JOHN HUGHES 6/17/13

1. John Hughes woeful mismanagement left the station’s finances in shambles, surviving month-to-month with the threat of the station going dark. Hughes has developed no substantial fundraising initiatives, has squandered several significant off-air fundraising opportunities and, rather, has locked programmers and listeners into more frequent and longer on-air fund drives. Now, the station’s finances are being audited and the business manager, Robert West, has resigned.

2. Were if not for community pressure, the station would either be homeless or locked into an eight-year lease with no exit clause with the right-wing radio network Clear Channel. The deal, supported by Tony Norman Campbell Johnson and Pete Tucker, would have forced $1.4 million of our “jazz and justice” dollars into the coffers of Clear Channel–home of Rush Limbaugh, Michael Savage and Glenn Beck.

3. Shamefully, Hughes’ management style qualifies him as an anti-labor manager and he’s come under fire from union officials with the SAG/AFTRA union representing workers at WPFW. On Nov. 30, 2012 AFTRA filed a grievance against Hughes with the American Arbitration Association for raises owed WPFW staff since 2011. In addition, the union filed an unfair labor practice charge with the NLRB for Hughes’ failure to provide documentation about the station’s financial status.

4. Hughes disregarded the carefully worded dictates of the Bylaws and mission of the station in Dec.2012 when he summarily and haphazardly removed programming and programmers from our airwaves in Dec. 2012  without any input whatsoever from the LSB, programmers impacted by the changes or station members and supporters.

5. Hughes showed just how out of touch he is with the mission of the station when he attempted to import corporate–funded programs from NPR, some of which already air in the same media market.

6. Hughes has created a hostile work environment for paid and unpaid staff, leading programmers to sign a letter of no confidence in him in Dec. 2011. He has presided over repeated and ongoing FCC violations and stifled the potential of WPFW to make the best use of its most precious resources—its programmers and member-listeners.

JOHN HUGHES MUST GO!

7. UPDATE:  JOHN HUGHES HAS GONE!

8. As of January 2014, station supporters want to know how long Hughes’s “paid” leave will continue and do not want to continue paying his salary.

2013 LAW SUIT 6/18/13

Local Station Board members Tony Norman, Pete Tucker and Campbell Johnson are being sued for breach of their fiduciary duty by The Committee to Save Public Broadcasting, which consists of Jared Ball, Robert Daughtry, Salih Latif, and Thomas Porter, with attorney Jane Zara.  The lawsuit is just one effort to make accountable these three men for their attempt to steer WPFW into a lease with Clear Channel, as well as their role in assisting general manager John Hughes in the illegal grid change and in obstructing the democratic processes for evaluation of the general manager. STAY TUNED!

RESTORATION OF THE GRID 6/18/13

On Dec. 19,  2012, the Local Station Board passed a motion urging the station general manager to restore the programming to pre-Dec. 3 status. Programmers will begin to count the days since this decision was made and has been ignored.

RELOCATION 6/18/13

Were if not for direction action by CONCERNED MEMBERS AND SUPPORTERS OF WPFW, the station would either be homeless or locked into an eight-year lease with no exit clause with the right-wing radio network Clear Channel. The Clear Channel deal, supported by Tony Norman Campbell Johnson and Pete Tucker, would have forced $1.4 million of our “jazz and justice” dollars into the coffers of Clear Channel–home of Rush Limbaugh, Michael Savage and Glenn Beck.

STATION FINANCES 6/18/13

In collaboration with:

Marcus Jetter, LSB Treasurer and Chair

WPFW LSB Finance Committee & Luzette King, Member WPFW LSB and Pacifica National Board Director

June 12, 2013

1. 1.     Goals of the financial inquiry

The goals of the financial inquiry are as follows:

a)    The WPFW Local Station Board (LSB) needs to have a good idea of how the money collected has been managed.

b)    There is a need to show and to explain to the various WPFW communities the nature of WPFW expenditures, particularly the programmers who play a critical role during fundraising drives.

c)     The financial report will help to address future budget needs and will help in the budget development process.

d)    This inquiry will also help identify flaws and expose risks in the management of finances. This will also lead to recommended corrections.

e)    Finally, this will help restore credibility in the process and inspire confidence in WPFW financial management.

