs they never got to it coz they had agreed (without objection) to place it as the penultimate substantive matter, & having spent almost all their time on whether to run a pilot on advertising (underwriting), the grains of time had passed thru the egg-timer. Ah well, there’s always another one in two weeks’ time. (The meeting next Monday, called on 6Sep, was cancelled on 15Sep, without explanation or subsequent comment – but then it was denoted as “Purpose: Discuss Strategic Planning”. https://kpftx.org/pacalendar/cal_show1.php?eventdate=20200928)

[UPDATE . . . audiofile now posted, https://kpftx.org/archives/pnb/pnbstratcomm/200921/pnbstratcomm200921a.mp3 (1:18:48; the intended 90mins meeting started 21mins late; agree agenda, 2:44; advertising, 4:52-1:05:04; the last 13mins of the gathering spent lamenting the fact they never got to discuss “the strategic plan”).

[Highlight, from Our Grace, hallow’d be Thy name. Priceless:

I’ve been hearing, um, complaints & criticisms from a number of sources that Pacifica doesn’t have a strategic plan, & I would like to suggest that we, argh, at least start talking about it & – urgh – that we – I’d like to extend this meeting for 30 minutes to start a discussion about a strategic plan.

(1:07:19)
The effort to extend just withered. And died. Never put to the vote. There’s always next time.]

~~~

Apologies to the three- & four-year-olds of Tourcoing, France, on the Belgian border, 12May2020; photographer, Lionel Top.

Also recognition to the teacher, a profession much maligned by the barbarians. But much more meaningful, & solidarian, than verbal support is significant material support: here, the widespread use of daily rapid testing for SARS-CoV-2, the virus causing COVID-19. As Michael Mina (Harvard public health) et al. argued even in late June, feasible on a universal basis is a $1 test giving a result within 15mins. It’s akin to a pregnancy test: it’s non-laboratory, just saliva on a paper strip impregnated with antigen (that’s a protein from the virus – non-infectious, please note! – that triggers a detectable immune response).

the 5mins vid,

details on the meat, identifying the people able to transmit the virus: that’s why a rapid result is needed, so it’s actionable (note, false negatives are irrelevant in practice coz they’re almost certainly picked up the next day, not least due to massive virus replication), https://www.youtube.com/watch?v=kDj4Zyq3yOA&t=2m21s (15July) & https://www.youtube.com/watch?v=3seIAs-73G8 (5Aug)

the paper, 27June, ‘Test sensitivity is secondary to frequency and turnaround time for COVID-19 surveillance’, https://www.medrxiv.org/content/10.1101/2020.06.22.20136309v3 (also as downloadable PDF)

advocacy, https://www.rapidtests.org/ – and for those in the Heimat, https://rapidtests.de/

. . . so much for focusing on massive vaccine development funding, moreover, providing competing pharma with the guarantee that if they fail then the taxpayer pays for their failure, & if they come up with a winner then the shareholders take the profits. Brilliant. Not the Amerikan way but the capitalist way, when capitalist interests run the state . . .

~~~

One year ago the FJC loan documents were leaked – respect to those responsible

the leak – now mirrored across the net (only some of the 19 files are shown)

Most people, most of the time, don’t give a monkey’s about what goes on at Pacifica. And that includes the members. In the referenda brought by the breakers earlier this year, a massive 77% didn’t vote. (33k didn’t, 10k did.)

https://pacificaradiowatch.home.blog/2020/03/30/referenda-station-results-approx-absolute-numbers/

The anti-breakers shout about their ⅔rds support, but this misses the point. There’s aggregation – and there’s organisation. It’s the contrast between sharing attributes (typology) & being organised in & thru relatively enduring relations (structure). The contrast being statics & dynamics: one, a snapshot in the present; the other, a force projecting into the future. To be effective, atoms need to be organised – then mobilised. And things are so bad in PacificaWorld that even the anti-breaker higher-ups lack organisation: after three months they can’t get the PNB Strategic Planning Cttee to work. (Met twice, three cancelled, since it was ‘re-populated’ in April.)

RealWorld, in the latest form taken by its developed capitalist societies, has found a rhetoric to encourage both acceptance of an institution & participation within a ‘community’: be transparent, be open. Transparency of proceedings; transparency of facts. So, a threefold transparency: of process, of the world as it starts from, & of the world it creates. Well, the obdurate Pacifica secrecy culture is impervious to all this.

Three activities are essential to the species: working, reproducing, communicating. Pacifica’s pseudo-leaders may be able to work & reproduce, but they don’t know how to communicate, which is why transparency is an unwelcome complication. They’re always afraid they’ll be misunderstood – hence the sad performances of the hapless Mansoor ‘Uriah Heep’ Sabbagh & the hypocritical Chris ‘R Paul, my heart bleeds for WBAI’ Cory, continually fretting that the ignorant great unwashed won’t understand provisional financial data, data good enough for them, but not for others. Well, the hermeneutic failure is all theirs.

This contrasts with 26June2019: an exercise in transparency, communication, hermeneutic success.

~

On 2Apr2018, Executive Director Tom Livingston committed Pacifica to the biggest debt in its history, signing the $3.7m loan from the Foundation for the Jewish Community, known in the wider world as FJC.

Pacifica was proud of the new form it had pushed its debt into. It issued a press statement, still on the websites of KPFK & WBAI: https://www.kpfk.org/blogs/kpfk-and-pacifica-news/post/pacifica-announces-settlement-with-empire-state-building-and-empire-state-realty-trust/ & https://www.wbai.org/articles.php?article=3570.

