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Archive for the ‘Contract, Contracts’ Category

Notable Quotables (in their own words)

Posted in Boards, Contract, Contracts, Corruption, Courts, Ethics, Notable Quotables on March 23, 2014| 3 Comments »

“The record is replete with instances in which Mr. Begue acted as prosecutor throughout the proceedings, and at times, simultaneously acted as prosecutor, panel member and independent counsel—even ruling on his own objection.”

—Louisiana Fourth Circuit Court of Appeal unanimous decision on Sept. 26, 2012, to reverse the the Louisiana State Board of Dentistry’s 2010 revocation of the license of Shreveport dentist Dr. C. Ryan Haygood.

“Based upon our review of the record, we find that Mr. Begue’s functions of general counsel, independent counsel, prosecutor and fact-finder were so interwoven that they became indistinguishable, which created the appearance of impropriety and deprived the proceedings of the imperative and fundamental appearance of fairness. Therefore, the board’s decision to revoke Dr. Haygood’s license must be reversed.”

—Fourth Circuit Court of Appeal, in that same decision.

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The Peter Principle is alive and well at DHH as evidenced by sequence of curious events—from CNSI to recent promotion

Posted in Contract, Contracts, Corruption, DHH, Health Care on March 3, 2014| 9 Comments »

Sometimes it’s just mind-boggling to try and fathom what goes through the minds of our political leaders.

The only possible explanation may be found in the 1969 book The Peter Principle by Dr. Laurence J. Peter and Raymond Hull. In their book, they introduced the “salutary science of hierarchiology” which theorized that in a hierarchy, employees tend to rise to their level of incompetence.

Take, for example, that news release from the Department of Health and Hospitals (DHH) just last Aug. 13. DHH trumpeted the recovery of more than $124 million in fraudulent payments in the Medicaid program, “the highest rate of recovery in any state in the nation at nearly 2 percent of all Medicaid dollars spent in Louisiana.

One must wonder just where the oversight was at the time that should have caught and prevented such overpayments.

Yet, only two months prior to that announcement, a red-faced DHH learned that one of its own had embezzled more than $1 million to finance her gambling addiction.

In that case, DHH accountant Deborah Loper was accused of diverting funds over a six-year period in a scheme that revealed glaring weaknesses in departmental policy.

Her arrest warrant said she intercepted more than 130 checks payable to DHH “meant for invaluable health care services for Louisiana’s Medicaid recipients,” Attorney General Buddy Caldwell said.

She had been entrusted to manage a bank account opened in 2006 on behalf of the National Association of State Human Services Financial Officers in order to underwrite the association’s 2009 conference.

Former DHH fiscal director Stan Mead volunteered to hold the conference and designated Loper and her immediate supervisor to organize the event. Loper was given responsibility for management of the account and had the authority to conduct financial transactions, the warrant said.

She was instructed to close the account following the conference but instead, fabricated documents so as to give the appearance she had complied but instead, merely changed the address on the account so that she could receive the monthly statements at her home.

The main source of the money was Medicaid reimbursements that were issued to DHH by licensed Medicaid providers and were intended to be returned to the state’s Medicaid program, Caldwell said.

Her embezzlement went unnoticed by her superiors until February of 2013 when she inadvertently deposited one of the checks for more than $40,000 into her own account and her bank subsequently froze her account.

Only three months before the revelation of that financial oversight by DHH officials, we learned of an ongoing FBI investigation into that infamous $300 million contract with CNSI which quickly resulted in cancellation of the contract by the Jindal administration and the resignation of DHH Secretary Bruce Greenstein.

Then in February of this year, Greenstein’s undersecretary Jerry Phillips announced his retirement after 25 years at DHH. Oddly, he announced he was retiring to “pursue other employment options with the state.”

DHH Secretary Kathy Kliebert said Jeff Reynolds would replace Phillips on March 10, the same day the legislative session convenes.

Reynolds started with DHH as an Accountant Administrator 5 in July of 2006 at $102,000 per year. Most recently, he served as Medicaid Deputy Director at $113,734 per year.

