EPA Fines Are Proof Office Of Internal Audit Should Be Independent

Wednesday, July 18, 2012

It was a major blow to the taxpaying citizens of Chattanooga to learn of the over $250 million fine imposed by the EPA over our poorly functioning combined sewer system. This huge fine also demonstrates why the office of Internal Audit should be independent and not under the control of the mayor's office. 

In 2001 the city of Chattanooga entered into a major expansion and updating of the Moccasin Bend Waste Water Treatment Plant. Treatment capacity was to be greatly expanded with the addition of new secondary clarifiers and chlorine contact tanks for effluent disinfection, new digesters, equalazation basins, and a new " state of the art " $22 million filter press to produce a Class A land applicable sewage sludge product. A new relief pump station was built along with new offices and storm water treatment facilities. A $16 million oxygen production plant and UNOX secondary treament system was also constructed along with pumps and related equipment.  

After completion of the project and " signing off " problems soon began.  Some concrete structures soon collapsed and severe cracking was discovered in other structures. Repairing these structures required adding thickness to the walls resulting in hundreds of thousands of gallons in lost treatment capacity. The filter press never functioned and was soon mothballed. The new digesters did not work and tax payers are now spending $70,000 a month in natural gas bills to run the digesters that in the past made enough methane gas on their own to operate.  

Over $1 million in electrical and instrumentation equipment was charged to the tax payers and never installed. In June 2007 I contacted Mr. Stan Sewell, director of Internal Audit about these problems and cover up by the management and directors at the Moccasin Bend Waste Water Treament Plant and Public Works officials. A full audit was performed and I worked closely with Mr. Sewell and his staff. Needless to say this was a real career booster for me.  I was not to be intimidated. Mr. Sewell and myself filmed the plant superintendent sadly trying to show him new electrical and instrumentation equipment that was never installed.  

The full audit report was issued to Mayor Littlefield on Dec. 21, 2007. The total was a shocking $45 million in missing and misappropriated funds.  I was at a mutual friend of mine and the mayor's at a Christmas party in late December 2007. I asked the mayor what he intended to do about this mess. His reply was "these guys are my friends."  No punitive action was taken against any director or management employee. No legal action was taken against any employee, company or director.  

The filter press was later retro-fitted to produce a so called Class B product that  can only be applied to animal forage crops. Two independant laboratories found chlorine residuals at over 800 ppm in the land applied sludge making it unsuitable for any land applicable use.   

The city of Chattanooga and City Council continue to award millions of dollars in contracts to these same engineering companies. These companies will be doing all engineering work on any future projects. The city has recently hired employees from these companies and they are currently employed at the Moccasin Bend Waste Water Treatment Plant. 

During the original Blue Ribbon storm water hearings Bill Raines, who was chairman ask the Public Works deputy director what he intended to do with the just awarded $9 million he was just given, he said, "Sir, I don't know."   

This information is on the city of Chattanooga website under Internal Audit- Audit # 07-01 dated Dec. 21, 2007. Please vote yes on Aug. 2 to make the office of Internal Audit indepenent from the mayor's control. By doing so we can put a stop to these good old boy policies and economic insanity.  

Guy Satterfield



Send Your Opinions To Chattanoogan.com; Include Your Full Name, Address, Phone Number For Verification

We welcome your opinions at Chattanoogan.com. Email to  news@chattanoogan.com . We require your real first and last name and contact information. This includes your home address and phone number. We do not post the contact information, but need it for verification. There is no word limit, but if your article is too long you may lose your reader. Please focus more ... (click for more)

Lawsuit May Bring More Security To Hamilton Place Mall

Good for the military veteran that is suing for getting shot on CBL's and ERMC's watch. With this past holiday season's traumatic events unfolding at the mall and clear evidence that ERMC security does not have the ability to insure the safety of the patrons, it is time for a lawsuit to get someone's attention.  This military veteran, who clearly saw combat due to the mentioned ... (click for more)

Witness Says Morse Told Him "His Emotions Got The Best Of Him" At Triple Killing In Lookout Valley

A witness told a Criminal Court jury on Friday that Derek Morse told him "his emotions got the best of him" at a triple killing in Lookout Valley. Michael Shavers also said Morse told him in detail about the slayings of John "Jake" Lang, Jon Morris and Caleb Boozer and the shooting of Matthew Callan at the Rolling Hills Trailer Park on April 9, 2014. Morse is standing trial ... (click for more)

Prosecutor Calls For "Meaningful Punishment" For Dyer, Brennan In $4.9 Million Swindle

Federal prosecutor James Brooks is calling for a "meaningful sentence" for Doug Dyer and James Brennan, who are charged in a $4.9 million swindle. He rejected arguments that they should receive leniency due to their age and health problems. They are set to be sentenced next Friday at 9 a.m. by Judge Travis McDonough. Prosecutor Brooks said concerning Dyer, "As this Court ... (click for more)

Trojans Score 32 Points In Third Quarter, Crush Owls 42-21

(Story will be updated) Soddy-Daisy, which managed only a field goal in the first half, destroyed Ooltewah with a 32-point third quarter Friday night at Robert Talaska Stadium and went on to hand the Owls a crushing 42-21 non-region victory. The shocking turnaround enabled the Trojans (4-2) to snap a six-game losing streak to Ooltewah and enjoy homecoming festivities ... (click for more)

Vols, UMass Matchup Pits 1998 National Champions

Tennessee takes on UMass on Saturday at Neyland Stadium. The game will feature a noon ET kickoff on SEC Network.     Tennessee (2-1) is coming off a 26-20 road loss to Florida on Sept. 16. Junior running back John Kelly set career highs with 141 rushing yards and 96 receiving yards and played a major role in the Vols' second half rally before the Gators ... (click for more)