Second week in Houston trial

PALMER — Plaintiff testimony in a wrongful termination lawsuit at the city of Houston entered a second week Monday.

The jury heard a recording of an expletive-riddled exchange between former Houston Police Department Capt. Charley McAnally and Mayor Virgie Thompson — with then-Deputy Mayor Jim Johansen present — during which the pair clashed over McAnally’s frequent contacts with the press in the wake of his receiving a five-day administrative leave.

McAnally had previously testified that he and Thompson had originally discussed a five-day leave, but was told after he protested there would be an investigation of an incident in January 2012 involving fireworks and four firefighters. The firefighters offered written statements saying McAnally had lost his temper over the incident only after they had told McAnally verbally he was not out of line.

Among the points of contention in the meeting: whether the leave constituted a suspension, as was reported in the Frontiersman, or not

“Get it straight!” Thompson is heard saying sharply on the recording, after dropping the f-bomb repeatedly during the discussion.

In addition, McAnally played a low-quality recording of a phone conversation between himself and Treasurer Carolyn Grabowski, named as a co-defendant in the suit. McAnally also testified, apparently without evidence, that Grabowski threatened him in the part of the conversation that wasn’t recorded.

In the recorded conversation, Grabowski is heard telling McAnally that she had incorrectly issued a blank check in the past, and had been reprimanded for it. McAnally claims this is evidence that Thompson had tipped Grabowski to an FBI investigation.

A representative with the FBI said the bureau typically doesn’t confirm or deny investigations that don’t result in prosecutions, including this particular case.

When asked whether incorrect testimony of an FBI investigation would constitute perjury, special agent Kevin Donovan said:

“I will leave that to State prosecutors, to decide if charges are appropriate for that.”

The recordings came Monday after Deputy Mayor Lance Wilson testified during defense cross-examination Friday morning that city officials had faced a budget shortfall in about March or April 2011, and held a budget workshop to address the shortfall. Among the members of the council, Paul Stout was the most active reviewer of the budget, Wilson said.

“This is something that happens on a regular basis, Paul (Stout) often helps as a second set of eyes looking at the figures,” he said. “That’s happened for a number of years.”

However, budgeting in Houston is often a team effort, Wilson said.

“I wouldn’t call it improper accounting, but he occasionally finds mistakes that have to be corrected, and then when the council as a whole looks at the budget at different points over the year, oftentimes one of the council members will find something that doesn’t look right as well,” he said.

Common budgeting mistakes include funds deposited incorrectly, sometimes requiring transfers from one fund or another to make the figures match up, Wilson said.

“No lost money, let’s put it that way,” he said.

Neither Wilson nor Stout found any irregularities to indicate embezzlement, Wilson said.

Wilson was one of two members of the Houston City Council who voted against eliminating McAnally’s job on April 28, 2012, effectively ending the Houston Police Department. When asked by plaintiff attorney Ken Jacobus, Wilson testified he had seen no reason during McAnally’s tenure, to vote to remove him for performance issues or budget issues. However, under re-cross-examination by defense attorney Danielle Ryman, Wilson said he would change his vote supporting McAnally if he could.

“Is there another reason you might vote to terminate Mr. McAnally if you had it to do all over again?” Ryman asked.

“It was the same reason, the consensus of the council that night, that we had a terrible personnel situation and he was at the heart of it, and he had to go,” Wilson responded.

City officials are hopeful the trial would conclude by week’s end.

Contact Brian O’Connor at 352-2269 or brian.oconnor@frontiersman.com