News Feature | February 5, 2015

Alleged Fraud By NJ Utility Incenses Locals

Sara Jerome

By Sara Jerome,
@sarmje

Officials in West Deptford, NJ are calling for an investigation into potential fraud at their local water and sewer department.

At a township meeting in January, officials blasted the state attorney general's decision against continuing to investigate the alleged crimes. 

The state's top lawyer had opened an investigation back in 2012 into potential abnormalities discovered in a 2011 audit of the municipal water and sewer provider, according to the South Jersey Times

The 2011 audit report, prepared by Holman & Frenia, contained "34 findings — or errors made by the township — and corresponding recommendations," the South Jersey Times reported at the time. 

The errors included that “proper bidding procedures were not followed for a contract awarded for the cleaning of township sewer lines,” and that “the township’s official minutes do not contain page numbers,” among others, according to the report. 

The auditors also "discovered several instances of municipal employees who should have had their water service shut off, but continued to receive service anyway," the Times reported. 

"The report stated it's possible water and sewer employees allowed commercial accounts to carry large balances in exchange for personal benefits, including car washes and meals at restaurants," the report continued. 

But now it appears the state will not be pursuing the investigation any longer. 

"Investigators with the attorney general's office in November returned documents it had been reviewing as evidence to the township, said West Deptford administrator Brandon Umba during [a January] township committee meeting," the South Jersey Times reported. 

Umba relayed the information at the committee meeting. 

"We have been told that no criminal action will be pursued, and the case is to be closed out," he said, per the report. 

Deputy Police Chief Sean McKenna said investigators told police that "the state did not have enough evidence to file criminal charges," the report said. 

Local politicians are not pleased with the outcome. 

"That's not good enough, say committeemen Jeff Hansen and Gerald Maher, who both stated they think residents deserve some form of 'closure' at the end of a two-year investigation," the report said. 

"I'm not happy about it," Hansen said, per the report. "I don't understand why they can't give us something in writing. I think we're owed that."

Hansen called on the town to take action. At a recent meeting, he "used the public comment portion of the agenda to reiterate his call for a resolution creating an 'investigative committee' that would review the documents the Attorney General's Office has returned to the township, as well as interview 'witnesses' and ultimately present a report of its findings," the South Jersey Times recently reported

For more on policy and politics, check out Water Online's Regulations & Legislation Solution Center.