A whistle-blower lawsuit was filed Tuesday against the Port Arthur Housing Authority by a man who claims he was wrongfully terminated. Before the suit was filed, Housing Authority board member, Farhana Swati, resigned in a letter to Mayor Deloris Prince.
In the resignation letter to Mayor Deloris Prince, Swati referenced two audits by the Office of Inspector General.
The first audit found the Housing Authority had not practiced sound financial controls on a $725,000 grant. In the second audit, the OIG recommended the Housing Authority pay back $5 million.
Swati tells Mayor Prince, "In light of the OIG finding, I believe the board has a fiduciary duty to initiate an outside forensic audit of the authority's finances."
She goes on to say "If, as the OIG report indicates, there has been improper spending, there needs to be serious change in how the authority conducts it's business."
Swati asked Prince to join her in asking for the outside audit, and complained that she found herself alone on a board with a vote that doesn't count.
Board Director Ronnie Linden tells 12 News HD that Swati's letter is a misrepresentation of the truth; saying quote "Other commissioners wanted a forensic audit as well. In fact, the Vice Chairman of the board was the first to call for the forensic audit, not her."
Linden says Swati was asked to put in writing what she wanted, and that she never did.
12 News HD was unable to reach Swati for comment after going to her house in Port Arthur.
Swati's termination is effective immediately. Mayor Prince will now appoint someone to fill the open spot.
12 News HD spoke with the attorney for the Housing Authority Tuesday regarding the termination of Guillory. Frank Calvert says "It's not appropriate to talk about pending litigation at this time."
