Two more South Fork Utility District (SFUD) commissioners have resigned after a Tennessee Comptroller of the Treasury (COT) investigative report into the district’s dealings was made public in April.
Former SFUD Commissioners Barry Jessee and Tim Leonard notified the COT office last week of their resignations, joining Joe Warren and Jim Graham as past commissioners who stepped down this year. Just one commissioner remains, Jason Webb, who was not on the board during most of the time period the report entails, according to the COT office.
The Bristol, Tennessee water district made headlines this spring when the COT investigation found a number of potential conflict of interest violations. Namely, the investigation found that District Manager Garry Smith, or businesses in which he had ownership interest, was allegedly paid more than $1.6 million in “questionable payments” by the district and its previous entities from May 2018 to June 2021. The report also outlined deficiencies in South Fork’s operations pertaining to “internal control and compliance.”
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A case hearing was scheduled by the Tennessee Utility Management Review Board (UMRB) in Nashville for Sept. 15 with regards to the removal of the remaining commissioners; however, the UMRB has called a special meeting for Aug. 24 at 10:30 a.m. EDT to discuss how to move forward with the case following the latest resignations.
According to John Dunn, COT communications director, staff plans on requesting the UMRB dismiss the case seeking the removal of the commissioners next week in light of the recent resignations. The UMRB previously ordered the district to conduct a feasibility study into potential mergers with a neighboring district.