Copyright LouisianaVoice (2011)
State Sen. D.A. “Butch” Gautreaux (D-Morgan City) has asked the U.S. Justice Department to conduct an investigation into contracts issued during the administration of Gov. Bobby Jindal.
Specifically, Gautreaux, chairman of the Senate Retirement Committee, is targeting the so-called Chaffe report but also wants investigators to take a look at the proposed 10-year, $34 million-per-year contract between the Department of Health and Hospitals (DHH) and CNSI of Gaithersburg, MD.
The Chaffe report was prepared as part of the administration’s efforts to privatize the Office of Group Benefits (OGB). Chaffe & Associates of New Orleans was retained in March to perform a preliminary assessment of OGB so that Jindal could have the information to plug into his executive budget by the March 19 deadline.
That information was not contained in the budget, however, leading to speculation that the report, or at least preliminary data, did not support privatization of the agency.
At the same time, the Division of Administration issued a request for proposals (RFP) from financial analysts experienced in the sale of multi-million dollar insurance entities to conduct an in-depth financial analysis of OGB and then to take an active role in marketing the agency to buyers. Wall Street banker Goldman Sachs was the only bidder to submit a proposal for the $6 million contract to perform the analysis and promote the sale.
When it was revealed by LouisianaVoice that Goldman Sachs met with Deputy Commissioner of Administration Mark Brady and OGB CEO Tommy Teague in Brady’s downtown office last fall to discuss the sale of the agency and then helped in the drafting of the RFP on which it subsequently submitted a proposal, Teague was summarily fired. Goldman Sachs then pulled out when the state balked at the banking firm’s demand that it be indemnified from any litigation stemming from the privatization of ORM.
The Division of Administration (DOA) on several occasions denied any knowledge of the identities of the Goldman Sachs representatives but LouisianaVoice earlier this week obtained their names and even offered to provide the information to Brady and his boss, Commissioner of Administration Paul Rainwater. There has been no response from either of them.
A second RFP was issued and proposals received on Monday. Goldman Sachs again was one of three firms submitting proposals.
Meanwhile, Rainwater resisted repeated efforts from legislators and LouisianaVoice to obtain copies of the Chaffe report. “Deliberative process” was the reason given most often in denying requests to make the report available.
Rainwater, however, under pressure from members of the Senate and Governmental Affairs Committee during his confirmation hearing on May 31, promised to make a copy of the report available to Sen. Karen Peterson (D-New Orleans). He subsequently changed his mind and instructed Teague’s successor, Scott Kipper, not to make the report available to anyone, including legislators. Kipper then resigned, effective June 24, over Rainwater’s decision to go back on his promise, becoming the second OGB CEO to leave within six weeks.
Gautreaux and members of the Senate and Government Affairs Committee were given copies of the Chaffe report on Thursday but only after signing confidentiality agreements, ostensibly because the Legislative Auditor’s office is conducting its own investigation of the events surrounding OGB and its $500 million surplus.
It is uncertain from whom senators received copies of the report. Gautreaux said he went directly to Rainwater but was refused a copy saying confidentially prohibited its release. Gautreaux then pushed through a unanimous Senate concurrent resolution calling for release of the report but Rainwater persisted in withholding the document.
Gautreaux even had a subpoena ordered to require the release of the study but with the same results. Sen. Ed Murray, a member of the Senate and Governmental Affairs Committee, got unanimous approval of his motion on Wednesday to subpoena the report.
Gautreaux appeared to validate speculation that the report said the only advantage to privatizing OGB would be if the purchaser retained the agency’s $500 million surplus.
Saying that he could not go into detail on the report’s contents, he did concede somewhat cryptically that after reviewing the Chaffe report, “I can say that I know why the administration didn’t want it released.”
That the administration persists in pursuing privatization of OGB despite the Chaffe report which apparently advises against privatization has become a sticking point with Gautreaux who also is a member of the OGB board of directors.
Gautreaux has indicated that he intends to add an item or items to the agenda for next Wednesday’s OGB board meeting. The Chaffe report and the current RFP are expected to take center stage at that meeting.
DOA, which has been evaluating responses to the latest RFP, is also scheduled to announce the name of the contractor for the fiscal analysis of OGB on Wednesday, June 15.
The attempt by DHH to conceal the identity of the contractor for the installation and operation of an extensive Medicaid Management Information System did nothing to ease tensions between senators and DOA.
When it was finally learned after more than 90 minutes of sparring between Senate and Governmental Affairs Committee members and DHH Secretary Bruce Greenstein Wednesday that the contractor was the former employer of Greenstein, those feelings only intensified.
“Not unlike the DHH Coordinated Care contract, the Jindal administration continues to operate under a shroud of secrecy,” Gautreaux said. “In all my years of legislative service, I have never seen such blatant acts of disregard for the legislative process and now, obviously, the law.
“I have requested the Justice Department to look into these two contracts and others signed by the Jindal administration since the governor has taken office,” he said by email on Thursday morning.
Gautreaux, asked to confirm the contents of that email, replied, “Yes, I’ve made a request that all contracts….during this administration be looked at.”
He said he had not received a reply as of this writing.
“To paraphrase the words of Commissioner of Administration Paul Rainwater, ‘Releasing the Chaffe report will be detrimental to getting the best possible price in the sale.’” Gautreaux said.
“I agree completely,” he added.
