November 17, 2014
Transparency In The Private Sector
We have been treated to a lesson in arrogance in government with the revelations about MIT economics Professor Gruber concerning getting the Affordable Care Act (aka Obamacare) approved. Professor Gruber said that it was necessary to lie about the provisions of the act because the public was too stupid to understand what was good for them. This is the reason that full disclosure, transparency and open records are so vitally important.
But is transparency only important in the public sector where your tax dollars are being spent? What about the private sector?
My brother has a home in a development around a golf course in Ft. Collins, Colorado. He was aware of my interest in open records and the laws concerning access and he called me to ask about his situation. It seems that the government board of his housing association has consistently refused to give him access to financial information. I told him that he would need to research Colorado open records laws and he has hired a lawyer to assist in that effort. The board charges each homeowner for maintenance, repairs and upkeep but has failed to give details about contracts and details of expenditures. In other words, pay up and shut up.
Locally I have a friend who is an engineer and who plays in my duplicate bridge club. (By the way he is very bright and one of the best players). His name is Asan G. Tejwani. He has lived in Fountain Square Condominium, 1850 Poplar Woods Cir W, Germantown, TN 38138 since 1991. His email address is firstname.lastname@example.org.
He discussed with me his complaint about the lack of transparency of the Faith Management Company and the Board of Directors of the non profit condo association. I did some research about the Tennessee open records laws by contacting the State of Tennessee and was referred to the Tennessee Condo Act of 2008. One part of that lengthy document states as follows.
- 66-27-417. Association Records. The association shall keep financial
records sufficiently detailed to enable the association to comply with §§ 66-27-
502 and 66-27-503. All financial and other records shall be made reasonably
available for examination by any unit owner, the holder of any mortgage or deed
of trust encumbering a unit, and their respective authorized agents.
This seems to be the heart of Mr. Tejwani’s complaint and he puts his principles of human dealings in a most legitimate manner. They are as follows.
- Fiduciary responsibility.
- Due Diligence
I can’t disagree with those five principles. I am aware that there are two sides to every story. I would like to hear from other local condo and home owner associations as to their experience with boards and management concerning expenses and transparency and open records accountability. This is no nickel and dime operation as Mr. Tejwani is talking about an annual billing of $850,000 for his condo residents.