Leaders act quickly in fiscal agency scandal.

• Author: Weeks, George
• Position: Corruption in Michigan's House Fiscal Agency

It It is the worst scandal in 50 years in Michigan. Nearly $2 million allegedly went to the House Fiscal Agency director, his staff and his friends. And then rumors surfaced that some of the money even went to buy arms for Croatia.

Shared power in the Michigan House of Representatives has helped correct an abuse that produced the state Capitol's worst scandal in half a century.

Michigan's new co-speakers, who share power because of the 55-55 partisan split in the House, reacted swiftly and decisively to "Bonusgate" at the House Fiscal Agency (HFA), which tapped a spigot it was supposed to guard and passed at least $1.8 million in unreported funds to its leaders and friends.

Democrat Curtis Hertel and Republican Paul Hillegonds moved rapidly to correct the mess in a watchdog agency that apparently was not being watched by lawmakers responsible for oversight.

In a Jan. 26 letter to the Big Four leaders of the House and Senate, Governor John Engler expressed his "outrage over the growing allegations of scandal and possible criminal activity associated with the House Fiscal Agency.

"As you are acutely aware," he wrote, "these reported abuses have fueled growing public discontent among citizens who are already disenchanted by a government they feel is unaccountable, unresponsive and self-serving. The failure to provide proper management and oversight to the House Fiscal Agency has allowed the questionable conversion of public funds for private purposes and alleged kickbacks--the result of a system fraught with nepotism, secrecy and no accountability."

While the dual speakers helped unravel the scandal, they did not uncover it. That was largely the result of disclosures by Detroit News correspondent Jim Mitzelfeld of a widening check-writing scandal that prompted a federal-state investigation, audit, personnel shakeups and over sight reforms.

"It's unbelievable stuff," Hillegonds said of Mitzelfeld's initial report.

House Fiscal Agency Director John Morberg told The Detroit News that the prospect of being forced to retire early if Republicans took control of the House prompted him to give himself a $21,884 bonus two days after the election. This bonus, added to his regular salary of $80, 808 and other compensation, boosted his total 1992 earnings to $111,523. Governor Engler's salary is $106,900.

Mitzelfeld also disclosed that Morberg gave more than $100,000 in unreported bonuses to some of his employees and wrote a $119,000 check to a friend for...