REVEALED: Ag Director used City funds for personal herbal supplements

REVEALED: Ag Director used City funds for personal herbal supplements

By Marla Jones,Managing Editor • marla@southerntorch.com

RAINSVILLE, Ala. — Southern Torch requested and has now received financial documents and records from the City of Rainsville and the Public Building Authority (PBA), the entity that owns the Northeast Alabama Agri-Business Center. The documentation includes general ledger accounts of the Ag Center’s general operations as well as credit card statements of the credit card issued to the Center’s director, Mike Sweat.

Previously, the Rainsville City Council held a special called meeting with a private executive session on January 10 to discuss the good name and character of a City employee. In the meeting, the Council met with members of the Agri-Business Center Board and the PBA Board.  Once the Council returned to the public portion of the meeting, Councilman Marshall Stiefel made a motion to terminate the employment of Agri-Business Center Director Mike Sweat, who is a City employee.

Stiefel stated, “After reviewing the financial records presented by the PBA, I feel that Mr. Sweat must go. He is one of the highest paid employees in the City of Rainsville and should be held to a higher ethical standard.”  The motion died due to the lack of a second motion by any other Councilmembers.  The meeting then adjourned.

Aside from normal charges on the PBA credit card such as facility supplies, fuel, and equipment expenses, there were questionable charges on the monthly statements.  The suspect charges we discovered were:

  • $1,707.50 paid to Parker Realty of Mexico Beach, FL
  • $199.56 paid to GoDaddy.com
  • $864.47 paid for personal herbal supplements such as Nitro Muscle Boost, Anavar Boost and others
  • Numerous charges were made at local restaurants in amounts ranging from $6 to $90+

Southern Torch reached out to Rainsville Mayor Rodger Lingerfelt for clarification on the questionable charges, but he could not be reached.  Sweat was contacted for comment, but declined to give a statement.

PBA President Eric Samples commented that the recent changes in financial management procedures were implemented on the recommendation of auditors and that the PBA credit card now was controlled by the PBA Board.  Recently, the PBA Board informed the City Council on December 17th, 2018 that the Director’s authority to manage finances and sign checks on behalf of the PBA had been taken away.  As to any impropriety pertaining to Sweat’s handling of PBA finances, Samples stated, “I don’t know of any...so I can’t comment on that.”

Councilman Brandon Freeman is the City Council liaison to the PBA Board.  When contacted for comment on the contents of the documents disclosed, Freeman stated, “The credit card he (Sweat) had had a $2,000 limit on it...he could do whatever he wanted on that (credit card) without (PBA) board approval.”

Financial records reflect that in fiscal year 2018, the City paid on the behalf of or contributed to the PBA Board:

  • $154,187.88 for the Director’s salary, benefits, facility insurance, & utilities
  • $150,644.96 for general operations
  • $204,000 for debt service
  • Total: $508,832.84

Southern Torch will continue to follow this story as it unfolds.  We plan on requesting additional documentation to clarify some of the questionable expenses that the PBA Board has incurred.  

These public records are available for inspection (during business hours) to anyone who is interested in stopping by The Southern Torch office to review them.