Not Every Political Investigation Turns Up Fraud in Arkansas

: Not Every Political Investigation Turns Up Fraud in Arkansas

October 17, 2008 by Brad
Filed under: Politics

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Street chief quits after probe

BY KEITH INMAN

JONESBORO — Tony Davis, Jonesboro’s street superintendent, resigned effective Wednesday after being cleared in a fraud investigation.

His resignation letter didn’t state a reason for leaving, but Gloria Roark, the city’s human resources director, acknowledged “there were some issues with Tony’s performance.”

The letter indicated he would be on administrative leave with pay for the next two weeks and receive pay for 60 hours of accrued vacation time. Davis worked for the city since late January, moving here from northwest Arkansas.

On Oct. 6 Public Works Director Erick Woodruff requested an investigation into possible fraud. Jonesboro Detective Jason Simpkins concluded there had been no criminal violations.

Davis said Wednesday afternoon he had not seen the report.

At issue was a “flower fund” maintained for the benefit of Street and Sanitation Department employees. The fund is independent from city government, Simpkins said in his investigative report.

“Mr. Woodruff reported several deposits, which were deposited into the City of Jonesboro Flower Fund by Mr. Davis’ department,” dating back since March 20, Simpkins wrote. The deposits totaled $3,003.67. The deposit slips had been signed by both Davis and Sanitation Superintendent Royce Leonard, Simpkins said.

Most of the money came from the sale of scrap material, such as old culverts and large pieces of metal that had been replaced in city streets, according to Simpkins’ report.

Woodruff also gave Simpkins seven checks, totaling $4,975.20 from Hummelstein’s metal recycling business that had not yet been deposited into the fund.

Simpkins’ report indicated that Woodruff questioned Davis about the checks and that Davis told him he had Hummelstein’s write the checks separately in order to keep the money from having to be deposited into the city’s Street Fund.

Simpkins concluded that no single person benefited from the transactions.

“The money, which was received from Hummelstein’s, has been accounted for in the flower fund account,” Simpkins said. “The money deposited equals the money listed on the deposit slips. At this time, it appears that the items brought to Hummelstein’s may have possibly included items used in culverts, and in street repair. The money received from Hummelstein’s appears to have been deposited into the flower fund account, when it should have been deposited into the account for the City of Jonesboro Street Department.”

In closing the case, Simpkins referred the issue back to the city administration as a personnel matter.

Davis said the flower fund had been in existence long before he came to Jonesboro.

“As far as I’ve been told, it’s a legitimate fund,” Davis said. He added that Woodruff had withdrawn money from the same bank account for employee dinners.

He declined further comment.

More involved in departure

Woodruff said late Wednesday he had not made any withdrawals from the flower fund. He added that there was more involved in Davis’ departure. Woodruff said he had always believed the independent fund only contained proceeds from vending machines. When he learned in April that scrap metal from a bridge replacement on North Culberhouse Street had been recycled, with proceeds going into the flower fund, Woodruff said he asked Finance Director Jim Barksdale about the practice. Barksdale told him proceeds from recycled metal should be placed either in the Street Fund or General Fund.

Woodruff said he then instructed Davis to transfer that money from the flower fund into city coffers. When he learned that Davis had continued the practice in subsequent months, Woodruff said he requested the investigation.

“Before any action was taken regarding Tony Davis, he resigned,” Woodruff said.

Woodruff said he believes the practice of selling scrap metal and placing it into the flower fund began under a previous administration and involved scrap metal retrieved from the city’s landfill. He said he can’t undo what was done under a previous administration.

“Yes, there was a problem, I’ve addressed it, and I’ve corrected it,” Woodruff said.

Woodruff said Leonard faces no repercussions from the flower fund deposits.

inman@jonesborosun.com