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Investigation into Internal Theft at Central Alabama Water

Utility warehouse with tools and security measures being discussed

Birmingham, Alabama, July 23, 2025

News Summary

Birmingham’s Central Alabama Water is under investigation for internal theft involving heavy tools allegedly stolen by a former employee. This follows a significant copper theft case from the same department resulting in losses of nearly $2 million. CAW is now enhancing security protocols and conducting a forensic audit to improve inventory control as the Birmingham Police Department joins the inquiry.

Birmingham, Alabama – Birmingham’s Central Alabama Water (CAW) is currently under investigation for internal theft, focusing on a former employee from the utility’s distribution department. The theft case primarily involves heavy tools that were allegedly stolen and taken to a local pawn shop. Some of these stolen tools have already been recovered, according to the general manager of CAW, Mac Underwood.

This investigation follows a separate incident just a month prior, where employees were reported to have stolen copper from a utility warehouse to resell it. The earlier copper theft is considered significant, with estimated losses close to $2 million. An internal probe into the copper theft revealed that multiple employees bypassed security systems to carry out their activities.

The two theft incidents both occurred within the distribution department, leading to heightened scrutiny and concern over security practices. In response to the ongoing issues, CAW is conducting a forensic audit aimed at improving inventory control measures. The Birmingham Police Department has been notified and is participating in the investigation but has not provided further details or reported any arrests.

Following the discovery of the previous theft ring in June, Underwood recommended an independent review of warehouse operations to enhance security and oversight. This recommendation has been part of a broader initiative by the Birmingham Water Works Board, which has granted new management the authority to conduct audits for better accountability and oversight. Disturbingly, critics have voiced concerns regarding financial mismanagement within the Board, prompting several changes in leadership.

Underwood has reiterated the utility’s commitment to principles such as honesty, integrity, and accountability, emphasizing that any violations of these standards will lead to accountability. However, the Water Works board members have refrained from sharing additional details related to the ongoing investigations to protect the integrity of the process.

As the investigation unfolds, the CAW, together with Birmingham Police, is focusing on strengthening operational procedures to prevent future thefts. Both current and former employees of the distribution department may be scrutinized as the investigations continue.

Background Context

This string of thefts raises serious questions about the safety and security protocols in place at Birmingham’s Central Alabama Water. The previous incident involving copper theft mirrors broader trends of internal fraud that have affected various utilities across the country. Many utilities, including Birmingham’s CAW, have faced significant challenges in maintaining operational integrity and protecting assets, driving calls for more stringent oversight and management reforms.

In light of the two separate theft incidents, the stakes for CAW are high. Both incidents reflect on the utility’s reputation and operational integrity and could impinge on community trust if not managed appropriately. The outcome of these investigations will likely influence ongoing discussions regarding utility oversight and the need for reform.

Frequently Asked Questions

What is being investigated?

An internal theft case involving a former employee in the distribution department of the Central Alabama Water.

What items were stolen?

Heavy tools were stolen and allegedly taken to a pawn shop. Some of these tools have been recovered.

What was the previous incident related to?

A prior incident involved employees accused of stealing copper from the utility warehouse, estimated to be worth nearly $2 million.

What actions are being taken?

A forensic audit is currently underway to improve inventory control measures, and the Birmingham Police Department is involved in the criminal investigation.

What measures is CAW taking to prevent future thefts?

CAW is implementing an independent review of warehouse operations and enhancing security protocols in response to these incidents.

Key Features of the Incident

Feature Details
Current Investigation Internal theft involving heavy tools
Previous Incident Theft of copper worth nearly $2 million
Key Figures Former employee, Distribution department
Scope of Action Forensic audit and independent review recommended
Involvement of Authorities Birmingham Police Department involved
Management Response Commitment to honesty, integrity, and accountability

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Additional Resources

STAFF HERE BIRMINGHAM WRITER
Author: STAFF HERE BIRMINGHAM WRITER

The BIRMINGHAM STAFF WRITER represents the experienced team at HEREBirmingham.com, your go-to source for actionable local news and information in Birmingham, Jefferson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Sidewalk Film Festival, Sloss Music & Arts Festival, Magic City Classic, and civil rights commemorations. Our coverage extends to key organizations like the Birmingham Business Alliance and the Birmingham Civil Rights Institute, plus leading businesses in healthcare, finance, and manufacturing that power the local economy such as UAB Medicine, Regions Bank, and Encompass Health. As part of the broader HERE network, including HEREHuntsville.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.

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