What else shall we learn from Texland?
And when will it all end?
If you’re one of those following the tale who is asking yourself these questions, then join the crowd. It seems there are more of those than answers in this case.
How is it that three men can clear nearly $1 million during the 1980s from a corporation that no longer exists and never produced one kilowatt of power?
How is it the accounts at Cattleman’s National Bank and Johnson City Bank were forgotten for at least 20 years, and not a word reached the public about the trio’s payments until now? Who saw the records and when?
How is it the board members of the Pedernales Electric Cooperative, one of Texland’s parent companies, never recall voting on disbursements to the trio or seeing any paperwork?
When is the state attorney general going to finish the wider investigation into PEC that now most likely involves some of the activities carried out under the Texland umbrella?
While it is true that bad or questionable business decisions aren’t necessarily criminal in nature, the 220,000 members of PEC have been waiting quite some time for answers from investigators, if for no other reason than to close the book on all of this.
The Texland accounts at Johnson City Bank and Cattleman’s National Bank of Round Mountain only came to light this summer during a PEC audit in which it was revealed about $565,000 still remained, sitting there for two decades in non-interest bearing accounts.
The PEC audit is part of larger reforms going on at that utility brought about by a civil lawsuit, media scrutiny, state and federal inquiries and the efforts of new board members and new management.
Texland was a joint venture between PEC and Bluebonnet Electric Cooperative to create a coal-powered electricity source. The venture was shut down after the Public Utility Commission refused to grant the proper permits, and a lawsuit involving the Lower Colorado River Authority also helped end the initiative.
The newly reconstituted Texland board, which was created after the $565,000 was discovered and includes some PEC officials, is now involved in litigation with Cattleman’s bank in district court in Blanco, with Texland claiming it is owed nearly $1 million in back-interest payments.
The Texland account was thought closed by 1987.
The latest chapter involving Texland that is raising hackles was revealed this past week during a board meeting in Austin in which officials disclosed Moursund received $585,610 from a Texland account at Johnson City Bank, on top of $150,000 that came from Cattleman’s — a bank he helped found. Moursund was general counsel for PEC and died in 2002. In the end, it seems about $735,610 went to Moursund from both accounts.
Fuelberg, the former PEC general manager who stepped down nearly a year ago, collected $11,175 from the Johnson City Bank, in addition to the $111,600 both he and Burnett, the former PEC board president, withdrew from Cattleman’s. Burnett’s collection from Johnson City Bank was $9,422.
The two ex-PEC honchos took in about $120,000 from the two accounts; this, in addition to some hefty golden parachutes they received from PEC when they stepped down.
Also, the Moursund Insurance Agency received $55,793 from Johnson City Bank, records have shown. There were others who also received some payments, but in much smaller amounts.
Fuelberg and Bennett eventually went public about the withdrawals from Cattleman’s, saying it was money they were owed for their work on behalf of the cooperative.
No one knows yet why the Johnson City Bank payments weren’t revealed; those came from records turned over by the Moursund & Moursund law firm.
This is a very tangled web that has been woven; one almost needs a scorecard to keep things straight. But what matters is this: More answers are needed, investigations and litigation must be brought to a conclusion, and the doors finally must be shut on Texland, a non-existent utility that still seems to be causing a lot of headaches.