The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Friday, December 29, 1995              TAG: 9512290562
SECTION: LOCAL                    PAGE: B1   EDITION: NORTH CAROLINA 
SOURCE: PAUL SOUTH, STAFF WRITER 
DATELINE: MANTEO                             LENGTH: Medium:   76 lines

HASSELL CHALLENGES DRUG-RAID MONEY THE $16,000 HELPED BRING DOZENS OF ARRESTS.

Dare County Commissioner Shirley Hassell has filed suit against the county and Manager Terry Wheeler, challenging the legality of a $16,000 appropriation to a state law enforcement agency to buy drugs.

The county money - paid in installments of $10,000 and $6,000 - was contributed to the Alcohol and Law Enforcement agency to aid a four-month investigation of illegal drug activity in Dare County.

The investigation culminated two weeks ago in Operation Season's Greetings, a raid that netted more than 38 arrests on a variety of drug charges.

Hassell, in the suit filed last Friday, claims the money was appropriated in violation of state law. In the suit, she alleges that the appropriation was not formally approved by the full Board of Commissioners.

County officials received a hand-delivered copy of the suit from Hassell's attorney Thursday.

``The county will not comment at this point until appropriate county officials have had an opportunity to review the legal documents,'' Dare County Public Information Officer Charles Hartig.

In the suit, Hassell alleges that the two expenditures were illegal, because the money was not budgeted in accordance with North Carolina law.

In an Oct. 20 letter to Dare County Attorney Al Cole, John Morrison, Hassell's attorney, said the $16,000 appropriation, ``flies in the face of the democratic process.

``The fact that certain commissioners and county officials can expend money without bringing it before the duly elected governing board of the county would appear to be grossly inappropriate at least,'' Morrison said.

Morrison also wrote that the approval was done through an informal telephone poll of commissioners, which he says is in violation of North Carolina's Sunshine Law.

R.V. ``Bobby'' Owens Jr., chairman of the commission, said after the drug raids that he would take responsibility for appropriating the money without a formal meeting. He said public disclosure might have jeopardized the undercover agents' lives.

He also said that the amount was matched by the state for drug-buy funds and was a very small price to pay to curb drug abuse in the county.

Owens said that chances are good that the money will be refunded by the state after it confiscates drug dealers' property and collects fines.

Hassell's suit asks that the $16,000 be replaced in the countybudget, and requests court costs and attorney's fees.

In the October letter, Morrison requested a meeting of the full board to discuss the ALE money, an explanation of how the money would be returned to the county, and a full accounting of any other expenditures made outside the budget process.

The suit also requests that the county comply with Hassell's request for county finance records dealing with a variety of topics, including salaries of county employees, copies of all county real estate contracts, a copy of the assets inventory of all county departments. In all, the request covers 19 specific areas.

Reached at his Elizabeth City office, Morrison said while his client supported the aim of the undercover drug investigation, the method through which it was funded is troubling.

``She was not consulted about this,'' Morrison said. ``Had she been consulted, she would have been a warm supporter of it. Be that as it may, she agreed to keep it quiet so as not to jeopardize the officers involved in the operation.''

Qualifying in county races begins Tuesday. However, Morrison said, the timing of the suit was not politically motivated.

``Mrs. Hassell learned of this in August,'' Morrison said. ``We waited to file the suit until after the operation was completed, to protect the officers involved.''

Morrison also said he had no knowledge of any similar expenditures by the county.

Under North Carolina law, the county has 30 days to respond to the suit. by CNB