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Lubbock Power and Light Issues Statement Regarding Possible FBI Investigation

LP&L

A federal agency may be looking into Lubbock’s City-owned utility, but Lubbock Power and Light says that they cannot confirm that any official investigation is underway.

LP&L released a statement Wednesday morning stating that Lubbock City Manager Lee Ann Dumbauld told members of the City’s Electric Utility Board that she had received a phone call from federal law enforcement officials regarding a potential fraud related to an LP&L job order contract in mid-March.

They continued, saying that LP&L contacted their independent third party financial auditor, BKD, who said that they were aware of the situation.

The utility says that they contacted federal authorities to express their desire to cooperate fully in any inquiry, and “federal authorities could not confirm nor deny any investigation and to this date LP&L is unaware of any official investigation by federal authorities of LP&L.”

They note that BKD’s additional audit on the utility’s procurement procedures found no evidence of inappropriate activity on the part of LP&L. The inquiry is reportedly in reference to a civil lawsuit against a contractor that has worked for LP&L.

LP&L’s complete statement is included below.

On Tuesday March 19, 2013, the Lubbock City Manager for the first time informed members of the Electric Utility Board that she had received a phone call from federal law enforcement officials regarding a potential fraud related to an LP&L job order contract. LP&L believes that the City Manager received this information in mid January.

By the next day, Wednesday March 20, 2013, the Chairman of the Electric Utility Board and LP&L staff contacted our independent third party financial auditor BKD, LLP and informed them of this issue. BKD, LLP was already aware of the situation.

LP&L also contacted the federal authorities expressing LP&L’s desire to cooperate fully in any inquiry. Federal authorities could not confirm nor deny any investigation and to this date LP&L is unaware of any official investigation by federal authorities of LP&L.

It is important to note that BKD, LLP, when they did the additional audit on LP&L’s procurement procedures, were already aware of this federal inquiry and they did not find any evidence of inappropriate activity on the part of LP&L. In fact, BKD, LLP issued a clean unqualified opinion of LP&L’s finances.

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