North Myrtle Beach Under Scrutiny for Secret NDAs: What Are They Trying to Conceal?

North Myrtle Beach’s Secretive NDAs: What’s the City Hiding?

In the charming coastal town of North Myrtle Beach, there’s a not-so-charming secret lurking amid the sun-soaked beaches and vibrant community. Recent records obtained through the Freedom of Information Act reveal that the city has a pattern of requiring outgoing employees to sign Non-Disclosure Agreements—or NDAs—as they exit their positions. The purpose? To ensure that nobody shares any information that might cast the city in a less-than-favorable light. But at what cost to the public’s right to know?

NDAs and Their Implications

NDAs might sound like a common tool in the corporate world, but are they appropriate for city employees? According to the Harvard Business Review, using NDAs to silence employees concerning any misconduct is illegal. While South Carolina law doesn’t prohibit former government employees from signing NDAs—nor does it stop the city from including them in contracts—concerns are arising.

It was noted by Taylor Smith, an attorney with the South Carolina Press Association, that these agreements can seriously impact the “marketplace of ideas.” He stated, “When it concerns how public money is used or how decisions are made about public business, the harm to the marketplace can be extreme.” Essentially, agreements like these can stifle important insights that might foster a healthier democracy.

So, Why Use NDAs?

While some might argue that NDAs protect sensitive information, they have been predominantly used in the context of classified information or national security at the federal level. Yet, here in North Myrtle Beach, they have appeared multiple times over the years. The most recent case involves former city manager Mike Mahaney, who resigned in October and signed an NDA as part of his exit agreement, which involved a hefty payout of over $320,000.

When pressed for details on why NDAs are utilized, the city attorney, Chris Noury, was tight-lipped, stating, “I think that goes into an area where it would be advice between the city’s attorney and its client.” That response raises eyebrows and leaves many wondering what information is being shielded from the public.

History of Controversial Payouts

Interestingly, North Myrtle Beach leads in using such contracts compared to other local governments. Records show that nearly $46,000 was paid out to nine departing employees throughout the 2010s. In 2020 alone, at least seven former employees exited with similar agreements, totaling $29,230 in payouts. One can’t help but wonder how many similar agreements are quietly hiding in the city’s archives.

Public Demand for Transparency

In light of the potential for secrecy, a fresh FOIA request was filed last month seeking all contracts involving former employees over the last 20 years. As of now, the request is still under review. Residents are eager to uncover the full scope of these NDAs and the reasons behind their continuation.

The Fine Print of NDAs

The agreement signed by Mahaney, titled “Transition Resources and Release Agreement in Full,” stipulates that he must refrain from making negative comments about the city, even if those comments are true. This raises significant ethical questions about freedom of speech versus the protection of the city’s reputation.

A Call for Clarity

As these questions swirl and the community seeks answers, North Myrtle Beach residents are beginning to wonder what goes on behind closed doors at City Hall. With the public’s right to access information on one side and the city’s intent to maintain a positive image on the other, it seems clear that this is just the tip of the iceberg.

As the city council continues its discussions and the FOIA request progresses, the people of North Myrtle Beach will undoubtedly be watching closely, advocating for transparency and accountability in their local government.