If one thinks we’re feeling a little smug right now or that we take any measure of self-satisfaction over the federal investigation at the Department of Health and Hospitals (DHH), or the no-show status of DHH Secretary Bruce Greenstein before the House Appropriations Committee only days after the federal probe became public knowledge, or of Greenstein’s subsequent announcement that he will resign, effective May 1, then one would be wrong.
We take no pleasure in our native state’s once again having the harsh spotlight of official corruption shone upon it for the entire nation to see. We fail to share the self-righteous satisfaction of those who would smile condescendingly and nod and agree that despite the mantle of morality and ethics with which our governor has cloaked himself, nothing has really changed in Louisiana.
As soon as word of the U.S. Attorney’s investigation became public, we knew someone would be thrown under the bus by Jindal. That’s the way he operates. Jindal’s Commissioner of Administration Kristy Nichols sniffed indignantly that wrongdoing would not be tolerated by this administration as she quickly cancelled the $185 million contract with CNSI, Greenstein’s former employer.
In making that statement, did Nichols intend to admit that the administration may well be aware of legal wrongdoing? If so, why did it take so long? The federal subpoena for all records pertaining to the CNSI contract was served on the administration way back on Jan. 7 but the contract was not cancelled until March 21 and then only after the Baton Rouge Advocate broke the story of the investigation through public records requests for the subpoena.
That’s two and one-half months that the governor knew of the investigation and chose to do nothing until he was outed by the media. So much for the sanctimonious non-toleration of wrongdoing.
And now the governor’s office tries rather unconvincingly to tell us Greenstein was not asked to resign. Sorry, but we’re not buying it. Someone had to fall on his/her sword and the first domino to topple was Greenstein. There may well be others before this little matter is concluded.
Surely Jindal must realize that cancelling a suspect contract and forcing out the man who first made it possible for his old employer to even qualify to bid on it and then remained in constant contact with CNSI management during the selection process isn’t going to convince the FBI and the U.S. Attorney’s office to fold up their tents and go home.
The Louisiana Attorney General, whose office is conducting its own investigation, maybe, but not the feds. They just don’t quit that easily.
There are, of course, several questions that will have to be addressed by the U.S. Attorney and, depending on whether or not they are satisfied with what they find, indictments may or may not be forthcoming. If there are no indictments, the matter will die a quiet death. If there are criminal indictments, however, the cheese will get binding.
Probably the most important question will be whether or not Greenstein profited monetarily from his participation in the process of first clearing the way for CNSI to submit a bid and then his potential influence in the actual selection of his old company.
On that question, we offer no opinion because matters now are in the legal system and no longer subject to public records requests. We, like everyone else, can only wait and see as the case is slowly unraveled by investigators.
A second question—only if it is determined that Greenstein did indeed profit in some way from the selection of CNSI—would be what did then-Commissioner of Administration Paul Rainwater and Gov. Jindal know and when did they know it? Again, this is not to imply that either man was complicit in any effort to steer the contract to CNSI; it’s simply one of several questions that should be explored.
If felonious wrongdoing is found and if it is expanded to include the governor’s office, then the investigation should—and most probably would—widen to include scrutiny of other state contracts issued since January of 2008.
But there is one question that will not be asked by federal investigators or the attorney general’s office but which should be asked by every voter in Louisiana.
Why was Greenstein confirmed in the first place, given his recalcitrant attitude in refusing a directive to tell a Senate committee the name of the winner of a $185 million state contract?
On June 22, 2011, the Senate and Governmental Affairs Committee voted 5-2 to confirm the appointment of Greenstein as DHH secretary despite the confrontation between Greenstein and committee members over committee demands for Greenstein to name the winner of the $185 million contract to replace the state’s 23-year-old computer system that adjudicated health care claims and case providers. https://louisianavoice.com/2013/03/21/fbi-investigation-prompts-jindal-to-cancel-controversial-cnsi-contract-but-now-who-will-be-thrown-under-the-bus/
Only Sens. Karen Carter Peterson, D-New Orleans, and Rob Marionneaux, D-Livonia, were sufficiently offended and/or concerned about Greenstein’s staunch refusal to divulge to the committee that CNSI had won the contract during his confirmation hearing.
