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Citizens on the Hot Seat

August 19th, 2014 by flanews

Florida’s Governor is miffed about why state run Citizens Insurance ignored his recommendation to stop international business trips. As Matt Galka tells us, the trips are continuing, which put the insurer on the hotseat in front of state officials.

Citizens Property Insurance President Barry Gilway was in front of a Cabinet firing squad Tuesday.  He attempted to defend the state-run insurer’s spending on international business trips.

About two years ago, Citizens was found to have grossly overspent on international travel to the tune of about $1.3 million dollars of taxpayer money over an eight month period.

The most recent travel bill showed a $48,000 tab for all employees. Including about $100 of overspending at a Bermuda resort.

“They’re going to watch you, and people are still concerned about their property insurance costs. So when there’s an example like this, it makes you look like you’re not watching the dollars,” said Governor Rick Scott (R-Florida).

Florida’s Attorney General still thought the bill was too high.

“That’s more than my lawyers, my starting lawyers make in an entire year,” said Pam Bondi.

Even after intense scrutiny, Gilway says it was worth it to go before cabinet. He says the trips equaled savings.

“The $233 million dollars in savings relative to prior year costs, that’s staggering, that’s a massive amount of money, and who saves that money? Floridians,” said Gilway.

Citizens says this was the only error found after hundreds of public records requests were made.

Governor Scott did say he believes the insurer is doing a good job, but this didn’t convince him to change his recommendation for a ban on international travel. Citizens also pays third-party broker agents to travel for business.

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