A federal investigation related to the city's contract with its former health insurance administrator is over. According to a statement from the Justice Department: "After the careful evaluation of many factors, the U.S. Attorney's Office for the northern district of Texas is no longer pursuing its investigation of the city of Lubbock."
It is news Mayor Tom Martin and City Councilman Jim Gilbreath said they learned last week from the lawyer representing the city in the matter.
"The case is over with. No charges filed. No violations. And actually he hinted that actually it had been concluded sometime last year,” Martin said.
"I'm sure they had their reasons for looking into whatever it was they were looking into,” Gilbreath said. “It's over now and I guess behind us and we move on."
Former City Councilman John Leonard issued this statement: "I am relieved that this 4 year personal nightmare is over. I have maintained my innocence throughout this painful process. It is unfortunate that the personal politics of destruction, initiated by a key elected city official and a few city bureaucrats against a handful of their perceived opponents, were so extreme and costly to the tax payers of Lubbock."
The city is still in arbitration with its former Health Benefits Administration Company, now known as Healthsmart Holdings, over an audit dispute.
Councilman Victor Hernandez said while one chapter may be closed, the other is far from over.
"No doubt that this whole episode has cost the city of Lubbock a lot of money and its citizens a lot of money,” Hernandez said. “We're still going to discuss what direction the city will now take as a result of this. Hopefully we'll be able to discuss that at the next council meeting."
Mayor Martin said that the pending billing and audit dispute is scheduled for hearing before the arbitrator sometime later this year.
