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Archive for June, 2011

The administration of Gov. Bobby Jindal continues to cloak itself in a veil of secrecy despite the governor’s spurious boasts of having the most transparent administration in America.

His actions fly in the face of his bogus claims of accountability and openness.

After his ridiculous and shameless exhibition of releasing his birth certificate—as if it mattered or more significantly, as if anyone cared—one would think he’d be eager to comply with a simple request to divulge his federal income tax returns.

One would think wrong.

One would think that after the public relations disaster that occurred at the confirmation hearings of his secretary of the Department of Health and Hospitals, he would be equally eager to comply with a public records request as to the identity of the financial analyst selected to conduct an assessment of the Office of Group Benefits.

Again, one would think wrong.

LouisianaVoice made both requests—in vain, it turns out….again.

Not that we’re surprised; this administration doesn’t even respond to legislative committees. Why should we be any different?

We thought it would great to let all those north Louisiana Protestant churches that Jindal loves to visit know how well the governor backs up the talk with the walk. In other words, does he back his professed belief with support of his church? That information would be contained in his federal tax return, so we made the request.

It wasn’t an original idea. The San Antonio Express recently published an interesting story about Texas Gov. Rick Perry and his religious commitment. Perry, the story said, earned almost $2.7 million from 2000, when he became governor, through 2009.

Any good Baptist will tell you that you should to tithe 10 percent. Perry’s donations to churches and religious organizations totaled $14,243—one-half of one percent, or one-twentieth of the minimum recommended dosage.

Surely Jindal would not be so crass. Certainly, he would reveal what a generous giver he is. After all, he appears to like nothing better than jumping in a state police helicopter and hopping up north to visit a church in say, Shongaloo, Haughton, or Mansfield.

So, we asked.

The response, from Elizabeth B. Murrill, deputy executive counsel to the governor, was short and sweet:

“We are in receipt of your public records request for copies of Governor Jindal’s federal income tax returns for the years 2003 through 2010. These documents are not public record.”

We’ve been writing for some time now about Jindal’s efforts to privatize the Office of Group Benefits (OGB). After negotiations with Goldman Sachs fell through pursuant to a request for proposals (RFP) for a financial analyst to conduct an assessment of OGB, the Division of Administration (DOA) promptly issued a second RFP.

The deadline for the submission of proposals on the second RFP was June 6 with the “probable” date for naming of the financial analyst being June 15.

LouisianaVoice learned that on June 6, a representative or representatives of DOA appeared at OGB and retrieved the proposals, reportedly from three companies, including Goldman Sachs.

June 15 came and went, so we called DOA Chief of Staff Dirk Thibodeaux and his answer was decidedly curt. “If you read the RFP, you saw that June 15 was a tentative date,” he said.

“Well, since today is June 15, has there been a tentative decision?” we asked.

“No.”

So, we waited a few more days and asked again—this time as a formal public records request.

The response was clear indication that DOA has dug in its heels:

“In accordance with R.S. 44:1, et seq., this letter acknowledges our receipt of your correspondence dated June 15, 2011, where you have requested information regarding ‘the selection of the financial analyst chosen pursuant to the RFP…on behalf of the Office of Group Benefits.’

“Having reviewed your request, we are able to inform you that the Division does not possess the requested records. Furthermore, no such record exists.”

By now, it’s clear that DOA is determined to conceal public information, even to the point of lying, so we fired off another email:

“We are getting quite weary of the Division of Administration’s policy of dodging legitimate questions to which the public has a full and complete right to know the answers. Now you are beginning to play with semantics. You have taken the word ‘records’ and used it as the basis on which to deny our requests.

“So, now we will try a different approach.

“We are aware that on the day the proposals were due at the Office of Group Benefits by close of business on June 6, 2011. We are also aware that on that date, a representative or representatives of the Division of Administration appeared at OGB and took possession of the proposals. Further, we are aware that the ‘probable’ date for the naming of the financial analyst was June 15, 2011.

“You have chosen to split hairs by seizing on the terminology of ‘public records,’ denying there were any ‘records’ that would be responsive to my request. Accordingly, we are now making the same request but applying that request to ‘public business’ as defined in the applicable section of the law below.”

“The Louisiana Open Meeting Law under R.S. 42:4.1 through 10 provides the methods by which public meetings are conducted. The statement of purpose of the Open Meetings Act states, ‘it is essential to the maintenance of a democratic society that public business be performed in an open and public manner and that the citizens be advised of and aware of the performance of public officials and the deliberations and decisions that go into the making of public policy.”