1. 2.     The Request

Since the beginning of this new structure of Pacifica and certainly for the past two and half years, it has been difficult to have a good assessment of the financial situation of WPFW. Last year in particular, Marcus Jetter, the WPFW LSB Treasurer and Finance Committee Chair, had a hard time obtaining financial information from John Hughes, the WPFW General Manager and Robert West, the WPFW Business Manager.  Marcus often lamented the lack of support from the then Chair of the LSB, Tony Norman. He was so frustrated that it became though for him to ask the LSB to vote for the last WPFW budget since he could not verify the numbers listed in the submitted spreadsheet based on lack of credible and verifiable financial information.

In January 2013, the WPFW LSB elected a new Chairman who has vowed to address the situation. In April 2013, the new LSB Chair, Jean Yves Point-du-Jour requested two quarters of financial information from October 2012 to March 2013, from the WPFW General Manager.  After much delaying tactics from the General Manager and with the intervention of the Pacifica Interim Executive Director, Summer Reese and PNB Director Luzette King, the LSB Chair, the Treasurer and the PNB Director and I were given access to six months of bank statements. The General Manager was notified that the information was incomplete and more data were needed. Again after much delay and effort to block the request, John Hughes was asked by the IED and the CFO to grant access to the data.

Then, the Chair requested two years of financial information in order to have a good assessment of WPFW financial health. John Hughes started the same delaying tactics. First he sent an email to the Chair saying that he had asked Robert West to satisfy the demands. I replied that I am not dealing with Robert West but with the General Manager.  After not hearing from him for a week or so, again I solicited and obtained the help of PNB Director Luzette Ling who requested a Director’s inspection. John Hughes tried all he could to avoid given us access to this information. He asked for reasonable time based on the Bylaws. He claimed that he was afraid that social security numbers and check routing numbers will be seen and used. Another reason for denying access is the fact that he did not have the key to the cabinet where the information is being kept and that Robert West is the one with the key. Again, he was ordered by Pacifica to hand over the financial information to Luzette, Marcus, and the Chair. So on Friday May 24, 2013 at around 1PM, Luzette, Marcus, and the Chair were given a box containing two years of financial information.

This is the first time in decades that the station board, staff, the listening community and the programmers have had such detailed and full account of expenditures. We have to remember that WPFW is part of the Pacifica Foundation which operates as a non-profit foundation and collects public funds for its operations.

1. 3.    Financial Management Process

At the station, three people are involved in the WPFW Financial transactions:

1. All the checks are signed by Tiffany Jordan, the Development Director. She is the one who receives all incoming funds from the pledge drives and other means of collecting money. She then deposits all the money whether cash or checks in the bank. She only signs the checks and does not keep any documentation on the checks that she signs. When I showed her the bank statements, she stated that she has never seen them. However, she keeps documentation on all incoming transactions.

2. John Hughes, the General Manager, does not sign checks. He has refused to do so when he became General Manager. John always claims no to have any knowledge of the financial state of WPFW. Anytime he is asked to make a decision, he always said that he will refer to Robert West, the Business Manager. His General Manager’s role in the financial management of the station in unclear and deserves some explanation.

3. Robert West is the Business Manager. He is supposed to work according to John Hughes four to twelve hours per week. He is hardly seen at the station. He is the one who writes all the checks, receives the invoices, and keeps all receipts and documentation. He also pays the bills. He receives all requests for payments and has full and seemingly full control over the money. He does not attend meetings. He always has an excuse.

Who has the final say as to who authorizes the payments is not clear. But technically, the General Manager is responsible overall for all financial decisions.

