Michigan county begins probe of Poplar Bluff contractor

POPLAR BLUFF, Mo. -- Government officials from Muskegon County, Michigan, have decided to end all business with Information Systems Intelligence and are expected to begin investigating purchases made with the company.

ISI is contracted to provide more than $3 million in equipment and services to the city of Poplar Bluff, including 4,600 hours of labor.

The company officially was hired by Poplar Bluff officials in October after the arrival of new city manager Heath Kaplan in mid-August.

Kaplan was finance and management services director for Muskegon County and appears to have overseen much of the work done there by ISI, according to emails received from Muskegon County under a Freedom of Information Act request.

Muskegon County commissioners said last week they want an independent agency to look over ISI purchases. Spending grew from about $1 million to more than $10 million -- possibly as high as $13 million -- in about four years, sources said.

Commissioners were reluctant to discuss the situation, saying they have been told to refer all questions to the county's attorneys.

"I suspect we're starting down a path of confrontation with ISI," said commissioner Marvin Engle. "We have severed our relationship with ISI."

Commissioners voted in a special meeting April 23 to end their contract with ISI. The contract was the only item on the agenda, according to minutes from the meeting. Commissioners began the meeting by speaking in closed session about a legal matter.

Muskegon County replaced a more than $65,000-per-month contract with ISI to provide technology support with a contract that will cost just under $38,000 a month, according to meeting minutes and reports by Michigan media organization MLive.

Muskegon County made many of same the technology upgrades while Kaplan was employed there as Poplar Bluff has in recent months, including the purchase of Cisco video phones and phone system and the creation of a virtual desktop environment.

Others from Muskegon County said accounting firm Plante Moran has been hired to look into the situation.

The attorney directed to speak about the situation said he could not comment on whether a forensic accountant would be brought in to investigate.

If a third party is brought in, it would done by Williams Hughes, the law firm representing the county, said attorney Horia Neagos. The scope of that project would be confidential, Neagos said.

Neagos denied a firm had been brought in.

The Daily American Republic attempted to speak to Kaplan about the matter Tuesday after the city's finance committee meeting.

Kaplan asked whether it was true the Daily American Republic had spoken to Muskegon County commissioner Susie Hughes. After receiving confirmation, Kaplan said he had nothing to say.

When a Daily American Republic reporter again tried to speak with Kaplan, he responded, "You are the lowest human being I've ever met," before leaving the room.

Hughes said Kaplan was not asked to leave Muskegon County early. Kaplan ended his employment with the county two weeks earlier than planned in August, as the county was about to begin discussions about a new budget.