KINGSPORT, Tenn. — The former Kingsport community development coordinator is facing 20 charges of official misconduct following an investigation by the Tennessee Comptroller's Office.
Mark Haga resigned from his position effective January 31, 2020. On February 24, 2021, the Sullivan County grand jury indicted Haga.
According to officials, Haga was "responsible for coordinating a program to fund home repair projects for Kingsport residents with low and moderate incomes." These projects were primarily funded through an annual Community Development Block Grant (CDBG) from the federal government.
Investigators said that Haga had a conflict of interest when he awarded contracts to his brother-in-law's construction company to perform home repair projects which totaled $731,940 between March 2008 and January 2020. Haga's brother-in-law was awarded contracts for 105 projects during that period. All of the city's payments were for $15,000 or less, which allowed Haga to select a contractor without a thorough review, formal quotes, or sealed bids by the city's procurement department.
Investigators also said that Haga authorized home repairs to his sister-in-law's residence for two projects which totaled $18,100. Haga’s brother-in-law (the sister-in-law’s brother) worked on both projects, officials said.
Additionally, Haga's executive secretary had a conflict of interest when the city paid for home repairs on both her house and her daughter's house totaling nearly $60,000, according to investigators. Neither the executive secretary nor her daughter owned their homes when they received the majority of the repairs, officials added. Homeownership is an eligibility requirement for the program. Haga approved most of the repairs for these projects without requiring proof of ownership, investigators said.
“As part of this investigation, it became clear the City of Kingsport needed to improve its oversight and documentation procedures,” said Comptroller Jason Mumpower. “I am pleased to note that city officials indicate they have corrected or intend to correct those deficiencies.”