Columbia County Tax Dollars Fuel a Banker’s Bonus???

You just have to laugh when the politicians in two urban counties down the road resort to hiding videos, switching meeting times, and cutting debate time in half to thwart an old busybody and his gang of reformers. Their latest trick play came between Tuesday May 6 and Thursday May 15, 2014 down in Evans. Columbia County has a pledge to post its commission meeting video within 48 hours of its Tuesday meetings, but it took 9 days for this one to see daylight.

Agraynation.com has been in the habit of bringing videographers to ensure that a video record is secured, but in a previous Columbia County meeting Chairman Ron Cross admonished that having video shot was unnecessary because the county provides it with so reliably. Not this time. This speaker had a most unpleasant message and an even tougher question but obviously had no prepared text to post later. Rather than let the explosive video and information out, the administration sat on it.

Metro Spirit reporter Eric Johnson observed and wrote a wonderful piece on the Commissioner Ron Thigpen bonus presentation titled “Collateral Damage.” The title was pure brilliance, because the collateral damage from the Columbia County banking scandal will range far, wide and deep.

Johnson implied that the talk was long-winded, overlooking that it was 8 minutes before a body that allowed 10 minutes until this campaign season began. He was also puzzled. The key exhibits were not shown to the public, because their sensitive nature commanded the decency to allow the Rons, Thigpen and Cross, to respond to the deep concern of this old supporter and friend.

To summarize, the county entered into a mass banking agreement with the Ron’s bank in 2010 after a series of recusals, mystery documents, a vote to allow 2 commissioners to even vote on it, and more irregularity than comes after a trip to a filthy restaurant. About the same time Ron Thigpen, who is President of the bank, got a new bonus that looks to have doubled because of the massive Columbia County money deposited in his bank.

Thigpen Bonus 2010 Change

The media around these parts whines that just about any issue involving money is too complex. This one isn’t. It is third grade math. If you have 1 over 2 (1/2), you double the result if you subtract 1 from the bottom number. That is how Ron Thigpen’s bonus was set up. After Columbia County’s $1 (hundred million) is applied at December 31st of that year, the equity denominator falls to $1(hundred million) from $2(hundred million). Sources of the county monies are an open records response and the bank equity figures are from the FDIC.

When all factors are taken into account, it would appear that the $22,000 cash bonus paid to Thigpen was 2.2 times higher than it would have been without the county deal.

Thigpen Bonus Received 2010

Last week Ron Thigpen was overheard in an ad for Chairman Cross’ reelection saying how “comfortable’ he was with Ron Cross.

We all can be comfortable along with him that fellow bank stockholder Cross did the right thing to enhance their wealth.

Collateral Damage, Mr. Johnson? That was very, very well done! Next up Cat Burglars and Cat bankers – the $12 million heist.

This is Arrowflinger Al reporting on a cloudy day from points west. Stick around for the missing video.

Blame it on the Evans UFO

The first report in this series, Conflict in Columbia County, peered into the April 2010 vote to grant the mass banking contract of Columbia County, Georgia to GB&T, Georgia Bank and Trust, a bank in which 2 commissioners, Ron Cross and Charlie Allen held stock and a third, Ron Thigpen, serves as Chief Operating Officer.

The award came after an extensive Request for Proposal was issued to about a dozen local banks in January. Responses were due by February 18th. Four county employees were designated as evaluators of the proposals: Water Director Billy Clayton, Accounting Manager Debra North, Finance Director Lee Ann DeLoach (then Reece), and Phyllis Swain. After the evaluations were compiled and the scoring totaled, First Citizens Bank scored the highest of the responding banks, with GB&T in second place. First Citizens quoted a minimum interest rate on deposits of 1%, with DeLoach noting the lack of a floor with GB&T relative to First Citizens and Swain noting that First Citizens had the best rate. The initial recommendation was to award the agreement to First Citizens.

GB&T had quoted a variable rate with a floor of 0.75%, 0.25% less than First Citizens. This put the minimum interest rate income from First Citizens 33% higher than GB&T.

That is when the UFO landed and all sorts of communications were disrupted. In this case UFO means Unidentified Financial Official. Some member or members of the County Finance Committee put the award on hold and sought direction from Jeffries, the County’s sole-sourced Bond Underwriter. When asked the identity of the Finance Committee member(s) who initiated the request from Jeffries, the county administration could not provide it, not could it provide any correspondence from Jeffries other than an Analysis showing that the county would earn more with GB&T. That analysis became the basis for what came to the commission as “Option Two” and a revised recommendation to award the mass banking arrangement to GB&T.

Out of a Finance Committee comprised of then Chairman Scott Dean, who is now in prison on an unrelated conviction, commission chairman and GB&T shareholder Ron Cross and District one commissioner and GBT executive Ron Thigpen, who was the UFO? If the UFO landed in the commission chambers, why is there no video, no tracks and no sign of his coming and leaving, only a mystery document which turned out to be wrong, predicting higher interest rates that never materialized and costing the county dearly?

Citizens-activists working with agraynation.com also sought whether First Citizens or the other banks responding to the RFP were invited to rebid or comment on the Jeffries analysis.The county answered that there was no written contact found with First Citizens after notification that their bank was on the list of finalists.

Finally, a response to a Georgia Open Records request to Columbia County, shows that the county was paid the 0.75% minimum throughout 2011 and 2012 on nearly all of the accounts covered by the mass banking RFP, rather than the much higher rates expected when the deal was awarded to the three commissioners’ bank.

Doesn’t an old construction guy like Chairman Cross know that nothing produces more controversy and lawsuits in procurement than awarding bids based on new criteria that have been denied to the other bidders? Isn’t doing something like that and having it lose 33% more revenue than the recommended vendor even worse? How much of his net worth is in that bank stock and its related business ventures, anyhow?

A lot of answers are due Columbia County voters before May 20.

Here is a video presentation recorded in the waning days of April 2014.

Next up in the series – County Revenue Vaporized by the Evans UFO?