The board of directors of the Natural Gas Supply Association (NGSA) issued a statement last Wednesday, pledging its “full confidence” in the “integrity and leadership” of the producer group’s president, R. Skip Horvath, who was accused of “financial misconduct” and violating internal control procedures in lawsuits brought by two former NGSA employees.

“The NGSA board takes these matters seriously. When the financial allegations were raised almost a year ago, the board conducted a thorough review of Mr. Horvath’s expense reimbursements and dependent-care expenses and found no evidence of impropriety by Mr. Horvath. The review found everything to be in order and in full compliance with NGSA’s policies and practices,” the board statement said.

“While we have yet to be served the lawsuit[s], we are confident that Mr. Horvath will be fully exonerated. Moreover, NGSA will vigorously defend the litigation,” it noted.

The two civil lawsuits, which were filed Nov. 16 in Superior Court in the District of Columbia, claimed that Horvath often failed to provide proper receipts when seeking reimbursement for restaurant expenses involving “substantial” amounts, as is required by new internal control procedures enacted by NGSA; filed false names on his expense reports; increased the qualifying age limit for NGSA’s daycare/childcare credit to “his own personal benefit” without obtaining the approval of the group’s board; claimed more childcare expenses than he actually spent and could verify with receipts; and hired a personal friend as an NGSA consultant for an estimated $18,000 a year.

The “wrongful termination” lawsuits were brought separately by Jodee Mosher Jackson, NGSA’s former comptroller, and Carol Burg, a former executive assistant (Nos. 01-0008472, 01-0008471). The two long-time NGSA employees said they were “abruptly terminated” and allegedly escorted out of the association’s headquarters in Washington, DC, after confronting Horvath about the discrepancies last February.

The lawsuits come two years after former NGSA President Nicholas Bush was sentenced to federal prison for defrauding the producer group of nearly $3 million over a period of more than a decade.

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