New directors of the Vicksburg Housing Authority voted to uphold executive director Jim Stirgus Sr.’s decision to fire manager Rita Cutley, who responded Thursday that she will file a lawsuit against the VHA, the City of Vicksburg and Stirgus for wrongful termination.

“I’m not surprised,” Cutley said of the decision, which was made public following a March 6 hearing that lasted four hours. “I assumed they were going to uphold the executive director’s decision. They really didn’t do a thorough investigation into what’s gone on at the housing authority.”

Interim board chairman Jay Kilroy said the members were bound to the VHA personnel policy in ruling, but added the policy has a “variety of shortcomings” and will have to be significantly improved to avoid similar problems in the future.

“It needs a complete overhaul, and I plan to see to it that that’s what happens” he said of the policy, last updated in 2008. “If the VHA had had a more contemporary policy in place and followed it, this situation would never have happened.” 

The hearing was the first official act for four members of the five-member commission. They were appointed by city officials to replace three members whose terms had expired and a fourth who died in December. The change came amid an ongoing dispute between Stirgus and Police Chief Tommy Moffett and days after Moffett had met with previous board members and chided them for not providing enough oversight.

Cutley, who had been a VHA manager for nine years, was fired by Stirgus on Feb. 9. Stirgus has said he fired her for multiple insubordination infractions. She responded she was fired for cooperating with police and Housing and Urban Development officials during separate investigations that followed the arrest of Charles Jones Jr. — her former superior at the VHA in charge of purchasing and maintenance — on charges he had trafficked cocaine through the VHA administrative office.

Jones was arrested on Dec. 19. Moffett has said he believes Jones took tools and other supplies from the housing authority, and they were among the about $80,000 in new merchandise discovered at his Vicksburg home following his arrest. Stirgus has denied the allegation and questioned the validity of Jones’ arrest.

Jones since has been released from the Warren County Jail on a $250,000 bond, and his drug case has yet to be heard by a grand jury. He has also yet to be charged with any crimes in relation to the seized merchandise.

Cutley said her attorney, Louis Watson Jr. of Jackson, has prepared a letter of intent to be sent to the parties she intends to sue. She speculated the lawsuit will be filed immediately following the three-month waiting period required by law. The City of Vicksburg and the housing authority operate independently, with appointing board members the sole role of city officials. The board, in turn, hires a director.

“Mr. Sirgus is now trying to prevent me from getting unemployment. It’s awful,” said Cutley, who also claims Stirgus had discriminated against her for years. “I’m stressed out. My hair is coming out. My face is breaking out. I was fired for no reason and I want to be compensated for my pain and suffering.”

Kilroy described the hearing and decision as “a baptism by fire” for new board members appointed on Feb. 23. The five-member volunteer board will meet again in regular session on Tuesday, at which he said officers will be elected and the personnel policy will be discussed.

“It’s like we got smacked in the jaw right off the bat,” Kilroy said, “but I don’t think the previous board would have found this to be an easy task either.”

Stirgus, a former school superintendent, has been director of the authority, which manages more than 400 subsidized homes and apartments, since 1987. Moffett has been police chief since 2001.

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Contact Steve Sanoski at ssanoski@vicksburgpost.com.