Serious questions about the
missing $200,000 of Borough money
By Mary Lynne Dahl
April 27, 2007
To the Editor:
I, too, have been outraged by the unpaid $200,000 owed to the
Borough by Mr. Jenkins and his veneer mill bunch. I could not
agree more that we have some very serious questions and need
some very straight answers, now.
The story as reported in the Daily News stated clearly that because
no interest was paid for 6 months as agreed to, this deal was
in default. A failure to disclose a loan in default to an inquiring
lender is dishonest and fraudulent, indeed. To make matters worse,
the Borough was an accomplice in this fraud and had no business
agreeing to this request.
In addition, since the interest that was not paid was, in fact,
earned and credited somewhere else, why is it not possible to
reverse those credited amounts and pay the Borough immediately?
We don't need some flakey double-talk of an excuse on this; we
need this reversal to simply be done. This is only an accounting
transaction, not rocket science. Banks are quite capable of correcting
this kind of error, regardless of why it happened (which is another
This now begs yet another question: why should the Borough forgive
the payment and accept some ridiculous promise to catch up
or other scheme to make the interest good over a period of additional
months? The Borough does not do this for any of its own citizens,
No, it does not; in fact, you had better not be late on a sales
tax payment due. I quote the Ketchikan Gateway Borough Combined
City and Borough Sales Tax Report as follows: Full payment (sales
taxes) must accompany this report. The tax imposed shall be
payable at the end of each quarter of the calendar year, and
shall be due not later than one month after expiration of the
quarter immediately preceding, beyond which time it shall be
And what if you do not pay on time? Guess what, you pay penalties
and interest! Again I quote the Sales Tax Report: Penalty 6%
of tax due the first 5 working days delinquent, 15% thereafter,
plus 5% per month until 25% has accrued. Interest 12% per annum
from date of delinquency until paid. Think about that: up to
25% in penalties and 12% in interest; that's 37% total!
Why, then, if we as residents, are penalized so heavily for being
late with payment of sales taxes, should Mr. Jenkins be favored
instead of penalized in like manner?
Get real here, folks; not only was the Borough too dumb to notice
that $30,000 per month was missing for 6 months, but also wants
to help this guy out by lying to a lender, and on top of that,
agree to some rinky-dink excuse for why the bank won't simply
reverse those interest payments, and to top it all off, allow
all of this without penalties or interest on the amounts unpaid!
I am appalled and astounded that so few people seem to see the
red flags in all of this. This kind of thing only happens as
a result of incompetence or connivance. Which is it here? What
is really going on? Is this an attempt to misappropriate public
money, or do a dishonest deal, or is it simply gross negligence
on the part of the Borough?
Whatever it is, it is time to fix it now and make it right. No
excuses, no more song and dance. Mr. Jenkins needs to pay the
money owed, plus penalties for being late, and interest on the
money not paid on time. Just like the rest of us. As a taxpayer,
I demand it and so should the rest of you.
Mary Lynne Dahl
Received April 27, 2007 - Published April 27, 2007
About: "Certified Financial
Planner, former banker, concerned citizen."
Note: Comments published
on Viewpoints are the opinions of the writer
and do not necessarily reflect the opinions of Sitnews.
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