SECU Board - Individual Accountability - Ben McLawhorn

Ben McLawhorn 

Ben McLawhorn recently retired as the Audit, Risk, and Compliance Service Director for the North Carolina Office of the State Controller, where he had the primary responsibility for managing EAGLE - the State of North Carolina's governmental accountability and internal control program. Mr. McLawhorn received a B.S.B.A. degree in accounting and information systems from Appalachian State and an MBA from Campbell University. He also holds numerous professional certifications in the areas of information systems security and auditing, and in internal controls and fraud examination. Mr. McLawhorn joined the SECU Board in 2022 and has served on the Audit and Loan Review Committees and advisory boards.

 

 

In profiling my experience with the SECU Board, I noted I had worked directly for only 3 of the 11 current members (Mr. Brinson [link 7/4], Mr. Wooten [link 7/5], Ms. Sanford [link 7/6]. I do however know several of the other Board members; and, given the current "new/new" deterioration have an opinion and questions about each of them - and the separate, individual accountability of each to the 2.7 million members of SECU. Believe most folks agree that remaining silent when a wrong is committed, even as part of a group, confers neither defense nor excuse... nor forgiveness.

 

✅ As you will note from the bio above, no one understands accountability better than Ben McLawhorn. He has fashioned a distinguished career and a statewide reputation out of leading the effort to assure the integrity and responsible control of operations within North Carolina State government - and thereby enhancing the confidence of citizens in their State government. 

 

One memorable experience with Mr. McLawhorn was traveling to App State to speak at the Boyles Distinguished Lecture Series at the Walker School of Business - an invitation suggested to the University by Ben McLawhorn. For those unfamiliar with Harlan Boyles, he was North Carolina's State Treasurer for decades - the State's top banker, the "keeper of the people's purse". Here's what folks said about Mr. Boyles:

"As State Treasurer and as a public servant in other positions, Harlan Boyles earned the respect of colleagues and peers throughout North Carolina and the nation for his financial acumen, his knowledge and wisdom, his strength of character and especially for his great sense of personal integrity." 

 

✅ The theme of the lecture was "Stewardship", which is that personal responsibility of public servants to maintain their "great sense of personal integrity" despite the pressure, despite the fear, despite the personal costs, despite "what others think". Ben McLawhorn understands accountability, he inherited the mantle of public servant from people like Harlan Boyles! Mr. McLawhorn is - as an SECU Board member - the financial steward of the welfare of 2.7 million North Carolinians.

 

✅ Under the "new/new" over the last 2 years just in the area of internal controls: 1) the innovative and effective SECU system of internal audit and control (never a scandal, an unblemished streak of clean audit opinions, and never sanctioned by regulatory authorities over 85 years!) has been dismantled and discarded, 2) in 2022 the internal candidate selected to lead SECU audit functions - after a nationwide search - was "forced out" and replaced by the "new/former" CEO's internal auditor from Andrews FCU (you really can't make this stuff up folks!), and 3) the availability of full monthly financial statements to members and staff has been stopped. Let alone the very evident lack of transparency by the Board on issues such as the "no formal formal merger" proposals, "CU Updates" legislation chicanery, open membership, refusal to disclose loan rates to members prior to application on risk-based lending (RBL)...

✅ But this post has gone on far too long, sorry... given that mention of RBL, let's segue to the clincher which hopefully will outrage everyone including Mr. McLawhorn. Recall that the State Employees Association of North Carolina (SEANC) back in February, 2023 requested the SECU Board to rescind the introduction of RBL, until a discussion could be held. SECU disregarded the request and went ahead and introduced RBL on March 1, 2023. 

 

But SEANC pursued the meeting which was held on March 23, 2023, without effect. Prior to the meeting SECU investigated the credit records and credit scores of the meeting participants coming over from SEANC. 

 

❓What could be the purpose of that sort of look up, especially when the Fair Credit Reporting Act limits access to your credit report by SECU to a "legitimate business need"? What was the "legitimate business need" for SECU in this situation prior to the meeting?

 

✅ In the past, SECU internal audit and control folks - all employees for that matter - were advised to pursue the following in their work: ✔ Always tell the truth, the whole truth, and nothing but the truth. and ✔ Telling the truth takes discipline, telling the whole truth takes grace, and telling nothing but the truth takes courage. 

 

In summary just: "Do the Right Thing!"

 

Mr. McLawhorn, why is this happening at SECU? 

 

... and how much longer can a good steward remain silent? 

