The city said they're dealing with what seems to be just two bad apples in the bunch. They claimed they've handled the cases appropriately with internal investigations and terminations to follow.
Folks in Malvern, however, said the employees' actions leave a dark cloud over their town.
Janet Dye said, "I always thought this was just a good upstanding town and there's so many things going wrong."
David Selph added, "It's a reflection of the whole town when something like this happens and a city employee is in jail."
Another resident, Kristi Davidson reacted with, "I think it makes Malvern look bad when we have employees like that stealing from us."
An internal investigation into Sreet Department Superintendent, Len Dawson, and his actions surrounding a Cloud Park timber controversy, led Mayor Steve Northcutt to fire him last week.
A termination letter cited a failure to complete basic job requirements.
Another city employee, former Malvern Water Works Office Manager, Kennetha Henson, was arrested last month on felony charges after an alleged misappropriation of over $200,000 in city funds.
She's set to deliver her plea in court Tuesday (9/11).
"She has been charged," confirmed Hot Spring County Prosecutor, Eddy Easley. "There's been probable cause established to charge her with a crime. But that doesn't mean that the investigation stops and it has not in this case. It's an ongoing investigation with the State Police and the legislative audit."
A private audit found a discrepancy in initial reports with $226,925.55 missing.
After involvement from the Arkansas State Police and a legislative audit, they charged Henson with the felony.
"They should pay for what they've done," said Malvern resident, Cindy Whitlock.
They've both been fired, but Henson still has to face a judge.
Some people in town however, feel the employees shouldn't be the only ones facing judgement.
"I think the mayor should be held accountable," said Janet Dye.
Kristi Davidson added, "I think it's their job to keep an eye on what's going on."
If Henson goes to trial and the jury finds her guilty, she could face 5-20 years in prison and a fine up to $15,000.