Former Buncombe County manager Wanda Greene under investigation

ASHEVILLE - Former Buncombe County manager Wanda Greene and others are under federal investigation, the U.S. attorney's office confirmed Thursday.

U.S. Attorney Jill Westmoreland Rose said in a statement her office has asked the county to put a "litigation hold on all county materials pertaining to this matter," essentially directing officials to preserve records that could become a part of the investigation and preventing them from being disclosed publicly.

Rose released no other details of the investigation, calling it "a law enforcement matter."

Greene had led the 1,600-person organization for two decades before retiring June 30. She had been praised for her leadership, with Brownie Newman, chairman of the Board of Commissioners, saying in an email to commissioners around the time of her retirement that Greene was "one of the most outstanding county managers in our state and country."

Greene led Buncombe County through the reorganization of a state mental health care system and the implementation of countywide zoning. During her tenure, the county achieved a AAA bond rating, the highest possible.

The most recent controversy in her tenure came a year ago when she pushed through an additional $34,000 benefits package for herself, along with an increase for Kathy Hughes, clerk to the board and public relations director. Two commissioners at the time said they were unaware of the extra pay.

Greene, whose annual salary was $241,791, gave back the package several months later, saying it had become a distraction.

Commissioners reached Thursday either declined to comment or referred questions to county attorney Michael Frue.

The Citizen-Times asked county government for any audit done in connection with Greene’s departure. Frue referred the request to Rose’s office.

Rose declined it, saying "in that a law enforcement matter is implicated, (Freedom of Information Act) rules and regulations prevent public disclosure at this time."

A Haywood County native, Greene lived in Minnesota and California before moving to back to Western North Carolina. She first was hired as assistant county manager in 1994 before taking the top job three years later.

More than $50 million, or about 16 percent, of the county’s general fund revenue comes from state and federal funding.

Greene was replaced by assistant county manager and longtime health and human services director Mandy Stone after commissioners decided against launching an outside search.

Greene could not be reached Thursday.

Carol Weir Peterson, who served as a Buncombe County commissioner from 2004-2012, said she was always impressed with Greene’s skills as a county manager.

“Wanda and I had a great working relationship,” Peterson said. “She was a wonderful county manager in every experience I had with her.”

Peterson said she was stunned to hear about the federal investigation.

“I have no knowledge of this at all,” Peterson said. “I’m really quite shocked by what you’re telling me.”

Greene was always particularly sharp on budgetary matters, Peterson said.

“With Wanda, she always had the budget under control, and she was always looking three, four years out,” Peterson said.

K. Ray Bailey, who served on the Buncombe County Board of Commissioners from 2008-2012, said: “We always believed she was the best county manager in North Carolina. We never questioned any of the actions that she took.”

Bailey, who also was the longtime president of Asheville Buncombe Technical Community College, said every county audit he ever saw “was clean.”

He described the federal investigation as “very, very shocking.”

“Let’s hope this is cleared up and her name and integrity is protected, because she’s done excellent for Buncombe County for many, many years.”

Staff writers Mark Barrett and John Boyle contributed to this article.