By Erin Smith
A conflict of interest is a situation whereby an individual or an organization has a financial or other interest that could potentially impact the decision making process for their organization or company. Municipal governments, county governments and government agencies are not immune from conflicts of interest and embezzlement by employees or board members.
White Lake Mayor Goldstone Womble said the town of White Lake does not award any contracts without the item being discussed and voted on by the town board.
“I want the town commissioners to know exactly what we are dealing with,” said Mayor Womble.
He said any contracts the town is considering engaging in that will cost money, must go before the board for their approval.
Mayor Womble said certain strategies when put in place can help a municipal board avoid potential conflicts of interest or embezzlement. For example, Mayor Womble said the town of White Lake requires two signatures on every town issued check. One of the two required signatures is that of the Mayor.
Mayor Womble also said the town of White Lake requires that each check being presented for a signature must be accompanied by the original documentation or bill and the amount the check is written for and the amount of the bill or payment must be the same.
Mayor Womble said another check and balance in place at White Lake is a requirement that each month town employees must go over the bank statement and reconcile the bank statement. Mayor Womble said the town staff have to show him the statements, the outstanding checks, the deposits, etc. for each month.
“Everything has to balance,” said Mayor Womble.
He emphasized that avoiding conflicts of interest are a matter of transparency. Mayor Womble said the town discourages employees and board members who own their own businesses from bidding on contracts or otherwise doing business with the town.
Mayor Womble added that when someone does propose doing business with the town, the matter is placed on the agenda and any supporting documentation is placed in the agenda packets for the town board to review and ask questions. Mayor Womble added the item is presented to the board for their vote.
“We try to be very transparent with what is going on,” said Mayor Womble.
Bladenboro Town Administrator John O’Daniel said the town of Bladenboro also makes every effort to be transparent, as well. He explained that invoices presented for payment are checked for potential conflicts of interest.
“Normally, when we have bids, it is sealed bids. The bids are all opened at the same time. We have the bid opening during a board meeting,” said O’Daniel.
He added all bids are vetted very carefully for potential conflicts of interest.
Invoices for the town of Bladenboro are presented to Town Clerk Melanie Hester for approval for payment. The signature of the Mayor or one of the Town Commissioners is required on all of the town’s checks.
When asked about how the town handles issues such as an employee who owns their own business bidding on town contracts, O’Daniel said, “We would know he was an employee. We haven’t run into that since I’ve been here.”
O’Daniel said, ultimately, the Bladenboro Town Board has the final say on who the town does or does not contract with for services for the town. He said the town generally performs as many of its own services as it can. O’Daniel said town staff are familiar with the vendors and companies the town normally hires, which also helps in avoiding potential conflicts.
O’Daniel added that board members have also excused themselves from conversations because their vote on a particular issue could potentially be a conflict of interest.
O’Daniel said that town employees understand that it is unacceptable to have a conflict of interest.
Elizabethtown Town Manager Eddie Madden said the town of Elizabethtown utilizes firms or businesses that are well known such as W. K. Dickson.
“We get solicited all of the time by companies who want to bid (on town projects). We are very disciplined with who we do business with,” said Madden.
He said W. K. Dickson provides the town with engineering services and consultant work at the Elizabethtown Airport and they have performed other engineering services for the town. He said Waste Industries contracts with the town to provide garbage collection services.
Madden said, if any town employee has a business of their own, they are not allowed to bid on town projects.
He said there are also conflict of interest statements that must be completed for projects that have federal funds involved.
Madden said that some projects are put out for competitive bids. For example, he said the restroom project and amphitheater project for the Tory Hole Park are being put out for competitive bids.
“We try to operate with a high standard,” said Madden.
Madden said he is a member of the International City Managers Association. The organization has a Code of Ethics its members are expected to follow, said Madden. You can read the tenets of the Code of Ethics here, https://icma.org/icma-code-ethics.
About Author
