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Thu September 9, 2010
Investigative Committee Finds No Evidence of Fraud
By Stu Johnson
LEXINGTON, Ky. – No fraud found at Lexington City Hall. That's the determination made in a final report issued Wednesday by a special investigative committee.
The panel reviewed allegations of fraud made by the city's risk management director. Patrick Johnston had concerns about the city's 2007 purchase of insurance through the Kentucky League of Cities.
Despite the conclusion that no fraud was committed, committee member Cheryl Fiegel defended the investigation. Fiegel adds their report could spark some changes in city policies..
One of the recommendations that we're going to make to council is that they take a look at the charter for the internal audit board and they make things a little bit more clear as to how they are supposed to interact with the auditor and how the auditor interacts with the administration."
Lexington Mayor Jim Newberry was a frequent defender of city government and predicted there would be no evidence of fraud. Still, a review by the state auditor's office is pending.