EX SBEDC CEO RIOS DEPO REVEALS SERIOUS PROCEDURAL QUESTIONS

Special to El Rrun-Rrun

San Benito, Texas – As questions continue to grow surrounding a $3.4 million lien that appears to have never been formally approved, sworn testimony has revealed a deeper issue inside the San Benito Economic Development Corporation, one centered not on a a single decision, but on the flawed process followed to make those decisions in the first place.  

In deposition testimony, former EDC board president Julia Rios acknowledged that despite clear requirements for city-level approval on contracts and amendments, actions were often taken without internal administrative direction rather than the strict compliance with governance rules.

Rios admitted that, during his time in leadership, he relied on guidance provided by Jose Morales, husband of commissioner Deborah Morales when executing official actions. That reliance, even in situations where governing documents required formal approval beyond the board, in now raising serious concerns about whether proper procedures were consistently followed.

The structure of the EDC exists to ensure accountability. The board is expected to act collectively, major decisions are to be documented, and oversight mechanisms are in place to protect public assets. But testimony now suggests that those safeguards safeguards may not have been applied ass intended.

Of particular concern, Rios confirmed that amendments to major agreements were executed without documented city approval, despite language requiring it. When questioned, he described those actions as part of of what he understood to be normal operational practice at the time, pointing to internal direction rather than formal authorization.

That distinction is critical because when formal procedures are replaced with informal practices, the system designed to protect public funds tends to break down.

The result is what is now unfolding: A multimillion dollar financial obligation tied to public property, with no clear record of board approval and no documented vote reflecting authorization.

Rios further testified that he di not recall consulting legal counsel on key decisions and repeatedly pointed back to SBEDC meeting minutes rather than confirming whether proper approvals were ever formally obtained. In multiple instances, he was unable to verify that significant actions were taken in accordance with required procedures.

Taken together, the testimony presents a picture of an organization operating with blurred lines of authority, where decisions were influenced by internal direction rather than consistently anchored in formal governance  requirements. Rios testimony shows indicated that this was not simply about one document. 

Rather, it was about the system that allowed it to exist. In this case, his testimony shows that  governance is not defined by intent, but rather by process. And when that process was not followed, accountability became unavoidable. What is now coming into focus is not just a financial question, but a structural one. 

The question emerges: How dis a system designed to require oversight allow a decision of this magnitude to move forward without clear city commission approval? And how many other decisions followed the same path?