So proud, the statement to the world included this from the then PNB Chair, Nancy Sorden (who’s still a director & WPFW listener-delegate):

I’d like to first thank the Pacifica National Board, for deciding on this approach and the enormous amount of work they put into it to get us to this point. Second, to FJC for providing this loan at a very difficult time for Pacifica, and third to the team of professionals that helped negotiate the settlement, secure the funding, identify and secure an agreement for our new transmitter location.

But the recognition of FJC didn’t stop there. A whole paragraph followed, detailing this ‘n’ that, as Mansoor would say, &, in referring to its Agency Loan Fund (ALF), Pacifica implied that this was the vehicle used to access money lodged at FJC. I carefully say ‘implied’ because no Pacifica employee or officer has ever disclosed the source of the loan: be it via ALF; one or more FJC donor-advised accounts; or some other FJC arrangement.

So given all these heart-felt thanks it was surprising that pretty soon, & with no explanation, the word ‘FJC’ became taboo, with the great & the good becoming boys in blue whenever someone mentioned the acronym. The policing became so extreme that Chair Nancy summarily ended the 20Dec2018 PNB meeting, cutting the stream, after ‘Jehovah’ ‘FJC’, that obscenity, had been uttered once too often by a blasphemer. PacificaWorld had collapsed into The Life of Brian.

http://wbai-nowthen.blogspot.com/2018/12/hush-money.html (smiles to Chris Albertson for the felicitous title) & https://kpftx.org/archives/pnb/pnb181220/pnb181220a.mp3 (22:45)

(Digression . . . this portion of the meeting is an excellent example of how that breaker Rottweiler, Carole Travis, operates. A masterful performance. Not least for trying to get on the stack before the agenda item had even been reached. Superb. Chomping at the bit before the meat was even on the table. Kinetic. Carole, sadly, is now retired from the PNB & the KPFA Local Station Board, but hangs around, lurking, in the KPFA Community Advisory Board & as a trustee of one of the pension funds – along with former ED Tom Livingston. Yes, the ties that bind. https://kpftx.org/pacalendar/cal_show1.php?eventdate=20200222 (click ‘Committee Members’))

As expected, the appeal to confidentiality – so beloved by Pacifica gatekeepers – was spurious, as fully explained July last year, by referring to the evidence, the leaked FJC contract documents we now have occasion to celebrate: https://pacificaradiowatch.home.blog/2019/07/21/pacifica-could-have-and-can-publish-the-fjc-loan-contract-the-confidentiality-clause-only-consists-in-fjcs-name-and-street-address/.

Giving credit where credit’s due, Chair Nancy, condemning mention of a press statement mentioning her very own words, richly earnt her PacificaWorld moniker, Chair ‘wooden as a chair’ Nancy. Nancy, we salute you, &, as they say interminably on Fox News, thank you for your service.

The self-appointed protectors of PacificaWorld created an aura of secrecy, one with its own lexicon: ‘the big loan’, to distinguish it from the Tom & Jerry loan, the Ben & Jerry loan – no, ‘the small loan’, the $0.5m loan collateralised by the Nakapon/National Office building (1921-1925 MLK Jr Way), the one ‘linked’ to director Jan Goodman, the Jan & Jerry loan, the Jan & fiends loan – no, the Jan & friends loan. In the leaked docs, ‘the small loan’ is called ‘the friendly loan’ & ‘the Pacifica supporters loan’ (sic). Inventive, & psychically revealing.

And yet the information gatekeepers, in doing their work, just couldn’t help themselves, antagonising fellow directors, by refusing to give everyone a copy of the loan documents. Directors Adriana Casenave & DeWayne Lark (both KPFT listener-delegates), not surprisingly, proved to protesteth the mosteth.

The notices for the PNB closed sessions say, “[o]n March 22, 2018 the PNB met in executive session and approved in principle a number of agreements that will immediately address our financial difficulties.” So, “in principle”: not the draft documents. The contracts were signed from the very next day: those with FJC signed 23Mar & before 3Apr by ED Livingston; the advertising contract with F.Y. Eye, Inc., signed 23Mar by ED Livingston (the euphemistic ‘underwriting’); & ‘the small loan’, the $0.5m, signed by director Grace Aaron perhaps 28Mar, & was due to be signed by director Mansoor Sabbagh. These docs weren’t distributed to all directors, either then or since. https://pacifica.org/documents/pnb_exec_180322.pdf

It should be added that the PNB Finance Cttee repeatedly complained about only some of its members having the FJC loan docs, even asking for them from the PNB. Fat chance. It was sorrowful to witness the repeated requests in Cttee of the forlorn Nick Arena, WPFW treasurer, a man who only happens to administer bank loan contracts in his day job. What could he contribute to Pacifica? Just as well he’s kept out of the loop.

(Elaboration . . . the lender of ‘the small loan’ was Pacifica Supporters Loan, LLC, & signing the contracts were two denoted “managers”, King Reilly & Jerry Manpearl. (Mr Manpearl just so happens to be hubby of a Ms Goodman: Jan, the Pacifica director.) The PNB agreed that Pacifica donors pay Mr Reilly $10k “as a brokers’ fee for arranging this loan”, & pay the lender $28k as “legal fees and expenses” – page 2 of doc #1. In contrast, it takes a worker on $15 an hour all of 4 months to earn $10k. Progressive values in action, the Reilly/Manpearl way. From 1921-1925 MLK Jr Way to the Reilly/Manpearl way. The Pacifica journey. All funded by the members & listeners. #ThisIsWhatWinningLooksLike. https://mega.nz/folder/EdtSkCDZ#oJZi7rkbk2KcI6DtzIudXw