And the person who served as Loper’s immediate supervisor while she was skimming that $1 million from DHH?

Jeff Reynolds.

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A refresher course on the CNSI contract and why would two administrative officials leave just before legislative session?

Posted in Contract, Contracts, DOA, Ethics, Finances, Governor's Office, Health Care, House, Senate, Legislature, Legislators, Politicians, Public Records, State Agencies, Transparency on February 27, 2014| 5 Comments »

With the 2014 regular session of the legislature less than two weeks away, there have already been a couple of interesting developments that could prevent lawmakers from learning how a federal investigation of a major contract came about in the first place.

There already is speculation that two recent resignations in the Jindal administration may have something to do with avoiding testimony before legislative committees that may wish to look into the controversial $284 million contract between the Department of Health and Hospitals (DHH) and CNSI.

Subpoenas could be issued for Paul Rainwater, Jerry Phillips, and Bruce Greenstein but if they choose to ignore subpoenas, the legislature has options in that legislative subpoenas carry the same weight as a court subpoena provided a legislative subpoena meets certain criteria.

It is, to say the least, curious that former Commissioner of Administration Paul Rainwater (more recently, Gov. Bobby Jindal’s Chief of Staff), and DHH Undersecretary Jerry Phillips resigned only a few days apart and less than a month before the legislature convenes at noon on March 10.

Apparently timing in politics, like in comedy, is everything. Phillips, while giving no specific date for his retirement, did say he would retire “before the start of the session.”

DHH Secretary Kathy Kliebert said Phillips, who has worked for DHH for 25 years, will pursue “other employment options with the state following his retirement.” She said he would be replaced by DHH Deputy Director Jeff Reynolds on (drum roll, please…) March 10.

That, or course, raises the obvious question of whether Phillips will remain conveniently retired until the session adjourns on June 2 before becoming the latest retire-rehire, a popular trend among executive level state employees these days.

Phillips, you may recall was seated next to Greenstein back in June of 2011 when the Senate and Governmental Affairs Committee was considering the confirmation of Greenstein as Jindal’s choice for DHH Secretary.

It was Phillips who repeatedly advised Greenstein and defended his boss’s refusal to identify to the committee CNSI as the winner of the 10-year, $30 million-a-year contract to replace DHH’s 23-year-old computer system that adjudicates health care claims and case providers.

Greenstein has previously worked for CNSI and when he refused to identify the contract winner, then-Sen. Rob Marionneaux (D-Livonia) asked, “Are you telling me right now, today, that you’re refusing to tell this committee who’s going to receive that…contract?”

After several more exchanges between Greenstein and Marionneaux, Green said, “I’m not going to be able to say today.”

Sen. Jody Amedee (R-Gonzales) then asked Greenstein, “Who made the decision not to tell us this information under oath?”

“This was from my department…”

“You are the department,” Amedee interrupted. “Who is the person above you? Who is your boss?”

“The governor,” said Greenstein.

“Can you tell me if this company you used to work for—whether or not they got the contract?”

“I can’t discuss the matter.”

“You can, you just choose not to,” Amedee said.

At one point after Greenstein and Phillips repeatedly alluded to the “process and procedure” employed by DHH in awarding contracts, Amedee, in apparent frustration, tossed his pencil over his shoulder and turned away from the witnesses.

Committee Vice-Chair Karen Carter Peterson said, “You don’t want me to know, but you know. Is this what we call transparency?”

Phillips said once the contractor’s name is made public, “it’s the equivalent of an announcement.”

“Do you make the law?” Peterson shot back.

“I interpret the law,” said Phillips, who is an attorney.

“Then you’re not doing a good job. Mr. Secretary (Greenstein), I hope you’re paying attention. How many lawyers do we have on this committee? We make law and yet you choose to follow this gentleman (Phillips).”

“It’s all part of the process,” Phillips said. “It’s (the selection process) done in conjunction with consultation and direction from the procurement folks.”

“In conjunction with whom?” asked Peterson.

“They’re part of the Division of Administration,” he said for the first time, implicating DOA—and Rainwater—in the controversy.

