The Kentucky state auditor’s office will conduct an independent exam after a controversy involving fraud allegations by a city employee in Lexington over the purchase of insurance coverages for the city.
Auditor Crit Luallen said in a statement Thursday that the review would analyze “the procurement process for the city’s insurance services” and the handling of fraud allegations made by a city employee.
She says the move comes after media coverage, information provided to her office and a request by Lexington’s internal auditor.
The Lexington Herald-Leader reports employee Patrick Johnston made fraud allegations in 2008 and 2009, which were dismissed as being without merit. City council members have questioned whether the allegations are related to a proposed elimination of Johnston’s job in a reorganization.
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