SMITHFIELD -- The Johnston County Council on Aging board kicked out one of its members Thursday following accusations that he slandered a fellow board member and had an inappropriate role in decisions regarding the fate of the agency's embattled director.
In a near-unanimous vote, board members removed Phillip Smith of Smithfield from the agency's governing body after a heated debate. Board member Steve Strickland - who represents the Johnston County Health Department - called for Smith's resignation or forced removal, citing bylaws that allow such moves "for the best interest of the agency."
Smith's ouster comes just days after allegations of poor management by agency executive Jane Schirmer were made public. Several fired employees have filed discrimination complaints against Schirmer with the U.S. Equal Employment Opportunity Commission, board members said.
Also, the agency's ousted finance manager wrote a letter to the board claiming Schirmer had given contracts to friends and family members of herself and other agency employees and made inappropriate purchases.
Board Chairman David Arnn said the members considered firing Schirmer, but no votes were taken on the issue Thursday. Earlier votes left Schirmer in office under "considerable oversight," Arnn said.
Schirmer has referred all questions about the matter to the board of directors.
In arguing for Smith's removal, Strickland said his colleague encouraged Schirmer to apply for the director's position in 2008. Smith worked with Schirmer's brother, Mark Hall, at the financial services firm Market Street Advisers until Hall was arrested last year and charged with embezzling from clients. Smithalso took part in recent discussions about the director's future, Strickland said.
"It is my opinion that Mr. Smith should have recused himself so the process we're working through has the perception of being fair," Strickland said.
County Commissioner DeVan Barbour, who serves on the board as the county's liaison to the agency, said Smith made slanderous remarks about him. "It was outrageous, unsubstantiated and ridiculous," he said, though he didn't elaborate.
Also without describing what was said, Smith responded that "in no way did I slander anyone with an opinion or a fact."
Director criticized
Prior to the controversy over Smith's actions, several Johnston County commissioners talked informally about suspending the agency's county funding until problems are resolved, said County Manager Rick Hester. The Council on Aging is set to receive $200,000 from the county this budget year.
The commissioners' discussions came after employees' EEOC complaints against Schirmer and the June 30 letter from former finance director Pam Ennis. The board plans to let theEEOC handle the bulk of the investigation, members said.
The nine-page letter from Ennis, who says she was fired June 29, contains a detailed list of actions she claims Schirmer took in the months leading up to Ennis' firing. Ennis could not be reached for comment.
The letter's list includes:
Ennis wrote that Schirmer wanted the agency to buy the office furniture of her brother, Smithfield investment adviser Mark Hall, who needed money after his arrest last year on charges that he stole from clients. Then-chairman Ossie Fields said last week that he denied the request because he didn't think the agency needed the furniture.
The letter states that Schirmer did not seek competing bids from companies that provide in-home aides to seniors. Instead, Ennis said, Schirmer chose to remain with current provider, Action Health Staffing Inc. Online business listings show that the Smithfield administrator for Action Health is Schirmer's sister, Cheryl Burleson.
Ennis also wrote that after a local business donated $500 to the agency, Schirmer pushed for that company to get the contract for the agency's workers' compensation coverage - despite receiving a competing bid for the contract that was $10,000 lower.
