Hugo News Tuesday, 12/30/2014 HUGO — Yet another bizarre chapter in the on-going Choctaw Electric Cooperative shake-up was written last Tuesday, when eight members of the board tendered their resignations, and six were replaced. With the exception of longtime board member Buddy Anderson, who was the lone member not to resign, the board’s action derails a months-long effort by members of the cooperative who have successfully circulated and qualified a petition calling for the entire board’s removal over what they have alleged were bad business practices. Many of the members’ allegations laid the groundwork for the exposure of former manager Terry Matlock’s utilization of cooperative equipment for personal use, as well as the previously unannounced $1.9 million gift from the board, which was later recovered after his termination. The fact that Anderson is still the only remaining member of the original board, will requires the CEC board to call a special meeting, for the singular purpose of subjecting Anderson’s position to a vote by the membership. Contacted by Hugo News, Anderson stated, “I’ve been on this board for a long time, about 30 years, and I don’t feel like I’ve done anything wrong... anything to resign for. I feel obligated to the people in the district who have supported me for these many years. I just don’t feel like throwin’ in the towel.” Anderson said that Tuesday’s meeting was guided by the cooperative’s attorneys, Bob Rabon and Larry Derryberry. “At the beginning of Tuesday’s meeting, four board members tendered their resignations which left a quorum of five. Then nominations were made and voted on for their replacements,” Anderson said. A recommendation made by long-time board member Bill McCain of Idabel, to appoint David Ritchie to be voted upon as his replacement, apparently proved a bit problematic. Following McCain’s recommendation, Ritchie was actually voted on and approved. Subsequently, it was learned that he did not live in McCain’s district, but in Dist. F, served by Joe Brisco. Anderson said that after submitting his resignation, Brisco left, and was not present when the board took a second action to seat Ritchie in Brisco’s district. Anderson added, “I have respect for our legal people, and they pretty much ran the meeting to see that everything was legal.” Asked if the board made a determination as to its new officers, Anderson stated, “No, I don’t recall any action to elect officers. I assume that will be done at the next meeting.” Assuming that Anderson does not resign, that special meeting of the membership must be called no later than Jan. 25, and notice of that meeting must be served to the membership no less than 10 days prior to the meeting. Several members of the cooperative, who were influential in circulating the petition calling for the board’s removal, were furious at the board’s recent action, especially in the face of the membership’s attempt at selecting its own member-representatives. They also pointed out that the board’s ploy could be used repeatedly to deny the members an opportunity to select their own board members in the face of an ouster petition. The Hugo News was told that at the most recent meeting Tuesday, eight of the board members resigned one at a time, and their replacement being “suggested” by the resigning board member. Members resigning included: Mike Bailey, Bob Hodge, Rodney Lovitt, Bill McCain, Henry Baze, Bob Holley, Joe Brisco and Larry Johnson. Following are their replacements: Dist. C: James Woods, (replaces Bob Hodge, Bethel). Dist. E: Neil Birchfield (replaces Henry Baze, Rattan). Dist. F: David Richie (replaces Joe Brisco, Fort Towson). Dist. G: Danny Antwine (replaces Bob Holley, Antlers). Dist. H: Mike Brewer (replaces Larry Johnson, Hugo). Dist I: Marcia Wright: (replaces Rodney Lovitt, Nashoba). Open seats: Dist. B: (previously Mike Bailey) Dist. A: (previously Bill McCain). CEC’s interim manager, Joe Harris, stated that there was a “quorum present at all times” during the resignation and reappointment process. A press release was issued following the meeting reporting on the actions taken with respect to the board resignations and replacements. No mention was made as to whether any of the replacement directors were named as officers. One of the petition leaders, Douglas Felker, had this to say about the recent board’s actions. “It’s evident that the former board didn’t represent the best interests of the membership, so of course there’s not much confidence in their hand picked board either. “If the newly appointed trustees fail to let the membership elect who they want to represent them, we will petition to have them removed as well. It wasn’t too difficult the first time. This is one of the seven cooperative principles. It’s listed on CEC’s webpage as well as most all other electric co-ops. “Cooperatives are democratic organizations controlled by their members, who actively participate in setting policies and making decisions.” Another action relating to the approval of a union contract by outside workers was taken at the meeting, but was not included in the press release. (See related story next to this article on page 1.) The CEC press release included a number of comments by the outgoing board members. • Mike Bailey (President): “The Board of Trustees has heard from the members of the cooperative. It recognizes there is significant member unrest which has been focused on the Board of Trustees. It is distracting to the board and to the membership. The board wanted to allow the cooperative to progress toward the positive.” • Bob Holley: “The men who have served on the board have done so out of a sense of loyalty and responsibility. They were shocked to learn that wrong doing occurred, but took quick action to replace the general manager (Terry Matlock) recover more than $2 million from his annuity, and hired a team of investigators to conduct a full and thorough investigation of wrongdoing at the cooperative. The investigation, in fact, showed what appeared to be improper and perhaps criminal activities. The board turned over all investigative materials to the Oklahoma State Bureau of Investigation with a request that the Bureau fully investigate the cooperative, including management, employees and board members. The investigation is ongoing.” • Bob Hodge (Vice-President): “The Board members who resigned today do so with the hope that the cooperative will continue on the path of recovery from the unfortunate and wrongful actions that caused membership concerns with the management and board. Those of us who resigned want only the best for our cooperative. We will continue to be members and we will continue to be supportive of whatever positive actions are taken by the board or of the membership.” • Bill McCain: “We leave with heavy hearts about allegations and unkind remarks about the integrity of the board members. Nothing could be further from the truth. We leave because we want to go on with our lives and to allow new board members to move the cooperative forward.”
Posted on: Wed, 31 Dec 2014 05:49:32 +0000
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