Examination Finds Knott County Improprieties
Release delayed in cooperation with federal prosecutors



See the audit report for Full Details

Edward B. Hatchett, Jr.
Auditor of Public Accounts
144 Capitol Annex
Frankfort, KY 40601

Contact:
Matthew G. Cantor
Intergovernmental Liaison
Phone 502-573-0050
FAX 502-573-0067
APA.PressReleases@auditor.ky.gov
(Frankfort - April 30, 2003) State Auditor Ed Hatchett today released a special examination of Knott County that found purchasing improprieties and conflicts of interests involving the County Judge-Executive and a gambling associate, a campaign contributor, and a family member.

The special examination was completed in 2002, but its release was delayed to accommodate a federal investigation that recently resulted in the indictment of Knott County Judge Executive Donnie Newsome and three others on charges of vote-buying.

"We investigated allegations of improper purchasing activities, conflicts of interest, misuse of county assets, and inadequate safeguarding of county assets," said Hatchett. "Unfortunately all of those allegations proved accurate."

Among the findings:

  • No-bid contracts funded by federal PRIDE grants went to the Judge-Executive's son-in-law and a campaign contributor.
  • No-bid contracts and contracts tainted by the appearance of conflicts of interests worth $785,000 were awarded to three firms owned by the same individual.
  • The Judge-Executive made frequent trips to riverboat casinos with a county contractor, often driving his official vehicle.
  • $3,237 in charges to county credit cards had no public purpose and coincided with documented gambling trips.
  • The Judge-Executive reported as training hours time he actually spent at casinos.
 

Edward B. Hatchett Jr.
Auditor of Public Accounts
144 Capitol Annex
Frankfort, KY 40601
WEB: www.auditor.ky.gov/