A new investigative report on the Town of Mount Olive from the North Carolina Office of the State Auditor (OSA) has made several findings and recommendations involving Mount Olive’s Water Department and Municipal Airport.
The investigation stemmed from allegations received through the State Auditor’s Tipline. Major findings from the investigation include:
- Hundreds of water cutoff fees, which are issued if a customer fails to pay their monthly utility bill, were voided each month. The water department employee who voided the fees also manipulated the system so her own water service was not disconnected despite not paying her own utility bills.
- A sitting town commissioner failed to pay his utility bill for several months, but his water service was never disconnected. His $100 cutoff fee was voided nine times throughout the year, and he did not make a single payment on his utility bill in 2024 until OSA received an allegation, at which point his outstanding balance was $942.
- Mount Olive’s utility rates were improperly entered into the town’s utility system, resulting in more than $210,000 in lost revenue to the town.
“Proper management at the local level is incredibly important to ensuring resources are not abused and protocol is followed,” said State Auditor Dave Boliek. “Our Investigative Division took a deep dive into Mount Olive’s finances and uncovered several concerning issues. Local officials agreed with the findings in our report. Now, it’s time for our recommendations to be put into action.”
Investigators also discovered that fuel at the municipal airport, which the airport operator is contractually obligated to purchase, was instead purchased by the Town of Mount Olive. Further, the airport operator was allowing customers to purchase fuel on in-house credit, and Mount Olive’s finance director had no process to verify monthly fuel commission invoices from the airport operator.
In response to the investigation, Interim Town Manager Glenn Holland wrote that the Town of Mount Olive “takes these allegations seriously,” and accepts all findings and recommendations made in the report.