Valley Metro board may seek police probe of CEO Banta

• The board that oversees Valley Metro has called for a special meeting Dec. 3
• The members will discuss whether to fire and seek a criminal investigation of CEO Stephen Banta
• Banta was reimbursed for dinners with transit officials who told The Republic they didn't attend

The board that oversees Valley transit has called an emergency meeting Dec. 3 to determine whether to fire and seek a criminal investigation of Valley Metro CEO Stephen Banta over irregularities in his expense accounts.

One prominent board member, Phoenix City Councilwoman Thelda Williams, said she believes a police inquiry is warranted in light of an Arizona Republic investigation that found Banta claimed to have entertained transit officials from several cities at taxpayer expense. Those executives told the newspaper they never attended the dinners.

Banta resigned abruptly Tuesday as news of the Republic investigation became known at Phoenix City Hall. He said his resignation would be effective in January, but Williams said she believes the board should consider terminating him immediately.

But firing Banta could be costly. His employment contract calls for him to receive his full $264,493 annual salary for a year if he is terminated. The contract says there is no compensation if he's found guilty of a crime related to his job or "moral turpitude."

Valley Metro CEO resigns amid Republic investigation

Banta was traveling Wednesday and was unavailable for comment.

Among the discoveries by The Republic, Banta claimed in writing and was reimbursed $1,340 for four dinners over the past 12 months for entertaining transit executives in Portland, Ore., San Diego and San Francisco. However, those executives told The Republic they didn't attend. The Republic also found that Banta was reimbursed for flying first class, staying at expensive hotels, taking a European vacation and buying alcoholic drinks — the latter a violation of Valley Metro policy.

Williams, the councilwoman, chairs the five-member Valley Metro Rail Board. Williams also is treasurer of the 16-member Valley Metro regional transit board.

Avondale Councilman Jim McDonald chairs the larger board, which is composed of elected officials throughout Maricopa County. He said he agreed to the special meeting. McDonald said he was unaware of Banta's spending until it was uncovered by The Republic.

A spokesman for Phoenix Mayor Greg Stanton said Wednesday that Stanton's office pressured Banta on Tuesday to resign after it became aware of the newspaper's investigation and independently reviewed the same documents obtained by The Republic. The newspaper gathered hundreds of pages of Valley Metro expense records through the Arizona Public Records Law, which allows for the release of such records.

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Yet, Stanton issued a statement Tuesday praising Banta for his good work.

Stanton said Banta had worked to build a stronger public-transit system in the Valley, and "we will be better in a better place for many years because of his service." Stanton also stated that he respected Banta's decision to "seek new challenges."

On Wednesday, after becoming aware from The Republic that Banta had charged Valley Metro for meals in which the reported guests said they never attended, Stanton's office issued a new statement: “This new information is troubling, and it warrants a more thorough examination of these records. Charging taxpayers for meals for officials who were not even present is not acceptable," Stanton said.

Banta was hired in December 2009 and given a five-year contract extension in 2012.

He reports to both transit boards, who approved his most recent contract. Stanton and then-Peoria Vice Mayor Ron Aames signed the most recent deal that also gives Banta an annual $40,000 annuity, deferred compensation plan and participation in the state pension plan.

Hillary Foose, a Valley Metro spokeswoman, declined to answer questions Wednesday regarding Banta's expenses, other than to insist he abided by his employment agreement.

Foose also declined to discuss what due diligence was done to ensure Banta's expense reports were accurate. Chief Financial Officer John McCormack, who routinely approved Banta's expense reports, was unavailable for comment.