Intergovernment Agency Paid Disgraced Directors Before Paying Employees

By Steven Tavares

The husband and wife team at the center of allegations they raided the funds of an Alameda County anti-poverty program were compensated after being pushed out earlier his month, while their former employees continue to go without a paycheck.

The board of the Association Community Action Program (ACAP) approved last Friday, in an emergency session, to pay its former executive director Nanette Dillard and her husband, Paul Daniels up to $20,000 in compensation. The action by the 13-member board made up of elected officials from 12 East Bay cities and Alameda County Board of Supervisors came one day after San Leandro Councilwoman Diana Souza asked supervisors to increase the cap on the program’s trust fund account by an additional $321,000. The county lent ACAP $250,000 in February 2009, which was immediately exhausted and has yet to be paid back. The board of supervisors failed last Thursday evening to approve the request.

“Some quorum of the [ACAP] board allowed direction for the individuals at the center of the storm to jump ship and get compensated for it while we are sitting here trying to address this issue angers me by the second,” said Supervisor Keith Carson.

In recent months, the ACAP board has failed to consistently attract enough members to its own meetings, often without gaining a quorum to proceed with its agenda. ACAP is not run by the county, but mirrors many of the services provided by it. Elected officials from Alameda, Albany, Dublin, Emeryville, Fremont, Hayward, Livermore, Newark, Piedmont, Pleasanton, San Leandro and Union City sit on the board, along with a representative from the board of supervisors. The ACAP board is scheduled to meet again Wednesday in another emergency session.

In an item added late to the agenda by Board President Nate Miley, the supervisors approved a $75,000 loan to ACAP to pay the remaining 30 employees left without a paycheck last week. The board approved raising the cap on the trust fund with Supervisor Nadia Lockyer voting no and Wilma Chan abstaining. Supervisor Scott Haggerty voted in favor of the loan, but called it a “short-term fix.”

What exactly happened at the little-known program and inter-governmental agency is not yet known. While some are pleading ignorance, Miley says a consultant told him months ago that ACAP could be “heading off the cliff.” Miley says he does not believe the consultant shared the information with other ACAP members, but possibly the chair was made aware of the situation. “Things have spiraled out of control,” said Miley. “I think the ACAP board did not recognized it and I know the staff didn’t know that things as bad as they were.”

Miley also addressed a rising chorus of detractors who point to his conflict in this burgeoning story of graft and governmental ineptitude. Miley’s daughter is employed by ACAP. “I just want to be clear on this–not because my daughter works for ACAP–but because the over 30 employees deserve to be paid,” he said. “It’s not their fault funding has come up short to meet last week’s payroll.”

Near the end of Tuesday’s meeting, Miley become combative saying the issue lies only with employees being paid in good faith for work they have already done. “People can disagree with me on the board. People can disagree with me in the public. People can disagree with me wherever. I don’t care,” said Miley. “Bottom line, in terms of my values, it’s important to me to provide justice to people who are mainly minority employees, who are doing a good job and need to get paid.

Miley also said the mismanagement at ACAP is currently being addressed. Sam Tutelman, the interim director for ACAP thrown into the firestorm after the dismissal of the former executive director, says an investigation into the employee’s allegations against Dillard and Daniels will begin soon. The San Francisco Chronicle reported a closed-circuit camera caught the couple cleaning out their offices Feb. 2, the night the ACAP board handed down a vote on no-confidence. Employees claim a host of financial documents are now missing.

A deputy director for ACAP says many employees are angry and worried about their jobs and the future. “Morale is in the trash,” she said. Nearly one-third of ACAP’s employees have not reported to work since Friday. “I totally understand,” said Haggerty. “The first thing I would be doing is looking for a job.”

In the next few weeks, councils from the 12-member cities may be asked to foot their portion of ACAP’s bill. Under the joint powers agreement between the cities, the county—although much larger—is an equal partner with interest primarily in its unincorporated areas.


