The industrial museum in the works in Northampton County needs additional accountability safeguards going forward, according to the state attorney general.
Kathleen Kane released the results Thursday of her office's review of the planned National Museum of Industrial History (NMIH) in Bethlehem.
Kane said her office has filed a decree for court approval to provide increased accountability and more safeguards after the museum raised funds for more than 17 years but still has not opened to the public.
In January 2014, a Northampton County grand jury that investigated the museum recommended Stephen Donches should resign as president, CEO and director of the museum or be fired.
After more than 17 years and up to $19 million in contributions, the museum has not been built.
The museum review began after the case was referred by the grand jury, and fell under the scrutiny of the Office of Attorney General's Charitable Trusts and Organizations Section.
The attorney general found "no criminal wrongdoing, or misappropriation or inappropriate diversion of the museum's charitable assets."
In addition, the review found the museum's directors acted in what they believe to be "the best interest of the organization and have personally contributed the bulk of NMIH's funding."
The attorney general's office determined that the museum is in a viable financial position to complete the museum in the near future.
The NMIH's board member have agreed to the following stipulations in order to keep the museum's continued viability:
* Cease the payment of any further compensation to the museum's former chief executive officer;
* Retain a new chief executive officer within the next year who is experienced and qualified in museum management;
* Open to the public as an operating museum within the next two years;
* Subject the museum's finances to heightened and ongoing oversight by the Attorney General through the completion of its construction and first two years of operation; and
* Seek the Court's approval to partner with outside charitable organizations or transfer its assets to an appropriate successor and dissolve, if the museum fails to open in the next two years.
According to a statement from NMIH chairman and interim president, Charles Marcon, "As we have maintained throughout this extended process, NMIH has demonstrated its compliance with Pennsylvania law governing the operation of charitable non-profit corporations.
"To the board, the most important part of the Consent Decree is the Attorney General’s indication that we can and should continue with our mission of building the Museum. To that end, we have already restarted construction with work on the first floor concrete slab and related underground utilities."
Marcon said bids for construction of the first floor will be received the week of January 26,, and should be completed by the end of September.
Work on installing exhibits will begin after that, with a target date for the museum to open by mid-2016.
Marcon said the search for a new executive director will start immediatley, as outlined in the consent decree.
"We thank Steve Donches for his tireless commitment and dedication to our organization. Steve’s efforts and relationships were solely responsible for securing a $3 million grant to NMIH earlier in 2014, and additional funds prior, that will allow the organization to complete the Museum’s construction," Marcon said.
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