Prosecutor says investigation into city finance issues not over

Carlton Jones’ statement contradicts David Haak

Whether criminal action was involved in the city’s construction of Arkansas Convention Center and Holiday Springs Water Park and in subsequent testimony about the projects is still being considered in Miller and Pulaski counties.

Texarkana, Ark., mayoral candidate David Haak’s Facebook page and Website at haakformayor.com read otherwise.

In regard to the controversy and question of legality and propriety over financing of Arkansas Convention Center, Haak’s site states, “This has been discussed and rediscussed, lawsuits filed, ethics complaints filed, regular financial audits produced, special audits and a legislative audit done. The Miller County prosecuting attorney has reviewed all the information and found no criminal intent.”

Haak stood by his message when reached for comment.

“No, nothing has been filed; there has not been any violations so far. If (Carlton Jones) would have found something, he would have filed something, I guess,” Haak said.

Eighth Judicial District-South

Prosecuting Attorney Carlton Jones said his office is not done with its investigations about the investigative report done by division of the legislative audit which, covered primarily the period from Oct. 30, 2009, through Sept. 23, 2010. The report came at the request of Jones; state Sen. Jimmy Hickey, R-Texarkana; and state Rep. Prissy Hickerson, R-Texarkana, after citizens and some members of the city Board of Directors continued to ask questions about how city leaders spent money on the project.

“A determination as to whether any criminal intent or responsibility by any party for the concerns listed in the legislative audit has not been made by this office,” Jones wrote in an email. “The audit and its attendant findings remain an open investigation. Once this process is concluded, a written finding will be issued by this office.”

Haak said he did not think the matter sent to 6th Judicial District Prosecuting Attorney Larry Jegley in Pulaski County would “amount to a hill of beans.” Haak said he thought the matter had been sent to Little Rock for a specific reason.

“In my opinion, they took it to Little Rock because it couldn’t get done here,” Haak said. “(The investigation) may be open, but they haven’t found anything. You’re innocent until proven guilty, and they haven’t even charged anything.”

Jegley said in an email response that “we do not comment on any matter under review by this office.”

Jegley’s office became involved in the matter earlier in the month when “apparent discrepancies” were found to exist between testimony given about Texarkana, Ark., at a Legislative Joint Auditing Committee meeting in April and a subsequent Arkansas State Police investigation.

In addition to the letter, the audit findings, titled “Investigative Report, City of Texarkana-Review of Selected Transactions”; a recording of the April 11 meeting; a partial transcript of the meeting minutes pertaining to Texarkana; a copy of the auditing committee meeting minutes; and a copy of the state police report were sent to Jegley’s office.

Haak said he thinks the matter continues to be brought up because of some people’s bad intentions.

“You’ve got desperate people trying to do desperate things to tear up this town,” Haak said. “You’ve got a mayor that is out of control and trying his best to tear up Texarkana.”

Texarkana, Ark., Mayor Wayne Smith said he would “not lower myself to response to those kind of statements,” in regard to Haak’s calling him desperate. However, he did say he was surprised that Haak was privy to information that other citizens were not regarding the status of Jones’ investigation.

“I’m quite surprised that David Haak is now the public information officer for Carlton Jones,” Smith said. “I will believe there is not going to be a prosecution once Carlton Jones makes the announcement. David Haak does not have the authority to speak for Carlton Jones or the Prosecuting Attorney’s Office, in my opinion. I’m willing to wait until Carlton Jones makes that decision and announcement, if there is going to be one.”

Smith said he does think there were violations made concerning testimony given at the April 11 legislative audit meeting and testimony given to Arkansas State Police.

“I am not an attorney, nor am I the prosecuting attorney, but I do believe there were violations,” Smith said. “Now did they rise to the level of criminal prosecuting? Only the prosecuting attorney can make that decision. Myself nor David Haak has the expertise to make that decision. As I understand, the police investigation determined there were discrepancies between the legislative audit testimony and the police investigation. Now it’s up to the prosecuting attorney to decide if it reaches a level of criminal prosecution. I know I did not provide any discrepancies, and there were only three of us who testified.”

Smith, City Manager Harold Boldt and former Finance Director Jessica Hyman were the only city representatives who testified at the April meeting. At that meeting, the committee approved a motion to keep the investigative audit on Texarkana, Ark., financial transactions open so it could be more carefully examined and reviewed. The motion was made by Hickey.

“I wish to make a motion to defer the report and ask the Division of Legislative Audit to examine any possible contradictions or misrepresentations and refer to the appropriate authorities if the investigation warrants such and report any action at our next scheduled meeting,” Hickey said at the April 11 meeting.

Hickerson seconded Hickey’s motion and said this allows the item to remain open so it can continue to be examined by members of the committee if they saw any contradictions in what the investigate report released Feb. 26 says and testimony given April 11.

“The reason Mr. Jegley will have it is because he would have jurisdiction over testimony that happened in Pulaski County,” Hickey said in an article earlier this month.“He will be looking for perjury. That is what a discrepancy will be.”

Hyman said in an earlier article regrading the involvement of Pulaski County that she did not wish to make a statement. Boldt did not return phone calls for this story.

Haak was not a city official when these decisions were being made. However, he is a friend and supporter of city manager Harold Boldt, who has come under scrutiny related to these issues. Haak recently outlined a plan for Boldt to retire next year.