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Tue August 10, 2010
Investigative Panel Questions Lexington Law Commissioner
By Stu Johnson
LEXINGTON, Ky. – The Lexington city worker who filed two fraud reports has been questioned by members of a special investigative committee. The panel also heard from a key member of the Mayor's administration.
The two allegations of fraud came from Risk management director Patrick Johnston. He told the committee his concerns were related to the process used in 2007 to buy insurance from the Kentucky League of Cities.
"The report that I filled out specifically asked are you aware of any fraud I made observations of what I thought might be fraud but I never directly accused anybody of fraud," said Johnston.
Johnston says the information was given to an outside auditor, who could then determine whether fraud was committed. His reports surfaced after a proposed reorganization of city government called for the elimination of Johnston's job.
Johnston says he was asked by Lexington Law Commissioner Logan Askew to modify a report on the city's insurance needs. Askew also appeared before the special committee and said it's troubling that no one has contacted him to discuss the allegations.
"I can assure that I have not or never engaged in any fraud or wrongdoing," said Askew.
Thirteen people have been asked to appear before the panel. The next meeting is schedule for August 16th.