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Tuesday, January 06, 2009

Valley Metro's management revises procurement policy

First Transit will reimburse Roanoke if it's proven that funds were misspent, a company official said.

A representative of the Cincinnati company that manages the Greater Roanoke Transit Co. said Monday that changes have been implemented to "bring things under control" in the aftermath of possible bid-rigging at the bus company.

Bill Williamson, the region's vice president for First Transit, told the Roanoke City Council that the company has revised its procurement procedures to allow for more oversight.

First Transit manages GRTC, which operates the Valley Metro 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 GRTC offices on Campbell Avenue Southeast, and the involvement of Holdren's Interiors, according to search warrants and a memo issued to the Roanoke City Council by Municipal Auditor Drew Harmon. An investigation is focusing on whether proposals were fabricated from other companies to make it appear as though the funds were awarded after what is supposed to be a competitive bidding process. No charges have been filed.

Chip Holdren and GRTC procurement officer Matt Wynn were suspended by First Transit on the day the search warrants were executed.

Williamson said that in addition to the suspensions, First Transit 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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