Interest conflicts get more scrutiny in Pulaski County

Pulaski County is paying more attention to potential conflicts of interest in the contracts it awards.

As the county updates its purchasing policy, a move that was approved by the Quorum Court last month, attorneys are drafting a form through which county employees and future hires will be asked to disclose any conflicts of interest.

A conflict of interest is defined by Arkansas Code Annotated 14-14-1202 as an instance in which a county officer or employee uses the influence of his position to "advance his or her individual personal economic interest or that of an immediate member of his or her family or an associate."

In 2014, after being asked for clarification of the phrase "immediate member of his or her family," the state attorney general released an opinion saying the "existence of a family relationship could in some cases undoubtedly be relevant" to the question of whether an officer or employee is interested in a county contract or transaction, and thus could violate state law.

One such potential conflict arose in recent years -- before the county required the disclosure of conflicts of interest related to procurement -- in the county's HOME Rehabilitation/Reconstruction Program. The program uses grant dollars from the Arkansas Development Finance Authority to help low-income homeowners rehabilitate their homes.

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Pulaski County signed an agreement for the program with the finance authority in 2013, and the Quorum Court then appropriated nearly $350,000 of grant dollars to the county's Community Services Department for the program.

After a request for proposals process, the department awarded rehabilitation contracts to Sundial Management and Construction of Little Rock, according to documents obtained through a Freedom of Information Act request.

The principal owner of that company, Rodney Hall, is the brother-in-law of Community Services Director Fred Love, who oversees the rehabilitation program.

Between 2014 and 2015, 24 checks totaling roughly $330,000 were disbursed to Sundial, according to documents provided by the county. The money was issued to the company for work on four homes, including a rehabilitation project, a new construction project, and replacement of two manufactured homes, documents show.

A county spokesman said the disclosure of Love's relationship to Hall was made verbally, as there was no requirement for disclosure detailed in the county's previous purchasing policy.

If a conflict of interest arises under the county's new policy, the employee or officer must disclose the conflict in writing to the county administration within 30 days.

Administrators would then confirm the facts of the conflict, remove the employee from participation in all procurement stages with the identified contractor, notify the county judge of the removal and submit a written report detailing the conflict.

Metro on 04/24/2017

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