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Wed December 14, 2011
ProCap files for receivership
By FLO JONIC
PROVIDENCE, RI – The largest social service agency in the city of Providence has filed for receivership to protect itself from creditors. The board of directors of the Providence Community Action Program, known as ProCAP, made the decision at an emergency meeting Wednesday morning
ProCAP has been forced to seek receivership protection because of a severe cash flow problem. Its spokesman Bill Fisher, said the agency has debts totaling $2 million and less than $100,000 cash on hand.
"We discovered that the organization had barely been making payroll these last few weeks," said Fisher, "and in fact the last payroll they made they had not even paid payroll taxes."
Fisher said the main problem is overstaffing.
ProCAP distributes funds for home weatherization and heating assistance for the poor.
Last month its director, Frank Corbishley, was suspended and two top staffers were fired after an accountant turned up evidence of financial mismanagement.
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