Also, doc #5 (duplicated as doc #6), a ledger that isn’t Pacifica’s, identifies the nine ‘small loan’ lenders, of between $25k & $125k, at 7.5% a year – one is a KPFK listener-delegate (then, & now), another a current KPFT listener-delegate. (7.5% = prime + 3 percentage points during the period 14Dec2017 thru 21Mar2018; prime then rose to 4.75%. To note, the FJC loan is on the same basis. What’s good enough for a FJC investor is good enough for a Pacifican – Pacifican, & liberal (not socialist), values at work.) https://mega.nz/file/YIlUnQjY#04wtWOTKqlXBaUNaKYD7xvcdt7NOWydG1vQSaud3U5A & https://about.jpmorganchase.com/about/our-business/historical-prime-rate

The ledger shows that ‘the small loan’, $0.5m, was the residue of a liquidated $2.075m loan, also at 7.5% a year, that had lasted one month. This loan had 13 lenders, of between $25k & $875k (Manpearl $400k, Reilly $875k). Curiously, a $50k lender ‘earnt’ no interest, so perhaps the sum either was only committed or was withdrawn the day it was deposited (if the interest were foregone as a donation to Pacifica then this would have been further recorded). The existence of this $2.075m (or $2.025m) loan has never been publicly acknowledged by Pacifica, neither by employees nor officers.)

~

The publication of the FJC loan docs on 26June2019 was a giant step forward in making Pacifica transparent. The fact that no director claimed responsibility speaks volumes. Instead, respect goes to those who work to inform the members & listeners. Respect.

~

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

https://mega.nz/folder/EdtSkCDZ#oJZi7rkbk2KcI6DtzIudXw (convenient one-click download of the folder; also ‘preview’ allows reading online)

The ‘root’ contract, called the “loan agreement”, dated 2Apr2018, signed (with no date) by Pacifica ED Tom Livingston & FJC President Lorin Silverman: https://mega.nz/file/AI0iUYga#QzMtaBd0iRTZJ_YNmh2KZ1xKu7Qh_hQ6IcPMVkGWX94

There’s also an advertising (underwriting) contract as part of the loan, dated 2Apr2018, signed 23Mar2018 by ED Livingston: https://mega.nz/file/ZZ8gFSJD#VnNgdE2R4ap3_e0hMI2ma4RVssZSGek7tLWMle10zRM

Two-stage emergency plan; & signal-swap to release cash. Response to remarks by Mr Burton

Clifford Burton was kind enough to make a comment yesterday, about the current travails at KPFKD (not the KPD). My response became a lil longer than two paras., so i’ve put it here as a post. I thank Mr Burton (or is it Mx these days?) for helping me coalesce my thoughts. https://pacificaradiowatch.home.blog/2020/06/05/within-the-hour-facebook-inexplicably-deleted-the-post-about-the-pnb-zombies-and-karen/

