Texas Gov. Greg Abbott ordered the Texas Rangers on Wednesday to investigate the City of Elgin over allegations of financial mismanagement and potential legal violations.
The probe into the small Central Texas city comes amid accusations of chronic financial mismanagement that could violate state law.
“There have been serious and potentially criminal accusations made against the City of Elgin that need to be investigated,” Abbott said in a statement. “Texans expect their elected officials to be honest stewards of taxpayer dollars and conduct the people’s business openly, and in compliance with Texas law.”
The governor cited specific concerns about inconsistent accounting practices and unreconciled bank accounts. He directed Rangers to examine the city’s budgeting processes and financial practices.
“Due to the accusations of chronic financial mismanagement, including inconsistent accounting practices and unreconciled bank accounts, in potential violation of multiple state laws, I directed the Texas Rangers to launch an investigation into the City of Elgin’s finances to ensure transparency and full compliance with state law,” Abbott said.
Elgin Mayor Theresa McShan is under fire after acknowledging that roughly $10 million in city funds cannot be accounted for, telling residents at a recent meeting that there are no plans for a forensic audit, the Wharton Post reported.
A video posted to social media captured McShan saying, “We can’t go back and find it. We don’t have the people to ask, we don’t have a clue how it was done. Going back will never get you anywhere if you’re going backwards — we need to figure out what to do moving forward.”
The remarks sparked a heated exchange between the mayor and a city council member and have fueled online outrage, with residents and observers demanding greater transparency and an independent investigation into the missing money.
A city spokesperson told Texas Scorecard on Thursday that the city “will cooperate fully with Governor Abbott’s recently announced investigation into the City’s finances. Recent audits conducted by an independent auditing firm for fiscal years 2022 and 2023 found no evidence of wrongdoing or criminal activity and no missing funds. Any issues discovered in the audits concerning accounting procedures are being addressed with current staff.”
The Rangers will forward any findings from their investigation to prosecutors for potential charges. The governor’s office provided no timeline for the investigation’s completion.
Elgin, located about 25 miles east of Austin, has approximately 10,000 residents.