LUS Fiber has recently been accused of receiving millions in illegal subsidies from LUS. This is a complex issue with a lot at stake. An explainer is in order.
The gist: Last week, the mayor-president alleged that LUS Fiber charged LUS millions in fraudulent payments for a power outage monitoring system that wasn’t useful. He asked for the Public Service Commission to investigate, swirling controversy around Fiber and its former director. Regardless of the episode’s outcome, it’s clear Fiber faces significant financial risk moving forward.
The gist: The Daily Advertiser broke a story late Monday that Lafayette Mayor-President Joel Robideaux has self-reported a second potential violation of state law regulating LUS Fiber. In his Monday letter to the Louisiana Public Service Commission, Robideaux claims LUS may have made illegal payments totaling $8 million to LUS Fiber over an eight-year period. If the PSC agrees, this could create a significant financial burden for LUS Fiber’s operations moving forward.