Report: No retaliation found in Citizens' firings [Sun Sentinel] - Insurance News | InsuranceNewsNet

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May 15, 2013 Newswires
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Report: No retaliation found in Citizens’ firings [Sun Sentinel]

Maria Mallory White, Sun Sentinel
By Maria Mallory White, Sun Sentinel
McClatchy-Tribune Information Services

May 15--The firing of four members of Citizens Property Insurance Corp.'sOffice of Corporate Integrity last fall was not retaliatory, according to the final report issued Monday by Gov. Rick Scott's chief inspector general investigating the incident.

Six months since the governor called for an inquiry into the elimination of the OCI -- Citizens' internal watchdog organization -- Chief Inspector General Melinda M. Miguel concluded "the evidence did not support a conclusion that retaliation was the reason for the decision to disband OCI."

Citizens President/CEO Barry Gilway released a statement in response to the May 7 draft of Miguel's findings, saying then, "I believe the report provides a factual, independent and fair view of the nature of events."

Miguel investigated the time frame from December 2011 through December 2012 period and found "an organization in leadership transition" that included three different presidents in the period examined.

Gilway, who had only taken the helm in June 2012, had maintained the October 2012 firings were the result of a change in corporate direction. The state-backed insurer had created an internal "forensic unit" in March 2012 to "streamline and standardize internal investigations of potential fraud, mismanagement and employee grievances," according to a company release.

Three of the four former OCI members said in interviews with the inspector general they believed retaliation for earlier internal investigations was a factor, but they offered no evidence. One of the three reported not being surprised the unit was disbanded because it had been denied additional training and given no new cases in the weeks prior to the October firing. One declined to comment to investigators.

Gilway has conceded he made a mistake when he disbanded the OCI in the midst of an investigation by the attorney general's office last year into Citizens' travel-expense spending.

The overhaul of Citizens that Florida legislators passed in the session that ended earlier this month includes the creation of an inspector general position within the company.

The News Service of Florida contributed to this report.

[email protected] or 954 256-4071

___

(c)2013 the Sun Sentinel (Fort Lauderdale, Fla.)

Visit the Sun Sentinel (Fort Lauderdale, Fla.) at www.sun-sentinel.com

Distributed by MCT Information Services

Wordcount:  359

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