RadioPoetics.org

By now many of you may have heard the latest Pacifica rumors. To dispel misinformation I am forwarding, with permission, a statement written by Tracy Rosenberg, that I think clearly explains the current state of affairs.

To supplement what Tracy says, let me inform you all that Pacifica's CFO (Chief Financial Officer) is still not providing clear and transparent financial statements so its is really hard to know whether his allegations of Pacifica's dire financial circumstances are true or not. I don't want to be alarmist but the truth is that:

1. the National Office does not have enough funds to pay monthly
operating costs, since not all of its stations are paying their
central services and because they recently borrowed against a KPFA
CD, with the approval of the PNB;
2. there is a plan to mortgage KPFK's building to pay back the KPFA
CD and to obtain funds to continue to pay operating costs;
3. there is NO feasible financial recovery plan in place that will
ensure the long term financial viability of the Foundation; and
4. there is a very real possibility that the Foundation will
eventually go bankrupt or into receivership if it does not curtail
its spending and find a real way to bring in more listener members
and more income.

As to the proposed consultant contract. There is a plan afoot, in the absence of an Executive Director in place, to hire a not for profit consultant firm that will look at Pacifica's organizational and financial structure and make recommendations as to how to improve the functioning and financial sustainability. It is being hotly debated by the PNB. Those that support this proposal are people like Joe Wanzala, myself, and our allies on the KPFA LSB and the PNB, who have consistently campaigned for a change in the leadership of the foundation that will move it onto an even and financial stable keel.
Please see below for more information. Chandra
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Greetings to all,

I am writing to address the issue of the Pacifica loan and the projected consultant contract.

I want to say two things. The first is I have no idea whether this million dollar loan is necessary or not. I haven't seen national financial statements that make it clear to me one way or the other.

But taking out a million dollar loan that mortgages KPFK's building is utter insanity without a competent executive director in place.

And we don't have one.

The supervision of how this money will be spent and leveraged to protect the future of the foundation will be performed by the same people who have presided over the last few years. Years marked by mishandled lawsuit after lawsuit. Failure to address the WBAI problem. Failure to adjust staffing to sustainable levels. Failure to grow the listening audience.

It's time to re-align foundation priorities and not throw bad money after bad money. We need help and it's not going to come by re-filling the coffers for the same old - which is what they're asking you to support.

If there *is* to be a loan, it needs to come with a comprehensive recovery and payback plan vetted by an objective third party.

Or lets figure out how to live within our means without mortgaging the assets.

I'm not willing to write a blank check to the current powers that be.

Respectfully,

Tracy Rosenberg
KPFA LSB