Committee Chairman Robert “Bob” Kostelka (R-Monroe) finally broke in to say, “I don’t know the difference between firewalling and stonewalling but this committee’s concern is whether or not to recommend to the full Senate that these people should be confirmed for the jobs for which they’ve been nominated.

“The much larger issue here is the integrity of the entire DHH. We don’t care about your procedures. We’ve got to determine if we trust the integrity of the people before us. We’re asking you to put aside your procedures and protocol and answer our questions. Knowing that, I don’t see why
you cannot make this committee aware if a former employer of this man is going to win a multi-million dollar contract from the state.”

When Phillips again attempted to invoke “respect for the statute,” Kostelka interrupted. “Again, sir, this has nothing to do with making the award. We’re asking who got the contract. It’s pretty obvious to us that they’re (CNSI) the one getting the contract.”

At that point, Phillips asked if he could confer with Greenstein. The two left the room for 16 minutes and upon their return, Greenstein, after a few more questions, said, “It is CNSI.”

Rainwater, who on Feb. 17, unexpectedly announced his resignation as Jindal’s Chief of Staff, effective Mar. 3, a week before the legislature convenes. He served as Commissioner of Administration from Aug. 9, 2010, until October 15, 2012, when he moved across the street to the governor’s office.

As chief of staff, Rainwater has been in charge of the policy advisors and strategists and supposedly enjoys a close day-to-day working relationship with Jindal—though probably not nearly as close as Timmy Teepell through whom Jindal has funneled nearly $3 million from his campaign ($1.27 million), and his non-profit organizations Believe in Louisiana ($1.22 million) and America Next. (No payments have been listed for America Next, Jindal apparently having learned his lesson when he listed contributions and payments to Believe in Louisiana.)

It’s difficult to believe that Rainwater, in overseeing Jindal’s advisors and strategists, would have been unwise enough to advise his boss to go off the way he did at the National Governor’s Conference on Monday. He is far too intelligent for such foolishness.

Even the Baton Rouge Advocate saw Jindal for what he really is—a spoiled brat who, if he can’t have his way, pouts or throws a tantrum—as depicted in one of the best editorial cartoons we’ve seen in a long time:

http://theadvocate.com/multimedia/walthandelsman/8477684-123/walt-handelsman-for-feb-26

That was plain idiotic and inappropriate and in the world of political faux pas, ranks right up there with his college exorcism and his Republican response to President Obama’s 2009 State of the Union address.

The suggestion of a tactic to make Jindal look that silly in front of a national television audience could only have come from someone like Teepell. Unless, of course, Jindal simply ad-libbed it which is certainly not out of the question, given his propensity of letting his alligator mouth overload his jaybird backside.

But back to the resignations of Greenstein, Phillips and Rainwater.

Greenstein announced his resignation on Mar. 29, 2013 immediately after word of a federal investigation into the CNSI contract was announced. Even then, for reasons no one has yet explained, he was allowed to remain until May. At about the same time as Greenstein’s resignation announcement was made, it was learned that a federal grand jury in Baton Rouge had subpoenaed all records dealing with the CNSI contract from the Division of Administration (DOA) as early as January of 2013.

That would mean that Jindal had to know about the investigation as much as three months before Greenstein’s resignation but said nothing about the probe and only cancelled the CNSI contract after the Baton Rouge Advocate broke the story of the four-page subpoena.

And now, only days—and in one case, only hours—before the opening of the 2014 legislative session, two other prominent figures in the CNSI story will be gone, out of reach of any curious legislative committee which might wish to question them about their knowledge of events surrounding the awarding of the contract.

Legislative committees and subcommittees have the authority under legislative rule to conduct studies, administer oaths to witnesses and to seek subpoenas and punishment for contempt although subpoenas require the approval of the Speaker of the House or President of the Senate upon the request of the committee chairman or by a majority of the standing committee members.

Louisiana Revised Statute 24:4 through 24:6 provides that a person is guilty of contempt of the legislature “if he willfully fails after subpoena to appear or produce materials.” Initiation of prosecution for criminal contempt is by certification to the district in the proper venue, in this case East Baton Rouge Parish.

