The Memphis Commercial Appeal reports that city and county officials are investigating a local tire dealer that was hired to handle tire repairs for Memphis city vehicles.
Last month, officials began looking into Around Town Tire & Trucking after the newspaper reported that the Memphis payments to the company had grown from $100,000 in 2005 to more than $1 million last year.
Around Town Tire & Trucking holds the exclusive rights to repair flat tires on the city’s 5,800 vehicles, and has not been charged with any wrong-doing. The original contract had the dealership handling only light duty vehicles, but in 2006-07 it also took responsibility for the city’s heavy equipment, as well.
Rebecca Kissinger, interim director of the city’s General Services Division, now wants to see Around Town’s financial records for the last three years, and plans to conduct an internal audit of Memphis purchasing programs.
Shelby County officials, said the newspaper, are also investigating whether Around Town underreported its income from the contract for tax purposes.
Around Town’s attorney, Lenal Anderson, told the newspaper that owner Velma McMahan stands by her work, and welcomes a city audit.