Thursday, July 30, 2009

L.A. Goverment: Problems found with $6M in checks to companies

The L.A. Daily News reports:
The message from Los Angeles to 924 vendors is one a lot of folks are using these days: The check is in the mail.

Actually, officials are telling companies who received city checks which then bounced that they should redeposit the checks, which are now cleared for payment.

About $6 million in checks dated July 24 are at the center of a problem, which was blamed on a processing error by Wachovia Bank.

"Wachovia was the check issuer for the city and there was a problem when they were taken over by Wells Fargo and these checks went out," said Ben Golembek, spokeswoman for Controller Wendy Greuel.
Mistakes where made.