Auditor race: McGuiness calls on Davies to open hearing on dismissal to the public

Jessica Bies | The News Journal

Show Caption Hide Caption Department of Labor: Auditor didn't have sufficient cause to dismiss his No. 2 A new Department of Labor decision says Auditor Tom Wagner did not have sufficient cause for firing his No. 2, Kathleen Davies, in late 2017, and that the evidence he cited in her discharge letter consisted largely of hearsay and personal opinion versus fact.

Kathy McGuiness, one of three Democratic candidates for state auditor, is calling on opponent Kathleen Davies to open an upcoming hearing to the public so voters can have all the facts about why Davies was dismissed from her post as current State Auditor Tom Wagner’s second in command.

McGuiness was responding to a News Journal story on a new Department of Labor decision that says Wagner did not have sufficient cause for firing Davies in late 2017. The story stated Davies will appear before the Merit Employee Relations Board, responsible for grievances and appeals involving state employees, on July 19-20.

That hearing will not be open to the public unless Davies requests that it is.

"To have critical investigative information about a candidate for State Auditor withheld from the public and to have a hearing closed to the public, where serious accusations about her professional conduct while on the job (will be reviewed), is a disservice to voters and undermines the public’s confidence," McGuiness said in a statement.

While the Department of Labor decision does say Wagner relied on hearsay and personal opinion when he fired Davies in late 2017, it does not mean she will get her job back.

It only addresses the issue of unemployment benefits, which Davies was initially denied because she was terminated for violating generally accepted government auditing standards, among other things.

Davies, who believes she was wrongly fired, appealed that decision in January.

Subsequently, a tribunal ruled that Wagner did not have sufficient cause for terminating Davies. Also, Wagner offered "confusing, circular" testimony about Davies' firing and his own responsibilities regarding cash, travel and other expenditures, the tribunal's decision said.

Though Wagner hired an independent outside firm, Grant Thornton, to investigate allegations made against Davies by another employee, he was unable to produce a complete copy of the report to place into evidence, according to the decision.

Davies did not respond to a request for the Grant Thornton document, which, if it exists, would be exempt from the Freedom of Information Act because it involves a personnel matter.

In addition to wanting the upcoming hearing open to the public, McGuiness is calling on Davies to authorize the release of the Grant Thorton investigation and any other pertinent information related to her conduct as Wagner’s top assistant.

“In two months, Democratic primary voters will be choosing their nominee for this critical state office and deserve to know what was found in the independent investigation leading to Kathleen Davies’ initial dismissal from the Auditor’s Office," McGuiness said. "Based on the News Journal account, the Wagner-Davies Auditor’s Office operated without leadership for years. The decision allowing her to receive unemployment insurance is only the first step of the investigation into Ms. Davies’ professional conduct while working for Tom Wagner."

Davies worked as the chief administrative auditor in the Delaware Auditor's Office for more than six years, and before that she was deputy director for the New Jersey Office of the State Comptroller.

She has filed as a Democrat and will face McGuiness and Dennis E. Williams in a primary on Sept. 6.

Wagner, a Republican who has been in office for nearly 30 years, announced in February that he will not be seeking re-election this fall due to serious health concerns.

So far the only candidate from his party to file is Joan Winters.

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Contact Jessica Bies at (302) 324-2881 or jbies@delawareonline.com. Follow her on Twitter @jessicajbies.