COLDWATER, MI (WTVB) – The Coldwater Board of Public Utlities Board of Directors approved a statement Tuesday night that called recent allegations against the utility, the Board, the Michigan South Central Power Agency and CBPU staff misleading.
The City of Hillsdale and the Village of Union City recently made a request to Michigan Attorney General Dana Nessel to investigate what they feel were violations of the competitive bidding requirements by the CBPU and former Director Paul Beckhusen, who is now the General Manager of the Michigan South Central Power Agency.
The controversy surrounding Beckhusen goes back to the fall of 2016 when the CBPU purchased the former Sauk Trail Trading Post building on Division Street.
Union City Village Manager Chris Mathis and Hillsdale City Manager David Mackie have raised strong concerns about the cost of the building and the lack of transparency.
CBPU Director Jeff Budd, who is a member of the MSCPA Board of Directors, said the letter submitted by the Village of Union City to the Attorney General did not tell the whole story and stretches the boundaries of acceptable business practices.
The statement approved by the CBPU board says, “these inflammatory allegations threaten to destroy the ability of our communities to work together. Although one investigation already concluded there was no wrong doing, another investigation has been requested. If another investigation is to be undertaken, the CBPU will not be able to comment further until it is concluded. The Board will fully and openly cooperate with any investigation.”
An investigation by the Lansing law firm of Fraser Trebilcock found no conclusive evidence of wrongdoing by Beckhusen. But Hillsdale Mayor Adam Stockford said in his letter to the Attorney General that newly received documents following a Freedom of Information Act request appears to suggest highly unethical and possibly illegal activities in the bidding process that were not reviewed in the Fraser Trebilcock investigation and that the matter warrants a new investigation by the State of Michigan.


