Alaska News

Bethel council says no charges or lawsuit from investigation into procurement and personnel

An investigation into nepotism, procurement violations and other lapses within Bethel city government that began last year won't result in criminal charges, but city procedures have changed, the Bethel City Council said in a statement released Sunday night.

The investigation examined the demolition of the old police station, the hiring of the former city finance director, the use of the city sandpits by private organizations, and the hiring of relatives of employees and Council members. An outside attorney, Michael Gatti, along with Bethel city attorney Patty Burley and Paula Harrison, a human resource expert, conducted the investigation and found violations of procurement and hiring policies as well as gaps in city code.

The City Council has met in closed-door sessions on the investigation.

The statement released by Mayor Rick Robb on Sunday said a number of steps have been taken to fix the problems, including:

-- Adoption of a new procurement code along with a policy that directs city procurement;

-- A plan to update leasing practices;

-- Hiring of a human resources manager; and

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-- Rewriting city code to halt nepotism.

The city also has stopped issuing payroll advances, stopped personal use of city credit cards, and suspended a city program offering educational assistance.

Last year, the Council fired city manager Lee Foley, who admitted he violated procurement and nepotism rules but said he did so in the city's best interest.

The City Council contemplated a lawsuit but weighed the costs of litigation against the chance of winning back money and decided not to sue, the statement said.

The Bethel district attorney also has declined to prosecute.

A new city manager, Ann Capela, is now overseeing day-to-day city operations.

Lisa Demer

Lisa Demer was a longtime reporter for the Anchorage Daily News and Alaska Dispatch News. Among her many assignments, she spent three years based in Bethel as the newspaper's western Alaska correspondent. She left the ADN in 2018.

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