EMC members call for vote on forensic audit

A group of Grady EMC members on Monday filed with the management of the EMC a member proposal calling for a third party to be engaged to conduct a forensic audit of the co-op dating back a minimum of 30 years.
In addition to Grady EMC, the members are proposing the audit also include all corporations and LLCs owned by Grady EMC during the last 20 years.
The member proposal is expected to be put on the ballot for the consideration of the EMC members this fall. If approved, a report on the findings would be made to the directors and membership at the 2018 annual meeting.
EMC members Johnny Bell, Mitch Suber, Harold Roberts, Steve Reynolds, Ron Ellis, Charles Ingram, Gordon Clyatt, Claudia DeMartini and members of Take Back our Grady EMC submitted the proposal this week.
According to a supporting statement included in the member proposal, “Grady EMC currently owns part of or all of six for-profit entities: Grady EMC Holding Corporation, SOWEGA Holding Company, SOWEGA Energy Resources, LLC, Baconton Power LLC, Gum Pond LLC and Sugar Cane Properties LLC.
The disgruntled members say they also hope a forensic audit will shed additional light on the loan the EMC board made to former president Thomas A. (Tommy) Rosser Sr., to purchase stock in United National Bank that was owned by the EMC. Rosser Sr., is a founding director of the local bank.
Specifically, the concerned members seek to know if any payments on the loan were actually made and if they were made were they made on time and for the correct amount. The group also is seeking to discover which board members approved payment of annual bonuses to Rosser Sr., that equaled the amount of his loan payments.
Additional issues the group is asking to be audited is the creation of Sugar Cane LLC and the properties purchased and owned by that LLC; why SOWEGA Power LLC was gifted to Georgia Energy by Grady EMC; why Grady EMC paid $39 million to Georgia Energy in 2012-2014; why no electricity was purchased from Baconton Power LLC in 2012-2014, but was in 2015 once questions were raised; why $16 million owed to Grady EMC has not been paid into the capital account of the EMC members; and provide a detailed accounting of the $3.8 million renovation of the EMC headquarters, plus more.
A member proposal was also filed last year by Edward DeMartini Jr., calling for absentee voting to be allowed in EMC director elections. The membership overwhelming approved the proposal last year and this fall’s election will be the first to feature absentee voting.
Earlier this month, Grady EMC President Thomas A. (Bo) Rosser Jr., reported, “After an initial bid request and review conducted with independent counsel and the board, an independent company was selected by unanimous vote of the board to assist in the process – Survey and Ballot Systems – who conduct elections across the country and for a number of EMCs in Georgia. We are finalizing details of that process, which will at a minimum allow members to request ballots from SBS and complete and return to SBS which will provide the results at our annual meeting. Members will only be able to vote either by mail or in person at the meeting. However, the ultimate decision will be made by the Election Committee pursuant to the EMC bylaws.”