Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

JEA Receives Federal Grand Jury Subpoena

JEA's Downtown Jacksonville headquarters building is pictured.
BILL BORTZFIELD / WJCT NEWS
JEA's Downtown Jacksonville headquarters building is pictured.

The botched attempt to privatize JEA is under a federal prosecutor’s magnifying glass.

A federal grand jury issued a subpoena this week Wednesday requesting documents and communication records pertaining to the failed plan by JEA leadership to sell the city-owned utility.

Jacksonville City Councilman Rory Diamond, who chairs a special committee looking into the legality of the proposed sale, told WJCT News he’s not surprised the U.S. Attorney’s Office has taken an interest.

“If you think about it, this was an attempt to steal almost a billion dollars from the people of Jacksonville. I don’t care who you are, that’s a massive scandal and it absolutely has federal crimes written all over it. And I’m very pleased that the federal government is taking it seriously and that maybe we as a local people will finally get some justice in this case.”

The subpoenaed material includes a couple of controversial job incentive and employee compensation plans, the hiring of CEO Aaron Zahn in November 2018 and the effort to convert JEA from a not for profit utility to a publicly traded company.

Diamond said this level of federal scrutiny means indictments are likely.

Contact reporter Cyd Hoskinson at choskinson@wjct.org, 904-358-6351 and on Twitter at @cydwjctnews.

Cyd Hoskinson began working at WJCT on Valentine’s Day 2011.