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South Bend, IN – A formal complaint has been lodged against Councilman Canneth Lee of South Bend's 1st District, accusing him of a conflict of interest related to his employment with Goodwill Industries’ Group Violence Intervention (GVI) program. This claim, originally filed in September, remains un-investigated by Sharon McBride’s Rules Committee, raising questions about the transparency and accountability of the city’s leadership.
The Allegations
The complaint alleges that Councilman Lee’s dual roles within the city government and Goodwill Industries violate conflict-of-interest provisions outlined in the contract between the City of South Bend and Goodwill. These guidelines explicitly forbid any member of the city’s governing body from receiving financial benefits tied to contracts funded by city money. Councilman Lee, as an employee of Goodwill’s GVI program, is compensated for work funded through a $250,000 agreement between the city and Goodwill—a connection that critics argue directly breaches these terms.
The contract states (see attached below):
"No member, officer, or employee of the City . . . and no member of the governing body of the City of South Bend or the Organization . . . shall have any financial benefit, direct or indirect, in any contract or subcontract . . ."
The violation of this clause entitles the City to recoup all dispersed funds, per the agreement.
Councilman Lee’s Role and Responsibilities
Councilman Lee serves as a central figure for the GVI initiative, with GVI's website identifying him as a key contact.
Allegations claim Councilman Lee not only failed to file a Uniform Conflict of Interest Disclosure Form with the State Board of Accounts but also advocated for Goodwill and the GVI program during budget hearings and other official contexts without disclosing his financial ties. Critics argue that such actions compromise his impartiality as a public servant.
Contractual and Legal Implications
The contract between the City of South Bend and Goodwill Industries is clear about conflicts of interest and the consequences of non-compliance. Should a violation be proven, Goodwill may be required to repay funds received under the agreement. Additionally, Indiana Code 35-44.1-1-4 classifies knowingly profiting or deriving pecuniary interest from public contracts as a Class D felony.
The following excerpt from the official complaint underlines the gravity of the situation:
Lack of Investigation Raises Transparency Concerns
Despite the serious nature of the allegations, President Sharon McBride’s Rules Committee has not yet investigated the September complaint. Critics question the Council’s delays and its commitment to ethical governance. The issue has sparked a broader dialogue about accountability, with many local taxpayers demanding disciplinary action and the return of city funds impacted by any conflict of interest.
SAVE OUTREACH'S Social Media Credit's Canneth Lee as a Councilman & GVI/SAVE Director
It would appear that Goodwill was aware of the dual roles and conflict of interest/breach of contract dating back to 09/19/2020
South Bend/Goodwill Contract
Video of Lee Voting on Bill 10-23 Which Gave Money To GVI
The bill states: "These funds were requested during the budget process to provide outreach to nonadult park users at a variety of destination parks. The previous year saw partnerships with Goodwill, SAVE, and other community partners. This program cannot proceed without them."
2024 Conflict of Interest Disclosures Indiana Gateway The State Board of Accounts said if it isn't uploaded here, they haven't received it. They have received 30 Conflict of Interest Disclosures in 2024 for St Joseph County alone in 2024, none from South Bend officials (that is telling, isn't it? No one in the City of South Bend has a reportable conflict of interest? With our $400M Budget, grants, etc...)
