Birmingham police are investigating a group of water works employees who are suspected of stealing copper from a utility warehouse and reselling it.

Mac Underwood, the general manager of the Birmingham Water Works, said the utility conducted its own investigation and then reported the allegations of insider theft to law enforcement.

“The initial internal investigation identified team members who colluded as a group to bypass existing internal supply verification and documentation processes for financial benefit,” Underwood said. “These actions were unauthorized, ignored established protocols and resulted in the theft of the BWW’s property.”

Birmingham police declined to elaborate on the investigation when contacted by AL.com Wednesday.

Citing the ongoing investigation, managers and board members at the utility today declined to answer questions about the magnitude of the theft, and how long it continued before it was discovered.

The total value of the theft has not been disclosed. However, sources at the utility tell AL.com that the theft may not have been a one-time incident. The ring was allegedly reported by an outside participant in the scheme who tipped the utility of the enterprise.

Underwood said the water works will recommend that the board authorize an independent review of warehouse operations to improve security.

“Our management team is committed to honesty, integrity and accountability, and these are values we expect our employees, consultants and contractors to uphold,” he said. “Those who violate these principles and the trust of our customers will be held accountable.”

The revelation comes at a crucial time for the utility. A new state law changed the makeup of the water works board, kicked out the previous members, and expanded leadership to include new members from the suburbs and surrounding counties.

The new board just this week agreed to seek a forensic audit of the utility along with asking state examiners to take a closer look at finances and operations. It is unclear whether this current investigation is part of the audit plan for the organization.

“These things have just manifested themselves and we are taking them seriously and looking into it,” said attorney Jim Porter, whose firm this week was named among the agency’s new legal counsel.

“We’re starting from scratch and just looking into this,” Porter told AL.com Wednesday. “We’re totally new to the situation and we’re looking at everything from the ground up.”

The last major reported fraud scheme at the water works set the stage for the first state intervention at the utility more than a decade ago.

It was in 2014 that a former Birmingham Water Works supervisor was convicted of crafting an overtime rigging scheme. That scandal set off a chain of legal, political, and internal actions that continues to impact the utility.

At the time, former utility board members commissioned an audit by forensic accountant Michael Mason.

Mason’s conclusions were explosive. He cited poor record keeping, poor communication and substandard software that, he said, crippled the utility and made it ripe for fraud.

The Mason report and AL.com reporting about its findings were cited by state legislators who rallied for new rules regulating water board pay, membership and length of service. Those rules were later approved by the legislature and included adding new members from outside Birmingham and Jefferson County.

Legislation this year expanded on those previous changes, taking away Birmingham’s dominance on the utility’s board and bringing additional members from outside the city.

The city of Birmingham has filed a federal lawsuit to challenge the new law.

Republican sponsors said the changes were made to reform the utility after years of complaints including poor customer service, a lack of transparency and excessive spending.

AL.com senior reporter Carol Robinson contributed to this story.