In a separate post i’ll comment more narrowly on the KPFKD crisis thru consideration of two Pacifica meetings & a commentary: the Tu9June PNB Finance Cttee, & the W10June KPFKD Finance Cttee, & the W10June report by R Paul Martin to that evening’s WBAI Local Station Board (https://glib.com/treasurers_report_2020-06-10.pdf – 5pp. plus 3pp. appendices).

~~~

Strictly speaking, & this is the practical reality, KPFKD’s fate is Pacifica’s, not the station’s. A station owns nothing, not even the paper-clip being flipped across the station manager’s desk while he stares at the spreadsheet. Yes, the listeners think of the station as their own, they’re attached (Bowlby), & the station activists have not just a cognitive but an emotional involvement in the station, but in the famed last analysis, each station (1) is a custodian of Pacifica assets, administering them, (2) owns no debt, & (3) is an accounting unit.

This means that a revenue collapse at a station is Pacifica’s problem.

And this can cause a problem in a signal area when the self-understanding of what it is to support ‘my’ station, to love ‘my’ station, to be involved in Pacifica, is based on a falsehood, when, in the strictest sense (& so not to be thought unkind), the self-understanding isn’t up to the task, it’s practically inadequate.

As i’ve said elsewhere, all station accounting data, either as an aid for management decision-making or to inform the members & listeners, should allow a fair comparison between station performances, so of like with like. This requires the stripping out of the effects of historical accidents, which started in the Garden of Eden, when Pacifica & KPFA constituted an identity, the one & the same. The most glaring effect is that some stations are privileged, enjoying Pacifica buildings, land, & transmitters on a rent-free basis, thus being subsidised by the other stations, which also have the extra burden of paying non-Pacificans simply to function. A double burden is a double shift (Arlie Hochschild).

And the political effect of this persisting deficiency in how some Pacificans self-conceptualise & live affectively? Station chauvinism; separatism; provincialism. Station chauvinism: breeding poison, fuelling resentment. Separatism: break up Pacifica, destroy the network. Provincialism: springing from an exclusory proprietary attitude, it’s simultaneously inward-looking & antagonistic to others, causing the living of an in-group/out-group perceived reality, friend versus foe (Carl Schmitt). All this, antithetical to the nature that is Pacifica.

In terms of getting out of Pacifica’s endemic crisis, this blog (& in prior comments at Chris Albertson’s http://wbai-nowthen.blogspot.com/) has consistently noted the obvious: the only plausible way to, in the current idiom, let Pacifica breathe, is to negotiate a signal-swap (two isn’t needed), thereby using cash both to settle debts & to pay for the implementation of a network development plan. Only this can give Pacifica a future.

The Gorgon Grace approach has always been intrinsically myopic. Preserving the $3.265m loan principal, thru either extending the loan term or finding a new lender, has never addressed Pacifica’s future. It has only condemned Pacifica to a perpetual present, a Sisyphean existence, perpetual firefighting mode, the living of a diminishing, & so debilitating, present. The Grace approach, accepted by the PNB by default, the typical Pacifica action of inaction, an act of omission, has choked Pacifica, presenting it with the living of a shrinking horizon.

Only by eliminating the constant firefighting is it possible, but not guaranteed, to (1) pay bills timely, (2) give management, staff, the PNB, & the local station boards the time to focus on the future, rather than the present, & (3) improve the appalling interpersonal interactions at four of the stations (WBAI is relatively pacific).

In terms of the politics (not morality) of practice, Pacificans need to grasp that money isn’t necessarily sinful, but instead can simply make life a lot easier & less stressful. (Ask the hundreds of millions of Chinese no longer in dire poverty.) Most so-called leftists fail to recognise the liberatory potential of money (& of marketing) in our current kind of society, one that’s necessarily mediated by money: there’s no way to avoid this, other than suffering the consequences even more. Regrettable, yes, but true. It means money is needed to allow Pacifica to regain health, & to not just grow (augment existing capacities) but to develop (acquire new qualities).

It’s time to flourish, not suffer.

But how to do that?

Money. And the only feasible source, other than Danny Glover, is a signal-swap. But that can be a two-year process, so in the meantime Pacifica needs to find a way to survive, & the depth of its cashflow crisis may require a two-stage response.

First, the only way to chop enough costs rapidly is to chop the staff at both KPFA & KPFKD, changing their character, making Pacifica as a whole volunteer-based. Second, its cashflow crisis may require the sale of a building, even two. (Note that as they’re collateralised to the Foundation for the Jewish Community, FJC, at a 3:1 asset-to-principal ratio, it means FJC gets a third of the valuation sum constitutive of the contract.)

Pacifica is in its current Laurel & Hardy mess because the PNB has been in denial since 1Apr2018. It had taken out the $3.7m loan from FJC but didn’t take responsibility for the future, grasping the monetary nettle by starting the process of doing a signal-swap.

In any case, a radio signal isn’t what it used to be. Digitisation has caused broadcasting to be transcended by providing. The broadcast schedule, transcended by the download list. The position on the dial, transcended by reputation, sustained by social media, enhanced by branding. The radio, transcended by mobile digital devices. Radio is 20th century, it’s passé. It’s one reason why the BBC since 2018 no longer speaks of radio but of “sounds”: not a device, but an output.

https://www.bbc.co.uk/sounds

Yes, Pacifica’s listeners are, literally, a dying breed. If Pacifica is to avoid extinction it needs to grasp the future, it needs leadership, it needs a group to initiate a transformation. But do they exist? The breakers do. We know that. But can the Pacifica partisans rise to the occasion? As Primo said, thru his alter ego in the Belarusian forest, se non ora, quando?, if not now, when?

Two months down, ten to go, yet the zombies keep shuffling on to the abyss – but where is Pacifica’s Karen? . . . will tonite’s PNB instruct ED Brazon to identify the options for paying $3.265m to FJC by 31Mar2021?

. . . one reason why the PNB only has teleconferences – without cams . . .

At least the protesters in the streets today have some vitality. Back in PacificaWorld the directors just keep on keeping on, shuffling along as zombies, towards the abyss they refuse to see.

Besides the obvious – money & more appealing programmes – Pacifica needs one thing: Karen.

Yes, the directors vary in their abilities, but why the continuing collective failure? Just like the street, there has never been a more opportune moment to say, no more. Cometh the moment, cometh the Karen. Karen needs to step up to the counter.

#Karen.

The anti-breaker coalition hasn’t endured: Steinberg & Aaron have pushed Reyes aside, trying to close down discussion, stitching things up beforehand over Skype calls. The revived PNB Strategic Planning Cttee has been stymied. It’s as if when the moment suits them they’ll sort something out with Brazon, getting Marc Hand or whoever to try to find a new lender. What isn’t happening is transparency of proceedings, giving Pacifica members the opportunity to then hold directors & delegates accountable for their views/silence, for their action/inaction. All this has been made worse by the ugly tone that has descended upon the PNB, under the chairmanship of Alex Steinberg.

The differences between the street process & the PNB process can be pursued further.

The political problem facing the protesters, albeit unacknowledged, is the politics of the institutionalisation of enthusiasm, that is, how to meliorate oppression (glossed as achieving justice) through new or reformed institutional arrangements. So what institutional demands will the protest coalesce around? Or will it just peter out, like Occupy, without even an organisational legacy, just a fond memory?

So it’s the unknown that’s being lived in the street, & this makes the behaviour of the Pacifica directors even more inexcusable: they know what has to be done; they simply refuse to take responsibility, they simply refuse to carry out their duty. Instead, the last two months of proceedings have been largely devoted to tertiary & quaternary matters.

  • the Pacifica directors know what has to be done
  • they simply refuse to take responsibility
  • they simply refuse to carry out their duty

The reality is in plain sight: Pacifica is contracted to pay the Foundation for the Jewish Community, FJC, the $3.265m principal by 31Mar2021. What payment options have the directors contractually committed Pacifica to?

a swap or sale of one or more radio station licenses or a sale of other Pacifica owned assets of sufficient value to repay this Loan (as defined below), or such other sources that will become available

https://mega.nz/#!5NMhHAxI!QzMtaBd0iRTZJ_YNmh2KZ1xKu7Qh_hQ6IcPMVkGWX94 (the loan agreement; click on the Clouseau to read online, or download)

Just over two months ago, on 31Mar, when many were basking in the glow of the referenda results, I drew attention to the enduring problem, the elephant, the fact that Pacifica not only didn’t have a plan for what to do but hadn’t even identified the practical options it has. As I said,

So what’s it going to be: signal swap? buildings sales? extend the loan? find new lender? maybe the Jesse James approach, improving on the Symbionese Liberation Army?

With not an ounce of expectation, I asked the question whether at the Th2Apr PNB meeting a director would take the initiative & do the obvious.

https://pacificaradiowatch.home.blog/2020/03/31/pacifica-now-has-365-days-to-pay-fjc-its-3-point-265m-dollars-unless-fjc-or-the-current-owner-of-the-loan-decides-otherwise/

No doubt counter-intuitive, but what Pacifica needs at this moment is a Karen: a director, of any pronoun, who demands to speak to the manager. Tonite, will anyone move a motion to instruct ED Brazon to identify the practical options Pacifica has for paying $3.265m to FJC by 31Mar2021?

Not to be thought reductive, but no Karen equals no Pacifica: Karen = Pacifica.

~💗~ code 666, Karen at the counter ~💗~

~~~

How many are in the streets?

