auditor

Why U.S. attorney post matters

ryanteaguebeckwith — Fri, 14 Nov 2008 09:37:09 -0500

Why does the U.S. attorney's post matter?

As we've written earlier, federal prosecutors in the Eastern District play a key role in corruption investigations because they have investigative powers that state prosecutors do not.

In addition, they are insulated from the local political forces that might hold back the state Attorney General's office or a locally elected prosecutor.

And after the Republican wipeout two weeks ago, the job will be even more important.

Other than prosecutors, the major checks on power in the state are legislators; the state auditor, governor, attorney general and other statewide elected officials; the state Supreme Court; the political parties; investigators for the State Board of Elections and the media.

Consider that Democrats now control both chambers of the legislature, hold eight out of 10 statewide offices including the governor, attorney general and the auditor, and an incoming U.S. senator in the majority party with ties to the state Senate leader.

Republicans have a 4-3 advantage on the state Supreme Court and one U.S. senator in the minority party. The state's party chairwoman is taking some criticism on blogs and may face a challenge next year. The only statewide officials are in labor and agriculture.

That leaves the board of elections, the U.S. attorney's office and the media as the major potential checks on corruption in the state.

Merritt: Probe is being blocked

ryanteaguebeckwith — Fri, 19 Sep 2008 08:40:16 -0400

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)

Ethics comm. meets behind closed doors

ryanteaguebeckwith — Fri, 08 Aug 2008 17:32:14 -0400

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.

Questions raised about ethics at commission

ryanteaguebeckwith — Fri, 08 Aug 2008 08:35:55 -0400

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)

Audit finds fault with UNCG contractor

ryanteaguebeckwith — Thu, 29 May 2008 12:04:50 -0400

A UNC-Greensboro vice chancellor inappropriately hired a technology contractor who was paid $431,925 in state money over two years, including $65,000 in expenses for commuting to Greensboro from Los Angeles and Las Vegas, according to a state audit released today.

The payments included $212,000 in student fee revenue to the contractor, whose billing rate was raised from $150 to $200 an hour during the period, Jane Stancill reports. The contract was executed by the vice chancellor for information technology services without following university procedures, the audit said.

The job, which was to ensure that a new administrative computing system was implemented on time, was not posted nor competitively bid. The university's top legal and business officials did not review the contract in violation of university procedure.

The vice chancellor who approved the contract was not named in the audit, nor was the independent contractor.

More after the jump.

Merritt releases report on Nesbitt

ryanteaguebeckwith — Wed, 28 May 2008 08:42:12 -0400

State Auditor Les Merritt released a report Tuesday on state Sen. Martin Nesbitt.

The report, at the center of a dispute over whether the auditor should investigate violations of the state ethics law, became public after Nesbitt waived his right to confidentiality for the State Ethics Commission to give its side, Ben Niolet and Mark Johnson report.

In the report, Merritt says he believes the Asheville Democrat should have disclosed on ethics filings that he worked with his son's racing team. Nesbitt was an unpaid crew chief.

Merritt's report details how Nesbitt and his son own a business that owns a warehouse that Nesbitt's son used as collateral for a loan for the racing team.

"It's hard to get around the fact that Nesbitt Ventures' business plan is to 'own and lease real estate' but their sole property is being used to provide financial backing to Nesbitt Racing," Merritt said. "Therefore, if Nesbitt Racing fails, which could happen if a major financial sponsor backed out, Nesbitt Ventures and its owners are left holding the debt."

But the ethics commission does not see a conflict because Nesbitt's son doesn't live with his father, which means his financial dealings are irrelevant to Nesbitt's.

"When (Merritt) doesn't like (the ethics commission's) opinion, he says, 'I'm going to apply my own law,'" Nesbitt said.

A bill to prohibit the auditor from looking into ethics cases is moving forward in the legislature.

Stock-car deal set off ethics feud

ryanteaguebeckwith — Tue, 27 May 2008 11:33:35 -0400

Questions about state Sen. Martin Nesbitt's son's stock-car racing team are at the heart of an ethics feud.

The Asheville Democrat volunteers as a crew chief for his son Mart's Nesbitt Racing Enterprises and co-owns a Swannanoa garage used as collateral for the company's line of credit. Until recently, the racing team was sponsored by Blue Cross Blue Shield, the Asheville Citizen-Times reports.

The State Ethics Commission advised Nesbitt in 2007 that he did not need to disclose the relationship as a potential conflict of interest on the statement of economic interest filed by legislators. After getting a tip on the matter, Republican state Auditor Les Merritt's office looked into the case.

A spokesman for Merritt would not confirm the legislator in question is Nesbitt but said the auditor is "proceeding with caution" and "not wanting to send something out that could be illegal."

The investigation led to a dispute between the Ethics Commission and the auditor's office over which agency has the responsibility to enforce the state's ethics law.

A bill to prohibit the auditor from looking into ethics cases is moving forward in the legislature.

Little business in Senate session

ryanteaguebeckwith — Tue, 13 May 2008 12:59:29 -0400

The Senate honored a National Guardsman in its session.

During a 20-minute session today, Lt. Gov. Beverly Perdue recognized Brig. Gen. James H. Trogdon III, the second-highest official in the North Carolina National Guard.

In May of 2006, the Senate gave Trogdon a North Carolina flag that he flew over his headquarters while serving in Iraq. He returned to honor those who died overseas by returning the flag.

"History will certainly remember the names of Casey and Petraeus and Odierno, but in this historic struggle of our time, the unnamed heroes of Mosul, Baquba and Samarra ... are the true stars," he said.

The Senate also considered a resolution honoring veterans, noted the presence of the Junior N.C. Rhododendron Queen, recognized the birthday of Senate leader Marc Basnight and noted two new paintings of former legislators.

It also signaled it will seek to reduce the state auditor's responsibilities.

Senate wading into ethics battle

ryanteaguebeckwith — Tue, 13 May 2008 12:57:07 -0400

The state Senate is wading into a battle between the State Ethics Commission and the auditor's office.

In recent weeks, state Auditor Les Merritt has said that the commission is prohibited by law form investigating anonymous complaints, saying that is his job.

The commission has said that it has sole responsibility to enforce the state's ethics law.

In today's brief session, Sen. Dan Clodfelter said the Joint Legislative Ethics Committee will meet at 7:30 a.m. in Room 424 tomorrow to discuss the conflict.

He made it clear how the Democrat-controlled Senate feels about the Republican auditor's take on the issue.

"The meeting will be to consider authorizing the introduction of a bill to clarify the authority of the State Ethics Commission and the lack of authority of the state auditor's office," he told his fellow senators.

Auditor, commission feud

bniolet — Fri, 09 May 2008 15:40:51 -0400

Two state agencies charged with cleaning up state government are fighting over who gets to hold the broom.

The N.C. State Ethics Commission, created in response to corruption scandals that sent powerful officials to prison, says it has the sole responsibility to enforce the state's ethics law.

State Auditor Les Merritt says the commission is prohibited by law from investigating anonymous complaints and that he has the right and duty to follow up on credible tips about problems in state government.

The debate has been quietly simmering since at least January. It boiled over Friday when the commission voted to ask the legislature to settle the dispute.

"We think the legislature gave it [the commission] the sole authority for implementing, interpreting, investigating and enforcing the ethics act," Perry Newson, executive director of the commission, said in an interview. "It's not the job of other agencies."

More after the jump.

Document(s):
Ethics Commission.pdf