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By JENNIFER LEARN-ANDES jandes@leader.net
Thursday, March 20, 2003 Page: 6A
WILKES-BARRE – The Luzerne County Retirement Board has lost its
Commonwealth Court appeal to stop Commissioners Tom Makowski and Tom Pizano
from hiring their own special lawyer to look into the $142 million county
pension fund.
County Controller Steve Flood, one of the Retirement Board members who
voted for the appeal, said the board likely will file another appeal to a
higher court. He did not know Wednesday which one would have jurisdiction.
Until then, Flood said he will be forced to release payment to the special
lawyer, Chris Jones of Scranton, because Makowski and Pizano have threatened
to take legal action against him on Monday.
“They will file contempt charges against me if I don’t pay it,” Flood
said.
Flood said the open-ended nature of Jones’ contract is driving him to
appeal it. He said Jones’ $10,000 retainer is just the tip of the payment that
will be funded by county taxpayers.
Like Commissioner Stephen A. Urban, who also is on the Retirement Board,
Flood believes Makowski and Pizano hired the lawyer because they want to lock
in someone to defend them in case the Retirement Board takes legal action
against them for moving pension fund money and hiring money managers without a
majority vote at public meetings.
The Retirement Board is made up of the three commissioners, the treasurer
and controller. Treasurer Mike Morreale voted with Urban and Flood to fight
the hiring of Jones.
“These guys are sitting back smiling like two rodents in a hole,” Flood
said of Makowski and Pizano, who are not seeking re-election. “There’s one
sentence in Jones’ contract that says he can hire counselors or consultants.
It’s like they have a credit card, and they can keep hiring and hiring. They
can end up having attorneys coming out of New York at $700 an hour.”
Pizano and Makowski have said they have every right to hire special counsel
to look into the fund because county taxpayers have to shore it up if it runs
into problems.
Jennifer Learn-Andes, a Times Leader staff writer, may be reached at
831-7333.