WMBF News reports that SURFSIDE BEACH, SC (WMBF) - Surfside Beach’s mayor is defending the town’s handling of a $545,000 fraud case and said the contractor, not the town, suffered the financial loss.

In a Friday Facebook post, Mayor Robert Krouse said he does not believe the town is liable for the lost funds and instead believes the contractor, Wildcat Construction, bore the financial loss.

Krouse acknowledged a full investigation is needed before that is determined.

Krouse also said the email used to authorize the payment appeared legitimate, and that town processes were followed.

He added that firing a town employee is unnecessary because he believes the protocol was followed.

In a Thursday press release, town officials said their insurer won’t cover legal fees if Wildcat Construction sues to collect payment.