By: Diane Benjamin
According to this website: https://www.nfp.com/risk-capital/coverage-expertise/commercial-and-contract-surety/surety/bonds-types/public-official-bond/
In a larger sense, it’s not only the government agency that is being protected against non-compliance but the general public as well, since any misappropriation of funds or dereliction of duty directly impacts the local citizenry involved. If it should happen during the period of service of a public official that some kind of breach of the terms of the bond does occur, the government agency would then have the right to make a claim against the bond.
Assuming that this claim was to be upheld and it’s found that the public official was indeed in breach of the bond’s terms, the surety company would then be obliged to pay the amount of a claim made by the obligee, the government agency. Any amount up to the face value of the bond itself could be claimed by the government agency, and if necessary, a decision on the validity of that claim could be made in court, if it were not settled between the parties.
I confirmed with McLean County the Auditor, Michele Anderson, has a surety bond. We keep hearing from County officials that she has cost the County and therefore taxpayers money. Sounds like dereliction of duty.
Is the County ever going to make a claim against her bond? Is the County just going to charge taxpayers?
If the County does make a claim against her bond, the bond company is very likely to cancel her bond. That means she forfeited her job as auditor:
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County officials have the ability to remove her from office. Why haven’t they? Complaining and sticking taxpayers with the bills for her deliction is easier?
Taxpayers were billed for Michele Anderson’s bond. Solve the problem McLean County, it isn’t that difficult. I have no idea what the face value of the bond is, but taxpayers deserve whatever it is.
One more excerpt from the above link:
Whatever amount the surety company is obliged to pay to the obligee, it would then seek to recover from the principal, who is the civil servant in violation of the bond’s terms. As a government official, you should do everything possible to avoid having a claim made against you, because not only would you be responsible for repaying the claim amount to the surety, but you would very likely find it more difficult to become bonded in the future.
