State Auditor Les Merritt says an ethics probe is being blocked.

On Thursday, he released an "interim report" accusing the State Ethics Commission of unlawfully blocking his staff's investigation into possible preferential treatment of Lt. Gov. Beverly Perdue.

The report also backed findings by two other state agencies that found the commission lacked clear administrative policies and was strugling to perform its tasks.

Merritt, a Republican seeking re-election, said in a statement that his staff's report "paints a picture of potential destruction of evidence. I say 'potential' because the Commission is hiding facts from the public that may implicate or exonerate their past actions."

The investigation stems from a complaint from an office assistant who noted that a staffer for Perdue was allowed to review records alone in an office with the door closed. She was later fired after the N&O asked about the log. (N&O) 

A former State Ethics Commission employee who was fired after raising concerns about possible preferential treatment to Lt. Gov. Beverly Perdue filed a whistleblower lawsuit in state Superior Court today.

Amanda Thaxton, an office assistant, said the firing has hit her hard financially and she wants a judge to reinstate her immediately, Dan Kane reports. She said in the suit that she is also seeking an award of triple damages — as the state's whistleblower law allows — plus legal fees for being fired for reporting her concerns to the Office of the State Auditor and to the State Personnel Commission.

"This was this girl's first job out of college," said her lawyer, Michael C. Byrne of Raleigh. "She comes in from Elon University, gets a job from the state and then is abruptly fired for cooperating and engaging in protected activity. That's just not right."

Perry Newson, the commission's executive director, could not be reached for comment Tuesday. He has said that Thaxton, 24, was not fired in retaliation.

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The State Ethics Commission is asking a Superior Court judge to prevent State Auditor Les Merritt from investigating a claim of preferential treatment for Lt. Gov. Beverly Perdue, the Democratic nominee for governor.

The suit claims that Merritt's office has a conflict of interest because its investigations chief, Frank Perry, left the ethics commission a year ago. The suit also claims that Merritt, a Republican seeking re-election, "denigrated" the commission in an hour-long interview with a radio station.

It is a rare case in which one state agency is suing another, reports Dan Kane.

"The commission welcomes an independent and impartial investigation by an appropriate entity that is free from actual and/or perceived conflicts of interest," the suit said.

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The State Ethics Commission met for about three hours behind closed doors today to discuss personnel matters, but took no action and offered no comment afterward.

The regularly-scheduled meeting took place amid controversy within the commission. A report in June by a consultant to the Office of State Personnel found a work environment that was dysfunctional and distrustful, Dan Kane reports.

Last month the commission's executive director, Perry Newson, fired an office assistant who had raised questions about preferential treatment to an aide to Lt. Gov. Beverly Perdue. The aide had visited the commission to review Perdue's statements of financial interest.

The office assistant, Amanda Thaxton, had made a notation about the visit that was later erased from the log.

Thaxton was present at the opening of the meeting, but left after the commission went into a closed session. She has filed a grievance over her firing and said she wanted to be present in case the matter came up for public discussion.

Tim Hoegemeyer, general counsel for the State Auditor's Office, also attended the open session. The auditor is investigating how the aide's visit was handled, and its aftermath.

An office assistant at the State Ethics Commission has raised questions about its own ethics.

Ten months ago, Amanda Thaxton made a notation in a public records log when an aide to Lt. Gov. Beverly Perdue was allowed to review her financial disclosure forms alone.

The Perdue aide "reviewed files in ... office alone with door closed," she typed into an electronic log.

Six months later, Kathleen Edwards, the assistant director who let the Perdue aide review the records, found the notation and removed it. Last month, after an N&O reporter asked about the log, executive director Perry Newson fired Thaxton, giving no reason.

"I think it was probably more than coincidence," she said.

The state auditor's office is investigating the incident. (N&O)