Tourism group Visit Napa Valley has moved to dispel rumors that its CEO hid information about the group’s spending from staff and board members.
A four-page letter written by 10 current and former employees of the Napa Valley Convention and Visitors Bureau raised concerns that CEO Lindsay Gallagher may be mismanaging funds.
The letter came after employees contacted the board in May to complain about rules violations by Gallagher.
The recent letter also alleged that Gallagher had fostered a toxic work environment and mismanaged funds, but the Napa Valley Convention and Visitors Board quickly quashed the rumors, hiring a “neutral third party” to conduct an investigation.
After interviewing each complainant for up to three hours, the independent panel concluded there was “no evidence to support any allegations of workplace bullying or financial misconduct,” Emma Swain, president of the Napa Valley Convention and Visitors Association, told the Press Democrat.
“The Board has the utmost confidence in the Visit Napa Valley team to execute our mission and continue to enhance Napa Valley’s reputation as a leader in the tourism industry,” Swain added.
Swain said the commission would not respond to the letter because it was unsigned and anonymous, but stressed the complaints had already been addressed in previous investigations.
“I want to point out that we have addressed all of these issues by providing each employee who filed a complaint with a detailed summary of the investigators’ findings and an opportunity to meet and discuss them with executives. Only a small number of employees have taken up that opportunity,” she said.
The 10 anonymous letter contends that Gallagher targeted them in revenge after he was exonerated by an independent investigation which they say was improperly conducted.
Patterns of deception
In the letter, the 10 officials involved highlight an alleged “pattern of deception” in Mr Gallagher’s handling of public funds.
The CEO manages an annual budget of approximately $8 million, and the organization also receives partial public funding through a 2% tax levied on lodging facilities in Napa County’s “Tourism Improvement District,” which was created in June 2010 after members of Napa County’s lodging industry (hotels, motels, B&Bs) voted to adopt it and is supported by the cities of American Canyon, Calistoga, Napa and St. Helena, the Town of Yountville, and others.
The letter raises concerns that Gallagher misappropriated funds from the improvement district and says that Gallagher failed to inform staff and board members about spending decisions. It also alleges that Gallagher provided “false information” on multiple occasions.
Swain said the financial allegations came “after the annual audit was completed and an independent investigator found there was no evidence of wrongdoing.”
Tourism is the second largest industry in Napa County, generating more than $2.2 billion in annual spending. Approximately 35.5% of visitors to Napa County stay overnight and could benefit from the businesses promoted by the Tourism Improvement District tax.
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