Answers few on state fund

[Sancho]

Lawmakers grill state workers but are left shaking their heads.

http://www.sptimes.com/2008/01/08/news_pf/Business/Answers_few_on_state_.shtml

TALLAHASSEE - A bipartisan group of lawmakers got their first chance Monday to grill state employees about the troubled State Board of Administration fund that was invested in bad securities.

Lawmakers left frustrated.

Among the queries: Who was responsible for risky investments, why weren't those investments recognized and sold earlier, and why didn't fund managers heed warnings of risky investments that were noted in an internal audit?

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"When I look at the scope of the amount of money that's involved here, we are talking about assets greater than most countries," said Harrell, a Republican from Stuart. "I want to make sure there's no insider trading going on. Why did we only have five brokers handling these trades. What is happening within the entity as well as the investments?"

Rep. Susan Bucher, a West Palm Beach Democrat, repeatedly asked why more wasn't done in response to a March audit report that had raised red flags. "Who was minding the store and why didn't we see those red flags?"

Jim Cassady, Sink's chief of staff, said: "Representative, that's a good question. I can't answer that."