During a House subcommittee appropriation hearing in the 1984 Regular Session of the Mississippi Legislature, an official of the Tombigbee River Valley Water Management District advised that the district did not intend to purchase a three-yard dragline being leased at the time.
At the time of the purchase, the district paid $38,285 and the dragline was appraised by two appraisers at $65,000 and $70,000. All actions taken by the district were approved by the district board and by the Purchasing Division of the Budget Commission (Fiscal Management Board). However, this was contrary to legislative intent, and the district did not include in its budget request for fiscal year 1985 a request for the purchase of a dragline.
The investigation disclosed that the dragline was originally leased on January 12, 1984, for three months at $7,000 a month, subsequently leased on a month-to-month basis, and purchased after being leased for seven months. The lease agreements included on option to purchase the equipment for the agreed price of $85,000 plus interest paid by the lessor during the term of the lease ($2,285 at the time the option was exercised).
For a paper copy of this report, contact PEER by telephone at 601-359-1226 or by e-mail at reports@peer.ms.gov.