Steve Pougnet Story Yet To Hit Rock Bottom

In a story earlier this week, the Desert Sun and reporter Kia Farhang continued the investigation of former Palm Springs Mayor Steve Pougnet and his ties to developers. A big deal was made of a check written to the city for the Hacienda Beach and Cantina Club from an account by Union Abbey. Union Abbey was of course the company run by Rich Meaney who also ran the Hacienda Beach and Cantina Club.  Meaney also paid Mayor Steve Pougnet over 200k to "consult". He is also at the heart of the FBI raid in Palm Springs. Not to mention his Hacienda Beach and Cantina Club has defaulted on 186 grand it has to pay back the city for violating terms of a city incentive program. Plus Union Abbey had no license to do business in California since 2009 because of a tax dispute.

While the $64 dollar check was small potatoes, the article itself brought up some interesting points. It may have been unfair to ask city manager David Ready if he was familiar with the check but seeing "The best city manager in the country, (Steve Pougnet's words)" channel Sergeant Schultz of Hogan's Heroes was classic. The "smartest" guy in the room did really not have any answers.

The following also jumped out at me as it describes yet another "consulting" contract for Pougnet from developer Stephen Mitchell.

Mitchell and his wife Nancy paid Pougnet as much as $100,000 for consulting work in 2012. Stephen also wrote Pougnet an $8,000 check for his 2007 mayoral campaign.

Like the Meaneys, Stephen Mitchell has declined to say how much he paid Pougnet and what work the former mayor did for his company.

"That's between him and me," Mitchell told a Desert Sun reporter in September. "I just hope everything turns out OK."

So the mayor got yet another 100 grand from a developer? Now I love the fact Mitchell won't disclose what the mayor did. I hope members of the corruption task force read this interview. If I were on it, I would be at Mitchell's office in about 5 minutes.

Questions still abound though. And among them for me are these:

What did Steve Pougnet do for at least the 300 grand he received over 3 years from now 2 different developers?

Was Rich Meaney, who appears to not have the funds to buy a postage stamp let alone 200 grand, merely a conduit, paying Pougnet, for a 3rd party? If so, who? And why?

Why didn't the city require that recipients of the city grant fund program like the Hacienda Beach and Cantina Club purchase a surety bond to cover the grant? It would have guaranteed the city repayment of the money.

How could David Ready and city attorney Doug Holland have no inkling or sense that something was wrong?

Oh well, more details and maybe indictments may emerge shortly.

Steve Kelly can be reached at skelly@rrbroadcasting.com or followed on twitter @skellynj.