½%.

It seems to be roughly ½% of those older than 14. ½%. Not even the fabled 1%.

Politically it’s always crucial to have a sense of scale, not to be fooled when seeing lots of people around you: it’s easy in the enthusiasm of the moment to be deluded, & misled in your judgment.

Do a ballpark exercise. The crowds are say 15k, & there are only 50 states, plus DC, & the other colonies. OK, even double the crowd: 30k x 50 = 1.5m.

US population is ~330m, & those aged 0-14 are 18.46%, which leaves ~268.9m. And ½% is ~1.345m.

How may the fallout of the protests affect electoral politics? Trump lost the 2016 popular vote by ~2.9m (65 853 514 − 62 984 828 = 2 868 686). This time he could lose it by 5m – and still win the electoral college. Remember, a US voter casts their ballot not for a presidential candidate but for a party’s state list of candidate Electors.

Meanwhile, the most excited of all by far, the most expectant, is Viro the Virus, the billions & billions & billions of SARS-CoV-2 virions.

https://www.cia.gov/library/publications/the-world-factbook/geos/us.html (0-14: 18.46%; this source is used because the latest age structure at the Census Bureau website is 2015; note, the CIA uses a different total population figure; re the age stratum, it’s ♀ 30 034 371 + ♂ 31 374 555 = 61 408 926; incidently, the total is ~20m for each of the 5-year age groups from 0-4 thru to 60-64)

https://transition.fec.gov/pubrec/fe2016/federalelections2016.pdf (p. 5; p. 10 of the PDF)

Happy birthday! FJC, looking forward (NYC pun) to their $3.265m from Pacifica, is 25 years old today!

. . . “these amazing heroes”: FJC proudly advertising during the 2014 Gaza Massacre that it acts as a conduit for boosting the morale of enforcers of the colonial military dictatorship over Palestinians; ad in the NYC-area Jewish News, late July/early Aug 2014 . . . when it comes to the crunch, liberalism always breaks down, here with religio-ethnic supremacism trumping individual equality, the equal worth of human groups, & even the imperative of property rights . . .

If you must sing ‘Happy birthday, FJC! / happy birthday, FJC!’, at least repeat for more than 20secs whilst washing your hands in the proper manner, as modelled by Dr Tedros, the world’s fave Ethiopian (his day job is Director-General of one of those globalist elite organisations, the World Health Organization):

Please send celebratory greetings to Lorin Silverman, President & Treasurer of the Foundation for the Jewish Community (FJC), President & Treasurer of the Marty & Dorothy Silverman Foundation (MDSF), founder & President of F. Y. Eye, Inc., & President of National Enterprises Corp.:

fjc@fjc.org & 520 8th Ave, Floor 20, NYC 10018

MDSF: 130 East 59th St, Suite 1102, NYC 10022

info@fy-eye.org & 130 East 59th St, Suite 1102, NYC 10022

National Enterprises Corp.: 130 East 59th St, Floor 11, NYC 10022

SC Group (Silverman Charitable Group): 830 3rd Ave, Floor 6, NYC 10022 & 1501 Lexington Ave, Apt 5T, NYC 10029-7345

FJC don’t let borrowers default: they sell “potentially impaired” loans, without discount, to MDSF. The advertising broker, F. Y. Eye, Inc., has a $37 000 advertising contract with Pacifica, as part of the $3.7m loan. All this is explained in this link, which also has all the loan documents:

https://pacificaradiowatch.home.blog/what-fjc-has-made-pacifica-do/

FJC, in their latest auditor’s report, year-ending 31Mar2019, had net assets of ~$262m, investment income of $10m ($2.6m via the Agency Loan Fund from Pacifica, other borrowers, & sundry investments; possibly income from other loans; income from stocks & bonds), donors’ contributions of $33m, & disbursed $38m. (ALF generated $3m income but some, ≥ $0.4m, went to outside investors – p. 22 cf. p. 4; pp. 24 & 6 of the PDF.)

https://mega.nz/#!dJlzQYTD!4NAmjin7kXXnz3LR5LpypS9YKDMMmUAVI-2KKdxN3vs

MDSF, in their latest 990-PF public filing, year-ending 31July2018, had net assets of ~$447m (fair market value ~$588m), investment income of $15m, interest ‘earnt’ from loans (such as those bought from FJC) of $2.4m, & disbursed $11m (including $10 000 to Forward, $42 366 to Mother Jones, & $76 800 to New Israel Fund).

https://mega.nz/#!Ec83XYhT!Lw1smsxBxo6sZe1Jn6LYAMs0f1TD9nGTxFsPxCtXfgA

~~~

To F. Y. Eye’s great credit, they have a very informative practical help page for New Yorkers during the COVID-19 pandemic – it even has a Chrome extension to watch Netflix with others:

COVID-19: Stay Informed

~

[UPDATE: I seem to have got FJC’s birthday wrong. Not that Lorin rang me, but I’ve just come across an old note taken from Bloomberg’s: “[a]bout FJC […] FOUNDED 09/15/1995”. So, correct fiscal year, incorrect date. Not 1Apr1995. Apologies. https://www.bloomberg.com/profile/person/19329177 (undated webpage; on Mark Cohen, said to be FJC Chief Legal Officer & Assistant Secretary)]

~~~

Pacifica now has 365 days to pay FJC its $3.265m – unless FJC (or the current owner of the loan) decides otherwise

. . . Recital B: the directors have committed Pacifica to “a swap or sale of one or more radio station licenses or a sale of other Pacifica owned assets of sufficient value to repay this Loan (as defined below), or such other sources that will become available” https://mega.nz/#!5NMhHAxI!QzMtaBd0iRTZJ_YNmh2KZ1xKu7Qh_hQ6IcPMVkGWX94 . . .

