Commonwealth Utilities Commission acting executive director Dallas Peavey, Jr.’s ex-bosses, the Holley-Navarre Water System board of directors, voted unanimously last week to take a deeper dive into a recently-released audit finding he allegedly misspent about $1.2 million.
Mr. Peavey was CEO of the HNWS until August 2022, when the board fired him after finding out about his undisclosed criminal history. It is unclear whether CUC’s former executive director Gary Camacho or commissioners themselves were aware of both Mr. Peavey’s criminal past and extensive history of controversy and alleged scandal in the several places he has worked.
Kandit has sent the CUC an Open Government Act request for Mr. Peavey’s submitted resume and application packet.
According to both an article by Gail Acosta from the Navarre Press and the video recording of an April 18, 2023 meeting of the HNWS board, independent auditors presented findings of an audit showing Mr. Peavey allegedly made purchases that far exceeded his financial authority as CEO of the water system. That authority limit was only $25,000 without board approval.
Water System audit reveals unauthorized purchases by former CEO
According to the audit presentation, Mr. Peavey entered into two contracts for leased equipment for the Club at Hidden Creek and a new commercial vehicle for HNWS. Those contracts totaled $450,000 and $475,000 respectively. The audit presentation further revealed about $225,000 of golf course expenses, according to Ms. Acosta’s story.
The HNWS’s new CEO, Jeff Crigler, sought and received unanimous approval from the board to spend nearly $40,000 to take a closer look at six months’s worth of transactions under Mr. Peavey’s watch.
Mr. Peavey left Florida to work for CUC in Saipan. Since then, the Torres administration expired, and so did the contract with former executive director Gary Camacho. The CUC in February elevated Mr. Peavey as acting executive director in Mr. Camacho’s place.
Mr. Peavey recently found himself at the center of controversy last week, when he issued simultaneous disconnection notices to the CNMI Department of Public Works and the Commonwealth Healthcare Corporation, which runs the hospital in Saipan and the two clinics, each in Rota and Tinian.
The CNMI and Florida are not the only places Mr. Peavey has worked for which several public reports allege misconduct and scandal. Stay tuned to Kandit for more.