Detroit's CFO testifies in city's bankruptcy trial
Detroit • The chief financial officer for Detroit says the city's internal financial controls were "very, very poor" when he was hired late last year.
John Hill Jr. was the first witness called Thursday in Detroit's historic bankruptcy trial. He said the city had trouble determining how much revenue was coming in and how much it was spending, partly because a financial commuter system had not been fully implemented.
His testimony comes two days after opening statements by an attorney for Detroit and lawyers for various creditors opposing the city's debt restructuring plan.
Detroit wants to cut $12 billion in unsecured debt to about $5 billion through its plan of adjustment, which federal Judge Steven Rhodes must approve. Most creditors, including more than 30,000 retirees and city employees, have endorsed it.