Three years after crippling mismanagement and financial scandal tainted the reputation of a 46-year-old nonprofit deeply rooted in Gilroy, the Mexican American Community Service Agency is getting back to what it does best.
Three years after crippling mismanagement and financial scandal tainted the reputation of a 46-year-old nonprofit deeply rooted in Gilroy, the Mexican American Community Service Agency is getting back to what it does best.
“The agency has a very clear focus,” said MACSA board president Michael Lopez during a meeting Thursday inside the organization’s multipurpose room at 277 IOOF Ave.
The gathering was facilitated by David Cox, executive director of St. Joseph’s Family Center who reached out to city and community leaders in hopes of developing a clearer picture of MACSA’s future.
For the troubled organization that once owed approximately $300,000 to employee pension funds, new leadership has resolved to not bite off more than it can chew.
Allegations of MACSA’s misappropriation of public funds and the embezzlement of private funds arose in 2009 when complaints surfaced at the agency’s two charter schools, El Portal Leadership Academy in Gilroy and Academia Calmecac in San Jose. As workers discovered their pension system had not been properly credited with money deducted from their paychecks, it came to light employers had been skimming from wages to cover operating costs.
Lopez made it clear “we’re not going to deal with charter schools.”
Rather, management will synergize its strengths with “what we believe the mission and core values of the agency are.”
This includes community services such as education, prevention and intervention programs.
As he addressed a modest audience comprised of representatives from local nonprofits, the Gilroy City Council and Gilroy Unified School District trustees, Lopez admitted he expects the coming year to be difficult but maintained the community enterprise and its 42 employees are attempting to stabilize.
Infrastructure is on the mend, he explained, and dealing with budget setbacks at the state level is an area of concern. So far they’ve liquidated two properties, are cutting nonviable programs and have a $1.2 million budget.
A complaint contending negligence and breach of fiduciary duty was filed in January against several of MACSA’s former leaders, including defendants Joe Chaidez – a certified public accountant in Clovis – former CEO Olivia Soza-Mendiola and former Chief Financial Officer Benjamin Tan, according to court documents obtained by the Dispatch. These three, including former Chief Operating Officer Xavier Campos, no longer work for the organization.
San Jose lawyer John Marshall Collins and MACSA’s attorney in the case confirmed hearings have been pushed to September, adding there are no new developments so far.
As for the hundreds of personnel who lost their jobs in the widely publicized debacle, Lopez said money owed to former teachers at El Portal and Academia Calmecac has been paid back in full. Nonteaching staff are being paid back right now, he said.
Inquiries as to whether lawsuits have been filed against MACSA or if money paid back to employees includes interest, however, were not returned by Collins as of press time.
“Are you finding that because of what’s happened, people are very reluctant to give you money?” one attendee asked.
Initially, yes, Lopez replied. He went on to highlight one of their biggest obstacles as eliminating debt.
“But once we sit down and talk, that hasn’t been an issue for us,” he added. “We’re thankful that people who know what MACSA has done for 50 years know what the agency is about.”
While undercurrents of frustration stemming from old wounds occasionally surfaced during Thursday’s meeting, the general attitude appeared supportive and focused on the future.
Lillian Castillo, an employee of the Santa Clara County Public Health Department who emphasized she was attending simply as a community member and MACSA advocate, said having its name repeatedly splashed across front page headlines has painted the social services group in an unfair light.
Standing to address the audience, she asserted negative publicity has detracted from the nonprofit’s proactive intentions and services including the creation of long-term, systematic changes and improvements.
In addition to being situated in an area of concentrated poverty, MACSA provides a safety net for costs the city doesn’t have the resources to absorb – or wants to reabsorb, Castillo said.
“We have the highest rate of people without high school degrees in the entire county, highest rate of diabetes, cholesterol, asthma, it’s amazing,” she said. “MACSA has provided services down here when no one else has provided them.”
She was echoed by GUSD trustee Dom Payne, who elevated the nonprofit as “a program we can put faith in.”
Several individuals whose lives have been deeply impacted through MACSA outreach were also given the floor.
Blinking back tears, Patty Pena – who lost her husband this year – said the agency helped her land a job at South County Housing.
“MACSA changed my life,” she said. “It’s really hard to see you guys go through this.”
Rebuilding relationships and respect in a town still wary of the organization’s dirty laundry means everything to employees such as Christina Soto, manager of Child & Family Literacy Services who has been with nonprofit for 14 years.
“The day the community says, ‘we don’t trust you,’ is the day we shut our doors,” she said. “I truly believe we can come back as a different looking agency.”
Though MACSA has a South County Advisory Board in Gilroy, Soto pointed out no one from this group sits on the board of directors in San Jose. She hopes to see this change.
“We’re getting the groundwork in place now,” said Lopez. “We’re a much different agency than we were a couple years ago.”
