More than two months after the board of California’s largest urban water provider placed him on leave, embattled CEO Adel Hagekhalil defended his performance and insisted the allegations against him are unfounded.
The Metropolitan Water District of Southern California board met behind closed doors Tuesday to discuss the status of investigations into multiple complaints and voted to extend Hagekhalil’s license until Oct. 23 while the investigation continues. The license was set to end in September.
“We understand the desire for an expedited investigation, but as difficult as it may be, we believe that due process is paramount above all considerations, for all parties involved,” said MWD Board Chairman Adan Ortega Jr. “We are committed to ensuring a thorough, fair and impartial investigation.”
Hagekhalil spoke before the board publicly for the first time since agency leaders announced they would place him on leave on June 13.
“I can assure you, the board of directors and all employees of Metropolitan, that I have not committed any wrongdoing,” Hagekhalil said. “Everything I have done has always been for the benefit of Metropolitan.”
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Some of the allegations emerged in a letter to the board from Chief Financial Officer Katano Kasaine, who claimed that Hagekhalil had harassed, demeaned and marginalized her and created a hostile work environment. Hagekhalil denied the allegations and said she had always treated staff with respect and professionalism.
“These complaints are nothing more than disagreements about management decisions,” Hagekhalil told board members. “Over 74 days ago, I was unfairly placed on leave, and as of today, I have still not been contacted about the investigation.”
Kerry Garvis Wright, Hagekhalil’s attorney, said her client has been locked out of his email account and denied access to agency documents, “which hinders his ability to prepare for his interviews in the investigations.”
“We have significant concerns about the investigative process, including, but not limited to, lack of independence, lack of impartiality and lack of confidentiality,” Wright said.
He urged the board to address the concerns quickly and reinstate Hagekhalil.
Hagekhalil's sidelining has left in doubt the future leadership of the nation's largest wholesale drinking water provider, which serves cities and agencies serving 19 million people in Southern California.
In the more than three years that Hagekhalil has led the agency, he has sought to focus on climate change adaptation, in part by reducing reliance on water supplies from distant sources and investing in local water supplies. His efforts to shift priorities at MWD have also included management changes that he and supporters say have helped address issues of workplace harassment and retaliation.
“We have had many successes and accomplishments,” Hagekhalil said. “You charged me with changing this toxic culture and getting the agency back on track. I am proud to say that we all did it. We support a culture of transparency and accountability.”
Hagekhalil said, however, that some within the agency have tried to undermine its reform efforts.
In a letter to the board, Hagekhalil said “every action I took on your behalf and at your direction was met with a frivolous complaint to undermine and stop the reform you mandated.”
He said that when he was hired by MWD, he arrived “at a time of turmoil following complaints of harassment and retaliation by employees, unhealthy working conditions” at desert outposts and outdated human resources policies and hiring practices.
Hagekhalil noted that before he was hired, the Los Angeles Times had published an investigation into women’s complaints of harassment, discrimination and retaliation, and that some MWD board members had pushed for Shaw Law Group, a Sacramento firm, to conduct an independent investigation.
The full investigation report, which remains confidential, corroborated the women’s allegations, Hagekhalil said. A state audit later found that the district had failed to allocate resources to adequately investigate allegations of misconduct and had engaged in unfair hiring practices, among other problems.
“We wanted to heal and reset the organization. I was tasked with doing that,” Hagekhalil said. Those efforts, she said, included creating an independent discrimination complaint office, creating an office of diversity, equity and inclusion, and reforming policies to address harassment and bullying, among other things.
But he said some within the agency “did not accept that and continued to try to undermine us by weaponizing the complaint process with accusations of bad faith.” He said “a small number of people resisted change and accountability” and that “every action I took was met with frivolous complaints.”
Hagekhalil said he has been the subject of other anonymous complaints that have been investigated and proven to be unfounded. In one case, he said, an anonymous complaint about the hiring of a chief of staff led to an investigation that ended Aug. 15, when MWD’s ethics office notified him there was no violation and the matter was closed.
“I am deeply concerned about the impartiality and objectivity of the investigation process. It is abundantly clear that these are baseless and frivolous accusations and complaints, leaks and lies that are being used to discredit us in order to force the hand of the board,” Hagekhalil said in his letter, urging board members not to “fall for these tactics.”
About 20 people spoke in support of Hagekhalil during the meeting, including employees, environmentalists, residents and others.
Bruce Reznik, executive director of the Los Angeles Waterkeeper group, called for Hagekhalil to be reinstated while investigations are completed “with as much transparency as possible.”
“My experience with Adel has always been extremely positive,” Reznik said, calling him a “thoughtful, inclusive and transparent leader.”
Caty Wagner, director of the Sierra Club’s water campaign, said there appears to be a group within MWD “that wants to reclaim the district’s past” and that Hagekhalil is being targeted for opposing them.
“I am shocked by what I heard from Adel’s attorney this morning — that investigators have not yet contacted him and that he did not know what today’s meeting would be about,” Wagner said. “The public is watching and we are dismayed.”
Others who expressed support included Marty Adams, former general manager of the Los Angeles Department of Water and Power, who said Hagekhalil has “brought the water community together across the state.”
Some praised Hagekhalil's efforts to better communicate with communities and tribes in the Sacramento-San Joaquin River Delta, where water is pumped to provide a portion of Southern California's supplies.
“We need more water leaders in California like Adel, not fewer,” said Krystal Moreno of the Shingle Springs Band of Miwok Indians.
Others criticised Hagekhalil and said investigations should get to the bottom of the complaints.
“I am here today to speak on behalf of those who cannot speak out for fear of retaliation and harassment,” said Trish Gonzales, a retired employee who worked in the human resources department. She said some employees “are afraid to speak out and have been harmed and traumatized by Adel and his people.”
Gonzales said the general manager has engaged in “unethical practices” and urged the board to “do the right thing.”
John Vrsalovich, president of the Association of Managerial and Professional Employees, which represents some MWD employees, urged the board to “continue to methodically investigate the allegations and not be swayed by the clearly solicited support that came from inside and outside the agency today and over the past several months, which we believe was orchestrated to cast doubt on the various investigations.”
Vrsalovich said the serious allegations “demand a thorough investigation to resolve the issues fairly for all parties so the organization can move forward.”
The board has temporarily appointed deputy director general Deven Upadhyay, who has been with the agency for 29 years, as interim director general.
Several union members and leaders of the American Federation of State, County and Municipal Employees Local 1902 said employees have continued to face unfair treatment, harassment and retaliation.
Gonzalo Pantoja, an electrician, said a manager recently “felt comfortable enough to push an employee to the ground and, to this day, has received little to no discipline for his actions.”
Alan Shanahan, president of Local 1902, said Hagekhalil made positive efforts toward change, but since his ouster “we have seen a complete disconnect between HR and management and collaboration.”
Ellen Mackey, a senior environmentalist and leader of the MWD women's group, said the manager's attitude toward the employee was “indicative of the abusive attitude toward employees that Adel was seeking to change.”
Mackey said he believes “some middle, senior and retired managers have conspired to oust Adel.”
“We are still not sure how many parties are involved in this Game of Thrones farce,” he said. “The investigation must follow the lines of evidence wherever they lead.”
