Conflict of interest?

State ethics panel investigates Hamilton tourist board member for funds awarded his own company

By Stephenie Livingston, Reporter

A member of the Hamilton County Tourist Development Council is under investigation by the Florida Commission on Ethics for funds awarded his business by the Council in 2005.

TDC member Wendall Hannum received $3,200 in county funds for use by his business, American Canoe Adventures, TDC records show, a possible violation of Florida law, according to documents released by the state ethics panel.

A complaint to the Ethics Commission was filed last June against Hannum by Bill Richards, chairman of the Alachua County TDC.

Richards objected to Hannum's receiving TDC money while a member of the board, according to commission documents.

"I have no knowledge as to whether he voted on the measures that put the money in his own pocket. I do not think it is relevant. As I read the statutes, a violation occurs if the person serving as a member of the TDC, benefits monetarily from sitting on the TDC," stated Richards in a formal complaint to the Commission. "If it isn't a violation to sit on a county tourist Development Council and apply for grant money when you sit on the board that votes on it, I don't know what is."

In a response to the Commission's initial inquiry, Hannum called Richard's complaint "absurd."

However, the state Ethics Commission found the accusations merited further investigation. In January, the Commission announced it had found probable cause to believe that Hannum had a conflicting contractual relationship when he applied for and was recommended by the council to County Commissioners to receive a grant for his business. County Commissioners give the final stamp of approval to all TDC grants. The County Commission also appoints all TDC members.

According to Ethics Commission documents, Hannum received $1,200 in grant money in 2005 from Hamilton County TDC, out of a total allotment of $6,200.

In 2006, he applied for another $4,000 and received $2,000, out of a total allotment of $4,000. In 2005 the Hamilton County TDC was awarded $6,200 in grant funds. In 2006, Hamilton County TDC only received $4,000. Fifty percent went to Hannum's business.

It is unclear whether Hannum abstained from the vote to approve grant funds for his business. According to Ethics Commission documents, however, Hannum failed to file the required voting conflict form in 2005. According to the Commission Report of Investigation, neither the 2005 nor the 2006 TDC meeting minutes reflect that Hannum abstained from the vote. The minutes reflect, rather, that the 2005 and 2006 votes were unanimous in favor of the approval of the grants. In the report, Hannum stated that the County Attorney, John McCormick, was not present at the 2005 meeting and, therefore, he was not made aware of the requirement to file the form. However, the minutes for the April 13, 2005 TDC meeting, when the vote occurred, reflect that McCormick was present at the meeting, Ethics Commission documents show.

McCormick was not immediately available for comment. However, according to the investigative report, McCormick could not recall the meeting in question and after conducting some research stated that he did not retain any notes concerning the meeting. The cassette tape from the April 13, 2005 meeting, when the first grant was approved, ended in mid-sentence of a Council member's discussion of a matter preceding the Council's discussion concerning the approval of the grant, said the investigative report.

Then-County Coordinator Bob Pore told investigators that he was "99 percent" sure that Hannum abstained from the vote in 2005.

Ronny Morgan, Chairman of the Board of County Commissioners and the TDC in 2005, was not immediately available for comment. Mike Adams, Chairman of the Board of County Commissioners and the TDC in 2006, said he had only a vague memory of the approval of the grant and, therefore, was not prepared to comment.

Long-time member of the Hamilton TDC William Mitchell told the Jasper News that he has "never known (Hannum) to do anything unethical."

A finding of probable cause is not a determination that a violation has occurred. Such a determination is made only after a full evidentiary hearing on the charges. If the commission finds a violation of the law may have occurred, they may decide to hold a hearing. If they conclude a violation has been committed, they may recommend civil penalties that include removal from office and fines up to $10,000 per violation.

For now, the Ethics Commission has now turned the case over to a prosecutor with the Attorney General's Office.

"At this point, Mr. Hannum's case is in the hands of the Commission Advocate (our prosecutor who works out of the Attorney General's Office) and is pending a public hearing or settlement agreement," Commission spokeswoman Kerrie Stillman said by email. "The Commission has no involvement with the case at the moment. This stage of the process is up to the Advocate and Hannum. However, once there is a public hearing or a settlement agreement the case will come back before the Commission for final action."

Hannum declined comment when contacted by the Jasper News.

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