Tresa Baldas

Detroit Free Press

The Flint water crisis has triggered yet another lawsuit, this one filed by the city's former administrator, who claims she was wrongfully fired for blowing the whistle on the mayor of Flint for allegedly trying to steer money from a charity for local families into a campaign fund.

Former City Administrator Natasha Henderson, 39, who now lives in Muskegon, claims in a lawsuit filed today in U.S. District Court that she was terminated on Feb. 12 for seeking an investigation into allegations of misconduct by Flint Mayor Karen Weaver.

Specifically, the suit alleges that Weaver directed a city employee and volunteer to steer donors away from a charity called Safe Water/Safe Homes, and instead give money to the so-called "Karenabout Flint" fund, which was a political action committee or campaign fund created at Weaver's direction.

According to the lawsuit, a city employee told Henderson in confidence that she and a volunteer had previously been directing donors to the City of Flint's website, where they could give money to the Safe Water/Safe Homes charity, which helped families affected by the water crisis. But Weaver directed them to steer donors to the "Karenabout Flint" website, which the city council had not approved, the suit claims.

"A red flag went off when it was an unrecognizable fund," Henderson's lawyer, Katherine Smith Kennedy, told the Free Press. "She did the right thing. She reported the matter to the city attorney. And for doing the right thing, she was punished. She was fired."

The lawsuit names the City of Flint and Weaver as defendants.

In an e-mailed statement released late Monday, Weaver said: “It is the policy of the City of Flint to not respond to allegations made in civil litigation matters.” She said the city’s lawyers handle responses.

Henderson signed a five-year contract with Flint in 2014 after beating out more than 25 candidates for the $140,000-a-year job of city administrator, the highest non-elected office in Flint. Before she came to Flint, she was city manager of Muskegon Heights for seven years.

"My client was recruited to help the City of Flint, and was doing so very successfully," Kennedy said, adding her client helped secure a $6-million payment from the state to help Flint switch its water supply back to Detroit's water system.

According to the lawsuit, Henderson's termination stems from a Feb. 9 meeting with a city employee who came to Henderson's office "in tears and stated to Henderson that she feared going to jail." Specifically, that employee — who reported directly to Weaver — confided that the mayor had instructed her and a volunteer to redirect donations from one charity to a campaign fund that had been created at the direction of the mayor.

It was the Safe Water/Safe Homes, a donation fund for families impacted by Flint's water crisis that was administrated by a local foundation. According to the lawsuit, Flint's mayor wanted donations sent from that charity to a political action committee, which was known as the "Karenabout Flint" fund.

The employee claims that she was "specifically directed to tell donors and potential donors step-by-step how to donate to the Karenabout Flint fund through its website, rather than instruct them in the steps to donate to the charity Safe Water/Safe Homes fund through the City of Flint website," the lawsuit claims.

According to the suit, the Flint City Council did not approve moving such charity funds, nor did it know about the political action committee.

On Feb. 9, Henderson reported the allegation to Flint's chief legal counsel and asked for an investigation. The next day, she also e-mailed the attorney, stating: "Please advise appropriate actions I can take to protect employees from potential retaliation resulting from them reporting allegations such as this."

The lawyer wrote back: "I will take prompt action and advise you later today."

Henderson never heard from him again.

Three days after making her complaint, she was fired.

According to the lawsuit, here's what happened: Weaver called Henderson into her office and terminated her, effective immediately.

Henderson asked why. Weaver, the lawsuit claims, said the State of Michigan could no longer fund her salary.

Henderson pointed out that the state didn't pay her salary, but that the City of Flint did.

The mayor had no response and "demanded Ms. Henderson to turn in her keys, remove all personal effects from her office and turn in other City of Flint property, such as phones or computers, by the end of the business day," the lawsuit states.

Henderson hired a lawyer. The lawyer invited the city to resolve the claims, but to no avail. Henderson also had the support of many city council members, who initially opposed her termination, the lawsuit states.

But on March 14, a closed-door meeting was held by the Flint City Council, during which Weaver allegedly "disparaged and defamed" Henderson. After the meeting, the city council voted 9-0 to support the firing of Henderson, triggering an eventual lawsuit.

According to Henderson's suit, the city council approved her termination not knowing Henderson had whistle-blower claims. The lawsuit claims breach of contract, a violation of the First Amendment and wrongful termination under the Michigan Whistle-blower's Protection Act.

Henderson's lawsuit names the City of Flint and Weaver as defendants, alleging they harmed her reputation and her ability to find employment.

Henderson's firing, the lawsuit claims, damaged her "economically, injured her reputation, subjected her to public humiliation, damaged her personal relationships ... and caused her significant mental and emotional distress."