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Thursday, September 17, 2009

Valley Metro's ex-leader fired

Dave Morgan had been implicated in an audit for questionable use of his corporate credit card.

Dave Morgan, the former head of Roanoke's Valley Metro, has been fired by the company that manages the bus system.

Last week Morgan was implicated in a city audit for using his corporate credit card to bill Valley Metro more than $14,000 for golf fees, premium cigars and alcohol-soaked meals at restaurants during work hours. In doing so Morgan violated federal, state and local regulations, wrote Municipal Auditor Drew Harmon.

Glenda Lamont, a spokeswoman for First Transit -- the Cincinnati company that manages Valley Metro -- said that as a result Morgan was terminated Tuesday.

"We went through the report, and based on that, then we had no option but to terminate him," Lamont said.

According to the audit, Morgan used his corporate credit card to pay for at least 28 questionable bills at local and out-of-town restaurants -- averaging 13 alcoholic beverages per ticket.

Valley Metro receives funding from user fees plus local, state and federal sources, so it's unclear at this point how much of that expense was subsidized directly by taxpayers.

First Transit technically employs only two of Valley Metro's employees -- the general manager and assistant general manager. But this year it has fired employees in both roles.

In January, First Transit terminated then-assistant general manager William "Chip" Holdren after questions were raised about whether bids had been fabricated to make it appear as if $223,301 for redecorating was awarded after competitive bidding, according to search warrants.

The furnishing and redecorating in question was handled by Holdren's Interiors, which is owned by Chip Holdren's wife, Diane.

No charges have been filed, but "the investigation on the procurement issue, on the furniture and other refurbishment issues, was the reason that we terminated Chip Holdren," Lamont said.

The city's investigation of the refurbishment led auditors to Morgan's case when they noticed his substantial credit receipts.

Morgan was reassigned from Roanoke in March at the request of the city manager's office.

Lamont said that before his termination, Morgan was working in a "project management role because he was obviously removed from anything to do with the Roanoke contract."

The city audit findings have been passed to the U.S. attorney's office.

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