Hales Fires Finance Office Director, Citing "Controversies" and "Distraction"

Portland Mercury:

The Oregonian's steady reporting on a succession of scandals roiling the city's Office of Management and Finance—the über city bureau that oversees things like investments, human resources, technology, and procurements—has apparently forced Mayor Charlie Hales into firing the city's chief administrative officer, Jack Graham. Hales' office announced the decision to reporters around 4:30 pm, sending out a statement blaming the "distraction" caused by several "controversies," but not mentioning any of them by name. As leader of the city of Portland, and Commissioner of OMF, I want this city to do its work without distraction. Controversies involving OMF have become a distraction. As the commissioner in charge of OMF, I believe it is now time to make a change. I am therefore ending Jack Graham’s employment agreement with the City of Portland. Graham's troubles began when city whistle-blowers flagged a dubious $200,000 transfer of utility rate money in 2012. They grew larger when one of those whistle-blowers, Rich Goward, was let go as the city's chief financial officer—with Goward complaining it was because of his role. (That flap got Hales to launch a top-to-bottom review of OMF, after Nick Fish threatened to get his colleagues on the council to vote to restore the CFO position.) Graham has since spatted with the city's controller. And he's also been criticized for some large freelance contracts to former HR director Yvonne Deckard. But Hales apparently hit his breaking point in the past few days after the O broke the news of another improper fund transfer that did go through—to help purchase a building for the police bureau in 2011. It was lightly investigated this year—with Graham, according to reports, casting blame against another whistle-blower from the 2012 transfer, budget director Andrew Scott. Hales says he'll kick off a national search for a replacement. The full statement from Hales' office is after the cut. Today, I am announcing that I have asked Jack Graham to step down as Director of the Portland Office of Management and Finance. As leader of the city of Portland, and Commissioner of OMF, I want this city to do its work without distraction. Controversies involving OMF have become a distraction. As the commissioner in charge of OMF, I believe it is now time to make a change. I am therefore ending Jack Graham’s employment agreement with the City of Portland. However, we are at the start of the annual budget-writing process. To ensure a stable transition, I have asked Jack to stay on until Jan. 30, when he will submit the proposed OMF budget for 2014-15. An interim director of OMF will be announced prior to Jan. 30. Earlier this month, I launched the process for an independent, external analysis of the entire Office of Management and Finance. We have requested bids and are in the process of selecting a contractor. That process will continue. A national search will commence for a permanent OMF director. Since taking office in January, I have overseen national searches for the leadership of Transportation; Fire & Police Disability and Retirement; and the City Attorney. A great American city like Portland deserves no less than a national search to find the best possible OMF director. I wish Jack the best and thank him for his service to the City of Portland. [ Subscribe to the comments on this story ]

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