John Damschroder: Prosperity is possible without integrity

https://www.thenews-messenger.com/story/news/2021/06/23/john-damschroder-prosperity-possible-without-integrity/7770985002/

June 23, 2021

Fremont News-Messenger

John Damschroder: Prosperity is possible without integrity

Excerpt from the article: 

"A look at the FBI website tells us why they’re suddenly all over Ohio. 'Public corruption, the FBI’s top criminal investigative priority, poses a fundamental threat to our national security and way of life. It can affect everything from how well our borders are secured and our neighborhoods protected to how verdicts are handed down in courts to how public infrastructure such as roads and schools are built. It also takes a significant toll on the public’s pocketbooks by siphoning off tax dollars — it is estimated that public corruption costs the U.S. government and the public billions of dollars each year.'

"Ohio’s State Teacher’s Retirement System-STRS is good place to look for billions that potentially have gone missing. The STRS Board wouldn’t even discuss the Ohio Retired Teachers Association forensic audit conducted by the nation’s foremost public pension whistleblower, Edward Siedle. Fremont’s Wade Steen, a DeWine appointee to the board, unsuccessfully attempted to force reaction to findings that cost the pension at least $410 million a year. Steen pointed out that Ohio teachers are the only public employees in the country contributing more to their pension than it is worth.

"The Siedle forensic audit hit at STRS investment consultants paid by both the state pension and the funds they recommend. It’s a conflict of interest the last fiduciary audit of STRS in 2006 noted. The remedy of contractually required disclosure hasn’t been met. Siedle concludes the below market performance at STRS because of investments marred by conflict of interest totals more than $20 billion since the teachers’ pension began aggressive alternative investing.

Alternative investments must be taken on faith

"Unlike transparent market investments, alternatives must be taken on faith. At the board meeting Steen proclaimed a loss of faith. 'I have completely lost confidence in the staff’s ability to invest money, and even worse their willingness to tell us the truth about the results.'"

The rest of the article may be read here. 

John Damschroder, a Fremont native who worked in Gov. George Voinovich’s administration, writes about business and economic development in Ohio.