The legislative subpoena and contempt provisions have been upheld in a number of court cases, most notably a 1972 case involving a state legislator who claimed to have tape recordings of an attempt to bribe him and a 1979 case against then-Insurance Commissioner Sherman Bernard and his deputy commissioner.

The two men, who appeared subject to subpoenas, interrupted committee hearings on insurance regulations and left the meeting room despite warning that their actions subjected them to being held in contempt. The two were subsequently held in contempt and fined $500 each.

 

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Jindal continues to pander to Koch brothers at White House impromtu speech; still doesn’t gain any presidential traction

Posted in ALEC, American Legislative Exchange Council, Campaign Contributions, Contract, Contracts, Economy, Governor's Office, Health Care, Higher Education, PACs, Politicians on February 25, 2014| 21 Comments »

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Could Bobby Jindal possibly embarrass himself any more than he did on Monday?

Could he possibly have revealed himself any more of a calloused, uncaring hypocrite than he did on Monday?

Jindal’s outburst upon exiting a meeting between the nation’s governors and President Barack Obama Monday was a petulant display of immaturity that only served to underscore his disgraceful scorn for Louisiana’s working poor in favor of pandering to the mega-rich Koch brothers.

His shameless promotion of the proposed Keystone XL pipeline project coupled with his criticism of Obama’s push for a minimum wage increase comes on the heels of word that Jindal is literally stealing from the blind in drawing down more than half of a trust fund established to assist blind vendors in state buildings to purchase equipment, to pay for repairs and to pay medical bills. http://theadvocate.com/news/8440065-123/blind-vendors-jindals-office-spar

That trust fund has shrunk from $1.6 million to about $700,000, apparently because of yet another lawsuit the administration finds itself embroiled in over the delivery of food services at Fort Polk in Leesville that has sucked up $365,000 in legal fees, of which the state is responsible for 21 percent, or $76,650.

(I worked for the Office of Risk Management for 20 years and $365,000 in legal fees is not unreasonable for a major lawsuit that involves significant injuries or death where liability is in question. But $365,000 in attorney bills in a lawsuit over who gets to run the cafeteria, a commissary and a grocery store would seem to be a tad high—even for the law firm Shows, Cali, Berthelot and Walsh, which is representing the state under a $500,000 contract with the Louisiana Workforce Commission.)

Rubbing salt into the wounds is the fact that the Blind Vendors Committee, which is supposed to have a say in policy decisions, has been left out of the loop over the Fort Polk controversy.

Curt Eysink, executive director of the Louisiana Workforce Commission, justified the hiring of private attorneys to defend the litigation by saying his office’s staff attorneys are too busy to handle the contract lawsuit.

That brings up two questions:

  • Busy doing what?
  • And isn’t this the same administration that pitched a hissy fit when the Southeast Louisiana Flood Protection Authority-East contracted with a private attorney to seek damages from 97 oil companies for destroying the Louisiana wetlands?

But back to the boy blunder. Jindal turns his back on a minimum wage increase for the working poor to stand outside the White House to chat up the Keystone pipeline which would have the potential of generating $100 billion in profit for Charles and David Koch?

Today’s (Wednesday) Baton Rouge Advocate ran this editorial cartoon that is certain to become a classic in that it symbolizes the defining moment of the Jindal administration:

http://theadvocate.com/multimedia/walthandelsman/8477684-123/walt-handelsman-for-feb-26

Jindal said of Obama’s push for an increase in the minimum wage that the president “seems to be waving the white flag of surrender” and that Obama’s economy “is now the minimum wage economy. I think we can do better than that.” And by “better,” he was referring to the Keystone pipeline which he said Obama would approve if he were “serious about growing the economy.”

Connecticut Democratic Gov. Dannel Malloy almost pushed Jindal aside in his eagerness to take the microphone to say, “Wait a second. Until a few moments ago we were going down a pretty cooperative road. So let me just say that we don’t all agree that moving Canadian oil through the United States is necessarily the best thing for the United States economy.” He said Jindal’s “white flag” comment was the most partisan of the weekend conference and that many governors, unlike Jindal, support an increase in the minimum wage.

