Officials mum on 'rumors' of settlement with town accountant
By ANIKA CLARK
aclark@s-t.com
July 28, 2011 12:00 AM

WAREHAM — Nearly four months after town accountant Elizabeth Zaleski was told she was being fired from her job, rumors are swirling about a possible settlement in her case. But as of Wednesday afternoon, lawyers and town officials remained tight-lipped.

Town Administrator Mark Andrews and selectmen reached by phone Wednesday declined to confirm or deny whether there had been a settlement, although Andrews said he hoped to have an update on the matter by the end of the week.

"I can tell you that rumors of a settlement of $250,000 are exactly that: rumors," Selectman J. Michael Schneider said. "I really can't disclose any information beyond that."

Selectman Cara Winslow, similarly, referenced the rumored $250,000 figure, saying "I honestly have no idea where that came from."

Selectman Stephen Holmes said Wednesday night that work issues caused him to arrive late to an executive session Tuesday night and he said he doesn't know whether a settlement has been reached.

But he said he opposes a settlement, explaining, "My opinion has always been that we should have continued with the hearings to find out what really happened."

The brouhaha over Zaleski's employment started in the spring with a draft fiscal 2010 audit report that cited a variance of roughly $919,000 between the general ledger and the treasurer's records. While saying the treasurer's balances were accurate, "you needed to reduce cash on the general ledger to match the treasurer's balance," according to James Powers, a partner at Powers & Sullivan Certified Public Accountants.

The draft report cited an "inordinate amount of unsupported journal entries being posted to the town's general ledger" and said that, although the discrepancy may be due to "insufficient cash procedures" in fiscal 2010, it's "most likely a culmination of many years of insufficient procedures."

In reaction, Winslow called for the accountant's dismissal and/or Andrews' resignation.

Within days, Zaleski's termination was announced via a news release with Andrews' letterhead, and emailed from the account of Wareham Police Officer William E. Fihlman. The announcement said Zaleski's termination was effective that day, but her attorney John J. Clifford argued that "the town charter specifically states that if the appointing authority wants to terminate someone, you give them notice of your intention to terminate."

Generally, he said, "you would probably place the employee on ... paid administrative leave and then you would give them the opportunity to ask for a hearing."

At the May 19 hearing, no decision was reached regarding Zaleski's employment. Andrews has repeatedly declined to comment on what he's called a pending personnel and legal matter and attorneys on both sides declined to comment this week. Reached by phone Monday, Zaleski referred questions to her lawyer.

Andrews did, however, say Zaleski has continued to be paid and has kept her status as a town employee in the interim, although Winslow said Zaleski hasn't been working as town accountant.

While saying he's limited in what he can discuss due to privacy issues and the parameters of executive session, Schneider said he hopes a public statement will be made soon.

"I want the public to be fully informed of what its government is doing," he said. "And I think to the extent that we can without harming the town's litigating position or harming anyone else ... we have to do that as soon as possible."