Lawsuit against Santee Electric moving forward

A lawsuit filed against the board and CEO of Santee Electric Cooperative remains a hot button issue for members of the regional co-op.

Members of the Santee Electric Cooperative met with attorney Jim Barnes in Hemingway last week to discuss a lawsuit being brought against the co-op and its board of trustees. Barnes was attained by members of the co-op who first approached him with the makings of the lawsuit that was eventually filed with the 3^rd Circuit Court in Kingstree on Aug. 6.

Keels Kirby, president of the Santee Electric Members for Change, a steering committee formed to further look into the actions of the co-op’s board of directors, said that lawsuit was filed in part so that Santee Electric board members and management could be held accountable for what Kirby and other committee members say is an abuse of co-op resources.

Barnes reviewed the content of the 26-page lawsuit with interested members at the meeting, which was held at the J.J. Mitcheom Center in Hemingway.

Barnes addressed some member’s questions following his presentation, where he said that the board manipulated the co-op’s current bylaws to it’s own gain. Among the accusations Barnes said are made in the lawsuit, one is that members have made it nearly impossible for other co-op members to challenge them for their board seats. Exorbitant amounts of paper work has made it difficult for someone wishing to be put on the ballot against the sitting board, according to Barnes.

“It’s harder to get on this board than it is to run for the U.S. Senate,” Barnes said.

Barnes also accused the board of further manipulating the system to allow family members to succeed them when they choose to retire from the board.

Other accusations Barnes said are made in the lawsuit include accusing the board of meeting at unusual times, he said in an attempt to run the co-op without the input of the rest of its members. Although he said the by-laws allow for the board to set meeting times and take other steps to run the co-op, Barnes contested that the by-laws have been changed and are “fundamentally unfair” for the rest of its members.

If the lawsuit is successful, board members will be asked to pay back the money that was awarded to them as a result of their alleged wrongdoings, Barnes said. The lawyer said while serving on a board it is expected to receive compensation for travel and a per diem, the sums currently awarded to board members is too much.

“It’s not just skirting the rules,” Barnes said. “It’s slapping the rule in the face.

Responsible organizations do not behave that way.”

The “sticking point” of the lawsuit, according to Barnes, will be the fate of Keels and the board, saying it would be “stupid” for the co-op to move forward after this lawsuit is concluded with the same board and management personnel.

“Some of the things that this board has done has shocked me,” he said.

Barnes said the purpose of the lawsuit is not solely to get rid of Keels; however, the lawyer did say Keels ought to be held accountable for his roll in letting the board take advantage of the co-op.

“He’s an accessory to what they’ve done,” Barnes said.

The Columbia lawyer did say he was encouraged by the co-op’s actions of hiring an independent consulting firm to investigate allegations made by the steering committee and the lawsuit. Barnes said the independent investigation could eventually lead to a settlement, which he said would be preferable to a lengthy court battle.

“It would be enormously expensive for us to go to trial under these circumstance,” he said following the meeting. “So I hope that we can do something short of that but there’s a lot of moving parts.”

Currently, the lawsuit is being funded by supporter’s contributions, and Kirby said Barnes has agreed to be paid whatever the court allocates from a settlement or a court victory.