December 13, 2012

It's an investigation that has involved state auditors, the district attorney, and the TBI.

There are serious concerns about the way the Nashville Electric Service awarded contracts, and employees using company credit cards for personal expenses.

A new audit outlines what the state calls "questionable activities." 

Those activities involve millions of dollars and some of the  key senior personnel inside the Nashville Electric Service.
             
"Our goal is to be transparent, open and honest with customers," says NES President and CEO Decosta Jenkins.

Shortly after the state released a new audit report on NES, the utility's President was facing the media.

"Anytime you have an entity as large as NES, you'll find some instances, I mean nobody is perfect," says Jenkins.

Audit findings reveal $17 million have been paid to one company for power cable.
   
The contract was not properly bid because NES made its requirements so specific that only one company qualified.

There are claims that NES accepted show tickets, hotel stays, and rounds of golf in exchange for leasing a transformer to Opryland's Country Christmas celebration.

Additional findings show that senior level staff mixed personal and business accounts while shopping on Amazon and eBay with NES credit cards.

Metro Councilman Phil Claiborne called for the audit suspecting there were problems.

"It always leaves a bad taste to find out that they've been taking advantage of some of their rate income," says Metro Councilman Phil Claiborne.

The State Comptroller's office shared its findings with criminal prosecutors.
    
Davidson County District Attorney Torry Johnson released a statement saying, "While some of the practices were questionable from a business perspective, none of that rose to the level of criminal activity."

NES employees won't end up in jail but they will see changes.
   
The company's President says new policies and procedures are coming.

"We get audited constantly and there are going to be findings, and when we have findings we'll do just what we've done there.  We're going to correct them and we'll move forward.  We're going to get better," says Jenkins.
    
The State Comptroller's office recognizes that NES is trying to correct problems, but officials believe additional steps can be taken to reduce problems.
      
Several employees who allegedly defrauded NES have been fired or disciplined.

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