1. 4.    Data Analysis/Observations

Two and a half years of financial expenditures have given a clear picture of how the money collected has been managed. It reflects how we have been meeting our financial obligations. The data also show the priorities in order to keep the radio station properly running.

A lot of money been spent on premiums. There needs to be a strategy on selecting and acquiring premiums. Also, there ought to be a cost/benefit analysis of premiums. The question that should be asked is: of what financial benefit are the premiums to the station? This is crucial particularly when we spend so much money acquiring premiums/gifts from shows such as Gary Null’s and Democracy Now.

From October 2010 to August 2011, we were meeting our financial obligations. The bills were being paid on time. After August 2011, things started to change. We started skipping bills.  The fund drives became more frequent. And we have been unable to meet all our monthly obligations to the point where in January 2013, we did not have money to meet payroll requirements.

There is little or no accountability. There is little evidence to show that anyone has, in the last 10 years or so, compiled a list of financial transactions. Few if any has sat down and looked at the numbers and see exactly what they mean.

There is an apparent lack of transparency. The financial reports provided by the General Manager to the LSB during the monthly meetings do not give an accurate picture of what is actually going on. John Hughes never gives a detailed financial report showing monthly income vs. monthly expenses. The Business Manager never attends the LSB meetings. Also, the Business Manager is rarely present at the LSB Finance Committee meetings.

There are no checks and balances. One person is responsible for signing checks and has no idea what she is signing. Another person writes the checks without a clear explanation of the priorities. There needs to be another way of checking and verifying the decisions.

The current process is left open to all sorts of abuse. Decisions can be taken and it can be very difficult to prove that it was a valid operation.

There is no budget monitoring. No one seems to be keeping track as to whether we are under budget or we are spending more than we have. At least, it is not clear that this is happening.

Since John Hughes became Manager, we notice that payroll has been increased and continues to be increased. At the end of fiscal year 2012, the increase is of 80,000 dollars and this without the salaries of the Program and Operations Directors.

It must be noted that the recent move to L Street can result in some savings. For example, there may not be a need to pay janitorial services and parking. Some phone lines can be cancelled. There can also be a substantive reduction in utilities such as electricity.

1. 5.    Pledge Drives Malaise

The radio station depends on its listeners who provide the major portion of its operational expenses. Until 2010, we used to have 3 major pledge drives and a mini-drive per year. Sometimes, we may have a special drive. Those were only 2 to 3 days and were built around a special theme. Under the present General Manager, the pledge drives have increased in their frequency. As a result, programmers are complaining, the community is not at all happy about it. We have reached a point of listener and community fatigue. The evidence is stark that since the December 2012 programming grid change, the financial situation has worsened even more under this station leadership and is yet to be addressed. The programmers have lost confidence in management and its ability to effectively manage the station.  On the other hand, the programmers have complained about the General Manager exhibiting on many occasions a lack of respect and appreciation for them. This has resulted in a tacit rebellion of the programmers towards management.  For example, during the last pledge drive that has just ended, the station was only able to raise a total of 241,000.00 dollars of a goal of 400,000.00 dollars. Many programmers decided not to pitch, especially those who usually raise substantial amounts of money. One night during the last drive would depict the lack of respect, General Manager John Hughes confronted an on air host for not pledging and told her that she raises a lot of money during the drives while she was on the air doing her show in the studio.

There is a backlog of premiums that have not been met. Although this situation was there before John Hughes was hired, there has not been a plan to address the backlog. As a result, many listeners object to pledging because past promises of premiums/gifts have not been fulfilled.

There has never been an alternative fundraising plan developed by Management. John Hughes has solely relied on pledge drives to meet the financial needs of the radio station.

The WPFW Local Station Board has organized fundraising events in the past and is currently planning events. Though those funds are helpful, they cannot be substituted for operational funds necessary to run the radio station.

1. 6.    Conclusion/Recommendations

The current financial management process needs to be evaluated. Corrections are needed to make it transparent and to avoid abuse.  There needs to be a level of planning, accountability, and record keeping and reporting. The current management team has seen no need for those financial obligations. The LSB has to intervene to protect the integrity of the process and to bring confidence that the money raised is being properly managed. Changes need to be made. Can we continue to afford a part-time Business Manager who does not meet his obligations?

