Birmingham Water Works Board chair Tereshia Huffman allegedly "participated in unethical practices" with contributions from the board's Community Educational Program to charities affiliated with her relatives, according to an ethics complaint filed on Monday.
According to a complaint filed with the Alabama Ethics Commission, the board contributed $10,000 to the Urban League Equal Opportunity Dinner in 2023 at Huffman's request. A relative of Huffman, LaDarrius Hilliard was employed by the Urban League and was directly involved in the initiative. The organization failed to fulfill the corporate purpose. Huffman allegedly didn't disclose she had a relative in the Urban League or abstain from the decision-making process.
The complaint also mentions $10,000 contributions to Danny Carr's Juneteenth Breakfast in 2023 and 2024 at the request of Huffman. The funds were intended to benefit The League of Gentlemen, with the agreed expectation that they would provide students to job shadow BWWB employees. This corporate purpose was never fulfilled, according to the complaint.
The complaint also mentions the Community Educational Foundation funding Camp Wellness Initiative 2024. The initiative was led by Cheryl Hilliard, a relative of Huffman.
It is unclear who filed the complaint. A copy of the complaint obtained by 1819 News had the name of the person filing the ethics complaint blacked out.
"These actions suggest a pattern of directing public funds to organizations with personal connections, often without proper disclosure or adherence to policy requirements. Such behavior raises serious ethical concerns and potential conflicts of interest under Alabama law," the complaint said.
Huffman denied any wrongdoing but declined to comment further to AL(dot)com.
Susan Pace Hamill, a University of Alabama law professor specializing in business organizations and ethics, told the outlet that the allegations merit a closer look.
"In the business arena the board of directors have wide latitude under the business judgment rule to approve corporate funds for charitable purposes but there are outer limits," Hamill told al(dot)com. "Also, scrutiny is enhanced for directors participating in such approvals who have a conflict of interest. Failure to disclose connections to grantees who are cousins sounds analogous to a conflict of interest."
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