Group seeks investigation of 2 elected officials in Deciphera deal

Questions arise about conflict of interest

A local citizens group is asking the Douglas County District Attorney to investigate County Commissioner Bob Johnson and Mayor Sue Hack for violation of the state’s conflict of interest laws.

Grassroots Action filed a formal complaint this afternoon with District Attorney Charles Branson alleging that Johnson and Hack improperly participated in discussions related to a package of economic development incentives given to Deciphera Pharmaceuticals. Both Johnson and Hack own more than $5,000 worth of stock in the start-up pharmaceuticals company.

In a statement this afternoon, Grassroots Action leaders said Johnson and Hack both participated in a closed-door meeting with City Manager David Corliss, Chamber of Commerce President Lavern Squier and other attorneys and economic development leaders on Sept. 20, just a few hours before the entire City Commission went into a closed-door executive session.

Grassroots Action leaders said that meeting needs to be investigated to determine whether Hack and Johnson violated state laws that prohibit elected officials who own significant stock in a company from “participating in the making of a contract” with that company.

An e-mail from Toni Wheeler, the city’s director of Legal Services, confirms that closed-door meeting between Johnson and Hack took place. It also indicates that the meeting helped produce a consensus that changes that Deciphera requested should be made to the incentives package, which totals more that $1 million over a 10-year period.

Johnson doesn’t deny the closed door meeting, although he said he doesn’t remember much about it because it was one of several meetings he attended about Deciphera. But he also said he doesn’t believe he’s done anything to mislead the public or his fellow commissioners. Johnson had publicly disclosed that he had an ownership interest of about $8,000 in the company. He had told fellow commissioners that during an open meeting and asked them whether they objected to him being part of the process. Neither Commissioners Charles Jones or Jere McElhaney objected. Johnson also filed the necessary state-required paperwork disclosing his financial interests in the company.

Johnson said he thinks Grassroots Action members allegations are politically motivated.

“It is what it is,” Johnson said. “I think I have been totally and completely honest. If they want to make a big deal out of it, then have at it.”

Attempts to reach Hack for comment weren’t immediately successful.