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Northshore News

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Audit: Little of Mandeville Citizen's Fund used for stated purpose

10:01 PM CDT on Monday, August 11, 2008

Susan Edwards / Eyewitness News

A Louisiana legislative auditor found that only about one-fourth of the money from the Mandeville Police Department’s Citizen’s Service Fund was spent for the program’s stated purpose to fund Toys for Tots and to help residents in need.

WWL-TV

Mandeville Mayor Eddie Price

The audit found that more than $146,000 of the $218,000 collected went for gifts, food or celebrations and that Mayor Eddie Price and other city employees accepted gifts from vendors and contractors and that city vehicles and city gas cards were used while those using them were off the clock.

"What we're seeing here is result of a 10-month fraud audit, not a financial, not a professional audit but a fraud audit," said Rafael Goyeneche of the Metropolitian Crime Commission.

"In the areas we looked at, I suppose it was a management style or philosophy that said, for instance, you can take a vehicle out of town on vacation,” said auditor Dan Daigle. “We don't think that’s a good philosophy."

Upon closer evaluation, Daigle noted that the mayor alone made nearly $9,000 in personal charges on his city credit card. He has repaid $3,500 of that.

The audit also made note of over $36,000 charged for meals with improper documentation.

The city responded to the audit in writing, saying there were a number of factual mistakes, unsupported innuendos and implications.

City council members say they would like more information on the findings, but are willing to consider changes to policies that the audit considers problematic.

 "He doesn't get it. He (Mayor Price) violated the public's trust, he's a public servant and he views the city as his private fund to pay for vacations and other questionable purchases," said Goyeneche. "He's made it in the form of meals, lodging, gasoline and other areas pointed out by auditor."

In a written statement, Mayor Price called Goyeneche's call for his resignation "ill-advised" and said it would not be in the best interest of the city.

His statement also read, in part, "I can say unequivocally that I have never intentionally done anything wrong nor have I done anything that I did not believe was in the best interest of the city of Mandeville."

Goyeneche says the findings from the audit have been forwarded to other agencies, who will investigate whether any criminal or ethical violations should follow.