Categories: ACAP, Alameda County Board, Diana Souza, Paul Daniels, Scott Haggerty

14 replies

  1. Real crooks. Real politics. Real backroom deals. The oversight failed. The employees failed. The system is failing. The representative for San Leandro abstained from voting. No mention of the influence of Goodwill Industries and their continued influence in East Bay politics. This who thing sucks and still there is no call by the elected officials for a criminal investigation by Kamala Harris. More than one half million dollars unaccounted for.

    Steve, try to stay on this one because bet on the fact that everyone wants this to go away. Ralph


  2. A quick search and you will see Nanette Dillard changed her facebook employer status to “retired”. I guess FB doesn't have a “on the lam” status.


  3. Let us hope that she and her hubby are listed soon in the defaults column and public service listing as bankruptcies due to their convictions for embezzlement and felony egg sucking. Ralph


  4. Steve, where is your coverage of patronage in San Leandro?

    Pauline Cutter has rewarded Marguerite Mazzitti for a grand contribution to Pauline's campaign with a nomination to the Board of Zoning Adjustments (BZA). She will will replace Neal Pearson, who has served on the BZA since May 2004. Mazzetti had been displaced on the same board in 2003-2003. Since then she has contented herself, with rumored assistance from Mayor Santos, as the owner of the Tutto Mio, an importer of Italian ceramics. Her real credentials though come from the Leadership San Leandro program and a member of the Political Action Committee for Excellence (PACE). PACE contributed $1,000 to Cutter's campaign.

    Cutter was able to reward Peggy Combs contribution to her campaign of $100 with her continuing position on the Recreation and Parks Commission. Combs had originally planned to run for the District 5 seat, but pulled out of the race three months after announcing her candidacy. Combs contributed $100 to Cutter's City Council campaign.

    There is lots more to come. What are you doing Steve? Ralph


  5. …in terms of my values, it’s important to me to provide justice to people who are mainly minority employees…

    So if they weren't minorities, it would be okay to rip them off? The Hannity Show writes itself.


  6. Anonymous, now you know why the poster child for Livermore and White Guys, Scott Haggerty, has such a close relationship with Mr. Urban Black, Nate Miley. Neither of these two are likely to back down or do anything else other than to provide mutual support. Carson is unlikely leave Miley alone and now you know how nothing ever changes in Alameda County. This is more pervasive than simple Conservative Values like Scott Hannity. This is much more like the Evil Doers Guide to Political Control. Ralph


  7. Steve, you know you've made it when you attract whackjobs to your site…cough cough Ralph.


  8. Nobody involved with watching Madoff knew what was going on either. It's standard to play stupid when you get home and find the place ransacked and only you know you left the door wide open when you left that morning


  9. Anonymous, there were a lot of folks, apparently that knew what Madoff was doing. They just wanted to be on the right side of the deposit and did not say anything. They along with virtually of the bankers and financial professionals on wallstreet and other criminals like the real estate leaders that are who validated the fraud that brought us the recession/depression that we have today. Ralph


  10. This is all nonsense. Throwing money away. The poor should just leave Alameda County for places with better job opportunities.


  11. So unfortunate. May they rise from the ashes. Out with the bad, in the good. The system seems to be cleansing itself; even though that means suffering during the transition.


  12. The director should have been booted out along time ago with the deputy director! Rumor has it there has been 25 people that have terminated their employment while under the direction of Ms Daniels! Poor leadership, finally the staff spoke up & removed her. I say congratulations to a new start ACAP. Clean house…


  13. The management of ACAP(ALL MANAGEMENT) has caused many others great pain. The people of community that are in need of the services not only provided by ACAP, but the subcontractors also. The youth of the area have been waiting to take their GED'S and now will not be able to. This is a tragedy, these youth have been preparing for this test and were promised to have their test be paid for by ACAP. Ms.Dillard-Daniels and her husband should face criminal charges !!!! How can someone be seen going back into a business they were fired from and no criminal charges filed ? No instead she get's paid more money.


  14. Come on now! Hiring expensive lawyers and giving the crooks their 20k upon termination is so shocking!! What about the hard working staff! They deserve to get paid FIRST!


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