DES MOINES — A state audit report has revealed that Metro Waste Authority improperly paid out at least $1.8 million in ratepayers’ dollars.
During a Thursday press conference, State Auditor Rob Sand said $1.8 million of “improper disbursements” were identified in an audit report involving payments to companies such as Britad Enterprises LLC, which was owned and operated by former MWA Director of Operations Jeff Dworek.
At least $1.1 million went to Britad.
The claims regarding improper disbursements include:
- Dworek did not disclose to MWA officials he and/or his wife owned and operated Britad.
- Dworek or his wife prepared the Britad invoices sent to MWA. Mr. Dworek, as the Director of Operations for MWA, approved the invoices, personally picked up checks issued to Britad, and deposited them into a bank account for which he was listed as an account holder.
- MWA staff involved in maintenance and repair of wells at the landfills, who would have been handling Britad-related work, reported they had not heard of Britad. They could not identify any good or services MWA obtained from Britad.
Sand noted during the press conference that Dworek was the only one responsible for reviewing and approving purchase agreements.
WATCH: Iowa Auditor of State Rob Sand addresses investigation into Metro Waste Authority
According to the audit, it’s possible there was an additional $500,000 paid out by the independent government agency.
Dworek resigned in March 2017.
As of now, no charges are filed. Sand said the FBI is investigating. He also sent his findings to the Attorney General, the Polk County Attorney and the US Attorney’s Office for the Southern District of Iowa.
“I’m disappointed, I’m shocked, I’m angry. That breaks a lot of trust for me and for the rest of the staff,” Metro Waste Authority Executive Director Michael McCoy said.
McCoy said when he started his job he never expected to uncover misappropriated funds.
But according to Sand, that’s what he found.
“Those are large amounts. Not just for the state of Iowa, but for the Midwest and for the country. Those are big amounts and I think you need to show that we will go after those dollars,” McCoy said.
A large part of the misused funds went to a company Dworek owned.
“We have many, many quality employees. And I don’t want this to reflect poorly on that we had one bad actor who was a director level who had spending limits. And he took advantage of those spending limits to sneak dollars out year after year into false companies and he was also working with a valued and trusted vendor partner and an engineering firm,” Metro Waste Authority Board Member Dean O’Conner said.
Auditor Sand said his advice to businesses and government agencies on how to prevent this in the future is to do periodic checks on how money is being spent.
“Whether you’re an employee or you’re a board member or anything like that, at the end of the day, it’s good every once in a while to ask to see accounts themselves and to have an ask for deeper access, and to be suspicious if you’re not granted,” Sand said.
Read the full audit report
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