Hawthorne Welcher’s resignation letter sheds no light on why the embattled Augusta director resigned, but emails show Welcher has requested severance pay.
Welcher has been on leave since April 2 after revealing March 21 that the U.S. Treasury had been demanding a refund of a $6.5 million grant since at least Nov. 8.
He tendered his resignation May 23 effective immediately or within two weeks, four days after the FBI visited the city finance office for unspecified reasons. The Augusta Commission unanimously made it official Tuesday, effective June 6.
His department, Housing and Community Development, had spent enough of the money “to fund other functions,” according to correspondence placing him on leave with pay until the completion of an internal audit.
The unaccounted-for funds left the department with insufficient funds to make the refund, correspondence showed. The Augusta Commission on April 1 repaid the money from the city’s general fund. The city has filed an appeal to get out of Treasury’s more recent demand for more than $2 million in interest and penalties.
Unlike many employees who resign amid scandal or other problems, Welcher’s resignation letter, released Tuesday in response to an open records request, offers no explanation for his departure. His decision to resign was “not made lightly,” but he makes no mention of the refund scandal and FBI visit.
It also makes no mention of Augusta’s policy of awarding “golden parachutes” to longtime employees in leadership roles.
But correspondence obtained by The Augusta Press revealed his initial resignation letter sought “severance where applicable.”
A few hours later, Welcher rescinded the earlier letter and replaced it with a new one. The new letter deleted references to severance, according to correspondence from Administrator Tameka Allen.
The severance policy, which the commission has followed numerous times, awards senior executive employees a month’s pay and benefits for each year they served in top roles, up to 10 years.
The policy covers senior employees who leave for almost any reason. It covers those who resign or are fired by the commission without cause. The employees are required to sign a release of all claims.
Welcher was named director of Housing and Community Development in 2015. The department is credited with guiding the large-scale redevelopment of the Laney-Walker and Bethlehem communities, as well as overseeing a large array of U.S. Housing and Urban Development grants and more recently, COVID relief grants.
The ongoing audit is termed a grant compliance audit and cites approximately nine grants over which the department currently has oversight.
His resignation letter notes his “17 years” of service to the city that were “professionally and personally rewarding” and a source of pride. He departs with “many fond memories.”
Hawthorne Welcher resignation letter by Susan McCord on Scribd