As the other Bill wrote, about the land where Chris Albertson spent some of his childhood, “TikTok or Tick-Tock, that is the question” . . . Given Pacifica’s age structure, we know the answer. The foundation now has exactly a year to pay $3.265m to another foundation, the Foundation for the Jewish Community, that operates as FJC.

For two whole years, the directors have sat on their paws. See no evil. Hear no evil. Speak no evil. FJC loan? Excuse me? How many millions? Due when? Why worry? Thoughts & prayers. Thoughts & prayers. It’ll just go away. One day we’ll wake up & it’ll be gone. Like a miracle. It’ll just disappear. Yes. One day, it’s like a miracle, it will disappear. Thoughts & prayers. Thoughts & prayers. The loan, under control. Things. This FJC thing, it’ll just run its course. Let it rip. It’ll all work out well. Victory. The next PNB election. Incredible. Leadership. Be appreciative. A lot. A lot. This is what winning looks like. Stronger. Better. Victory. PacificaWorld, RealWorld. Country with a stockpile? Or all pile & no stock – a pile of BS, & a pile of gravestones. (But always a stockpile of nuclear weapons: priorities.) Vicious. Carnage. Keeping Amerika great. USA! USA! USA! Ode not to joy but to the United Scarves of Amerika.

Meanwhile, back in PacificaWorld, it’s from the ballot to the bullet – and the bullet has to be bitten. And now. How to pay the principal of $3.265m has to be decided now. And, rationally, that requires knowledge of the options Pacifica has.

The directors, since 2Apr2018, have lacked not foresight on this but due diligence. It didn’t even require vision; just plain diligence. Everyone knew what has to be re-paid, & when. The question was, how. The 2018 directors, by agreeing to the contract, identified two particular ways of getting the money to FJC: signal swap or sale of assets. The third way was generic, “other sources that will become available” – such as cash provided by another lender. So what’s it going to be: signal swap? buildings sales? extend the loan? find new lender? maybe the Jesse James approach, improving on the Symbionese Liberation Army?

There’s no evidence that research was done on any of this by the then executive director, Tom Livingston. Nor by ED Maxie Jackson III, or ED Grace Aaron, or ED Lawrence Reyes, or the current ED, Lydia Brazon.

So, obviously, the PNB needs to immediately direct ED Brazon to conduct or commission an authoritative report on Pacifica’s options. The PNB meets on Thursday, 2Apr. Will a director make the necessary motion?

Thoughts & prayers. Thoughts & prayers.

Since 2Apr2018, Pacifica’s being & future had been structured most forcefully by the FJC loan. No more. Since mid March, that’s been replaced by the spread of disease, of COVID-19. It’ll collapse Pacifica’s revenue. And well before the principal is due. Pacifica’s executive & national governance aren’t noted ballerinas, nimble. And confirmed cases are cascading. NYC’s first was Su1Mar. 1Mar. The Bay Area shelter-in-place started 0001, Tu17Mar. The US’ first 100k confirmed cases took 68 days, M20Jan to F27Mar. The second took 5 days [UPDATE, W1Apr]. It was as if federal officials were watching Fox & CNN rather than the world news. (Guess Al Jazeera America was ahead of ‘the market’, one suffused with national chauvinism.)

https://www.wsj.com/articles/first-case-of-coronavirus-confirmed-in-new-york-state-11583111692; https://www.sfdph.org/dph/alerts/files/HealthOrderC19-07-%20Shelter-in-Place.pdf (City & Co. of San Francisco); & https://www.cdc.gov/coronavirus/2019-ncov/cases-updates/cases-in-us.html (first case diagnosed M20Jan, publicly reported by CDC the next day)

Will Pacifica’s ‘leadership’ rise to the task?

Thoughts & prayers. Thoughts & prayers.

~~~

The set of loan documents are linked from the below webpage (it consists in the 19July2019 PacificaWatch summary of the loan, including details of the attendant advertising contract Pacifica’s directors agreed to, worth $37 000):

https://pacificaradiowatch.home.blog/what-fjc-has-made-pacifica-do/

Why FJC may no longer own the loan (posted 20July2019):

https://pacificaradiowatch.home.blog/2019/07/20/has-fjc-sold-the-3-265m-loan-is-the-owner-the-marty-and-dorothy-silverman-foundation/

~~~

Please note, as of tomorrow, W1Apr, the $3.265m owed to FJC is no longer a long-term liability: it becomes a current liability. In so doing it significantly worsens Pacifica’s illiquidity quotient, the measure of Pacifica’s incapacity, in terms of current assets, to pay current liabilities, that is, those falling due within 12 months. Even before this $3.265m became a current liability (albeit mitigated by the $2.361m written off by Democracy Now!, announced to Pacificans by ED Maxie at the 12Mar2019 PNB Finance Cttee), Pacifica was last liquid, according to audited balance sheets, at 30Sep2009. Yes, 2009. Pacifica’s latest audited balance sheet is at 30Sep2016 (the FY2017 one, proffered by NETA, wasn’t audited thru lack of supporting documentary evidence). That’s exactly 3½ years ago. And the illiquidity ratio was 11.54: that means every Pacifica $ of current assets was being chased by $11.54 from the short-term creditors (7 356 997 / 637 716 per auditor’s report, p. 2). Micawber would be cheered, yet saddened, seeing someone worse off than himself – splendidly cheered, m’boy.

https://pacifica.org/finance/audit_2016.pdf; also at https://mega.nz/#!YEcTRYID!IIQGPCye8yYMqj3_eOf0voVp8aVTcurd93L_D1Lpr30

How is it KPFA last paid property tax on 3Apr2013?!? Where’s the transparency? Where’s the accountability?

