NEW ORLEANS -- A top aide to Jefferson Parish President Aaron Broussard is stepping down amid a federal investigation into his private business dealings.
Chief Administrative Officer Tim Whitmer announced his retirement, the same day it was revealed Broussard and the parish council were served with federal subpoenas.
The investigation focuses on Whitmer's insurance company, Lagniappe Industries. Documents show Lagniappe shared the commissions on a lucrative insurance contract for employees at West Jefferson Hospital. This, despite the fact that in 2007, the hospital board named broker Wally Pontiff Sr. and the company he works for, Burke and Associates, sole agents of record for the contract.
"If he entered into some type of commission splitting arrangement with Burke and Associates to defeat competition, it flies in the face of what he's asked to do as a public servant," said Rafael Goyeneche, president of the independent Metropolitan Crime Commission.
West Jefferson canceled the insurance contract after the MCC exposed Whitmer's potential conflict of interest.
"I think it's an indication that the reason that Lagniappe didn't appear on any of the paperwork because their presence and the connection between Mr. Whitmer and government would create some appearance of impropriety," said Goyeneche.
Jefferson Councilman At-Large John Young sent a letter to Tim Whitmer seeking full disclosure about his business dealings.
I think what the public deserves is a full and immediate disclosure of any and all contracts that Lagniappe or any other corporate entity that Mr. Whitmer had an interest in, had with any public entity or political subdivision in Jefferson Parish or for that matter in the state of Louisiana, as well as any and all contracts that he may have had with any vendors doing business with the parish," said Young.
The MCC wants the parish to appoint an independent counsel to look into the Whitmer matter.
"Mr. Whitmer was paid $190,000 a year," said Goyeneche. "He's the highest paid employee in Jefferson Parish government. You would think that would buy his full time attention and services. But, apparently we're finding out that's not the case."
The parish documents are due before the grand jury, Dec. 9.
Basically the subpoena says to gather all the insurance policies that we have with the parish of its political subdivisions," said Broussard.
"It says including, but not limited to West Jefferson Hospital."
