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<br />Comment: This contract, approved by Colorado Attorney General, Gale <br />Norton, has intentionally been converted from a long term level loan to a short <br />term construction loan. The'result, a $471,000 long term loan obtained for the <br />benefit of the golf course, to be repaid by aMID landowners. The remaining <br />$400,000 is unaccountable. <br /> <br />CWCS has statutory authority to loan moneys appropriated by the General As- <br />sembly for the rehabilitation of agricultural water supply systems. <br /> <br />Documents show that CWCB lent MMLE money without obtaininQ General As- <br />sembly approval or the Governors authorization. <br /> <br />Comment: Any government business producing revenue from fees and <br />services must purchase equipment and materials. All businesses are required by <br />law to obtain a sales tax number from the Colorado Department of Revenue. <br />This contract does not document a sales tax number for MMLE suggesting this <br />water activity enterprise has evaded paying sales taxes on materials and sup- <br />plies purchased for the MML project. <br /> <br />Comment: A government business must employee persons to operate. As <br />an employer, a government business must withhold income and FICA taxes. <br />MMLE has two employees of record, Jim Rooks and Della Grimes. The loan <br />contract shows that aMID and MMLE have used the same Federal Tax ID num- <br />ber, suggesting MMLE is collecting fees and charges and not reporting income <br />tax payments. <br /> <br />Comment: No records have been found evidencing MMLE maintains a <br />separate bank account in which to deposit revenues from fees and services <br />charged to aMID. This suggests the CWCB staff person agreeing to loan <br />money to MMLE without determining if it is a legal entity, with capacity to repay <br />the loan, must be thought of as participant in a fraudulent scheme. <br /> <br />Feasibility Study <br /> <br />Arms length applicants for CWCS loans are required to submit a feasibility study <br />of project alternatives for review before a funds request is submitted to the Gen- <br />eral Assembly and Governor. OMID's loan request was approved by Governor <br />Romer as a part of House Bill 95-115 on May 4, 1995. The Governor has not <br />approved a loan for MMLE. <br /> <br />Comment: This suggests cwes employees have intentionally waved the <br />requirement that MMLE prepare a feasibility study. <br /> <br />A feasibility study is a detailed evaluation of proiect alternatives. NRCS com- <br />pleted the design of MML during the fall of 1994. The design plan was first <br /> <br />16 <br /> <br />..~~~ <br />