Lenoir County defends taxpayers in $1.34M contractor payment dispute

A statement from Lenoir County:

We acknowledge the ongoing legal dispute concerning the $1.34 million dollar payment intended for a contractor hired by the County. The County values the relationships we maintain with our vendors and takes seriously our responsibility to act with integrity and accountability.

This particular matter stems from a cybersecurity breach that occurred outside of the County’s systems. While we regret the circumstances, we must be clear: our obligation first and foremost is to protect the interest of the taxpayers we serve. To that end, the County has made multiple good-faith efforts to reach a reasonable and fair resolution with the contractor that would not prejudice the taxpayers of Lenoir County.

It’s important to note that the Administration Building renovation was not funded with local tax dollars, but through external grant funding. Nevertheless, the County has a duty to ensure that all public funds, regardless of source, are managed responsibly.

This incident involved multiple parties, including a third-party construction administrator. In light of that, we do not believe it is reasonable, or in the public’s interest, for the County taxpayers to absorb the full financial impact of this situation.

The County was the party that initiated contact with the FBI to launch a formal investigation, which is ongoing. We also undertook a full internal review of our cybersecurity infrastructure, which confirmed there were no breaches or vulnerabilities within our systems that led to the fraud.

We remain committed to resolving this matter in a fair, lawful and transparent manner. At the same time, we cannot overlook the significant lapses in third-party cybersecurity and communication that led to this situation. We continue to urge all parties to work toward a resolution that reflects mutual accountability.

Out of respect for the ongoing legal process, and advice from counsel, we will not be commenting further on the specifics of the case at this time.