Auditor probes ethics agency

A staffer lost her job after noting that a Perdue aide reviewed records in private

Ten months ago, Amanda Thaxton made a notation in a public records log at the State Ethics Commission that now has the agency's own ethics under investigation -- and may have cost her a job.

Thaxton, 24, was an office assistant at the commission when an aide to Lt. Gov. Beverly Perdue visited in October to look at the Democratic gubernatorial candidate's financial statements. Thaxton watched an assistant director, Kathleen Edwards, let the aide review the statements alone behind closed doors. Thaxton thought that was contrary to policy.

The Perdue aide "reviewed files in ... office alone with door closed," Thaxton typed into the electronic log, which tracks requests to review commission files.

Six months later, Edwards found and removed the notation. Last month, after a News & Observer reporter inquired about the log, Perry Newson, executive director of the commission, fired Thaxton. Newson gave no reason, Thaxton said.

"I think it was probably more than coincidence," Thaxton said of the timing. "But in all actuality, there's no telling what he was thinking."

The commission is the state's top watchdog for ensuring that public officials don't act in their own interests, but this episode has the commission itself under a microscope. The State Auditor's Office is investigating the incident at a time when ethics is a top priority.

State lawmakers created the commission in 2006 after public corruption scandals landed former House Speaker Jim Black, state Rep. Michael Decker and former state lottery commissioner Kevin Geddings in federal prison. The commission polices conflicts of interest, and the new ethics law carries criminal charges for those who lie or mislead on their financial interest statements.

As the auditor's investigation continues, the ethics commission has internal problems. A recent Office of State Personnel report found the commission's work environment dysfunctional and distrustful. The report concluded that the commission is understaffed, plagued with turnover and poor communication, and lacks basic personnel policies. It recommended Newson be moved into a lesser job.

Commission officials don't dispute some of the events under investigation. Edwards confirmed that she allowed Perdue's aide the closed-door review and later altered the log. Newson said that Thaxton had been "separated" from her job but denied that it was retaliation.

He and other commission officials say the whole situation is nothing more than a minor misunderstanding.

The Perdue aide, Will Polk, who is Perdue's general counsel, said he sought no special treatment on Perdue's behalf. Polk said he reviewed Perdue's statements because she had not reported her interest in a development company on her 2003 and 2004 statements. The next day, he filed supplemental reports showing her interest in BBA Development Corp.

Political claims

Commission officials say they want the matter investigated, but not by State Auditor Les Merritt. They say Merritt has his own conflict of interest because his investigations chief, Frank Perry, used to work for the ethics commission and has criticized Newson in the past. Perry said he has recused himself from the ethics commission investigation.

The commission "does not wish to be engaged in a dispute with any entity that has an agenda other than to be fair, impartial and nonpartisan," Commission Chairman Robert Farmer said.

He also said the investigation is an attempt to embarrass the commission after Merritt lost a legislative battle over his authority to look into ethics complaints against state lawmakers.