PDF: Legal and Legislative Committee
A district attorney from Kingston, Tenn., will investigate whether City Attorney Michael McMahan faces any criminal charges for billing hundreds of thousands of dollars to Chattanooga for his private firm.
Wally Kirby, executive director for the Tennessee District Attorney’s Conference, said Wednesday that District Attorney Russell Johnson would review the case. He said he was not sure of a timeline.
“I haven’t talked to him about it,” Kirby said. “Once I make contact, I’m out of the loop.”
Kirby has said previously that review of such cases could be done in a matter of days or up to a few weeks.
Repeated attempts to reach Johnson were unsuccessful. He is the lead prosecutor for the 9th Judicial District, which includes Roane and Loudon counties.
McMahan, reached Wednesday, said he did not wish to comment.
Richard Beeland, spokesman for Mayor Ron Littlefield, said the city is confident McMahan will be cleared and is happy with how the investigation is taking place.
“It’s following the proper procedure,” he said.
The latest allegations come after a state comptroller forwarded a memorandum to Hamilton County District Attorney Bill Cox’s office, outlining allegations of impropriety by McMahan. The charges include that McMahan knowingly billed the city about $15,000 a month for clerical and professional services, which auditors said is in violation of the city’s conflict-of-interest and purchasing rules.
Cox decided to recuse himself from the case and forwarded it onto the Tennessee District Attorney’s Conference.
City Council members said Wednesday they hoped for a quick conclusion to the controversy that has stemmed for weeks. The council has debated the item twice, once during a regularly scheduled business meeting and the second time during a Legal and Legislative Committee meeting three weeks ago.
Minutes from the committee meeting show Councilman Andraé McGary suggested hiring an independent attorney if the matter was not resolved in 30 days. But the motion died in committee.
Councilwoman Deborah Scott, who supported McGary’s proposal, said Wednesday she still thinks an independent attorney’s assessment is a good idea.
“From time to time, an independent attorney is needed to address the City Council and I think this is one of those times,” she said.
Councilman Jack Benson said he did not support the idea of an independent attorney. Checks and balances are already in place, he said.
“I never did think it was necessary to spend the money,” he said.
Timeline
* 1963: Eugene Collins is appointed city attorney and develops an arrangement for his law office to do work for the city and outside legal work in the Pioneer Bank building. The building lease and some employee benefits are paid by the city, along with service payments to the Collins law firm for most of its legal work for the city.
* 1990: Chattanooga City Commission form of government is replaced by new government with mayor and City Council. The city attorney is a department head but maintains an outside office and clients under a contract arrangement.
* 1990: Randall Nelson, a longtime member of Collins’ law firm, is appointed city attorney and maintains the private law practice in the Pioneer Bank building.
* 2008: Mike McMahan, a 35-year attorney in the Collins and later Nelson law firm, is appointed interim city attorney.
* January 2009: McMahan is named city attorney.
* November 2009: Mayor Ron Littlefield brings employees and staff into city government following an internal audit questioning the city attorney’s contract arrangement.
* May 2010: Over the objection of Legal and Legislative Committee Chairman Peter Murphy, the City Council votes to ask the state comptroller to review a critical audit of the previous payment system for the city attorney.
* June 2010: Tennessee comptroller agrees with the city internal audit that the previous arrangement for city attorney services and payments violated city and state conflict-of-interest rules.