Local/Regional News
8:47 am
Wed June 2, 2010

Council To Investigate Fraud Allegations

LEXINGTON, Ky. -- – The Lexington-Fayette Urban County Council has voted to form a special investigative panel to look into unspecified allegations of government fraud. It will report back to the council by early July.

Under questioning by council members, Finance Commissioner Linda Rumpke said Tuesday she learned of the fraud allegations in a report from the Lexington's Office of Risk Management.

The allegations come from Risk Management Director Patrick Johnston. The nature of his allegations is unclear, but they surfaced after the elimination of Johnston's job was proposed.

Lexington Mayor Jim Newberry suggests an outside peer review be conducted. He says internal auditors have already looked into the issue three times and external auditors another two times.

"At the end of the day the facts will speak for themselves the people who are involved are people of great integrity."

Newberry faces a challenge in this fall's election from Vice Mayor Jim Gray. Newberry claims the request for further review amounts to a political witch hunt.'