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Monday, January 05, 2009

Company managing city bus system revises procedures in wake of investigation

No charges have been filed but two GRTC employees were suspended last month after police executed a search warrant for bus company records.

A representative of the Cincinnati company that manages the Greater Roanoke Transit Co. told Roanoke City Council members this afternoon the company had implemented changes to "bring things under control" in the aftermath of possible bid rigging at the bus service.

Last month police seized a dozen computers along with journal entries, documents, invoices and files from Valley Metro's maintenance garage and the Roanoke County home of Diane Holdren, the president and owner of Holdren's Interiors. Diane Holdren is the wife of William "Chip" Holdren, Valley Metro’s assistant general manager.

At issue is $223,301 for furnishing and decorating the offices on Campbell Avenue Southeast of the Greater Roanoke Transit Co., which operates Valley Metro, and the involvement of Holdren's Interiors, according to search warrants and a memo written to the Roanoke City Council by Municipal Auditor Drew Harmon. The investigation is focusing on whether proposals were fabricated from other companies to make it appear as if the funds were awarded after what's supposed to be a competitive bidding process. No charges have been filed.

First Transit, which manages GRTC, suspended Chip Holdren and GRTC procurement officer Matt Wynn.

Today, Bill Williamson, First Transit’s regional vice president, told council members that in addition to the suspensions, the company had revised its procurement procedures to set a lower dollar threshold for oversight. He said the company also has sent one of its employees to serve as assistant general manager for the time being.

Councilman Court Rosen asked if First Transit would reimburse any city money that was misspent. Williamson cautioned that the investigation is still ongoing and that no wrongdoing has been proven. However, he said that if the allegations are true and that city money was misspent, the company will repay it.

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