PORTSMOUTH, Va. — A work session for the Portsmouth City Council meeting took a turn Tuesday evening when City Manager Tonya Chapman called to investigate thousands of dollars in missing funds under her predecessor, Angel Jones.
In the work session, Chapman said in April, city staff purchased $3.2 million in gift cards with American Rescue Plan Act (ARPA) funds.
The city rolled out the gift card giveaway in June for direct relief to seniors and other residents struggling with the impacts of the pandemic.
However, in September, Chapman noted that $2.3 million in gift cards remained, "unsecured" in an employee's office.
Once the city's interim CFO began an investigation, Chapman alleges the money was unaccounted for.
“Initially, we thought that there were approximately $3,000 worth of cards unaccounted for. After further investigation by the interim CFO, there appears to be approximately $80,000 worth of unaccounted-for cards,” Chapman told council members.
Chapman also said the first gift card giveaway was not planned well and alleges the list of residents who received the cards included duplicate names and IDs, and whether they received more than one card is still being investigated.
"That matter has been turned over to the proper authorities and we’re continuing to investigate on our end,” she said.
Chapman went on to say the majority of the gift cards were activated.
"We are continuing to investigate the issue as to why so many cards were activated at one time," Chapman said. "Unfortunately, the staff are no longer here to answer those questions."
Chapman also stated the gift cards were set to expire in May or August of 2023.
"So, we need to distribute these cards as soon as possible," Chapman said.
Chapman then recommended council distribute the gift cards to people in neighborhoods that meet ARPA guidelines.
Chapman said the remaining $2.3 million in gift cards have been turned over to social services and the Portsmouth Police Department and the city treasurer to get them to secure locations.
Former Deputy City Manager Mimi Terry spoke up at the end of the city council meeting Tuesday night to defend herself and former City Manager Angel Jones, saying she wanted to make some things "crystal clear."
"The city manager relieved me of my duties on Friday, September 23 without cause," she said. "But since then, I have heard so many lies about me that I can't even keep up with them. If I could just start with the gift cards."
Terry accused Chapman of lying about the gift cards and the missing funds. She offered her own data she kept during the time they were being distributed, saying all the funds are accounted for.
"Investigate something that is worthwhile," she told Chapman from the podium. "Cease and desist with the lies."
Chapman said once they finish their internal investigation, she will determine if a deeper dive from an outside agency is needed.
This all comes after a lawsuit between Chapman and others on council.
In a letter obtained by 13News Now dated October 7, Chapman made a breach of contract allegation, accusing Mayor Shannon Glover and Councilman Bill Moody, in part, of actions that create a hostile work environment.
According to another document obtained by 13News Now, an independent law firm hired by the City of Portsmouth found the alleged actions by Mayor Glover and Councilman Moody did not constitute a breach of Chapman's contract.
Jones is also suing the City of Portsmouth for over $5 million. She alleges she was wrongfully terminated.
Jones claims several reports of bribery, "pay to play" atmospheres, and misconduct of several city council members.