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Prosecutor steps aside from drain office investigation
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Wednesday, June 21, 2006 10:14 AM EDT
CORUNNA - Shiawassee County Prosecutor Randy Colbry is requesting the Michigan Attorney General's office take over the investigation of county Drain Commissioner Gary Holzhausen.
Colbry reported his decision to the Board of Commissioners at its Committee of the Whole meeting Tuesday, saying he believed it would be “unethical” for him to pursue charges himself.
Colbry also said he has faced accusations that he recommended the investigation to pursue a personal vendetta against Holzhausen. He said those accusations are untrue.
“I've never done anything in my office that was for political reasons,” Colbry said to the commissioners. “And I never will.
“I became convinced that Gary Holzhausen was unethical, that he was incompetent - but I did not do anything until I was convinced that he was committing crimes.”
But, Colbry added, recent events lead him to believe his “personal well-being” would be in jeopardy if he continued to handle the case and, therefore, he could not handle it without bias.
Upon Colbry's recommendation, Michigan State Police investigated Holzhausen and the drain office after allegations that Holzhausen committed several improprieties, including falsely facilitating an unemployment claim for his son, who he appointed deputy drain commissioner, accepting unauthorized soil erosion inspection fees and giving drain office work to Holzhausen Excavating, a Corunna-based business he has ties to.
Holzhausen maintains he was following past drain office practices and committed no wrongdoing. He emphasized that point again at Tuesday's meeting.
“I'll swear on a stack of Bibles; I'll take a lie-detector test,” he said. “Mr. Colbry does have a personal vendetta against me, and I still think it's all political. I believe it's a witch hunt - deep down in my heart.
“I'm not going to take this lying down.”
Several members of the audience clapped after Holzhausen finished his comments.
Michigan State Police Det. Sgt. Mark Pendergraff completed the investigation in April and turned the findings over to Colbry's office. Colbry said he has only recently had time to go over the findings because of his knee-replacement surgery.
The board will have to decide at future meetings whether to petition the governor regarding Holzhausen's alleged misconduct. The governor has the option to remove Holzhausen from his position.
The commissioners did not discuss their feelings about that particular option at Tuesday's meeting.
Colbry also went over the findings of the investigation in his report to the commissioners.
The investigation was one of five recommendations passed by the board in mid-February in an effort to restore faith in the drain office. The other recommendations including halting contracts to Holzhausen Excavating, transferring soil erosion inspection duties to another office and launching an audit of the drain office.
A field assessment of the office held in March resulted in a recommendation to hold a full audit of the office. The board has not yet decided whether to pursue that option. Soil erosion inspections were transferred to the Environmental Health division of the Health Department.
Holzhausen Excavating, which Holzhausen sold to Corunna resident Homer Bennett in 2002, was performing work for the drain office until commissioners voted to stop allowing it. Colbry said drain office employees, while being interviewed by police, said Holzhausen “told them to send work Homer Bennett's way.”
“Gary said ‘Everything's dirty politics,'” Colbry said. “That's his answer to everything.”
Holzhausen has said that drain office work was always awarded to the lowest bidder.
Colbry also said Todd Holzhausen, Gary's son, quit the deputy drain commissioner position after political issues arose from his appointment.
He then tried to claim unemployment from the state and filed “laid off, lack of work” as the reason for leaving his position.
Holzhausen has said that “lack of work” was the closest option available on the unemployment form, which offers three options: Resigned, fired, or laid off due to lack of work.
Holzhausen is also accused of improperly accepting fees for soil erosion inspections. Holzhausen said the board authorized then-Drain Commissioner Bernie Butcher to accept fees.
An “exhaustive search” of board minutes never gave any other drain commissioner authorization to accept fees for the soil erosion inspections, Colbry said.
Holzhausen accepted $5,994 in inspection fees and waiver fees. Butcher never accepted waiver fees and the board never authorized a waiver fee to be charged at all, Colbry said.
“The county should repay those people who were charged for that unlawful fee,” he said.
Throughout his tenure, Butcher accepted more than $31,000 in fees for the inspections.
Colbry said he has not decided whether he will pursue criminal charges against Butcher.
The Attorney General's office will decide whether to handle Holzhausen's case. If they decide against it, Colbry said he will request the office to petition a special prosecutor to handle it.
“I don't think it would be ethical for me to proceed,” he said.
The commissioners will meet again for their regular board meeting at 4 p.m. Thursday in the Surbeck Building.