The chairwoman of the Birmingham Water Works Board failed to disclose family ties to groups that received $40,000 in grants, according to a new complaint filed with the Alabama ethics commission.

A complaint sent to state officials on Monday accuses Tereshia Huffman of conflicts of interest. According to the anonymous complaint, Huffman failed to disclose family relationships to organizers with the Urban League ahead of an Equal Opportunity Dinner in 2023 and with the Birmingham City Schools’ Camp Wellness in 2024. AL.com has reviewed the complaint.

“These actions suggest a pattern of directing public funds to organizations with personal connections, often without proper disclosure or adherence to policy requirements,” the complaint states. “Such behavior raises serious ethical concerns and potential conflicts of interest under Alabama law.”

Huffman became chair in 2023.

The complaint lists four grants totaling $40,000 from 2023 and 2024 at issue. In addition to the Urban League and school events, the complaint also raised questions about the District Attorney’s Foundation League of Gentlemen’s Juneteenth Unity Breakfast in 2023 and 2024.

The complaint also said water works violated its policy by supporting the Juneteenth breakfast because the agreement to provide students to shadow water works employees was not fulfilled.

“Each sponsored organization is required to deliver an educational component focused on water or BWWB operation,” according to the complaint obtained by AL.com. “I am aware of several instances in which this policy was not followed, often involving individuals or familial ties to Chairwoman Huffman.”

The name of the person making the complaint is blacked out. The state ethics commission does not comment or confirm investigations, but the water works has acknowledged the complaint.

Huffman denied any wrongdoing but declined to comment further.

Grant awards from the water works are made by the board collectively after they are vetted by the utility’s lawyers, the water works explained in a statement to AL.com this afternoon.

“Each year, the Birmingham Water Works supports education initiatives focused on increasing awareness in the areas of water production, consumption and general usage,” the statement reads. “If approved, the requests then go before the full board for consideration before any donations are provided to organizations requesting them.”

Susan Pace Hamill, a University of Alabama law professor who specializes in business organizations and ethics, said the allegations merit a closer look.

“In the business arena the board of directors have wide latitude under the business judgment rule to approve corporate funds for charitable purposes but there are outer limits,” Hamill told AL.com. “Also, scrutiny is enhanced for directors participating in such approvals who have a conflict of interest. Failure to disclose connections to grantees who are cousins sounds analogous to a conflict of interest.”

The filing against Huffman comes at a contentious time for the water works, just a day before a state senate committee held a hearing on a proposal to restructure the water works, fire the current board and replace it with regional leadership.

The senate’s County and Municipal Government committee advanced the bill today.

Birmingham under the proposal would lose its board majority and shrink to just one vote with four others coming from surrounding counties and suburbs.

Huffman also was criticized for a new policy that restricts customer engagement with them. Rules unanimously approved last week cut the public’s ability to speak to two minutes, down from the previous three minutes.

Additionally, the policy required speakers to make a written request to speak to the board within 24 hours after meeting agendas are approved.

On Monday, Huffman said that she would recommend that board not implement the policy. The next water works board meeting is Wednesday.