“We are all aware that you (a) have the proposals and that you are (b) withholding information on ‘the performance of public officials and the deliberations and decisions that go into the making of public policy.’ The citizens of Louisiana are legally and morally entitled to know what our government is doing. Gov. Jindal has repeatedly boasted of his ‘open and accountable’ and ‘transparent’ administration.

“We have played games long enough. We want this information and we want it in a timely fashion.”

We’re betting that this “open, transparent, and accountable” administration will ignore our request and continue to withhold information that you, the voting public, are legally and morally entitled to know.

We’re pretty sure of this because when the administration did comply with a routine request for innocuous records recently, we were instructed to make an appointment with one Kara Allen of DOA to arrange to pick up the documents. We did and she was kind enough to give us an appointment for 1:00 p.m. the next day.

When we showed up at the guard desk of the Claiborne Building, the guard called up to the seventh floor. Instead of allowing us into the DOA offices, a student worker was sent downstairs to the guard station with the documents.

We first thought that perhaps we must be carriers of some dreaded disease. But now we know that the disease exists in the administration itself and that its victims fear that a little sunshine may be lethal.

Whether the administration is responsive or not, we will have made our point.

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“I want to hope that no threats were made…..I also want to hope there’s a Santa Claus.”

Rep. Ernest D. Wooton (I-Belle Chasse), on the failure of the House to override Gov. Bobby Jindal’s veto of the renewal of a 4-cent cigarette tax.

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Consistent: Unchanging in achievement or effect over a period of time; showing steady conformity to character, profession, belief, or custom; dependable, unswerving.

It’s an adjective that’s not been used very frequently in describing Gov. Bobby Jindal. It should be. The governor has been a veritable model of consistency. As ol’ Casey Stengel would say, you can look it up.

Jindal has consistently tried to unemploy state civil service workers in his repeated attempts to privatize their agencies from under them. He started with the Office of Risk Management, a relative small agency ($100 million budget) in the overall scheme of things.

Flushed at the ease with which that was accomplished, he next turned his eyes on state prisons, the Office of Group Benefits (OGB), and Medicaid.

Those weren’t as easy. The prison plan fell through, at least for this year. OGB has met with considerable resistance from judges, state employees, retirees, and legislators. And the Medicaid plan ran into an unexpected hurdle during confirmation hearings for the secretary of the Department of Health and Hospitals.

He consistently has been out-of-state on fundraisers, book promotion tours, or campaign appearances on behalf of other Republican candidates when he should have been home minding the store that was fast going broke.

He consistently visits Protestant churches, mainly in north Louisiana, to pass around clipboards with forms for church members to fill out, giving their names, phone numbers, mailing and email addresses for future fundraising solicitation efforts.

The only reason his out-of-state trips and church visits have stopped in recent weeks is because of a law that prohibits fundraising activities during the legislative session.

Jindal also has been consistent in withholding information from legislators, reporters, and even the state auditor. His Office of Economic Development refused to provide records requested by auditors who were attempting to perform a routine state audit of the agency. And the Division of Administration (DOA) simply refuses to disclose anything more than the time of day and more often than not, even that’s a half-hour late.

Then there was the infamous Chaffe Report. Without rehashing old news, Jindal hired Chaffe & Associates of New Orleans to perform a financial overview of OGB with the idea in mind to plug the data into his executive budget. When the budget contained nothing relative to the report, it soon became evident that the report’s analysis indicated privatization of OGB was not a good idea.

The public, press, auditors, and even legislators would never have known that, however, had Rep. Jim Fannin and Sens. Ed Murray, Karen Peterson, and Butch Gautreaux not pressed for the report. Even then, DOA attempted to withhold the document.

Jindal has been consistent in that he brooks no dissenting opinion.

During public hearings on governmental streamlining in October of 2009, Melody Teague, a contract grants reviewer for the Department of Social Services, testified against the administration’s streamlining proposals and was fired the next day. She appealed, but it took about six months for her to get her job back.

Then, on April 15 of this year, her husband, Tommy Teague, was fired as CEO of OGB—and he had not even publicly opposed privatization of his agency. He did, however, take OGB from a $50 million deficit to a $520 million surplus in a period of only five years.

His successor, Scott Kipper, had the temerity to tell the Senate Retirement Committee that if nothing changed at OGB, if there was no sale, no privatization, no third party administrator, there was not a single employee he would lay off at the agency. In fact, he told the committee, he had inherited a staff of excellent, dedicated employees. From that moment forward, his days were numbered.

His boss, Commissioner of Administration Paul Rainwater, had only a few minutes earlier testified that OGB staff needed to be reduced by 149 persons.

