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A Greensboro City Council member is the subject of a State Bureau of Investigation probe, The Assembly has learned.
The investigation was launched two days after The Assembly’s Greensboro newsletter, The Thread, published a story examining claims against Zack Matheny in his role as both a Greensboro City Council member and president and CEO of Downtown Greensboro Inc., a non-profit that promotes downtown and receives city funds.
When the original story was published on June 25, the SBI said no such investigation had been conducted or was underway. After the story was published on June 27, the office of North Carolina Attorney General Jeff Jackson requested that the SBI look into the matter.
“The SBI did not have an investigation or a request for an investigation until last Friday,” said Chad Flowers, public information officer with the SBI, in a Thursday interview.
“It is an investigation into the activities of a city council member,” Flowers said, declining to name the subject of the open probe.
If the investigation centers on him, Matheny told The Assembly Thursday, he welcomes it.
“If it were to be me, I am happy for anybody to come and have a conversation with me and look into anything,” Matheny said. “I know I’ve done nothing wrong.”
“I’ve been around serving this community for over 20 years,” Matheny said. “I’m proud of the work I’ve done and have nothing to hide.”
Matheny, the council’s only Republican, has for years been the subject of criticism by local activists who say he blurs the line between his position on council and with DGI, where wooing developers and businesses is part of his job.
George Hartzman is a financial and tax professional who has unsuccessfully run against Matheny and for mayor in previous years. He has been raging against what he calls corruption, self-dealing, and misuse of city funds for more than a decade. In recent months, he has renewed and intensified that criticism. He has called for city ethics investigations and outside criminal investigations into Matheny’s dealings with local developers and whether he has properly recused himself from votes that may benefit them, DGI, and his campaign contributors.
“Zack Matheny sits on City Council and runs DGI—a clear conflict,” Hartzman wrote in a recent statement, echoing his comments at public meetings. “He’s voted to approve millions in taxpayer money for projects that benefit DGI’s donors, clients and allies, including some of his political contributors. The ledger also shows over $20,000 in spending on courtside Swarm tickets, Tanger Center concerts, Grasshoppers sponsorships, and Wyndham Championship access. Perks—not for the public, but for insiders.”
The news of an investigation into a sitting city council member comes just days before filing begins on July 7 for this year’s city council elections. Every seat is up for election, as is the mayor. Several sitting council members have decided not to run again and one, Yvonne Johnson, died in office last year. That could make for the largest single-year change in a council in living memory.
Matheny has declared his intention to run for re-election. His only declared opponent, April Parker, has criticized the way Matheny has represented District 3.
“His fixation on downtown has meant that he has neglected the rest of district and the city as a whole,” Parker said.
The news from the SBI also comes one day after City Attorney Chuck Watts announced his retirement, effective immediately. Watts has also faced fierce criticism for defending Matheny and DGI and for doing private work outside of his role as city attorney.
The attorney general’s request to the SBI did not include any mention of Watts or his work, according to the SBI.
In its press release on his retirement, Mayor Nancy Vaughan praised Watts’ work over his six years with the city.
“During his tenure, Mr. Watts was instrumental in leading the City through a number of significant challenges, such as the COVID-19 pandemic and times of civil unrest,” Vaughan said in a statement. “Chuck also restructured the legal office to modernize operations. We acknowledge his years of service and wish him well in his retirement.”
“I appreciate my years with the City and am proud of the contributions I have made during my time here,” Watts said in the statement. “I’m confident the current legal staff will continue to function at the highest level in support of the City.”
The Assembly could not reach members of the city council Wednesday or Thursday. Some were traveling ahead of the July 4 holiday.
“The SBI is a third party not affiliated with the Greensboro Police Department or the city,” said Eric Chilton, strategic and crisis communications manager for the city. “It’s not our investigation and we will await their findings.”
This is a developing story and will be updated.
Joe Killian is The Assembly’s Greensboro editor. He covered cops, courts, government and politics at Greensboro’s daily paper, The News & Record, for a decade. He joined us from NC Newsline in Raleigh, where he was senior investigative reporter.