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Brownsville PUB audit raises questions over involvement of Cameron County judge's law firm

1 year 6 months 2 weeks ago Wednesday, October 12 2022 Oct 12, 2022 October 12, 2022 9:10 AM October 12, 2022 in News - Local

After the Brownsville Public Utilities Board announced it will conduct a review of the forensic audit that alleges customers were charged $118 million for a project that never came to fruition, Channel 5 News decided to take a look at where some of that cash may have gone to.

According to the audit, $30.9 million of that amount has already been spent  and a majority of those costs were for engineering and legal fees. Eleven vendors charged Brownsville PUB more than $25 million in total.

RELATED: Brownsville PUB customers demand answers at first board meeting since release of forensic audit  

Among the vendors on the list is current Cameron County Judge Eddie Treviño Jr. Treviño’s law firm racked up nearly $1.3 million in fees for work related to the failed project between Brownsville PUB and the energy company Tenaska. 

Treviño released a statement in response to the audit that reads in part, "My role was as a legal advisor and not as a decision-maker." 

The statement goes on to read that his law firm, which worked as the board's general legal counsel, "billed fairly and accurately for my time associated with this project and representing BPUB in other matters."

While the audit found no evidence of misgivings on the billing statements, auditors questioned Treviño’s involvement in the project.

RELATED: Forensic audit shows Brownsville PUB customers paid for project that 'never came to fruition'  

“...we could not ascertain why Treviño was involved in the Project to that extent, given that there were six other firms associated with legal fees for the Project and given his role simply as board counsel," the audit stated.

The report shows that of the $1.9 million paid to Trevino's law firm from 2013 to 2018 as general counsel, $1.28 million was for work related to the failed project. 

The audit goes on to read that Trevino's “role as board counsel was a potential source of conflict due to his elected position of Cameron County judge. In fact, it appears to be that conflict that sparked his resignation in late 2017."

The judge responded to that claim in his statement, saying in part, "I resigned my position as general counsel with BPUB in the latter end of 2017 in order to devote more time to my then recently assumed elected position as Cameron County Judge which began in November 2016. To be clear, there was no actual or apparent conflict of interest between my position as County Judge and my responsibilities as general counsel for BPUB."

Trevino goes on to say that the auditors do not claim there is any evidence of Trevino being involved in improper activities, irregularities, or illegal acts on his part. 

But the audit does claim that Trevino, along with CEO John Bruciak and others, knew by April 2017 that the project had essentially come to a stop. 

At a Monday board meeting, Brownsville PUB Chair Sandra Saenz said the board will conduct its own review of the audit due to "some potential factual issues."

Read Trevino's entire statement below:

"As former general counsel for the Public Utilities Board of Brownsville (“BPUB”), I was involved in many legal matters including but not limited to employment and personnel issues, litigation, real estate matters, coordination with other legal counsel, Open Meetings Act and board issues, administrative legal issues, as well as advocacy with state and federal agencies on related projects and issues. My role was as a legal advisor and not as a decision maker. As general counsel, I was not asked to provide an opinion on the economic or technological viability of the Tenaska project.

My law firm was retained as general counsel along with other firms providing legal advice and as a professional, I billed fairly and accurately for my time associated with this project and representing BPUB in other matters.

During the 5-year period as general counsel, our firm billed BPUB approximately $1.28 million for reasonable and necessary Tenaska related services, which was a part of the approximately $9.2 million spent for engineering and legal services for this project.

I resigned my position as general counsel with BPUB in the latter end of 2017 in order to devote more time to my then recently assumed elected position as Cameron County Judge which began in November 2016. To be clear, there was no actual or apparent conflict of interest between my position as County Judge and my responsibilities as general counsel for BPUB.

Neither Carr, Riggs & Ingram (“CRI”) nor The City of Brownsville (“COB”) ever spoke or consulted with me nor asked for my input into the investigation and preparation of the “Tenaska Forensic Examination Report.” CRI does not purport to claim that there is any evidence of improper activities, irregularities or illegal acts on my part as none exists. In fact, a fair and objective reading of the Report’s Conclusions beginning on pg. 68 demonstrates that no such claims are made against me.

I stand by the quality, professionalism, and ethics of the work I performed as general counsel for BPUB."

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