By Jake Kincaid | PinalCentral
Financial reports show Johnson Utilities diverts 50 percent of its revenue to subsidiary company Ultra Management, but George Johnson was unable to say what the company did as he was on the witness stand during a state hearing.
Scott McCarty, town of Queen Creek finance director, testified about the financial state of Johnson Utilities based on his analysis of the water and wastewater utility from when Queen Creek considered acquiring it. What McCarty described as a “highly unusual” contract with a subsidiary entity called Ultra Management was a cause of concern for the town and primary contributing factor to the decision not to buy the utility. The testimony also described a pattern of failing to invest revenue to maintain infrastructure.
The Arizona Corporation Commission has been holding a hearing about whether it should appoint a temporary manager to take over the company after numerous complaints.
