Officials allege ‘illegal activity’ at Andrews ABC

    Andrews – Town leaders believe “illegal activity” is happening at the Andrews ABC Liquor store in White’s Plaza off U.S. 19.
    “Our board [of aldermen] would have never gotten involved with the ABC board if we didn’t think there was illegal activity going on at the ABC store,” Mayor James Reid told the Cherokee Scout. “Someone came forward and said they received free liquor [from the store] as well as non-registered alcohol.”
    The allegations came to light after a contentious town meeting on July 14, when a former Andrews ABC board member raised concerns about being asked to resign from her position. During the heated conversation, Reid disclosed that he possessed communications between ABC board members. Since only three members comprised the former ABC board, store business conducted by two of them constituted a quorum, which effectively makes the communications public record, according to North Carolina open government laws.
    The Cherokee Scout requested to analyze the communications and was provided a folder containing numerous documents related to the ABC store. One of the documents contains an allegation that free bottles of liquor are sometimes given to customers.
    The document says an alcohol sales representative sometimes write off an undamaged unsold bottle of liquor, and then gives the store credit for the product, as if it is “damaged.” The bottle is then left at the store, and instead of being destroyed, is then given to customers.
    The Scout contacted state Alcohol Law Enforcement officials and the N.C. Alcohol Beverage Control Commission to understand what process must be followed when undamaged bottles of alcohol do not sell. A representative from the commission said there are three avenues an ABC store can use to get rid of low-selling merchandise.
    1) The ABC store can shift the low-selling items to a high-profile location within the establishment.
    2) The store can ask surrounding ABC locations if they have demand for the low-selling merchandise and sell it to them for the same price at which they bought it.
    3) The store can request a reduced price from the state ABC commission.
    When asked whether it was legal for store employees to give away undamaged unsold bottles written off by a sales rep, the state spokesperson said, “Never.” Moreover, state officials say any product that is written off because it is unsealed, broken, or distressed, must be poured out.
    State law says that liquor, either distressed or otherwise, “shall not leave the custody of a local board” unless it’s sold at retail, returned to the state ABC warehouse, or purchased, exchanged or otherwise obtained by another local board.
    “Distressed liquor shall be given to a public or private hospital for medicinal purposes only or destroyed and the destruction witnessed by the manager or his designee and a distiller representative,” state law says. “A Destruction of Unsalable Merchandise Report shall be completed and signed by the witnessing parties. A written copy of the report shall be sent to the distiller and a written or electronic copy shall be sent quarterly to the Commission. The original shall be retained by the local board for a period of three years.”
    State law also dictates that “no liquor, distressed or otherwise, shall be given to any distiller representative or employee of the warehouse but shall be destroyed and recorded in the Unsalable Merchandise Report in the presence of a distiller representative.”
    In addition, the Scout obtained communication from the state’s director of Local ABC Board Audit & Pricing Section, Laurie Lee, to Andrews ABC board member Debbie Ambler, in which Lee says free alcohol and samples are “never” permitted.  
    At the July 14 town meeting, former Andrews ABC board member Charlotte McGhee claimed previous issues in the ABC board stem from Ambler’s appointment. However, communications reviewed by the Scout show both McGhee and Ambler had concerns about how the store is being managed.
    A communication allegedly written by McGhee says one store employee is “incompetent,” and that she does “not trust” another employee. McGhee also asks Ambler, who was chairperson of the ABC board at the time, what steps must be taken to terminate a staff member’s employment.
    In other communications, Ambler expresses concern that people are trying to paint her as the problem for trying to fix issues with the store and asks McGhee if she feels that Ambler should resign. To that, McGhee allegedly responds, “No!! Absolutely not do I want you out!!”
    McGhee and Ambler both declined to comment on the record for this report.
    The Andrews Board of Aldermen asked all the previous members to resign and appointed a new ABC board on May 27 because of numerous issues, according to town officials. The previous three-person board did not allow two of them to communicate without creating a quorum, plus it created situations where two members could “gang up” on the other board member. With the creation of a five-person board, town aldermen staggered the terms and sought to have at least one former member return in order to guide and advise the new members on prior issues with the store.
    Town officials say they have concerns with store employees “doing as they please,” as opposed to following direction from the board. Officials also say they have concerns about what they perceive to be a lack of local monetary distribution.
    Records obtained by the Scout show the Andrews ABC store distributed $12,000 locally at the completion of the 2018-19 fiscal year. Meanwhile, Murphy’s ABC store distributed $415,100 locally that fiscal year, Franklin’s store distributed $70,334 to its community, and Bryson City’s store distributed $220,800. At the end of the 2017-18 fiscal year, the Andrews ABC store only distributed $7,143 to the community.
    Town officials also expressed concerns with ABC store employees not doing enough to prevent the spread of COVID-19. Moreover, officials say the store’s hours were reduced on three days of the week without the ABC board’s approval.
    When asked if they believe Ambler is hindering the success of the ABC store, town officials said they feel she is doing what is necessary to improve the store’s performance. However, since she is no longer chairman of the ABC board, she faces an uphill battle in convincing new members to recognize issues with how the store is being managed.
    “They have been so comfortable in doing what they do for so long, that they just do whatever the heck they want to,” Alderman Jonathan Ellison said about the ABC store. “I think Debbie, kind of like myself, comes in carrying the big ‘A’ word, which is accountability, and no one likes it.”