The law firm of former Columbus Convention and Visitors Bureau board member David Sanders gave $17,320.50 back to the CVB today amid accusations of ethical violations.
Sanders” firm received the money for legal work he did between February 2009 and September 2010 while negotiating the construction and purchase of the new CVB office at College and Third streets, according to CVB billing records.
Staff at the Mississippi Ethics Commission said Sanders was in clear violation of the ethics law, which reads as follows:
“No public servant shall: Be a contractor, subcontractor or vendor with the governmental entity of which he is a member, officer, employee or agent, other than in his contract of employment, or have a material financial interest in any business which is a contractor, subcontractor or vendor with the governmental entity of which he is a member, officer, employee or agent.”
Questions were raised about possible ethical violations during a CVB board meeting Monday.
Sanders could not be reached immediately for comment today, although John Brady, of his firm”s board of directors, released this statement with the refund check:
“The matter of our bill for services to the CVB has been reviewed by our firm. Under the circumstances, we believe it is appropriate and proper that the firm reimburse the fees paid for such services.”
Brady could not be reached immediately today for further comment.
The check came as a “pleasant surprise,” according to CVB Chairwoman Whirllie Byrd, who brought the check to the CVB today.
She said Sanders called her and apologized for “embarrassing” the CVB, and that as far as the CVB was concerned, the issue was settled.
However, the Ethics Commission might not be so forgiving. If the commission finds a violation has occurred, Sanders could be fined up to $10,000.
The CVB board initially voted in executive session April 25 — possibly breaching open meetings laws — to send a letter to Sanders asking for a refund for some services they said he didn”t finish for them.
Byrd, who said the billing issue should have been discussed in public view, brought the matter up again in regular session Monday.
According to Mississippi Center for Freedom of Information attorneys, the CVB was not facing prospective litigation from Sanders, which means they violated the law by entering a secret meeting. The executive session could have been valid if the board was considering its own legal action against Sanders, but “it is my recollection that we were not considering suing Sanders,” Byrd said. The board was discussing the “billing issue,” but not legal action, she said.
The prospective litigation exception can only be used when litigation is “reasonable” or “likely to occur in the foreseeable future,” according to a 1983 Supreme Court opinion in a lawsuit against Vicksburg.
The CVB”s interim executive director, Nancy Carpenter, said she”d talked to attorneys who were of the opinion that the law had not been violated in that case.
But that wasn”t the only possible violation of open meetings laws at the Monday meeting.
According to Carpenter, the board discussed an issue involving former executive director James Tsismanakis while in executive session for a separate personnel issue.
The state Open Meetings Act states that board members must confine their discussion to the issues that sent them into closed session.
As a result of the discussion, the board voted in secret to send a letter to Tsismanakis asking for him to return some missing items, which later said he had taken by mistake.
In light of the recent allegations of misconduct and open meetings violations, Byrd said she would call a special meeting soon to have an attorney go over the laws with board members, who are still new to their positions.
“We are each an elected official and have a responsibility to the public,” she said.
Firm”s statement
The Mitchell, McNutt & Sams law firm sent the following statement concerning the repayment of legal fees to the Columbus-Lowndes Convention and Visitors Board:
David Sanders served for many years in a voluntary unpaid position on the Columbus Lowndes County Convention and Visitor”s Bureau Board (CVB). During that time David donated countless hours of time in an effort to benefit Columbus and Lowndes County. Ultimately, the CVB Board voted to hire David, a member of the Mitchell, McNutt & Sams law firm, to perform services on some specific projects for the CVB. Those services were performed for a reasonable fee. The firm returned all fees and expenses charged by the firm to the CVB when it, and David, recognized they were not appropriately charged because of his membership on the Board. As a result of the firm”s repayment of those charges, both the CVB and the tax-payers of Columbus and Lowndes County received the benefit of legal services, free of charge.
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