Five other senators, Ed Murray, D-New Orleans; Mike Walsworth, R-West Monroe; Lydia Jackson, D-Shreveport; Dan Claitor, R-Baton Rouge; and Greenstein apologist Jack Donahue, R-Mandeville, all voted to confirm Greenstein. Some, like Donahue, heaped lavish praise on Greenstein.
Sen. Robert “Bob” Kostelka chairs the committee and does not vote unless there is a tie. He offered no comments during the proceedings other than to recognize fellow senators who wished to speak and to preside over the vote.
Jackson, who no longer serves in the Senate, having been defeated for re-election in 2011 by former Sen. Gregory Tarver in 2011, said she supported Greenstein even though “this incident (the standoff between Greenstein and the committee over identifying CNSI) calls into question the issue of transparency. I don’t believe the secretary participated in actions that influenced the outcome (of the awarding of the contract).”
Murray, who voted in favor of confirmation, had peppered Greenstein with questions during his initial appearance before the committee. “The secretary was not completely accurate in his responses,” he said. “But I received numerous calls from all over the country attesting to his ability and professionalism. I hope he can live up to those recommendations.”
Donahue, in supporting Greenstein, simply said, “He will do a great job.”
Peterson, who also serves as Chairperson of the Louisiana Democratic Party, said the number one priority for any appointee should be integrity. She said Greenstein was “not worthy of serving the people of this state.”
Marionneaux, who was term limited and could not run for re-election in 2011, said the confirmation procedure of the committee had been “anything but pristine. Mr. Greenstein was very involved in the process (of selecting CNSI).”
Claitor, who supported Greenstein, said, “This is not a ceremonial committee. We will be watching very closely. If things go awry, we will be the first to speak up.”
Well, Sen. Claitor, things have certainly gone awry. But so far, not a single member of the committee has uttered a peep.
Why is that?
Louisiana Voice 
Because they are also liken to the roach in a dark room when a light switch is turned on. In their minds if not caught it never happened. Our leaders are evil and corrupt. We get what we vote for.
Who stood to profit from the execution of that contract? What was/is Levine’s involvement? Why did he suddenly depart the state, reappear last year in the guise of an “unpaid consultant” during the hospital system debacle, then fade from the scene once his presence was reported by the media?
Tom…please check this out – according to my understanding, the subpoena literally sat for weeks in a DivAdmin in-box before someone got around to looking at it – then all hell broke loose.
Wonder whose in-box it sat in, could it have been Kristi’s who already knew what it was and just played the game to keep from acknowledging or making sure the right person was prepared? Could some deletions have occurred or minutes to the opening of the proposals been omitted or missing? Perhaps the recorder was missing or someone forgot to get the batteries, etc. Time will tell and as Tom says so often, follow the money. Thanks Tom, great investigating.
Maybe the toilet is backing up!!!
Jindal should go and also everyone he appointed. Like their leader, they have no respect for laws, Louisiana’s constitution or her citizens. They lie, cheat and steal as if there will be no consequences.
Great writing and good comments.
But there are other questions that scream out for answers! Why does this individual get to stay in his position and draw his salary and benefits ($236,000 a year plus) for another month or so? This, too, is a huge outrage. After the Commissioner’s statement almost confirming “wrongdoing”, the Secretary is going to get to draw another $20,000 or so in salary? Is he going to be at work doing his job? Like he did before the House Appropriations Committee? Who is (has been) supervising him? Is this not “tolerating” wrongdoing, Ms. Nichols? Why don’t the Legislators investigate these matters? (Mr. Street”s admonition is empty.) What did you mean, Sen Claitor, when you made your promise? Are you keeping it?
We cannot let these go unanswered.
Excellent point and good question!! He can just go now!
