The Detroit Riverfront Conservancy's financial dealings are under a microscope after its Chief Financial Officer, William A. Smith, was placed on administrative leave amid an unfolding investigation into potential financial mismanagement within the organization. According to The Detroit News, Conservancy Chairman Matt Cullen has temporarily taken the reins of the conservancy. The details emerged Tuesday when Cullen expressed his concerns about the "accuracy of management reports and financial statements" previously presented to the board.
FOX 2 Detroit reported that an independent forensic audit by PwC was ordered and counsel from the Honigman Law Firm was sought, leading to the organization's decision to sideline Smith. "After consulting with Board leadership, we moved immediately to order an independent forensic audit by PwC and sought counsel from the Honigman Law Firm and its lead partner for investigations, former U.S. Attorney Matthew Schneider," Cullen explained in a statement obtained by the outlet.
In parallel with the audit, the conservancy has submitted its financial records to the Michigan State Police for a criminal investigation. A spokesperson for Michigan State Police, Lt. Mike Shaw, confirmed the ongoing investigation to ClickOnDetroit and noted that their findings would eventually be handed over to the prosecutor's office or the attorney general for a determination on any criminal charges.
The conservancy, which has played an instrumental role in reshaping Detroit's riverfront, has vowed to continue its commitment to creating a vibrant communal space during this period of scrutiny. Cullen said, "The riverfront is a beloved and important asset to the community, and we are committed to building a vibrant space for all metro Detroiters to enjoy." Even amid the controversy, the Kresge Foundation, a key partner in the Detroit Riverwalk initiative, has expressed confidence in the conservancy’s ongoing projects. "The Conservancy’s work over the past two decades to create and preserve public space for Detroiters and serve as an economic catalyst in the city is nothing short of remarkable," Kresge Foundation President and CEO Rip Rapson said, per ClickOnDetroit. Despite the investigation, Smith has not publicly commented on the matter.