Colorado Gov. John Hickenlooper, also a Democrat, was a bit blunter, calling Jindal a “cheap shot artist” as he walked off the White House grounds.

Jindal, of course, wants to be president so badly that he is perfectly willing to sell his soul to the Koch brothers and their organizations Americans for Prosperity (AFP) and the American Legislative Exchange Council (ALEC) in the apparent hope that some of their AFP money might find its way into his campaign coffers.

AFP is the same super PAC that recently hired professional actors to pose as Louisiana citizens claiming that Obamacare is hurting their families. The merits of lack thereof of Obamacare aside, this is politics at its very sleaziest and our governor is in bed with them.

But this is perfectly in keeping with his character as governor. He has attempted to rob state employees of their retirement benefits. He has attempted to destroy public education with a full frontal attack on teachers. His administration has handed out huge no-bid contracts to consultants as if they were beads at a Mardi Gras parade. He has handed over the state’s charity hospital system to private concerns, including two facilities that went to a member of his LSU Board of Stuporvisors. He has run roughshod over higher education. He has fired appointees and demoted legislators who dared think for themselves. He has refused to expand Medicaid despite living in a state with one of the highest number of citizens lacking medical insurance. He has crisscrossed the country making silly speeches designed only to promote his presidential ambitions by keeping his name before the public. He has written countless op-ed pieces and appeared on network TV news shows for the same purpose.

And still, whenever the pundits start listing the potential Republican presidential contenders for 2016, he name never appears as a blip on their radar. Even Sarah Palin’s name pops up now and then but never Jindal’s.

Even readers of his favorite political blog, The Hayride, which among other things 1), recently featured an infomercial touting a sure-fire cancer cure and 2), got taken in by a hoax video depicting an eagle swooping down and trying to grab an infant in a park, seem to hold Jindal in low regard. A couple of weeks ago The Hayride conducted its own poll of potential Republican candidates for president in 2016.

Here are their results:

  • Sen. Ted Cruz: 39.9 percent;
  • Sen. Rand Paul: 20.7 percent;
  • Wisconsin Gov. Scott Walker: 10.1 percent;
  • Former Alaska Gov. Sarah Palin: 5.8 percent;
  • Other/Undecided: 24.9 percent.

That’s it. No Jindal. And this from a decidedly pro-Jindal Louisiana political blog. We can only assume he may have shown up somewhere among the 24.9 percent undecided. But this much we do know: he was beaten by Sarah Palin.

At this point, we don’t need a poll to tell us that Jindal would be far better suited as the auctioneer in that GEICO commercial or as the disclaimer voice at the end of those pharmaceutical ads that tell us how we could all die from side effects of the drug that’s being advertised to help with our medical malady—or perhaps even better as the really rapid fire voice that absolutely no one on earth can understand at the end of those automobile commercials.

He has, after all, been auditioning for the part for six years now.

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International intrigue comes to Louisiana as CIA contractor Computer Sciences Corp. picks location near Barksdale AFB

Posted in Computers, Contract, Contracts, Economy, Exemptions, Incentives, Governor's Office, IT on February 19, 2014| 3 Comments »

The photo in the Shreveport Times shows a grinning Gov. Bobby Jindal shaking hands with David Zolet, executive vice president and general manager of the North American Sector of Computer Sciences Corp. (CSC) as the two jointly announced that the company plans to open a technology center at CSC’s national Cyber Research Park in Bossier City.

http://www.shreveporttimes.com/article/20140218/NEWS05/140218014/Computer-Sciences-Corporation-bring-800-jobs-Bossier-City

The company, partially owned by Lloyds Banking Group of London through its Scottish Windows funds, offers IT services, including cloud solutions, cyber security, technology consulting and, according to several sources, secret CIA flights for the purposes of interrogation and torture. http://www.theguardian.com/business/2012/may/06/lloyds-computer-sciences-corporation-cia-rendition

CSC will be the anchor tenant of the research park and will partner with Louisiana Tech University to account for 1,600 new jobs over the next four years, thanks in part to $14 million in state funding over the next decade to expand higher education programs to increase the number of computer science graduates per year.