Finally, there are the confirmation hearings for Jindal appointees which thus far have been an unqualified—but consistent—disaster for the governor.

First, Rainwater sat at the witness table texting as Kipper was grilled by Murray and Peterson, never offering to come to his rescue by clarifying an answer or volunteering to rescue Kipper who twisted slowly in the wind.

Then, when Rainwater reversed himself on his promise to the Senate and Governmental Affairs (S&GA) Committee, made during that same hearing, to make copies of the Chaffe report available to them, Kipper was caught in the middle. His fate sealed, he resigned, effective June 24. At his final board meeting on Wednesday of this week, he received extended laudatory praise from the board.

The confirmation hearings have been the number one entertainment attraction this session.

That’s because of Jindal’s consistent persistence in trotting out nominees with baggage and expecting them to slip by Murray and Peterson. Invariably, the senators ambush the unsuspecting appointees with pointed questions about conflicts of interest or a lack of that now overused word, transparency.

With Rainwater and Deputy Commissioner of Administration Mark Brady, it was the refusal to come forward with the Chaffe report. With Bruce Greenstein, things took a little nastier turn when he refused to reveal the name of the winner of a 10-year, $34 million-per-year contract for DHH.

As secretary of the agency, he assured S&GA Committee members that he took a decidedly hands-off approach in the selection process for the contractor to install and operate the Medicaid Management Information System for DHH.

Despite that, he refused for more than an hour under withering demands to reveal the name of the contractor. When he finally relented, he revealed that the contractor was CNSI of Gaithersburg, MD., a company for whom he once worked.

Then, on Wednesday of this week, Ed Antie of Carencro, a Jindal appointee to the Board of Regents for Higher Education, took his seat in the witness chair to begin his confirmation process before the S&GA Committee.

Things got ugly early.

Murray started the carnage by asking an apparently innocuous question: “Do you have any outstanding contracts with the State of Louisiana?”

“No,” Antie assured Murray.

“Do you know of a company called Sun America?”

Antie shifted uncomfortably before answering. “I own a company, a holding company that’s dormant, that owns a company that owns a company that owns maybe 10 percent of Sun America. I’m inactive.”

“Have you ever heard of LONI?” Murray asked. LONI is an acronym for the Louisiana Optical Network Initiative, a state-of-the-art fiber optics network that connects eight major research universities—LSU, Louisiana Tech, LSU Health Sciences Centers in New Orleans and Shreveport, Southern University, Tulane University, the University of Louisiana at Lafayette, and the University of New Orleans.

“I politicked Sun America to give them a discounted rate for our fiber optics,” Antie said.

“I thought you said you were inactive,” Murray said. “Does Sun America have a contract with the Board of Regents?”

“They may. I was not involved in the negotiations and I have no idea what the contract value is,” Antie said.

“You were given a questionnaire and that question was left blank,” Murray said.

Antie, who heads up Central Telephone, replied, “I didn’t realize that a company from which I was so far removed was relevant.”

“Sun America has a contract with the Board of Regents in the amount of $531,000,” Murray said. “You first said there was no contractual relationship and now there is. Don’t you think that’s relevant?”

“I asked Sexton Gray (Gray Sexton, a Baton Rouge attorney who once headed up the State Ethics Board) and he said to recuse myself from any votes,” Antie said. “I’m not trying to hide anything. I took retirement from the telecommunications industry to serve on this board.”

“Which one of those companies that you mentioned owns Sun America?” asked Murray.

“Central Telephone is my company. It’s just a holding company. Central Telephone owns Network USA, about 30 percent, and Network USA owns Delta Media which owns 10 or 15 percent of Sun America.”

He said Charles Chatelain is the registered agent for Network USA, Delta Media, and Sun America.

“First you said you had no contractual relationship with the state and now we find that your company has a $531,000 contract with the Board of Regents,” Murray said. “You said you didn’t know, but you said you approached Gray Sexton for advice on your apparent conflict.

“In terms of ethics, you may be breaking the law,” Murray said.

Sen. Lynda Jackson (D-Shreveport) observed that Antie claimed that Central Telephone was dormant. “Yet, when you check corporate records with the Secretary of State’s web page, it shows that Central Telephone is in good standing, which means it has filed annual reports,” she said. “Its last report was November of 2010 and it shows that you are the registered agent.”

She said that ethics and conflicts of interest have become a recurring problem of the Jindal administration.

A check by LouisianaVoice also revealed that Antie made three contributions to Jindal’s campaign totaling $5,000. The contributions were made in August of 2007 and in August and September of 2010. His associate, Charles Chatelain gave $5,000 to the Jindal campaign in December of 2009; Network USA gave $5,000 in separate $2,500 contributions in August of 2009 and March of 2010, and Sun America contributed $3,500 to the governor’s campaign in november of 2010.

