RRHA paid board member’s business almost $9K over 4 months

RRHA CEO Steve Nesmith said he did not think the arrangement violated ethics rules or conflict-of-interest policies, but added that it ultimately was terminated to make sure leadership’s conduct was “above reproach.”

“I would recommend to anyone that you should probably not have that happen,” Nesmith said of the relationship.

The records show that the RRHA in 2009 began issuing payments to Richmond-based Old Dominion Electrical Supply Company, which is registered to Harold Parker Jr. Parker then began serving on the RRHA board on June 13, 2022. But despite Parker’s appointment by City Council to the board, the RRHA did a further $8,833.50 worth of business with his company across 36 transactions over the next four months, a transaction log shows.

Nesmith said the partnership between the RRHA and Old Dominion Electrical Supply ended in the fall of 2022, when he became CEO. He said he began reviewing the authority’s operations, found out about the relationship and brought it up with Parker.

“I started to look at everything throughout the entire organization,” he said. “I did notice that … that company was tied in some way to Commissioner Parker.”

Nesmith said he had “a specific conversation” with Parker in November 2022 in which Parker explained he had planned to avoid conflict by recusing himself on any issues concerning Old Dominion Electrical Supply that came to an RRHA board vote. But Nesmith argued that it was not enough.

“I recommended … that, for appearance’s sake and because people will sometimes make conclusions, it’s best that the RRHA not do any business with his company at all while he is on the board,” Nesmith said. “He said, ‘CEO, if that’s your advice, I will adhere to that.'”

Nesmith said the conversation was not a reprimand and did not include disciplinary action. Asked whether the relationship ran afoul of RRHA’s ethics and conflict-of-interest policies, Nesmith first said he was “not sure” and then said that he “didn’t think” Parker’s conduct broke any rules.

“I did not (tell Parker) that it is against policy,” Nesmith recalled. “What I said was, ‘let’s go beyond what is done on other boards around the country.'”

The RRHA’s public contracting ethics policy, obtained by the Times-Dispatch, says that “no Covered Person shall participate in the selection, award, or administration of any contract supported by Federal Funds if a Conflict of Interest, financial or otherwise, real or apparent , would be involved.”

The RRHA has paid Old Dominion Electrical Company over $400,000 since 2009, records show; around $9,000 of those payments were issued after Parker joined RRHA. But Nesmith said that, since the contract with the company was arranged prior to his appointment to the RRHA board, Parker did not vote on the contract and thus steered clear of breaking that rule.

The policy also says that “any RRHA employee, officer, Board Member, or agent, and any RRHA contractor or prospective contractor who knows, or reasonably should know, that they are party to an arrangement which constitutes a Conflict of Interest…must promptly disclose such arrangements to RRHA and HUD.”

Nesmith said that Parker did make “the proper disclosures” and that the relationship “was known” at RHHA at the time of his appointment.

Asked why it took Nesmith’s probing to sever the ties, Nesmith credited his background in corporate environments for his efforts to go “above and beyond.”

“It is in line with best practices,” he said. “And … that’s my practice.”

Nesmith said it is common for people to be associated with multiple entities and refuse themselves if a relationship forms between them. Nesmith himself is both the CEO of the RRHA and on the board of Venture Richmond, he said, and has recused himself any time the two organizations have interacted.

But asked whether he profits from sitting on Venture Richmond’s board as Parker does from owning Old Dominion Electrical Company, Nesmith said no.

“That is the distinction” between his situation and Parker’s, he said, and what prompted him to raise the issue.

Parker could not be reached for comment.