Borough: $277k in security deposits allegedly mishandled by MABS
KAYLEE LINDENMUTH / SHENANDOAH SENTINEL - The Municipal Authority of the Borough of Shenandoah Offices.
SHENANDOAH – As the borough moves towards dissolving the Municipal Authority of the Borough of Shenandoah (MABS) following the sale of its water system assets, about $277,000 in security deposit funds are unaccounted for.
In a statement released to the media Friday night by Anthony Sajone, borough manager, the missing funds were discovered after the borough gained access to MABS bank records and other documentation.
“While the sale of MABS has proven to be a very contentious matter within the borough, it did bring to light several previously unknown issues, including the large number of out of service/inoperable fire hydrants and the underfunding of the MABS employees’ pension fund,” Sajone said. “The most recent issue involves the numbers requests to both MABS and borough hall for the return of monies collected over the years by MABS, which were considered security deposits.”
Sajone said such deposits for meters, unpaid bills, and other items are to be maintained in an separate escrow account. They “are to be accounted for and available to be refunded when due to a homeowner.”
$277,625 in such deposits are unaccounted for, Sajone said, and the borough believes those funds were deposited into the MABS general fund and spent on operating expenses.
He said further investigation into the misuse of funds is forthcoming.
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