HOUSTON – Metro’s controversial President & CEO Frank J. Wilson has resigned his post, effective immediately.
The Metro Board of Directors accepted his resignation at a Special Board meeting Friday.
Wilson has come under increasing pressure in recent months after a series of 11 News investigative reports that began in early March and revealed allegations of illegal public document destruction.
At the time, Wilson admitted some public documents were destroyed and said at least one employee "admitted" to knowing about it.
The statement would lead to an ongoing criminal investigation by the Harris County District Attorney’s Office.
Soon, another scandal would break, as attorney Michael West would allege, as part of a lawsuit, Wilson had an improper relationship with his female chief of staff, Joanne Wright. Metro would hire its own investigator to look into the relationship. That internal investigation cleared Wilson of any wrongdoing and also noted more than 60 days of travel the two shared together.
KHOU would soon break another story, detailing how Wilson and Metro applied for $900 million in federal grant money to move forward on five proposed lines of light rail in Houston. As a part of Metro’s application, it provided outdated financial forecasts to the federal government from before the stock market crashed, when it had in hand significantly downgraded information which projected $2.4 billion less in sales-tax revenue over the next 15 years.
The story would lead the Federal Transit Administration’s Paul Griffo to tell KHOU:
"The FTA first signaled its concern with Houston’s aggressive tax revenue assumptions and insisted on revisions back in May of 2009. FTA is now analyzing even more updated revenue projections submitted by Houston. In the interest of protecting the taxpayer, the FTA will not approve full funding grant agreements for the North and Southeast Corridor light rail projects until we are confident Houston Metro can afford to build and operate these two lines while maintaining its existing system."
The FTA’s Griffo would later confirm some of the "updated revenue projections" it cited above, were the new financial projections discovered by KHOU.
Following that revelation, the FTA would soon launch a formal investigation into Wilson and Metro’s alleged violation of "Buy America" laws, which require Metro to spend federal transit dollars here in America. Instead, the FTA’s chief counsel accused Metro of planning to send federal dollars overseas to Spain to assemble two prototype cars there, despite repeated warning from the federal government not to do so.
As part of Wilson’s resignation Friday, the Board authorized Chairman Gilbert Garcia to sign a Mutual Termination and General Release agreement with Wilson. Garcia said Wilson agreed to significant concessions from his original contract, which Houston Mayor Annise Parker had characterized previously as containing a "golden parachute."
Even with the concessions, taxpayers will pay Wilson $150,000 in an immediate payout related to his salary and an additional $150,000 in built-up vacation pay. Wilson will qualify for another $150,000 if Metro moves forward with building the North and Southeast rail lines it currently is proposing. What’s more, his termination agreement did not get rid of an agreement to provide Wilson with up to $50,000 in additional payments to allow him to move anywhere in the United States. He also qualifies for pension and other benefits.
Metro's board applauded Wilson's efforts as CEO and chairman Garcia said he did not ask Wilson to leave his post.
Houston Mayor Annise Parker, who had been harshly critical of Wilson, released a written statement saying in part, "It is a new day for openness and transparency at METRO. Now that a new board and chief executive officer are in place, I am committed to working hand-in-hand with the new leadership and the FTA to achieve the next phase of light rail in Houston."
Wilson showed up in person for his last appearance as CEO, and delivered his final address to Houston talking in part about what he believes his legacy is here. Without mentioning a word of the multiple scandals or investigations, Wilson said his legacy belonged to the many employees of Metro who he was proud to work alongside.
Attorney Rusty Hardin represents Pauline Higgins, one of Wilson’s former key employees, who is now suing him in a whistleblower suit. Higgins, the former general counsel for Metro, alleges Wilson intentionally kept Metro from following state law by repeatedly refusing her requests to enact a policy that would protect Metro’s public documents from destruction, per Texas statute.
"Houston is better off now that he is gone," Hardin said. "It would have been better off if he never came." Hardin also added that he believes over the next year more will come to light that will make Metro's board regret any positive statements it made about Wilson on Friday.
George Greanias takes over as Metro’s new acting CEO and President. In his very first words to the media after the announcement, Greanias told KHOU he is focusing not just on Metro’s role to build rail, but said he believes it is also important to get back to talking about the importance of building and maintaining a healthy bus system for the community as well.
Metro announced Friday that it is beginning a formal search for a permanent replacement for Wilson. Greanias said he would not have taken the "acting" position if he did not believe he would be reasonably considered for the permanent job. Greanias is a former Houston City Council member and also led Mayor Parker’s transition on Metro.