. . . is it really that difficult? . . .

Here are a few notes on the KPFA property tax debt, ~$487k. To be exact, it’s $486 750.86. It means an online public auction of the Pacifica building in Berkeley, at 1929 MLK Jr. Way, has been ordered for 20-23Mar – a building, one should add, that KPFA enjoys rent-free, so effectively receiving a subsidy, year after year, from the other four stations. Some thanks.

1) Almost half a million $$$? But aren’t charities exempt from this tax? Indeed: if a non-profit organisation is a registered charity, say, & the property in question is solely used for charitable purposes, then no tax is due, it’s exempt – but only if the organisation jumps thru the hoops set up by the taxwoman. Hoops such as annually applying for the exemption. Hoops such as providing the required evidences. OK, so administrative ABC, right? – or so one would think.

KPFA has to deal with the Alameda Co. taxwoman. As expected, the exemption’s on their website. It’s called the Welfare Exemption (it’s been around since 1944), & to apply the organisation needs an Organizational Clearance Certificate. The relevant introductory webpage even has this coaxing prompt, hypertexted: “Welfare Exemption for Non-Profit Organizations”. https://www.acgov.org/assessor/decreasetax/exemptions/other-exemption.htm

The powers that be have even gone to the trouble of writing a helpful booklet, explaining the rules & process: https://www.boe.ca.gov/proptaxes/pdf/pub149.pdf (Dec2018)

It even seems that unaudited financial statements are acceptable – which of course means they have to exist in the first place: https://www.boe.ca.gov/proptaxes/pdf/boe277.pdf

ABC. The basics. Basic admin. The sort of thing the average 14-year-old can do. If Pacifica had a Young Pioneers wing, they could have been charged with the responsibility. After all, kids have been known to run even more complicated things: https://en.wikipedia.org/wiki/Gyermekvas%C3%BAt.

~

2) As of 29Jan this year, the last payment made to Alameda for 1929 MLK was 3Apr2013 – almost seven years ago. (Primary documents are linked at https://pacificainexile.org/.) The itemised bill has property tax due, to 30June2020, of ~$373k. But the debt is ~$487k? Yes: penalties, interest, & fees is the difference, ~$114k. $114 000. Oh.

~

3) Is KPFA the only part of Pacifica paying – or not paying – property tax, when, on its face, there should always be an exemption? No. Consider, arbitrarily, the period since 1Oct2009, the start of Pacifica’s financial year 2010, FY2010. There are seven sets of audited figures, plus the financial statements in the FY2017 auditor’s report, statements which are not audited because the auditor, Rogers & Company, said they lacked sufficient evidence in order to express an opinion on the statements’ material accuracy. In the jargon, The Black Spot is a ‘disclaimer of opinion’. (As repeated Pacifica mtg. audios reveal, no delegate, even no director, seems to appreciate that the FY2017 statements, so all the figures in them, are effectively worthless. However, for prospective donors & lenders, & the Corporation for Public Broadcasting, they are not worthless but valuable: they are a bigger red flag than the one gracing Tiananmen Square, alerting anyone reading the auditor’s report that Pacifica is out of control, lacking even the basic financial controls.) https://pacificaradiowatch.home.blog/2019/07/19/fy2017-auditor-refuses-to-declare-that-the-statements-are-materially-accurate/

For these eight years, FY2010 thru FY2017, total charge for property tax = $502 187. Yes, talk again of half a million. Almost all of it was for KPFA: 91.9%, $461 334. (The others: KPFK, $23 624; KPFT, $15 126; & ‘National Division’, the auditor’s term, $2 103.)

Pacifica owns properties housing KPFA, KPFK, & KPFT. Not every station has been charged property tax each & every year. The annual charge for each station, & National Division, starting with FY2010, are:

  • KPFA: $13 854, 0, 14 208, 13 036, 9 929, 14 354, 337 826 (sic), 58 127 (unaudited);
  • KPFK: $0, 0, 0, 0, 0, 9 762, 9 202, 4 660 (unaudited);
  • KPFT: $29 453, 14 354, 0, 0, refund of 28 686, 5 (sic), 0, 0 (unaudited); &
  • National Division: all zero bar $2 103 (FY2014).

There’s a lot of explaining to be done here. Not least the KPFA FY2016 charge of ~$338k. Since the statements include National Division in their analysis, this figure can’t have anything to do with the Berkeley ‘Nakapon’ building, 1921-1925 MLK, that housed the national office. (Coincidently, that auditor’s report, by Regalia, is dated 31May2018, & it addressed a post-balance sheet event, the sale of that property. Please note, if the ~$338k charge were to largely refer to previous years, perhaps even to the sold property, then that would have been disclosed as an adjustment to the opening balances, with an explanatory note, not as a FY2016 expense.)

