HOUSTON -- Houston Mayor Pro Tem Carol Alvarado temporarily stepped down Monday pending the outcome of a grand jury investigation on four of her office employees who were suspended in a bonus scandal, KPRC Local 2 reported. She will remain on City Council.

Alvarado's announcement came the same day a report was released that said employees Rosie Hernandez, Florence Watkins, Christopher May and Teresa Orta improperly received more than $130,000 in bonuses in 2005.

The Office of Inspector General said its investigation revealed "sufficient evidence to conclude that the four employees, in fact, received incentive bonuses and/or salary increases that were not approved or obtained in accordance with existing city policy and rules." The matter has been referred to the Harris County District Attorney's Office for review.

"The OIG (found) violations of city law. Those employees violated laws of the city, ordinances of the city, which prohibit employees of the city from using their official position to advantage themselves or others," Houston Mayor Bill White said.

White said that there are actions under way to prevent similar abuses in the future. Administrative functions of the mayor pro tem's office will be reduced, he said.

"I do not want the public to look at city council and wonder if every question has been answered. I do not want to be the lightning rod for those who wish to take advantage of this situation in order to stimulate divisiveness on the council," Alvarado said. "Clearly this is not what I would prefer, but I think it is the right thing to do for the Houston City Council. I am confident that the grand jury will conclude, as the office of inspector general did, that I did nothing to condone this theft of taxpayer's money nor was I aware that it was taking place."

White stood by Alvarado.

"Based on my reading of the 17-page synopsis of the report, I see no involvement with the mayor pro tem in this scheme to take the taxpayers' money," he said.

"It's been a distraction for (Alvarado), probably for her constituents and for some of us on council, and I think she stepped up to the plate and did what needed to be done," said Ron Green, a Houston city council member.

White said the mayor pro tem's office will not be filled immediately.

Hearings are scheduled for Tuesday to consider the employment status of Hernandez, Watkins, May and Orta. The hearings are necessary under civil service law to terminate the employment of a civil service employee, White said.