John Wallace addresses allegations of sanitation district misman - KSBY.com | San Luis Obispo and Santa Barbara Area News

John Wallace addresses allegations of sanitation district mismanagement

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Local businessman John Wallace defended himself publicly Wednesday night. He faces allegations of mismanagement during his time as administrator of the South San Luis Obispo County Sanitation District. 

Wallace responded to a recent report by Knudsen & Associates, that claimed he was behind skyrocketing expenses and conflicts of interest. He called the audit grossly inaccurate and said the allegations are completely false. 

"You know everybody is entitled to their own opinion but they're not entitled to their own facts and I think that's where Mr. Knudsen missed the boat," Wallace said. 

Wallace asked the sanitation board to reject the report. 

"I'm here to tell you tonight that those allegations are untrue and they never happened," he said. 

Among the concerns laid out in the report; sudden rate spikes, bookkeeping issues, lack of a human resources department and contracting work out to his own company, the Wallace Group. 

"The report basically was full of hearsay, a lot of it, and you can't do that without checking the facts," Wallace said. 

Wallace says auditors did not spend enough time questioning him, nor did they interview any of his associates. 

At a packed house Wednesday night, many public comment speakers defended Wallace, attesting to his good character. 

"When I think of John Wallace, I think of civility," John Seaman said. "I find him to be a man of integrity and a man of a great deal of honesty."

"I think when he says something, it's the truth and he can be trusted," said resident and business owner Brian Metcalf. 

However, the glowing character references did not sway many frustrated rate payers like Julie London. 

"It's very possible that somebody is nice but is doing something that is not legal," London said in public comment, referring to Wallace's alleged malfeasance.  

The board did not make any decisions Wednesday night. It was merely an opportunity for the board to hear Wallace's side of the story before turning the report over to law enforcement for further investigation. 

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