TAYLORSVILLE, N.C. — The North Carolina State Auditor’s Office says the town of Taylorsville improperly paid for septic services over the last decade and a half, sending nearly a million dollars to a company owned by two city employees.
An audit report was released this week after an investigation into Taylorsville’s deal with Miller Septic Service. According to the audit, the town paid $746,839 from March 2006 through January 2023 for septic and sewer services.
But Miller Septic Service is owned by two employees with the Town of Taylorsville Public Works, and they were hired just weeks before the town began contracting services from their company, according to the report.
The issue, the state auditor’s office says, is that Taylorsville’s procurement policy “prohibits purchases from companies in which town employees have a financial interest.”
State Auditor Beth Wood points the blame at the former town manager, who the report says “was responsible for obtaining the services for the town but did not enforce the procurement policy.”
Because of the oversight, the state auditor’s office says the town “cannot ensure that favoritism or preferential treatment was not present in the purchasing process.”
The auditor’s office gave a report of how much money was paid to Miller Septic Service over the last 17 years. In 2006, the company was paid $7,864, but in 2022, the company earned $114,672 from the town.
Investigators also couldn’t determine whether or not the employees were being “double paid.” There weren’t records of when the services were provided to see if they overlapped with the time that they were working for the town.
Since the audit, town officials say they’ve made several changes to prevent similar issues in the future. A statement from the town council to the state auditor’s office says, “Under new management, all policies will be strictly followed and monitored for compliance.”
The statement says the town also bought its own vacuum truck and hired an operator for it, adding, “there should not be a need to contract any services from Miller Septic Service or any other provider of this type in the future unless emergency situations should dictate where more than one truck is needed.”
The state auditor’s office said the findings were being forwarded to the district attorney’s office “to determine if there is sufficient evidence to pursue criminal charges.”
(WATCH: All employees laid off, Taylorsville home furnishing company shuts down operations)
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