City Statement on CEIDC Investigation

By Greg Ritchie

Messenger Reporter

CROCKETT –  At the Monday, Mar. 11 Crockett City Council meeting, Mayor Dr. Ianthia Fisher read the city’s official response to the reports the Texas Attorney General declined to proceed with a case against suspended Crockett Economic and Industrial Development Corporation Executive Director James Gentry. 

Here is the full text of that statement:

“Dear Residents of Crockett,

As stewards of accountability and transparency, the City Council of Crockett wishes to update you on the progress of the investigation into the findings of the Crockett Economic and Industrial Development Corporation (CEIDC) forensic audit conducted by Weaver and Tidwell, dated January 5, 2023. Since then, significant steps have been taken to address the concerns raised within the audit while upholding the integrity of the fact-finding process.

Foremost, upon discovering many findings outlined in the forensic audit report, the City Council acted swiftly. All activities of CEIDC were temporarily suspended, and the staff were placed on paid administrative leave pending further investigation. These actions are documented in the City Council minutes of January 9, 2023.

Subsequently, the Crockett Police Chief was requested to open an investigation into each audit finding to determine responsible parties, if any, for financial and operational misconducts of the corporation and request outside support as needed. After looking into the case, the Crockett Police Chief reached out to the Texas Attorney General’s office and requested their assistance due to the nature of the case and the state’s resources.

During the period of the criminal investigation, the city opted for a measured approach to respect the legal process and the independent scrutiny of the Texas Attorney General’s office. The city chose not to comment extensively on the matter to avoid any interference with the ongoing investigation and to ensure impartiality and fairness.

As of March 5, 2024, the criminal investigation by the Attorney General’s office has been concluded with no pursuit of criminal prosecution by their agency. Now that it has been decided by the Texas Attorney General’s office that there will be no criminal prosecution by the state agency, the city must address the potential violations as identified by the forensic audit before it can proceed with restoring CEIDC regular operations.

Moving forward, the City Council is committed to ensuring thoroughness and accountability in addressing the remaining segments of the audit review. To this end, the City Council is taking the following steps and actions:

1. Hiring Independent Expert and Special Legal Counsel: The Council will engage an independent expert and special legal counsel to oversee an internal affairs review and develop a corrective action plan. 
2. Internal Affairs Review:  This review will examine the forensic audit findings to determine whether any violations occurred and what corrective actions should be taken. Responsible parties, if any, will be identified and a recommended corrective action plan will be presented.
3. Scope of Corrective Action Plan: There will be a thorough review of existing financial policies and procedures to strengthen controls, oversight, and accountability. Restructuring and training initiatives, as needed, will be considered to prevent future incidents, with an emphasis on financial management, and statutory compliance. Enhanced oversight and monitoring protocols will be implemented, along with communication strategies to ensure transparency and rebuild public trust.

The City Council remains resolute in its commitment to address the findings of the CEIDC forensic audit with diligence and integrity. We assure you that every effort will be made to implement necessary reforms, and uphold the highest standards of governance.

We recognize and appreciate your patience and support as we navigate this process. Together, we will emerge stronger, more accountable, and better positioned to serve our community.

Sincerely,

City of Crockett”

Greg Ritchie can be reached at [email protected]