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Audits on Port Arthur Housing Authority show misused funds - 12 News KBMT and K-JAC. News, Weather and Sports for SE Texas

Audits on Port Arthur Housing Authority show misused funds

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A former employee of the Port Arthur Housing Authority has hired an attorney after he says he was wrongfully terminated. Joe Guillory was fired on April 17th.  He says he was let go because he reported illegal activities by the housing authority to the Office of Inspector General.

In e-mails obtained by 12 News HD, 15 days after being fired, Joe Guillory sent Port Arthur Housing Authority Director, Cele Quesada, an email requesting a grievance hearing regarding his termination and then asking to be re-hired. The re-instatement was denied.

12 News HD also obtained two recent audits by the Office of Inspector General on the Port Arthur Housing Authority; audits that were reportedly performed after Guillory raised concerns about misused funds.

The first audit in January of 2011 states the housing authority did not practice sound financial controls on a $725,000 grant.

The audit stated that the housing authority should return the money to HUD.

In the second audit released in June of this year, it states over $600,000 has been paid back.

In that same audit, the OIG then recommended that the housing authority pay back $5,000,000.

It states the housing authority's lack of controls put it at risk for fraud, errors and financial mis-statements.

PAHA Director Cele Quesada appointed two board members to conduct a fact finding mission to investigate accusations that Guillory was wrongfully terminated.

Guillory and his attorneys at the Bernsen Law Firm plan to attend Monday's board meeting in hopes of getting answers.

12 News HD made a phone call to the Port Arthur Housing Authority Friday afternoon. We were hung up on after we identified ourselves as 12 News HD.

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