THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Wednesday, February 22, 1995 TAG: 9502220416
SECTION: LOCAL PAGE: B3 EDITION: NORTH CAROLINA
SOURCE: STAFF REPORT
DATELINE: BUXTON LENGTH: Short : 46 lines
Although a citizens' group formally requested his resignation three weeks ago, the chairman of the Board of Directors of the Cape Hatteras Electric Membership Cooperative says he does not plan to step down.
Hatteras Island motel owner Jack S. Gray, who has served on the power co-op's nine-member board for 18 years, was asked to resign at a general membership meeting Feb. 1.
``Since the Board of Directors elected me as their president, if it is their will, I'll be happy to step down at this time,'' Gray said Monday night at a monthly board meeting.
Most board members quickly reassured him of their respect - and his abilities. ``I think the decision is yours,'' board member Dale Burrus said. ``I'd certainly support you if you decide to stay.''
Gray said he was staying on, and, after thanking board members for their support, promised to be the best electric co-op president possible.
The request for Gray's resignation came about four months after former co-op manager John A. Echols resigned.
Echols, who had served as manager for less than four months, quit because he said power company directors were meddling in daily operations too much. He also cited inappropriate spending practices.
Over the past year, Echols said, the co-op had paid its Virginia accounting firm more than $430,000.
Last month, representatives of an outside auditing firm presented preliminary findings showing that the accounting firm, Johnson and Dooley of Danville, had overcharged the co-op more than $100,000 since November 1993.
Co-op directors unanimously voted to fire the accountants - then filed a lawsuit against the firm, requesting at least $200,000 in compensatory damages and $500,000 in punitive damages and attorney fees.
Johnson and Dooley have not responded to the suit. Accounting firm official Ron Johnson said the firm intends to respond by mid-March.
Cape Hatteras Electric serves all Hatteras Island residents and businesses. The non-profit, tax-exempt co-op employs about 20 people full time. It is owned by its 3,825 customers. by CNB