Financially, the future is not optimistic for WPFW. The station is broke and is in dire financial situation. At the last Finance Committee meeting held last Wednesday, the WPFW General Manager, John Hughes admitted that the situation is serious. He only has enough money to run the radio station for one month. We heard that before but the difference is that this time, many players are saying enough is enough.  Knowing the situation with the pledge drives, he does not have many rooms to maneuver. How long can we go from pledge drive to pledge drive while we have been unable to meet the goals and keep on getting worse? The WPFW Local Station Board will have to weigh in on this issue.

Programming has been a big issue and a big part of the current situation. Whatever programming concept (if there is one) that we have now is not working. The station seems to be losing its “sound”. Many complain that they no longer recognize WPFW. The problems arising from the December 2012 grid change must be solved immediately.

What we have presently is a recipe for disaster. Quick intervention of the Interim Executive Director and the Pacifica National Board is needed to save WPFW. They have two choices: 1) continue with the current path and WPFW is bound to fail, or 2) bring in a Management Team that can bring confidence in the programmers, staff and the community and can restore programming integrity in line with the WPFW mission.

No one can later claim that they were not warned of an impending disaster.

LSB ELECTIONS AND RECALLS 6/18/13

RECALL TONY NORMAN (AND , PETE TUCKER AND CAMPBELL JOHNSON) FROM THE LOCAL  STATION BOARD

Local Station Board members Tony Norman, Pete Tucker and Campbell Johnson are being sued for breach of their fiduciary duty by The Committee to Save Public Broadcasting, which consists of Jared Ball, Robert Daughtry, Salih Latif, and Thomas Porter, with attorney Jane Zara.  The lawsuit is just one effort to make accountable these three men for their attempt to steer WPFW into a lease with Clear Channel, as well as their role in assisting general manager John Hughes in the illegal grid change and in obstructing the democratic processes for evaluation of the general manager.

TONY NORMAN’S ELIGIBILITY TO SERVE ON THE LOCAL STATION BOARD IN QUESTION
Local Station Board member Jane Gatewood made the bombshell discovery in January that Tony Norman is an elected official as ANC Commissioner for ANC 1B10 and, therefore, was ineligible to serve on the LSB or the PNB. The CMS document said in part: “Mr. Norman, by his own admission, was elected to and currently serves as an ANC Commissioner. The DC Office of Elections and Ethics, ANC Office, defines ANC Commissioners as elected political officials, see discussion above. Sec. 9 of Article 4 states that a Delegate shall be removed from the position of Delegate if among other things he is an elected political official.

Mr. Norman, as ANC Commissioner for ANC 1B10 in the District of Columbia, falls within the prohibition and must be removed as a Delegate to the LSB. His removal from the position of Delegate would result in his removal as a Foundation Director.” The National board has yet to take up the matter and, despite the rule in the bylaws, has allowed Norman to remain seated on both the LSB and PNB.

Stay Tuned!

MAY PLEDGE DRIVE 5/17/14

CMS’ Position on the May Pledge Drive

A number of CMS supporters have asked whether or not we should support ‘PFW’s current, May pledge drive.  After extensive discussion over a period of several weeks and meetings, the Coordinating Committee reached the following decision, which we feel unifies the wide range of views expressed by committee members and others.

We must caution, however, that the following serves only as a recommendation to the Community Meeting; and is therefore not a definitive and binding “CMS position”, since the Coordinating Committee has not yet had the opportunity to hold a Community Meeting to ratify, modify or reject this recommendation.

PLEDGE YOUR CONSCIENCE, taking into account the following  considerations:

1) CMS recognizes and celebrates the positive changes to the program schedule brought about recently since Katea Stitt and Miyuki Williams were put in charge of programming.  We view these changes as partial victories: the result of  continuous pressure put on management by programmers, listener-members, the LSB, and CMS !

