CARMEL, Ind. — The Carmel City Council is planning to withhold new money from the Center for Performing Arts until a full audit is completed in the wake of the resignation of its CEO.
The move comes after invoices indicated the city spent more than $13,000 for a private investigator in July, 6News’ Joanna Massee
Sources tell 6News that the latest invoices from International Investigators pertain to former Center for the Performing Arts President CEO Steven Libman, who abruptly resigned less than two weeks ago, citing a “private and personal matter” just two months after he signed a five-year contract extension.Carmel City Attorney Douglas Haney, whose name appears on the invoices, said in a statement to 6News that he is obligated to “investigate allegations of the improper use of city funds or of misconduct that could harm the city’s interests.”
“Recently, I became privy to such allegations in a matter that involved improper and imprudent, but not necessarily criminal, conduct that, if true, would likely have a negative impact on the City’s and the public’s interests,” the statement read.
Mayor James Brainard released a statement to 6News that said, “The city of Carmel is obligated to protect taxpayers by investigating incidents that have resulted or may result in legal claims against the city and its taxpayers.”
The July invoices for the private investigator were set to be approved at the next council meeting, but members Luci Snyder and Rick Sharp said they will vote to withhold payment until Carmel officials provide an explanation.
“These are not insignificant sums of money. Some might think so, but I think $8,000 on a particular investigation probably deserves a fuller explanation,” Sharp said.
The Palladium cost an estimated $150 million, and there have been disputes over how money was spent.
“The loss of Mr. Libman has destabilized a $180 million taxpayer investment. No money will leave the City Council to the foundation until there is a complete audit,” Snyder said.
Council President Eric Seidensticker said his desire for a financial audit of the Center for the Performing Arts should in no way imply any wrongdoing on Libman’s part.
“The people that have come up to me have just said, ‘Hey, what’s going on? Does this have to do with the Performing Arts Center? What’s this all about?’ Unfortunately, I don’t have the answers for them. Any answers that I do have are, they are either confidential or they are third-hand,” Seidensticker said.
Officials with the State Board of Accounts said governments are allowed to hire private investigators for city business.
Frank Basile, the interim CEO of the Center for Performing Arts, previously said he is conducting an internal investigation
