Ethics Panel Backs Hahn on Not Prosecuting Mayor

Concluding that there was insufficient evidence to prosecute Mayor Tom Bradley, the City Council’s ethics committee Wednesday ended its inquiry into the city attorney’s handling of the investigation into the mayor’s financial affairs.

However, the committee approved a report saying that Bradley’s employment by Far East National Bank was “extremely troubling” and violated the city’s Code of Ethics.

Bradley was paid $18,000 in 1988 as a consultant to the bank, which obtained $3 million in city deposits in 1988 and 1989. The mayor later returned the money.

The council’s Ad Hoc Committee on Ethics called for hearing on the matter in September, after City Atty. James K. Hahn released a report saying there was “damaging” evidence that Far East benefited financially from Bradley’s influence. But Hahn said the evidence was not strong enough to prove that Bradley intentionally caused the $3 million to be deposited in the bank.

The committee’s report, which included the decision to terminate the ethics inquiry, was approved on a 3-1 vote Wednesday and now goes to the full council.

But the council also will receive a minority report from Councilwoman Gloria Molina, the lone dissenting vote on the ethics committee. She said Wednesday that many unanswered questions remain about the city attorney’s handling of the case. Molina said she will ask the council to continue the inquiry and approve the hiring of an independent legal expert to consult with the committee about the city attorney’s actions.

But the three other committee members, Councilman Michael Woo and Councilwomen Ruth Galanter and Joan Milke Flores, said they were satisfied with Hahn’s investigation and with the answers he and his staff gave the council during several days of public hearings that began one month ago.

“I am prepared to accept the conclusion of the city attorney that there is insufficient evidence to prosecute Mayor Bradley for conflict of interest,” said Woo, who chaired the committee. He said he considered the conclusion “reasonable” and “well within the proper discretion exercised by any prosecutor.”

Woo said he agreed with Hahn that the “decision not to prosecute the mayor does not vindicate him.”

“It may not have been illegal for the mayor to accept a salary from Far East National Bank, but it was improper,” Woo said. “It is clear to me from months of review that we need to ban outside employment, at the very least with firms that do business with the city.”

The committee will attempt to draft an ethics ordinance for the city, Woo said.

But Molina said the panel is not ready to propose an ordinance.

“I don’t think we are able to conclude any review at this time,” she said, adding that the committee lacks the legal expertise to evaluate the information provided by the city attorney’s office.

“No way can the committee come up with the conclusion that our review was thorough and complete,” Molina said.