 

 

 

 

SECU Board Of Directors - Individual Accountability - Jo Anne Sanford

   Jo Anne Sanford  https://secuvote.ey.com/

 

Jo Anne Sanford has been a member of the SECU Board of Directors since 2005.  After 20 years with the North Carolina Attorney General’s Office, she was appointed to the North Carolina Utilities Commission  For most of her tenure at the Commission she served as Chair.A graduate of NC State University and the School of Law at UNC-CH, she has extensive experience in regulated utility industries. She practices law in Sanford Law Office, PLLC 

 

At SECU I worked with only three of the current 11 SECU Board members, Mr. Bob Brinson [see 7/4/23 post], Mr. McKinley Wooten, Jr. [see 7/5/23 post], and the third person was Ms. Jo Anne Sanford. Ms. Sanford had a distinguished legal career with the N.C. Attorney General's Office and was well-known for the depth of her expertise across a broad range of governmental affairs. An exceptional "networker", Ms. Sanford excelled in building strong relationships - long before digital calendars, alerts and LinkedIn made that a simple process. Ms. Sanford was also a "top table" political player in her party, as proved by her appointment to the N.C. Utilities Commission - one of the ripest and richest plum positions in State Government. At the Utilities Commission from 1995-2007, she served as chair and became a nationally recognized expert in the regulated utilities field.

 

✅ Since 2007 and for most of her tenure on the SECU Board, Ms. Sanford has practiced law, consulted with and lobbied on behalf of the most prominent regulated utilities in the State - the type of transition from being the chief regulator of an industry to being a highly paid consultant and lobbyist for that same industry, which often gives ordinary citizens pause. Ms. Sanford's decades long work as a lobbyist is notably absent from her SECU published bio blip. I never found any concerns with that work, nor transition. SECU after all was not in the utilities business, had no political agenda with the State Legislature, took no sides in politics, didn't even employ a lobbyist - but that was over 7 years ago. Things have changed at SECU.

 

SECU knew its purpose and mission - improving the financial stature of member-consumers in North Carolina - which was, and remains, a never-ending challenge, a full-time Sisyphean struggle for progress, against the odds. But things have changed at SECU.

 

✅ After 2007, Ms. Sanford's clients and associates were of course not your typical N.C. teacher, highway patrolman, healthcare employee, prison guard, or highway worker. Lobbying and consulting for companies such as Carolina Power and Light, Duke Power, and Piedmont Natural Gas was far more corporate. Ms Sanford became a player in winner-take-all merger and takeover brawls, high stakes regulatory influence hawking, and play-for-keeps political machinations. For reference check out the CP&L/Duke Power merger disaster in 2012. Enough to make even Machiavelli blush!

 

Definitely the fast lane! Master-of-the-universe power-seeking, which has been known to intoxicate even the most rational of egos. Folks caught up in such a "separate universe", often times, tend to reflect the company they keep, come to believe that their experiences are the norm, and that their world is the real world. It isn't - at least not for most SECU members.

 

✅ Ms. Sanford became the chief proponent of business/commercial services at SECU, which seemed to reflect the interests of her corporate associates and clients more than the traditional members of SECU. The topic was well-researched and presented to the full Board on several occaisions. Impartial, arm's-length analyses found that SECU could not provide business/commercial services of higher quality, nor at lower costs than the banking industry. When surveyed, business operaters indicated they needed far more than just a checking account or occasional loan; they needed payment processing, payroll and tax help, cash and coin, and accounting support. There was little interest in business/commercial services from SECU and none if the service offered no financial advantage to the business owner. Why "switch banks" if there was no advantage? There was clear evidence - still is ! - that the North Carolina banking industry would be enraged, and would oppose, the commercialization of SECU. The Board as a whole was convinced, but not all seemed bothered by the facts. "Off the table, behind the scenes" maneuvering began to blossom - always dangerous for transparency and open discussion in a member-owned cooperative, but not unusual in the corporate world 

 

❗The New Election Procedures, however, are the most unsettling legacy which Ms. Sanford has sponsored for the SECU membership. Don't even need to dust the file for fingerprints. As the best, most experienced "corporate" attorney on the Board, her imprimatur is clear.  More on that shortly. Spoiler alert: It's not a pretty picture. https://secuvote.ey.com/

 

✅  The definition of a lobbyist or "special interest" in the political sense is a group that tries to influence government or business decisions to benefit itself. Perhaps it is naive to believe that an organization like SECU can remain above the fray of politics, pressure groups, and special interests. But, it did so for 85 years. https://secuvote.ey.com/

 

✅ Events of the last two years all smack of a new "corporate consciousness" at SECU. The "new/new" has quickly undermined the long track record of financial success and fair dealing at SECU. Bad ideas based on pet peeves, personal agendas, and special interests - without fact-based, honest data and research - will always lead to bad results. Why is this happening at SECU? https://secuvote.ey.com/

 

... a "new/new" corporate consciousness of "special interests" at SECU? - unconscionable! https://secuvote.ey.com/