January 18, 2008 10:02 pm
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By Greg Grisolano
ggrisolano@joplinglobe.com
LAMAR, Mo. — A binding arbitration hearing scheduled for Wednesday in Springfield will determine how much money the Barton County Electric Cooperative will receive from its ex-CEO.
The co-op’s current chief executive officer, Bobbi Jeffries said that several board members are expected to testify before the three-member committee.
“My understanding is three arbitrators would hear it,” she said. “They probably wouldn’t make a ruling that day, but it’s possible.”
The hearing is closed to the public.
The co-op is seeking the return of more than $183,000 after an audit last year stated nearly $300,000 of member funds were used to pay for improvements to the home of then-CEO Jim Fanning and his wife, Cheryl.
The co-op’s board of directors initially signed off on a work-order for improvements to the home, which included a Smart Home technology system, and several other purchases, including appliances, entertainment equipment, and plumbing and bathroom fixtures.
“We want reimbursement for what the board feels were unauthorized purchases for the home,” Jeffries said.
Members still have many unanswered questions about the operation’s finances.
Jeffries said that while she hopes the hearing will give closure to Smart Home aspect of the previous audit, it won’t shut the door on other matters.
The co-op is seeking an auditing firm to investigate Fanning’s seven-year tenure as CEO.
The previous audit showed that from 2000 through Jan. 31, 2007, Fanning earned nearly $2.8 million, including bonuses, pension and a severance package. As part of the pension agreement, Fanning’s pension is tax-free because the board agreed to pay roughly $324,000 in income taxes related to the pension. He resigned last January, before the initial audit was conducted.
Jim and Cheryl Fanning could not be reached for comment Friday. They have previously told the Globe that while the co-op paid for the initial purchase of the Smart Home Technology, they personally paid for maintenance and replacement parts for the system.
Jeffries, who took over as head of the cooperative’s operations in February, confirmed that the cooperative had lost close to $6 million on its non-electric business, including a propane subsidiary and an electronics and wireless Internet service.
Jeffries also said the co-op would be releasing information about the arbiters’ ruling as soon as it is available and have planned several regional meetings in the coming months to keep members abreast of the special-audit progress.
“Unless we get legally told we can’t (release details of the hearing), we want it reported,” she said. “The organization needs to be transparent from the top down.”
Cooperative numbers
The Barton County Electric Cooperative has 6,400 meters in Barton, Jasper, Dade and Vernon counties.
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