DETROIT -

A Wayne County official who was placed on leave during an FBI investigation that started with a former executive's severance deal has been fired.

County Executive Robert Ficano has announced the Monday of Michael Grundy, who was an assistant county executive. Ficano last month placed Grundy on leave in response to inquiries of alleged illegal activities involving a Detroit-based health maintenance organization.
Ficano released a statement Monday night detailing reasons for Grundy's termination.

"There were serious allegations made about activities of county staff working with the Health Choice program," Ficano said. "In response to an internal review of the facts, I have taken two disciplinary actions. Effective immediately Mr. Michael Grundy has been terminated. Mr. Grundy has not been cooperative with our internal investigation and has thus far refused to turn in county property. Also included in this review we learned of an accountant, Sharon Mattic, who is also employed by Wayne County and does work with HealthChoice. She has been placed on unpaid leave while we continue our internal review. If any of my employees has done anything wrong, they need to face justice. I will not tolerate anyone being deceitful."

Grundy has been serving as interim deputy director of mental health. Ficano says an accountant also has been placed on unpaid leave.

The FBI is investigating a $20 million contract between the county and health care provider ProCare. Sources said there are allegations Grundy forced payments from ProCare to two companies set up by close friends of his. Sources said the allegations are that ProCare would have to make payments -- sometimes as high as $50,000 -- to those companies for no work. And Grundy would call ProCare to complain if those payments were late.

Ficano appointed Grundy.Monday, the chairwoman of the Wayne County Airport Authority, Renne Axt, stepped down -- one week after the board fired the chief executive of Detroit Metropolitan Airport, Turkia Mullin.

The firing comes as the county faces scrutiny for $200,000 severance deal for Turkia Mullin, who was fired last week from her job running Detroit Metropolitan Airport.