Jindal appointed Antie to the Board of Regents in January of this year.

At least that’s consistent with Jindal’s legacy of consistency.

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“The governor turned 40 last Friday. I thought as he got older, he’d get wiser. Apparently not.”

Office of Group Benefits (OGB) board member Kenneth Krefft of Shreveport, on Gov. Bobby Jindal’s determination to privatize OGB despite recommendations to the contrary contained in a report by Chaffe & Associates—the company hired by Jindal to prepare the report.

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BATON ROUGE (CNS)—Two scheduled events dealing with the future of two Jindal administrative appointees and of the Office of Group Benefits (OGB) came and went with no official action though one of those has been re-scheduled for Friday.

It turns out that confirmation hearings on two of Gov. Bobby Jindal’s appointees may be held on Friday.

On the other, a spokesman for the Division of Administration (DOA) was less than congenial in responding to a status inquiry from LouisianaVoice.

The Senate and Governmental Affairs (S&GA) Committee was slated to continue its confirmation hearings on Commissioner of Administration Paul Rainwater and Deputy Commissioner Mark Brady but those hearings were cancelled Tuesday night. Different reasons for the cancellations were given by Sens. Ed Murray and Karen Peterson.

Peterson (D-New Orleans) said the confirmation hearings were pulled because the Senate Committee on Revenue and Fiscal Affairs was scheduled to meet. Three members of S&GA also sit on the Revenue and Fiscal Affairs committee. “We didn’t have enough time,” said Peterson, adding that the confirmation hearings were rescheduled for Friday at 9:30 a.m.

Murray (D-New Orleans) said the reason for cancellation was that the committee members received the Chaffe Report on OGB that it had requested earlier. No mention was made of additional hearings on Friday.

The Chaffe Report was released by an anonymous senator Monday night even though Rainwater had requested that the document not be released to the public. Sen. D.A. “Butch” Gautreaux (D-Morgan City), one of the more vocal critics of Jindal and DOA over the OGB privatization plan, said he was not the one who released the report. “But whoever it was, I’m glad it was done,” he said.

Gautreaux also is a member of the OGB Board of Directors.

The report was done by Chaffe & Associates of New Orleans and was basically an overview of the financial picture of OGB. Chaffe was retained to complete the report in time for Gov. Bobby Jindal to include the data in his executive budget that was due on March 19. Nothing in the executive budget made any reference to OGB.

That led to speculation that the report did not reflect Jindal’s opinion on the rationale for selling OGB. Those suspicions were confirmed with the Monday release of the report that said if OGB is privatized, premimums will increase and services will likely be cut.

One source said Wednesday evening that Friday’s meeting was for confirmation testimony only from Department of Health and Hospitals Secretary Bruce Greenstein.

Greenstein had difficulties of his own with the committee last week when he refused to divulge the name of the winner of a 10-year, $34 million-per-year contract with DHH. It took 40 minutes of sparring with members of the committee, but Greenstein finally admitted the contractor was CNSI of Gaithersburg, MD. Greenstein once worked for CNSI, prompting more criticism from senators.

The State Constitution mandates that the committee must make its recommendations on confirmation to the full Senate which must vote up or down on appointees before the end of the session. The session ends at 6 p.m. next Thursday.

A decision was also scheduled Wednesday on naming of a financial analyst to evaluate the assets of OGB and to help market the agency to potential buyers or third party administrators but DOA apparently did not meet that deadline.

Goldman Sachs was one of three firms to submit proposals on the RFP, the second to be issued by DOA. Goldman Sachs was the lone bidder on the first RFP but withdrew over a refusal by the state to indemnify the Wall Street banking firm from any liability in the event of litigation.

A second RFP was issued by the state. The deadline for submitting proposals on that RFP was June 6 and Wednesday, June 15, was the tentative date to name the contractor.

DOA Chief of Staff Dirk Thibodeaux, asked if a contractor had been selected, responded rather curtly, “If you read the RFP, you will see that June 15 was a ‘tentative date.’”

LouisianaVoice acknowledged the “tentative date,” and asked again if a “tentative decision” had been made.

“No decision has been made,” Thibodeaux said.

A follow up email was sent to Thibodeaux, Rainwater, and Brady asking that LouisianaVoice be notified as soon as a contractor was selected. Kirkpatrick opened his email but, like Brady and Rainwater, did not respond to the public records request.

Just another open and accountable day at the Jindal administration of tentative transparency.

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