If the citizens of Egypt, Syria, Yemen, Libya, Tunisia, and Bahrain can put their lives on the line for democracy and freedom from dictatorial tyrany, the least tha citizens of Louisiana can do is rise up in protest to the very situation represented by Jindal and his insider aministrators. Those who don’t let their voices be heard in protest of Jindal’s pilaging of the state’s assets will have only themselves to blame if and when Jindal is successful in his thievery. Every government employee that doesn’t demand that Jindal and his administrators serve the state and its citizens rather than their personal ambitions and greed should live the remainder of their lives in shame. Now is the time for brave men and women to come to the aid of their countrymen. Boldness must be called upon by all in any position whatsoever to make their voice heard in protest of the shameless corruption of Jindal and his ilk.
All elected representatives of the LA legislature must recognize just how far they have fallen in their failure to serve their electorate. They must regain their morality and focus and return this state to one of reason and respect. We have become the dregs of the nation and seem to be getting only worse. Please regain your sanity.
Amen!
Sen. Gautreaux is what politics is SUPPOSED to be about, not what politics has evolved into!
Some of you might be interested to know that the Jobline feed on the WAFB website lists the pending CEO vacancy at OGB. Applications are to be submitted to the HR Office at DOA. Check it out at http://wafb.careers.adicio.com/jobs/detail/38794039 and apply! The more the merrier! (Someone should pass this along to Tommy Teague in case he’s willing to give it another try!) Strangely enough the job ad does not mention that the appointment is temporary or that only those willing to blindly follow the administration’s directives need apply.
Sure wish Gautreaux would reveal the deep dark secret.
I agree with John Sachs – We fought hard against privatization (with our legislators) of some of the DHH facilities but in the end…..line item veto by the governor ….. and privatization was a done deal.
There is not much fight left in some of us but we are working behind the scenes telling everyone we can what is going on in this state.
I do believe we are fighting against the belief that ~ if it doesn’t directly affect someone…then they don’t care.
Thank you “LOUISIANA VOICE” and Senator Gautreaux for continuing OUR FIGHT.
It’s about time. Some of us have been hoping for something like this for a long time, mainly as it concerns donations to certain charities and whether or not those donations were tied into state business opportunities.
Most of us feel like the teacher in this news clip. It’s tough to be a public employee these days. When did we get to be the enemy? http://t.co/FnEqwUR
Readers, there is no way possible I could articulate what is happening today with respect to our elected leaders’ attitudes toward public employees any better than the news clip Dragon Lady provided.
If you as a Louisiana public employee don’t stand up right now and defend the service you provide then you are part of the problem. No one else is going to go to bat for you. Check the other blogs to see which position they’re taking and for whom they’re speaking. This is your future, this is your government, this is your state; it doesn’t belong to the Jindals, the Pastoreks, the Rainwaters. It certainly does not belong to those who have been brought in from other states like Mark Brady, Kyle Plotkin, and Goldman Sachs.
If this makes me less objective and less professional as a reporter, so be it. I can live with that. To paraphrase a state official for whom I once worked, “I have my retirement.”
Can you say that with any certainty about your retirement? Is your own job secure?
Remember, you cannot, as civil service employees, campaign for a particular candidate. But you have every right to voice your concern about your agency, your job, and your benefits.
Tell everyone you know about LouisianaVoice and tell LouisianaVoice about your concerns.
tom
Tom,
If you could send what you just wrote to The Advocate editorial . . . editing as needed . . . poeple need to read this.
So Tom, I do have a question in regards for us spreading the word. As you stated, we can not publicly campaign for a particular candidate, but can we publicly support a political driven website such as LouisianaVoice???? If so, have you thought of creating yard signs and bumper stickers to get the word out, after all, LouisianaVoice isn’t driven to support any political candidate nor party.
Thank you Mr. gga
Thank you Sen. Gautreaux and other senators; I’m feeling proud of you for your efforts to get transparency and for trying to do what is right for those you represent. Ann
My thanks go out to Senataor Gautreaux! He is fighting the good fight and not letting Jindal and Jindal’s administrative staff intimidate and scare him off. He has done his job as a legislator and he is fighting for the Louisiana citizens. He has recognized that the employees of the State of LA are also tax paying citizens of Louisiana. The money earned by these LA citizens is spent in their local communities and they pay the same sales taxes as people who work in private industry. For too long, the LA State workers have been put down and joked about by other non-state employed citizens of LA. The vast majority of state employees are hard working and dedicated employees. It is time the rest of the state treat state employees with some respect.
I would also like to thank all the other legislators who are now stepping up to the plate to assist Senator Gautreaux in his fight to save the Office of Group Benefits. Also, thank you Tom Aswell for your articles and the research you put into finding out the truth behind the shady deals happening within the Jindal administration.
May GOD Bless all State Employees as they fight this mighty battle. They have been downcast for so long by this administration. I PRAY and trust that the US Justice Deptartment will now take a long hard look at what is going on in our State,,,
why didn’t Gautreaux call for this several months ago?
You can’t just go running to the feds asking for investigations if you don’t have something to show them. As events progress and more and more details emerge, only then can you have enough cause to request an investigation. Even then, there is no guarantee that the Justice Dept. will involve itself. If no federal laws are broken, they may well refer Sen. Gautreaux to the Attorney General’s office and we can all predict how far that will go.
oh yeah, because Caldwell switched to the Republican party,
probably a no go.
I wonder why the Division of Administration was removed from tomorrow’s confirmation hearings?