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Former employee files lawsuit against State Auditor Kathy McGuiness

Delaware Public Media

State Auditor Kathy McGuiness could have another legal battle on her hands, this time from a former employee alleging wrongful termination.

The new lawsuit was filed in Kent County Superior Court last week by Kathleen Davies, former chief administrative auditor.

State Sen. Spiros Mantzavinos, McGuiness' former chief of staff, and another employee in the office listed as the former first deputy state auditor, are also named in the lawsuit filed by Davies, who had worked in the office for 12 years.

The News Journal reports Davies claims she was fired under a false pretense made up by McGuiness, but argues the real reason was for whistleblowing on waste and abuse of authority in the auditor’s office.

The civil complaint also claims McGuiness disregarded unspecified state rules and practices to get Davies to sign off on incomplete or non-compliant audit work and “improper policies.” Davies also alleges McGuiness and Mantzavinos would engage in parties and games during work hours.

Davies was previously fired from the office by Tom Wagner, McGuiness' predecessor, but a state board ruled it was improper termination in March 2019.

Davies also ran for State Auditor in 2018, but lost to McGuiness in the Democratic primary.

Davies is being represented by former Republican state Sen. Anthony Delcollo, who lost his seat in the General Assembly to Mantzavinos, a Democrat, in 2020.

McGuinness already faces a public corruption trial on charges of theft, non-compliance with procurement law, and conflicts of interest. After moving the venue to Kent County, that trial is slated to start next week.

Rachel Sawicki was born and raised in Camden, Delaware and attended the Caesar Rodney School District. They graduated from the University of Delaware in 2021 with a double degree in Communications and English and as a leader in the Student Television Network, WVUD and The Review.