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4) Then there’s the Foundation for the Jewish Community, operating as FJC. Pacifica have to pay them $3.265m by 31Mar next year. A condition of the loan is paying all taxes when they fall due. A condition of the loan is getting FJC’s permission before any asset is sold. A condition of the loan is adhering to the conditions. FJC also have the legal right to sell on the loan, their asset, whenever it suits them. And this they have done in recent years, even of a loan comparable in size to Pacifica’s. And they don’t wait for a borrower to default; no, they sell it on when the loan is “potentially impaired”, as disclosed in any of their auditor’s reports. And we know who they sell it to: the Marty & Dorothy Silverman Foundation. Is this latest debacle the straw that finally breaks the camel’s back? https://pacificaradiowatch.home.blog/2019/07/20/has-fjc-sold-the-3-265m-loan-is-the-owner-the-marty-and-dorothy-silverman-foundation/ & https://pacificaradiowatch.home.blog/what-fjc-has-made-pacifica-do/ (this also has a link to the root contract, the ‘loan agreement’, signed 2Apr2018 by Pacifica ED Tom Livingston & FJC President Lorin Silverman)

If the Pacifica building in Berkeley is indeed sold, it better go for in excess of $1.5m because FJC will want their $1m or so. That’s because it’s collateralised against the loan, which was made on a 3:1 value-to-loan basis. If Pacifica loses an asset, FJC gets its corresponding cash back immediately. “Cash back, Ma’am?” — “Why, I’ll have a million plus, thank you, young lady” — “Have a nice day, y’all!”

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5) Money & debt aside, what about the politics of all this? Two democratic virtues are at stake: transparency & accountability.

A written public explanation must be provided by ED Lydia Brazon.

And who was responsible for this debacle? The KPFA GM, dear Quincy? The KPFA business manager, Maria Negret, who has exalted the financial performance of the station at every LSB mtg. she has graced? The KPFA treasurer, Sharon Adams? The KPFA Finance Cttee? What about the PNB as a whole, since 1Jan2014, say? Then there’s the current chair of the PNB Finance Cttee, Chris Cory, also on the KPFA LSB? The PNB Finance Cttee since 1Jan2014? The PNB Audit Cttee? And all the ED’s of the last six years? Indeed, whilst Breaker Bill Crosier was ED for almost a year, 2017-8, he supervised, by a continual act of omission, an increase in this property tax debt, including penalties, interest, & fees.

And, last but not least, what about Pacifica’s bookkeeper, accountant, & provider of the Chief Financial Officer since Sep2018, NETA, the expensive National Educational Telecommunications Association? How long did it take NETA in its early precautionary overview of Pacifica’s assets (& their attendant liabilities) & Pacifica’s aged creditors, to identify KPFA’s property tax debt, one accumulating since 2013??? A week? Two weeks? A month? When did NETA notify Pacifica’s ED of the seriousness of this debt? . . . this debt which, in the absence of contrary info, is an existential threat to KPFA?

So, besides the members & listeners, who will pay for this debacle? In neglecting the oft-cited fiduciary responsibility, who will pay the price? Is there evidence that GM Quincy McCoy continually disclosed & appealed to successive ED’s that KPFA was both living beyond its means & jeopardising a key asset of the Foundation? Is there? Or, as GM, does he deserve to pay the ultimate Pacifica price?


Foundation for the Jewish Community, FJC, FY2019 auditor’s report

. . . this isn’t a Quinten Massys, 1514 . . .

2Apr2018, Pacifica took out a $3.7m loan (now $3.265m) from the Foundation for the Jewish Community, FJC, a donor-advised funds holder. A week or so later than expected, this is the auditor’s report on their FY2019 financial statements (year-end 31Mar), dated 27Aug2019:

https://mega.nz/#!uv5ihaaA!l1oM3AMgandB1nMflPaxBqAhapnpWhbQv3YzLfjKTxI

For a summary of what the loan has made Pacifica do, please see https://pacificaradiowatch.home.blog/what-fjc-has-made-pacifica-do/.

P.S. Promise I didn’t get the pic from Patty Lipshutz, MoMA employee, the Museum of Modern Art, NYC, its longstanding chief legal counsel & Secretary – also Vice-President & Secretary of the Marty & Dorothy Silverman Foundation. Perhaps no surprise she’s married to a Silverman, Lorin, who happens to be not only President & Treasurer of the Marty & Dorothy Silverman Foundation but also President & Treasurer of FJC, and founder & President of F. Y. Eye, Inc., an advertising broker, which Pacifica has a $37k contract with for on-air & website advertising, the euphemistic underwriting.

[Analysis will follow by Tu24Sep (apologies for the delay). A focus will be on their Agency Loan Fund, ALF, cited in the 6Apr2018 Pacifica press statement, announcing its loan from FJC, & devoting a paragraph to ALF. This is the KPFK link (it’s also on the WBAI website): https://www.kpfk.org/blogs/kpfk-and-pacifica-news/post/pacifica-announces-settlement-with-empire-state-building-and-empire-state-realty-trust/.

[Note that, despite what some Pacifica directors & others say, FJC do sell on their loans, to the Marty & Dorothy Silverman Foundation. Just ask Patty, or Lorin – or daughter Allison, a director of the Marty & Dorothy Silverman Foundation, and VP, Strategy & Operations of F. Y. Eye, Inc. Selling on a loan happened again in FY2019: “[d]uring the year ended March 31, 2019, the private foundation purchased one loan totaling approximately $1,018,201” (p. 17, my emphases; p. 19 of the PDF). This is as per policy: “[s]ince its inception, any loans that were determined by FJC to be potentially impaired were purchased in full by a private foundation” (p. 11; p. 13 of the PDF). That’s right, folks, FJC never wait for a borrower to default. Pacifica’s loan, & the liens on its properties, may just get sold on without the chance to go to court. Capitalist right is capitalist right, the right to dispose of one’s assets as one sees fit.]