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Cheltenham finance committee moves to close Citizens Bank accounts amid divestment calls
Summary
Township staff said efforts to close multiple Citizens Bank accounts are underway but delayed by bank procedures; a public commenter representing Cheltenham Immigration Response urged full divestment citing bank ties to private prison contractors and ICE detention financing.
The Cheltenham Finance Committee continued efforts to close multiple township accounts at Citizens Bank during its July 8 meeting, and staff said the process has been slowed by bank procedures and coordination with government representatives.
Janice Salerno, who responded repeatedly about the accounts, said auditors will upload audit reports to DCED this week and staff are working to complete 2024 audits next. On the status of the Citizens Bank accounts she said the bank still holds township funds and that "it's about $8,000,000." Salerno described repeated in‑branch visits and conversations with the bank's government representatives, and said staff have been pushed between bank staff and the government rep on how to complete closure.
David Flax, a Melrose Park resident speaking on behalf of Cheltenham Immigration Response, urged commissioners to divest from all Citizens Bank accounts, saying the group is concerned about the bank's lending relationships with private prison firms. "I wanted to, express on behalf of, Cheltenham Immigration Response that we are interested in seeing the commissioners, divest from all of these accounts because of the connection between Citizens Bank, the GEO Group, and of course state sits CoreCivic and their, contribution to ICE detention centers, by loaning the money for them," Flax said.
The committee and staff acknowledged the public concern and reiterated that closing township accounts is a priority. Commissioner Jeff and other members said staff have visited the bank and engaged the local government representative; they said they expect the township side of the closure process to conclude within about a week but emphasized the tax collector's accounts are separate and involve additional parties.
The township tax collector, Mr. Pitts, told the committee the situation is more complex for tax accounts tied to schools and county processes. He said the township and related entities have multiple Citizens Bank accounts — "four accounts" — holding "little under $10,000,000" in aggregate, and cautioned that moving those balances will require coordination with school districts and the county and could delay collections.
At the meeting the chair moved to approve the minutes and routine reports (accounts payable, finance officer, tax officer and the verbal IT report); a voice vote was held and ayes were heard from the chair and other members. The chair later moved to adjourn and the committee voted by voice to end the meeting.
What happens next: staff and the township manager will continue to pursue closure with Citizens Bank and the local government representative; the committee said it expects an update at the next meeting.
