City officials inspecting traffic signals during an internal audit investigation.
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Sponsor Our ArticlesA recent report by the Tennessee Comptroller reveals that three former traffic signal electricians in Chattanooga allegedly misappropriated over $79,000 in unpaid wages. The investigation, which spanned from 2017 to 2022, highlighted serious deficiencies in internal controls and raises concerns about how taxpayer funds are managed. With partial repayments initiated, the city now faces pressure to improve oversight and compliance in its payroll practices.
In an eye-opening report from the Tennessee Comptroller, the city of Chattanooga is facing some serious scrutiny after discovering that three former traffic signal electricians allegedly misappropriated a whopping $79,219.54 in unpaid wages. Yes, you heard that right! That sum equal to the salary of many people for an entire year, just going unaccounted for.
Traffic signal electricians play a crucial role when signals go haywire, working late nights and weekends to help keep Chattanoogan’s streets safe. These electricians were supposed to be on-call, taking turns to respond to issues as they arose using city-issued cell phones. However, the findings indicate that things didn’t quite go as intended.
The investigation was a deep dive, analyzing an array of documents including timesheets, payroll records, dispatch records, and even call-back phone logs for each of the three electricians involved. Unfortunately, the results showed a lack of evidence to support their claims. Phone logs and dispatch records were unable to back up the time they reported working, raising eyebrows across the board.
So, how did this all break down? Employee 1 reportedly walked away with at least $41,020.62 in unearned wages and employer-paid benefits. Meanwhile, Employee 2 followed suit with about $25,158.38 and Employee 3 managed to get his hands on approximately $13,040.54. It’s hard to fathom how the numbers could climb so high without raising any alarms sooner!
In February 2025, the city received checks to begin repaying some of the stolen amounts—$5,000 for Employee 1 and $2,000 for Employee 2. While it’s a step in the right direction, it’s just a small fraction of the total amount that has likely left city coffers without proper authorization.
What sparked this investigation? It all began with some questionable payroll transactions reported by city officials. The investigation covered a significant time frame from January 1, 2017, to December 31, 2022. A concerning detail emerged when the City of Chattanooga’s Office of Internal Audit was found lacking in cooperation with investigators. Deficiencies in internal control and compliance were flagged as major issues.
One major issue was the failure to retain important data—like GPS information from vehicles assigned to traffic signal electricians—which could have assisted the investigation. Even more alarming, city officials took four months to provide investigators with records that should have been readily available. Talk about dropping the ball!
The internal audit office had previously looked into time reporting practices of the same electricians back in 2021, leading to some administrative actions. However, the oversight issues didn’t stop there, as approvals for time worked seemed to have way too many gaps and missing documentation.
With this report now on the table, it has been forwarded to key officials, including District Attorney Coty Wamp and Governor Bill Lee, indicating that serious actions may very well follow. The City of Chattanooga has expressed intentions to shore up their internal processes and policy compliance to avoid such situations in the future.
If you want to delve deeper into the findings, the full report is easily accessible to the public. Curious residents can view it on the Tennessee Comptroller’s official website. It is imperative for the community to stay informed about how taxpayer funds are managed and protected.
This is just another reminder that oversight is key in public service, and Chattanooga has some important lessons to learn from this incident!
Chattanooga Electricians Involved in Payroll Fraud
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