Labor commissioner accuses predecessor of intentionally hiding $100M in state funds
Georgia’s Labor Commissioner says his predecessor intentionally hid and did not use more than $100 million in Labor Department funding.
Commissioner of Labor Bruce Thompson told Channel 2 consumer investigator Justin Gray that the actions violated the Georgia Constitution.
Thompson called a news conference at the Department of Labor Headquarters to announce the results of an interim audit by Georgia’s Department of Audits and Accounts.
“The prior commissioner and at least a few members of his leadership colluded to intentionally avoid properly disclosing over $105 million to the state and federal government,” Thompson said.
Thompson said his staff noticed the potential wrongdoing and called in state auditors who have produced an interim audit finding the money was “not remitted to the state treasurer as required,” and that it’s a “violation of the Georgia Constitution.”
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Gray spoke to Thompson one-on-one Thursday about the audit.
“Is there any chance this was just a simple mistake or an auditing mix-up?” Gray asked.
“Absolutely not. The report will outline that it was a choice, and methodical, and how they moved funds,” Thompson said.
As for why, the audit says, “The (then-)CFO indicated that GDOL upper management was unhappy about not receiving an appropriation for the entire amount of their administrative assessments, penalties, and interest and intentionally held back the funds.”
Former Labor Commissioner Mark Butler strongly denies the allegations. Butler told Gray in an email:
“Mr. Thompson’s statements are derogatory and false. There is no investigation by the AG’s office. And he did not find these monies through an audit. He was informed by staff that these monies existed, which were handled properly according to legal counsel at DOL during my tenure. This is nothing but political theater based on his personal vendetta against me.”
These are funds that were paid by employers to DOL.
Thompson said it was required by law to go to the State Treasury but could have been appropriated back to DOL for administrative costs.
Georgia Attorney General Chris Carr’s office said it had not opened an investigation but has been in touch with DOAA and DOL.
Thompson said the US Department of Labor and its Inspector General have also been made aware of the audit.
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