Civic Center audit report outlines complaints against former director Dale Hester

The recent audit of the Columbus Civic Center revealed numerous complaints against former Director Dale Hester, including alleged excessive use of complimentary tickets, retribution against a whistleblower, and authorizing his own pay for extra work, among other things.

Not long after Hester announced his retirement in mid-January, the city began to receive “whistleblower” complaints against Hester, the report states. Those complaints coincided with Deputy City Manager Lisa Goodwin’s call for a transitional audit of the department.

In the audit, City Auditor John Redmond interviewed Civic Center managers and employees, vendors, contractors and “concerned citizens having information or providing allegations regarding the misuse of complimentary tickets.” None of those interviewed were named in Redmond’s report, which was presented to Columbus Council Tuesday night.

“Hester allegedly provided tickets to businesses that he patronizes,” the report said one person alleged. “It is unknown whether Hester derived any personal benefit from the tickets provided to these businesses.”

The businesses included restaurants, grooming, massages, manicure, jewelry and exotic aquarium fish, the report states.

Another person said promoters frequently challenged the number of complimentary tickets and that “settlement forms” that showed unusual changes were sent to Deputy City Manager Lisa Goodwin.

It also noted that in some instances tickets were given to city employees and elected officials, but none were named in the audit report.

Another person “complained of Hester exceeding the allotted number of complimentary tickets,” claimed that Hester exchanged the tickets for goods and services, and named a produce vendor who said Hester used tickets to buy fruit and vegetables.

Redmond’s report found that ticket records over the last two years, “revealed that the allotted number of complimentary tickets was frequently exceeded largely due to the substantial quantity received by Hester.”

“Due to the wide variety of sources providing the information, the corroboration of the same or similar information adds credibility to its accuracy, as it would have been improbable for diverse sources to provide a collaborated response,” the report states in its findings.

Local promoter Mike Blackwell recently filed a claim against the city after having received Civic Center ticket records from events he has promoted there over the past two years.

Redmond recommended in the report that the city establish an administrative policy that requires keeping more detailed records of complimentary tickets, including who asked for them, who received them, the quantity, date and who issued them.

The audit also cited a complaint against Hester concerning retribution against a Civic Center employee who reported some concerns about center operations to Goodwin, who confronted Hester without identifying the employee, the report stated. But Hester figured out which employee was the whistleblower and “took adverse action” against the employee, the report states.

Redmond recommended that the city provide supervisors, managers and employees with training on the Georgia whistleblower statute.

“Specialists in employment law should provide this training,” Redmond wrote.

Another complaint, labeled “Inadequate Internal Control System” was sparked by a contract Hester signed with Xentel DM, Inc., to put on an Old-Timer’s Hockey Game that was to coincide with the opening of the new ice skating rink. It was also to coincide with Hester’s retirement date.

Goodwin discovered the contract when she set up an office in the Civic Center in preparation of overseeing the facility until a replacement for Hester could be hired. In her response to the audit report, Goodwin wrote, “ After seeing the contract I saw some serious concerns with this event.”

Those concerns included the Civic Center assuming all financial risks, paying Xentel $35,000, paying for airfare, hotel rooms and ground transportation for 20 players, and hosting a celebrity golf tournament.

“This was an event that I knew the Civic Center could not host based on the many questionable perks and funding that would no doubt further increase the department’s operating deficit,” she wrote.

Redmond’s finding concluded that Hester had placed his personal interests above those of the Civic Center and that there was inadequate oversight from Goodwin.

Goodwin pointed out in her response that, “It was management’s oversight that detected this contractual arrangement.”

Redmond responded that were it not for the unusual arrangement of Goodwin setting up a temporary office at the Civic Center, she probably would not have known about the contract until after the fact.

Another complaint concerned Hester authorizing payment to himself for working at the 2009 Fall Fair, at the rate of $24 an hour.

Redmond found that Hester’s supervisor should have been the one to approve any such payment, and that it may have violated the city charter’s code of ethics.

In her response, Goodwin said, “In the future, the director will not be included as event staff for compensation on any event.”

Another complaint concerned the Civic Center’s advertising expenditures, specifically with the Ledger-Enquirer. “Local media” expressed concern that employees of the Ledger-Enquirer hosting a baby shower for Civic Center Marketing Manager Robin Wallace may have caused her to direct more advertising to the newspaper.

However, “The advertising expenditures by vendor remained in the same proportions as they were prior to the event,” Redmond concluded.

The audit also found that Hester had entered into a multi-year with an ATM vendor, which violates the city’s procurement ordinance.

Messages left at Hester’s home were not returned Tuesday afternoon.

This story was originally published June 28, 2011 at 4:37 PM with the headline "Civic Center audit report outlines complaints against former director Dale Hester."