Board chair raises questions about ABC embezzlement
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Four high-ranking ABC officials were placed on leave after an embezzlement scheme was discovered in seven stores.
Why it matters: Some officials are raising concerns after an internal audit flagged the issue in September, but was not reviewed by senior officials for six months, allowing some of the theft to continue, reports the Virginia Mercury's Meghan McIntyre, Graham Moomaw and Sarah Vogelsong.
What they're saying: "It’s got people interested — how this thing has been floating around for six months from September to February and nobody knew," ABC board chair Tim Hugo said at a board meeting last week, per the Mercury.
Details: Employees involved in the theft apparently exploited a flaw that allowed them to void transactions and pocket cash without detection by management.
- The first case was only discovered because a store manager had a "feeling" about one of the participants and decided to investigate, according to the internal audit report obtained by the Mercury.
By the numbers: ABC said in a statement that so far this fiscal year, $1.3 million in inventory is unaccounted for across the agency, a figure it said represents less than 0.1% of sales.
What they're saying: ABC officials told the Mercury the audit got lost as a result of a series of staff departures and that the agency has taken steps to avoid a repeat.
The intrigue: Hugo questioned the decision to put the four higher-ups in retail and logistics on administrative leave, voicing concern they are "being scapegoated" for an issue discovered by an audit that was subsequently ignored.