Audit Uncovers Purchasing Problems at NES

A new audit from the State Comptroller takes Nashville Electric Service to task for some of its financial practices.

According to the report, NES paid more than $17 million for electric cable, even though the purchase wasn’t properly bid. The audit found an NES superintendent did consulting work for the company that made the cable and touted the company to other utilities.

Also, the report found that an NES vice president used a corporate credit card to make personal personal purchases on Amazon and eBay. The vice president also admitted to selling surplus NES property on eBay, without telling his supervisor.

The Comptroller’s office says NES is taking steps to correct the problems uncovered in the audit.

Although the findings of the audit were forwarded to the Davidson County District Attorney, NES officials say it contained no criminal findings. In a statement, DA Torry Johnson says none of the problems uncovered “rose to the level of criminal activity.” The company says individuals named in the audit have faced disciplinary action, including paying restitution.

Read the report here [PDF].

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