Corruption Uncovered in City Department

MEMPHIS, Tenn. - There are some big changes at Memphis City Hall. The former Chief Administrative Officer is back to straighten out the General Services Department after an internal investigation revealed corruption. It's also an investigation the FBI is interested in.

As he released the findings of an internal audit and investigation at a hastily arranged news conference on Friday, a grim-faced Memphis Mayor A C Wharton spoke of peeling off layers of the onion to find just how deep the stench of corruption might have run in the City's General Services Department. But, the city's investigation may take a back seat to an even more ominous one.

"That's why they're the FBI," said Wharton. "You never know what they're looking at. But, the only thing we have been put on notice of is, that they have an interest in, is the General Services."

Wharton didn't get into real specifics about what had been uncovered in an investigation he requested four months ago, initially to look into allegations of fraud involving the city's Fleet Services support service and the now defunct Around Town Tire and Trucking. The probe turned up falsified invoices and numerous contractual infractions which may have led to the abrupt resignation of former Fleet services Administrator, Arthur Adams, following a DUI arrest in June while driving a city-owned vehicle. But, while Adams' name may surface again, what figures to be a major house-cleaning in the department has already begun.

"Based on the information not only in the audit, but also in the internal investigative report, we did place two employees on administrative leave with pay pending disciplinary action," said Wharton. "The two employees, one is Annette Clay, who had some responsibilities relative to purchasing and such and the other is Treleeta Hampton who is the Compliance Officer for the Division."

Wharton also announced a temporary change at the top of the division by turning to consultant and long time former city hall executive, Rick Mason.

"I reached out to Rick Mason. Someone who will not have a steep learning curve to go in there on a 90 day basis, almost a mercenary," said Wharton. "My focus is to stabilize the situation and then provide him with a road map. It's all about accountability. There's a lack of accountability."

Wharton warned those who have information about irregularities in the fragmented department had better step up and tell what they know rather than having to be forced into doing so. How far back and how deep this investigation will go, Wharton isn't saying. But, what could lie at the end for someone could be criminal prosecution.

"Based on what I have seen, that is a distinct possibility," warned Wharton.