2) In order to save the SOUL of our station, the ‘PFW Family MUST elect a democratic and progressive LSB this year!

We need honest people with integrity, dedicated to ‘PFW’s Mission Statement, and determined to fight to return ‘PFW and Pacifica to their jazz and social justice and free speech roots.

In other words, we need an LSB majority dedicated to reversing the years’ long drift to the political right in governance, management and programming at both ‘PFW and Pacifica.

In order to accomplish this goal, ALL members of the ‘PFW Family MUST do 3 things THIS YEAR:

* YOU must renew your membership or become a first-time member of ‘PFW, so that you can VOTE in this year’s LSB elections; 

* YOU must pay the basic $35 membership fee so as to be a current member and have the right to vote in the LSB elections; and,

* YOU MUST VOTE for candidates dedicated to reversing the drift to the right in order to return ‘PFW to it’s jazz and social justice and free speech roots.
NOW is the time to bring your membership up-to-date !  Although the precise timing of this year’s LSB elections has not been determined as yet, we know that the time for folks to declare their candidacies is fast approaching.

REMEMBER:

In order to save the SOUL of OUR station,

the peoples’ station,

EVERYONE MUST VOTE

IN THIS YEAR’S LSB ELECTIONS !

3) Celebrating recent partial victories, suggesting that folks pledge their conscience, and urging the ‘PFW Family to VOTE in this year’s LSB elections is a CALL TO FURTHER ACTION !

The original LSB decision of December, 2012, as well as CMS’s subsequent decision along the same lines, called for a temporary return of the former programming schedule, so as to enable development of a new programming schedule resulting from a democratic, inclusive and participatory process, led by the LSB and including all stakeholders, in collaboration with management. 

No such collaborative process has yet occurred, although Katea has invited the LSB Programming Committee to offer ideas for a future, permanent programming schedule.

The bottom line is that ALL of the programming and personnel decisions recently made by management represent unilateral decisions made by the IGM, Michelle Price, for her own reasons, and are NOT the result of any kind of collaborative process or negotiation.

She has NEVER responded to, much less agreed to negotiate on, any of the requests or demands made by the LSB; not to speak of CMS !

What we know for sure is that Michelle Price’s attitude toward the community is her continued refusal to respond to our demand that she issue an apology to the ‘PFW Family for having branded CMS as terrorists on her blog simply for having urged folks to attend and participate in this past February’s PNB meeting in DC !  Two more things to think about:  Has Michelle Price ever apologized to Luke for taking him off the air?  We are glad that he is back but has she ever apologized to Jared?  Finally, we insist that Michelle Price retract all gag rules, censorship, threats, against the ‘PFW community.

As a reminder, below is CMS’ list of Long-Term Campaigns:

(1) Return Union Staff to Full Pay

Work with union staff members, their union (SAG-AFTRA), and the Metro Washington Council (AFL-CIO) to insure that all union staff members (and any other affected staff) are restored to full pay and compensated for lost wages

(2) Form Committee of  Community Organizations to Support CMS Initiatives

Examples: labor groups, churches, progressive organizations

(3) Work with The CAB (Community Advisory Board)

Focus on programming issues, which is the core of the CAB’s mandate

Identify 2 or 3 CMS members to attend CAB meetings and possibly apply to become CAB members.

PACIFICA SUITS AND COUNTERSUITS 5/23/14

LEGAL VICTORY: Superior Court judge issues TRO against fired executive 

LEGAL DOCUMENT:  Order Denying Plantiff’s Motion for Preliminary Injunction and Granting Defendant and Cross-Complainant’s Application for Temporary Restraining Order

Pacifica asks judge for TRO to remove Reese from its office

LEGAL DOCUMENTS: Memorandum for TRO, Yee declaration, Wilkinson declaration, Verified cross-complaint, Application for TRO, Order to show cause

To Pledge or Not – That is the Question 9/15/14