The Knox County Ethics Committee will investigate counter-claims by County Mayor Mike Ragsdale, and County Commission Internal Auditor Richard Walls, that each has abused his power to influence the other.

"We take every issue seriously, but this is a very serious issue," says Lewis Cosby, a citizen member of the Committee and an accountant.

Cosby says Mayor Ragsdale and four of his top assistants--Chief of Staff Mike Arms, Finance Director John Troyer, Chief Administrative Officers Dwight Van de Vate and spokeswoman Susanne Dupes --
could face felony ethics charges if the Committee finds merit in Walls' claims that they've misused their power by moving his budget and asking outside auditors and peer review groups to
review his actions.

Walls' ethics complaint alleges such retaliation is a response to internal audits that found the Mayor and his subordinates misused their auto allowances and County purchasing cards; permitting irregularities in travel spending, "hospitality" spending and in the awarding of community grant monies.

"There were certain statements issued in the media by the Mayor's office that Mr. Walls feels attacked him personally and were unethical and uncalled for," says Dr. Richard Briggs, a Knox County Commissioner and Ethics Committee member.

The Mayor's Office request for an outside investigation alleges that Walls has violated Knox County's Charter and compromised the independence of his office.

It further alleges that Walls' audits and actions have failed to meet standards of the federal General Accounting Office and the Knox County Code.

"There were individuals the Mayor's office raised allegations about," Cosby says.

"Ethical improprieties of Mr. Walls."

The Mayor's Office claims Walls never has audited the funds of the Knox County's Retirement Board. Recent reports have indicated the Board may be $11-13 million dollars short of the funding it needs to remain solvent.

The Mayor's Office further alleges Walls has done little or nothing with an outside audit that indicates weaknesses in the Knox County Trustee's payroll system, such that $100,000 may be missing.

It also accuses Walls of failing to disclose that his son works for an un-named County elected official; a possible conflict of interest.

"I do not want to pass judgment on this until we hear all the facts," Briggs says.

The Ethics Committee has hired its own auditor to review
each side's claims. But that in itself, raises questions among some Committee members.

"We're starting to create a quagmire," says Committee member Elaine Davis.

"And at some point we have to rely on the people that perform the audits."

Walls staff told Volunteer TV News that he was in Nashville Wednesday, unavailble to take questions regarding his ethics complaint or the Committee's decision to investigate it.

Mayor Ragsdale has declined to take questions, issuing instead a written response that calls Walls' complaint "without merit."

The Ethics Committee will meet to discuss its findings July 29.