Re: Familiar Names, Familiar Practices

One of the more alarming aspects of the new revelations about the West Warwick pension fund is the lamentation by the Pension Board Chairman, Geoffrey E. Rousselle, that sunshine has been thrown on the matter.

He suggested that the dispute should not have turned public.

“It upsets me,” Rousselle said. “I don’t know how that memo was leaked. It should have stayed within the board.”

Sir, perhaps I can explain. This is a pool of public dollars. Further, it is a pool of public dollars to be used to fund an investment upon which retired public employees count for their pension. Complicating matters, out of that (limited!) pool of dollars has been paid an unusually high (to say no more) fee for investment in an instrument that an investment professional strongly advised against and about which board members are gravely misinformed.

“It was a 7-percent guaranteed return,” Rousselle said. “They promised us 7 percent.”

A Cole representative declined to comment on the investment. But documents released by the company make clear that there is no such guarantee.

If all of this still doesn't strike a chord with you, well, you're just going to have to take our word. Scrutiny by the press and by the public into this matter is most certainly warranted.