Following a suggestion from Interim Director Bob Milligan, the audit committee for the State Board of Administration voted today to hire an outside law firm to assist with the controversy surrounding with the Local Government Investment Pool.
The move to hire outside lawyers was urged by both Gov. Charlie Crist and Chief Financial Officer Alex Sink. Tara Klimek, a spokeswoman for Sink, said the push for outside attorneys was another way to reassure investors about what is going on with the pool. Several people, including Pat Frank, the clerk of the court for Hillsborough County, have raised questions about the legality of what the trustees of the SBA have done to the local pool, including limiting money to the assets and using November interest payments to help out Fund B, the segregated group of investments that caused the near collapse of the pool.
"This is to provide more confidence to investors,'' said Klimek. "There have been a lot of rumors...This is to answer those legal questions.''