Concern of SRBA board member's possible 'conflict of interest' detailed

By LYNN MONTGOMERY | East Texas Edition

May 26, 2005 - Audience members attending the May 17 Sulphur River Basin Authority meeting expressed their displeasure with comments made by a local bank president who spoke about a board member's "conflicts of interest."

Ty Abston, president of Guaranty Bond Bank and president and director of Guaranty Bancshares, Inc. in Mount Pleasant, addressed the SRBA members with his concern "specifically related to Sulphur River Basin Authority board member and now your president -- Jim Thompson."

Because of this "concern," Abston has filed a complaint with the Texas Attorney General's Office asking for their review of this matter.

"It is my hope that they will find Mr. Thompson unfit to serve as an independent board member based on his obvious conflicts of interest," Abston said.

He added he had also asked the governor's appointment office to review the matter, and "it is my hope that they will do what is right and reverse their appointment, given the facts that they weren't aware of at the time of the appointment."

According to Abston, Thompson, who represents Cass County, incorrectly answered a question on the application required of all persons who is under consideration of appointment to a public board by the governor.

Abston said one question on the application, "intended to uncover potential conflicts of interest asks, 'If you have ever received compensation to represent someone before a local, state or federal government?' Mr. Thompson answered no. It is my position that Mr. Thompson should have answered yes ...."

Thompson is an attorney and in-house council for Ward Timber Company, whose owner, Bill Ward, is "the self-proclaimed leader and funds provider for the anti-Marvin Nichols efforts," Abston commented.

Construction of Marvin Nichols Reservoir has been on the Region D's (consisting of the Dallas-Fort Worth metroplex) water plan for years, and is a hotly-debated issue among East Texas landowners.

Abston pointed out Thompson had represented Ward before local and state bodies on the issue of Marvin Nichols, and Thompson is currently listed as an "Anti-Marvin Nichols leader and expert" on the website of stopmarvinnichols.com.

However, a check of the website does not list Thompson's name; but under the listing for the Region D Water Planning Group, Thompson is listed as the liaison for Region C to this group. His, and others', information is listed as a means for the public to contact them with questions.

"This board is currently considering one of the most important and controversial issues of its history, the proposed Marvin Nichols Reservoir, an issue that must be considered by a fair and impartial board, looking out for the best interest of everyone in the 12 counties they represent, some 400,000 citizens. This board represents everyone. Not just Ward Timber and Bill Ward, not just the people that have shown up to this meeting today, but everyone.

"Simply put, Bill Ward, has sent his employee, Jim Thompson, here as a Trojan horse to infiltrate this board and represent his personal views, not the people of Region 2," Abston continued.

Another point about conflict of interest occurred, according to Abston, during the last board meeting. The board was voting (actually, several meetings ago and not the last meeting) on entering into an agreement with the U.S. Army Corps of Engineers. This agreement would allow for a basinwide study to look at all water development strategies, including Marvin Nichols.

"He (Thompson) claimed that he hadn't had time to fully understand the contract, even though the contracts had been in hand for several months. As the only attorney serving on this board, I find that very hard to believe," Abston continued. "His intent was clearly to block the basinwide study from being conducted. Who would be against a basinwide study to gather facts? Only someone who has their mind made up, regardless of the facts. This is the definition of a conflict of interest."

Abston said Thompson's behavior as an outspoken and clear opponent to Marvin Nichols threatens to breach the contract, which is an agreed venture between the SRBA and the North Texas Municipal Water District. "A breach of this contract would allow the Dallas water districts to take over the Marvin Nichols process thereby excluding this water board and excluding representation from East Texas," Abston said.

Immediately following his address to the board, Abston thanked the board for allowing him the time to speak, and then left. On his way out of the meeting, several audience members questioned Abston about why he wasn't staying to hear their rebuttals.

"I have another meeting, but I'll hear every word of your rebuttal," he concluded.

Thompson's response to Abston's comments were "I don't believe there is a conflict of interest. I represent the people and industry. I don't answer to anybody, and I'm going to stick to my core beliefs."

Findings from Gov. Rick Perry's reappointment office also conclude there is no conflict of interest with Thompson being on the board. "As Mr. Thompson is in-house counsel for Ward Timber Co., we believe he correctly answered the question 'Have you or your spouse ever been registered as a lobbyist or received compsensation to represent someone before a local, state, or federal government,' in the negative. The intent of this question on the appointment application is to determine whether an applicant has been a paid lobbyist," a spokesperson from the office said on May 19.

Several audience members cited Thompson during the public comment period.

John McConnell of Red River County stated he believed there was a conflict of interest with Abston and Guaranty Bank because the bank was putting up new banks within the proposed Marvin Nichols site.

McConnell also stated former SRBA president Judy Lee's husband serves on the board of directors with Abston at the bank.

Maud resident George Frost stated, "I find it a total front for someone else. I've tried for two years to get on the agenda and all of a sudden Ty attends a few meetings and gets on the agenda quickly."

Frost added he stands up for Thompson as a board member. "Jim, I want to tell you that I will stand with you until the end," Frost said.

Billie Lindsey, who lives adjacent to the Sulphur River, stated, "I was under the impression this board is to represent the people. We talk about agendas, (others) had an agenda too.

" I am proud of you and the things you have done," Lindsey said to Thompson. "I feel strong and I will support anything you do as long as it's legal. Our politicians don't see. I am fighting against the lake and I am not mincing any words."

When contacted, Ward pointed out, "Jim Thompson is his own man. I couldn't pay him enough to do what he does. Anybody who knows Jim knows he can handle himself. ... If Jim found out Dallas really needed the water, he would be the first one to give it to them. I think he will do a good job as president of the SRBA."