September 9, 1999 | The Pacifica Foundation has spent at least $500,000 in its fight against KPFA, according to
documents Pacifica reluctantly released, under threat of subpoena, to Assemblyman Scott Wildman (D-Glendale) Chairman of the California Joint Legislative Audit Committee. In her letter to Wildman, Pacifica Executive Director Lynn Chadwick placed blame for these expenditures on KPFA and its supporters, claiming the expenses were
"incurred by Pacifica as a result of a series of dangerous demonstrations organized by certain KPFA staff members, ex-staff members, and others." In fact, the only injury to KPFA done during the
demonstrations was done by the armed guards installed by Pacifica; they shattered the station's windows attempting to board them up. On the other hand, several demonstrators were injured on July 15 by
billy-club wielding Berkeley police who prevented the peaceful protesters from hanging a banner from the second floor balcony. Chadwick added that while the expenses are exceptional, they will
not bankrupt KPFA or Pacifica. In any case, to those familiar with how a not-for-profit entity uses its contributors' hard-earned, painstakingly-solicited dollars, the figures are staggering. For example,
IPSA, the self-proclaimed experts in "hostile terminations" and "workplace violence," charged $70/hr each for five to seven security guards around the clock, $90/hr for the July 4 holiday, plus travel and
expenses, adding up to $10,000 a day. Speaking about Pacifica's leadership, KPFA Local Advisory Board Chair Sherry Gendelman said that her reaction was one of shock and outrage. " I do not understand
how this governing board has allowed a national staff, under the guidance of Lynn Chadwick, to have such a dramatic depletion and waste of financial resources.... I can't imagine what thought process and
what vision she has for Pacifica that she would waste half a million dollars on armed guards and be unable to commit that money to the development of even another half hour of national programming, as she
has claimed they want to do." According to the total expense breakdown in the documents, a copy of which was provided to KPFA by Pacifica's Oakland attorney, Daniel Rappaport, Pacifica spent $390,000
for two sets of security guards, and about $10,000 for broken windows and changed locks in the KPFA station. Pacifica also retained the public relations firm of Michael Fineman and Associates, a firm which
counts Disney as a client. The documents show that the PR firm racked up charges of approximately $22,000 over three days, and a total of over $58,300 for the week it worked before resigning.
Partner Michael Fineman billed his time at $300/hr. The least expensive executive working on the account billed at $125/hr. However, the documents do not tell the whole story. Absent from these papers are
any record of expenditures that Pacifica incurred for legal expenses, as well as for shifting the network's satellite uplink operation from KPFA to Pacifica's Washington, DC, station WPFW. These
expenses reportedly add up to about $100,000 more. Add in expenses for relocation of the Pacifica National office, formerly next door to KPFA, to an undisclosed location, and the reasonable estimate is that
Pacifica has spent about two-thirds of a million dollars battling its network's flagship station. The documents do not show who authorized the expenses. KPFA Local Advisory Board Chair Gendelman would like
to know who is responsible. "The full governing board of Pacifica should be given an opportunity to endorse or reject this." she said. "If they, in fact, endorse expenditures of this kind, I think
every avenue should be explored to have those directors who endorsed this removed from the board of the Pacifica Foundation. " Further, the records do not show from which accounts, Pacifica's, KPFA's,
or those of other stations, Pacifica has drawn money to pay the invoices. According to sources familiar with the situation, Pacifica has paid virtually all invoices to date. (Seventeen and a quarter percent
of the funds raised by KPFA during its fundraising drives goes to support Pacifica). "For Pacifica to spend $500,000 of listener funds to carry out a hostile take-over at KPFA in the face of
principled and non-violent community opposition is clearly in violation of organization's mission," said Media Alliance Executive Director Andrea Buffa. "This is more evidence that Pacifica's
leadership, including Lynn Chadwick and board chair Dr. Mary Frances Berry, is incapable of leading the network out of this crisis and must step down." Pacifica has defended its expenditures in part
on grounds that the city of Berkeley was unable or unwilling to provide adequate protection for Pacifica's personnel and property. Chadwick has told Berkeley Mayor Shirley Dean that Pacifica will be
invoicing the city for costs relating to security guards. Dean answered that the city will consider Chadwick's request at its meeting next week. In a written reply to Chadwick, the mayor noted that she is
recommending that the council deny the request. (On July 27, the Berkeley City Council unanimously supported a resolution backing the staff of KPFA). Pacifica Board members who have seen the records
of the expenditures told KPFA they did not yet want to go on record with their reactions. The records were obtained by the Joint Legislative Audit Committee as part of an investigation as to whether Pacifica
is acting in a manner consistent with laws for California tax-exempt organizations. Pacifica objects to the legislative proceedings. Chadwick noted in her letter to Wildman that "Pacifica's agreement to
provide these documents is in no way intended as a waiver of our objection to this entire proceeding." The proceeding began with a hearing, in which Pacifica chose not to participate, that was held by the
committee in Oakland on August 20, at the request of one-fifth of the California State Legislature, including Assemblywoman Dion Aroner (D-Berkeley). KPFA is in her district. State legislative officials said
they had not yet had a chance to inspect the documents. |
