UPDATE: Scroll down for Ken Mills' response:
These are my responses to Ken Mills’s post. Ken is in quotes. —Kim Kaufman
The link above leads back to Ken's own coverage of this story. I haven't seen any "praise" in media coverage yet, only basic reporting on Pacifica's press release which, oddly, did not list the amount of loans which are $3.7 million and $500,000. (Plus at least $800,000 interest as best I can tell. The loan documents still have not been made public. Pacifica’s operating budget is under $12 million.)
"In fact, the best reporter on the radio beat, Tom Taylor, said interim Executive Director Tom Livingston and Marc Hand from the Public Media Company should be nominated for a Nobel Peace Prize."
Let's not forget President Obama won the Nobel Peace Prize and continued or started wars in - is it five or seven? foreign countries, plus a coup in Honduras.
"That might be hyperbole but observers seem to agree that progress is being made."
“Observers” should make their observations public so we don’t think this might be made up. I don't see progress but complete disarray. Unpopular, or merely inconvenient voices have been shut out, including Pacifica's CFO, (CFO Resignation letter), and Pacifica's corporate counsel.
"These folks remind us of a bunch of Scientologists. They believe deeply in what they are saying, but, at the end of the day it is meaningless."
True statement. Grace Aaron who spearheaded this loan (and her husband, Ken, KPFK's Treasurer) are, in fact long time Scientologists.
"Pacifca's rules are used to keep certain people in power."
True. Nonetheless, they are the present rules that must be followed. What R. Paul Martin was pointing to:
“All Members shall have all rights granted to them by law or by these Bylaws, including without limit the right to vote… on the sale, exchange, transfer or disposition of all or substantially all of the Foundation's assets; on the sale, exchange, transfer or disposition of any of the Foundation's broadcast licenses; on any merger, its principal terms and any amendment of its principal terms; on any election to dissolve the Foundation."
That means using a sale or swap of a radio license as possible means of paying back the loan is outside of the scope of the PNB to promise and, without being a lawyer, appears illegal. The public looks forward to seeing the documents to see exactly what is promised to pay back the loan, if anything.
"Actually, all of these rules can be erased by the stroke of a pen.”
True but, to date, they have not been and thus they are the laws of the land.
“Pacifca's rules are used to keep certain people in power.”
True. But people who are so inclined will always find ways to manipulate rules if they perceive they will benefit and are dishonest. Look at Mitch McConnell’s refusal to bring Merrick Garland to the Senate for a vote for SCOTUS!
“Perhaps Pacifica would be better off if they had only one committee, the National Board of Directors.”
Perhaps but CA state law requires Pacifica have an audit committee. (There is one but is non-functional.) It is time to stop blaming Pacifica’s bylaws, insane as they are, for the actions and decisions of the people who make the decisions. Whether one committee or 10, it or they would still be populated by the same incompetent and uninformed people.
“Livingston and Hand… aren’t taking part in the… meaningless factions."
Of course they are playing factional games. My observation is that, like John Proffitt when he got to Pacifica, Livingston identified the three or four people who are driving their factional train and ignores everyone else.
Livingston said in a public email, “The decision to seek a loan to address the ESRT judgment was made prior to the start of my time at Pacifica. All of the policy decisions regarding the agreements were made by the PNB.” I responded: “Are you suggesting you accepted this job to do the bidding of majority of Directors, wherever they lead you? One would have thought that you, as a professional with a long career in helping public radio stations, would show your independence and ask hard questions - before signing loan documents.” And further, “One would have hoped you were hired to offer informed advice and plans not just rubber stamp what the board wanted. After all, they are the ones who have put Pacifica in the dire situation it presently is in.“ Tom is factional game-playing at its worst and most destructive to Pacifica.
As far as I can tell, Pacifica could not qualify for this loan either by having the appropriate financial reporting required or by any plan to pay back the loan. A six month waiver was given to Pacifica to complete the financial reporting required which includes: finish FY2016 audit, start and complete FY2017 audit, complete two pension plan audits and pay off the pension monies owed since 2015 (and is, at a minimum, $750,000 plus penalties which have not been calculated). Livingston was not able to say who told the lender Pacifica could accomplish all this by September. The CFO has stated it cannot be done. I do not believe it can be done, especially, as of May 4, with no CFO and no auditor.
Livingston said in a public email, “I believe I speak for the board that it is the strong hope that by improving Pacifica's programming and operating practices the organization can generate sufficient resources to be both sustainable and service the debt.”
My response was, “ Your statement is shocking. You signed a $3.7 million loan, with all of Pacifica’s real estate assets, including everything inside the buildings, plus KPFK’s transmitter and the Pacifica Radio Archives, both irreplaceable, only on a “strong hope”? Please see my 4/8 email where I asked if this was a predatory or “liar’s loan.”
We’ll see who gets an “I told you so moment” as to the future of Pacifica. I’ll be happy if it’s not me but I do not think it will be those who are trying to put enough lipstick on this sad pig to make it look like a good deal for Pacifica.
Kim Kaufman
Former KPFK LSB, Treasurer,
Pacifica National Board, audit committee
Hi Kim -- I am getting caught up. I've got the flu and am moving at about half speed, sorry I didn't get them posted earlier.
You raise a number of important points and I can see where we have different views of the situation. This paragraph is a useful summary:
Perhaps but CA state law requires Pacifica have an audit committee. (There is one but is non-functional.) It is time to stop blaming Pacifica’s bylaws, insane as they are, for the actions and decisions of the people who make the decisions. Whether one committee or 10, it or they would still be populated by the same incompetent and uninformed people.
The key line is: blaming Pacifica’s bylaws, insane as they are, for the actions and decisions of the people who make the decisions.
My point is, if the bylaws are insane, get rid of them. Why let every person with a gripe impede the entire organization. KCRW, KPCC and event KXLU don't have these useless governance "rules."
You are correct when you say: Whether one committee or 10, it or they would still be populated by the same incompetent and uninformed people.
And because of the obstruction caused by these "laws" even a competent, qualified people will not be able to make the needed changes. So, get rid of the bylaws.
Respectfully, Kim, sometimes you and others seem to be cheering for Pacifica to fail. Perhaps then you can have your "I told you so moment."
There is no focus on the "common good," which is essential in nonprofit endeavors.
As a reporter/blogger who has no stake in the outcome, I hope Pacifica can either find a way to succeed or sell the stations to a noncommercial organization.
FYI, Ken.