FAST FACTS:
  • Wharton hires former city CAO, Rick Masson, to fix troubled department
  • Audits say overhaul of General Services Division needed
  • Two employees relieved of duty with pay
(Memphis 07/02/2010) - Memphis Mayor AC Wharton announces a familiar face is returning to City Hall to clean up one of the city's most troubled departments. Mayor Wharton says he's inherited a General Services Division overrun with fraud and theft and today he announced a plan to get a hold of the situation.

Former CAO, Rick Masson, is back at City Hall, but this time his focus is just one division of government. He was hired as a consultant to reorganize General Services. Internal and external audits revealed possible fraud and theft.

"Sort of like an onion, each time we'd pull it back we'd say now we've got it, but each layer revealed yet another layer," said Mayor AC Wharton.

The audits found most of the problems in General Services come from its fleet management operation. The findings show possible theft and irregularities in purchasing. The FBI is also investigating the now voided contract with Around Town Tire. The company charged the city $2.5 million in 2004 to fix flat tires. Audits say some of that work was likely never done. The audit reveals the company doubled billed the city.

Masson said, "My focus is to stabilize the situation and then provide him with a road map."


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Wharton says employees who know about corruption should come forward.

"This is not an indictment of all 7,000 employees but I have reason to believe that there are other things going on," said Wharton.

Vehicle Services Manager Annette Clay and a contract compliance employee, Terleter Hampton, were relieved of duty with pay Friday. City Councilman Bill Boyd thinks the mayor's changes will make a difference.

"No one was watching the shop. That's the way I would describe it. No one was watching. There wasn't any accountability," said Boyd.

Masson will be paid $12,500 dollars a month in consulting fees. He will still receive his city pension. The mayor hopes to have changes in place in the General Services Division in 6 months.