Louisiana Tech is scheduled to receive the bulk of the $14 million as it plans to quadruple its number of undergraduate degrees in computer science, computer information systems and cyber engineering over the next five or six years, Jindal said, adding that Bossier City was selected over 133 other sites in the U.S. He said the company’s decision will help northwest Louisiana to become “one of America’s new technology hubs, enabling the region to attract technology partners of CSC as well as other technology companies attracted to the growing IT work force here.”

And while Louisiana Tech will get most of the initial funding, the lease payments for the 116,000 square-foot technology center that will be constructed and leased to CSC by Cyber Innovation Center will be paid with $29 million in state funds. City and parish governments will chip another $5 million each to purchase data center equipment for the building while CSC will invest in the servers and other computer technology.

While we are not sure of the identities of the other “technology partners” of CSC, it’s somewhat interesting to note that CSC customers are being urged to boycott the company over allegations that it took part in illegal CIA rendition flights in the U.S. “war on terror.”

Court documents have linked CSC to the rendition of German citizen Khaled El-Masri who was abducted on Dec. 31, 2003, after being mistaken for a known terrorist by the CIA. http://www.computerweekly.com/news/2240160206/Customers-urged-to-boycott-CSC-over-CIA-torture-flights

El-Masri was blindfolded, beaten, imprisoned for 23 days, stripped, sodomized, chained, drugged, flown to Afghanistan where he was again beaten and imprisoned for another four months, interrogated, threatened, denied legal representation, force fed and finally flown in a CSC-chartered plane to Albania, where he was left on a remote road in the middle of the night some 1500 kilometers from his home.

CSC was contracted for the flight as well as for other illegal CIA renditions, according to human rights charity Reprieve. CSC has so far refused a request by Reprieve to sign a pledge of “zero tolerance to torture,” and has also declined to respond to questions from Computer Weekly about the allegations.

Documents provided by Reprieve include invoices that show that CSC chartered N982RK, a Gulfstream jet, on the date El-Masri was abducted and logs provided by the civil-military air traffic safety regulator EuroControl show that N982RK few in stages from Washington to Kabul on May 26, 2004, and then to Kucova air base.

Aviation authorities of Bosnia and Herzegovina called attention to the unusual flight patterns of the plane which had requested diplomatic permissions under a CIA identifier.

The U.S. has since admitted the abduction to German premier Angela Merkel.

“We think CSC was at the top of the contracting tree for this (CIA operation),” said Reprieve researcher Dr. Crofton Black. “It’s becoming increasingly clear that CSC was the prime contractor between the government and the companies that ran the flight operations.”

German ministries have been sharing IT services with the CIA and NSA and now it is learned that the German government does business with a company involved in abduction and torture—at a pretty handsome profit. http://international.sueddeutsche.de/post/67143760611/outsourcing-intelligence-sinks-germany-further-into

For years, CSC was one of the CIA’s largest contractors and records show that the CIA paid the firm $11 million to have el-Masri picked up in Kabul and subsequently tortured for months on end before finally being released as a victim of mistaken identity.

One online news story about the company notes that CSC is a “massive company,” with at least 11 subsidiaries in 16 locations in Germany alone. CSC and its subsidiaries are part of a secret industry, the military intelligence industry but do the “traditionally reserved for the military and intelligence agencies,” but at cheaper rates and under “much less scrutiny.

Germany has paid the company some $405 million since 1990 and over the past five years, the country has awarded more than 100 contracts to CSC and its subsidiaries.

The story said it is “no coincidence” that the company’s various German offices are often located near U.S. military bases.

Cyber Research Park and Barksdale AFB, home of the U.S. Air Force’s 2nd Bomb Wing and Global Strike Command, and nearly adjacent in their proximity to each other, with the proposed CSC facility and Barksdale separated only by I-20.

Coincidence?

We certainly hope so.

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