He wasn’t asked to resign. He was TOLD to resign. There is a difference. The only surprise is the investigation before Jindal was out. Or maybe not considering the way he postures about the Feds and then goes begging for more more more.
Good, balanced treatment of the confirmation and consequences, Tom. While Peterson and Marionneaux may have been sincere in their comments, we have all come to expect this kind of strong rhetoric from our politicians – and it usually just kind of blows by us. Notice how everybody else but Donahue hedged their bets by voting for Greenstein while voicing concerns that should have been grounds for voting against confirmation. The confirmation process is worthless in our state and in our nation. Confirmation votes are made on purely political bases, often used as bargaining chips in unrelated matters, and usually go no deeper than sheer partisanship on the national level.
Has anyone looked into the connection between Alan Levine and the contract with Magellan? I am not privy to any information, but read or heard that Levine worked for or with Magellan in Florida before he was hired in Louisiana. Magellan is being paid millions of dollars to administer behavioral healthcare and is doing a pathetic job of it! The electronic health record they implemented is Clinical Advisor and I have never worked with anything or system that is as dysfunctional as it is!!! I could go on… I retired on 2/22/13 after working 19 years for the state in Addictive Disorders/Behavioral Health.
Yes. Please look deeper into Levine. And his involvement in the shenanigans around Southeast Louisiana Hospital in Mandeville when he magically reappeared.
Good point Maureen. I hope someone can connect the dots here too.
I agree Maureen, many Magellan providers are having problems getting paid after delivering approved services. It is very dysfunctional, as well as the whole process that forced us into the new behavioral health system. I too could type a wall of text about this issue.
I wonder what it would take for Greenstein to make full disclosure, or NOT? He may actually be in a pretty good bargaining position with either side. That is, of course, if he were that kind of person…
Senator Claitor has never had a problem giving you his opinion.
Especially when it was neither solicited nor needed.
Why so quiet now Dan?
Tom, great job! I will answer your question. Because the Republican legislature is totally controlled by Jindal. Not one legislature will admit they were wrong about anything. Jindal wins. Our democracy suffers, but the positive side is we should be wary of anyone who flies US Air Force jets over the Capitol at his inauguration, calls a special session on false pretenses (lied about the LSU report), and my favorite, give an “honor” medal to all veterans, used state equipment and taxpayer money to film his campaign ad, and thinks he can isolate himself from his wrongdoings by using the legislature to pass goofy and unconstitutional programs, all the while knowing he got his corrupt foot in the door of funding, so he wins again. The Republicans will never do any soul searching, their arrogance, ignorance and prejudice filters morality. ron
While Kostelko is off to other things. HB41 to elect state superintendents he says.That should go really well with Jindal and his sheep! Do we know if Mr. Kostelko has come under Jindal’s wrath yet? DHH is of no concern to him? Offered no comments and chaired the committee. It would have been interesting to see if the vote was tied, and he had to decide. I wonder if the vote was decided before it even got to committee, hence holding the speakers feet to the fire? Hmmmmmm…..Interesting:))
LA politics at its best! As long as LA continues to build a field of dreams in a corrupt political system, they will come. They will come to plunder the state treasury, and leave only when the coffers are empty. Who pays for their debauchery? The LA taxpayers. Why so quiet indeed?
Sadly, this is only the tip of the iceberg (so to speak) of corruption, favors and bullying from Jindal and his trolls – most of all the “appointed” ones. DHH and the Division are shining examples of how much damage has already been done. Dig around and you’d be amazed how much crap has been buried just below the surface.
Dig feds dig. It’s there for you to find.
Don’t bypass the department of education . There is more to John White and friends than meets the eye. The misappropriation, misuse and false “advertising” to procure federal funding should be enough to send him packing.
bobby will do anything to advance himself if your grandma has to split her medication in half or eat dog food it is of no concern to him just as long as his ambition is satisfied… just as long as the repubs dont pay income tax and fixed income folks get the shaft thru indirect impacts of his tax proposal…he needs to go into the dust bin of politics…sooner the better