County pays whistleblower $150,000 in settlement for exposing wrongdoing at Water Utilities

Palm Beach County has agreed to pay the former assistant finance director of its Water Utilities Department $150,000 to settle a lawsuit alleging he was fired for revealing wrongdoing at the agency.

Craig Williams, who held his position at the department for nine years until July 2019, argued he faced a “well-documented hostile work environment” after reporting a discrepancy in potable-water and wastewater-service rates for the Seacoast Utility Authority in August 2017. Seacoast serves several communities in north county.

Williams filed a whistleblower lawsuit that claimed that the department’s leadership didn’t address his concerns, so he reached out to County Administrator Verdenia Baker. His reports were subsequently reviewed by the Palm Beach County Office of Inspector General , which designated Williams as a whistleblower and validated many of his claims.

As a whistleblower, Williams was protected against “adverse action” under the Florida Public Whistleblower’s Act.

The inspector general report found that the department’s then-director, James Stiles, did not get the proper approval to give Seacoast a $582,446 credit after it reserved additional potable water and wastewater capacity in the department’s systems. Stiles needed approval from county commissioners but instead unilaterally approved the credit on his own, according to the lawsuit.

Williams was then “cut out of his involvement in department projects that he was directly responsible for,” according to the lawsuit, and the county hired a “high-priced” financial consultant to take over his duties after he reported the discrepancy. He would only learn about projects from county commission agendas.

More: Why Riviera Beach could be a gem of a place to live in the future despite past struggles

Williams also discovered another discrepancy: an account that might not have paid for its water in more than 10 years, meaning a potential $3 million loss in potable water. According to the lawsuit, Williams was told to “squash the investigation.” He said his treatment at work worsened and led to an “unsubstantiated termination.”

In settling the lawsuit, the county did not admit any wrongdoing.

Williams’ lawyer, Gregory Sconzo of Palm Beach Gardens, said his client "is pleased with the settlement but it nowhere comes close to compensating him for the aggravation and pain he suffered at the hands of the leadership of the Palm Beach County Water Utilities Department."

County lawyers did not acknowledge any wrongdoing as part of the $150,000 settlement

Sconzo noted that a subsequent investigation by the county’s Inspector General concluded that Stiles did not have the authority to issue the $582,000 credit without first seeking county commission approval. The IG report was made part of the lawsuit.

After the audit was released, the Water Utilities Department retroactively appeared before the county commission to obtain approval of the credit. The IG recommended the agency improve its internal controls. All of the recommendations have been put in place. Stiles has since retired.

Williams wrote a detailed letter to Baker and several state legislators in March 2019 calling for an investigation into the award of the credit. He was fired four months later. The lawsuit said Williams “excelled” in his position as assistant director of finance.

Mike Diamond is a journalist at The Palm Beach Post , part of the USA TODAY Florida Network. He covers Palm Beach County government. You can reach him at mdiamond@pbpost.com . Help support local journalism. Subscribe today.

This article originally appeared on Palm Beach Post: County pays whistleblower $150,000 in settlement for exposing wrongdoing at Water Utilities