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Archive for the ‘Ethics’ Category

Notable Quotables (in their own words)

Posted in Ethics, Governor's Office, Health Care, Higher Education, LSU, Notable Quotables, Privatization on March 18, 2013| 1 Comment »

“These sections of the code generally prohibit Board of Trustees members from receiving anything of economic value for any transaction involving any of the colleges and universities that are under the jurisdiction of the Board of Trustees.”

—Former State Board of Ethics Chairman Gray Sexton, in a July 1996 ruling that the Natchitoches Times could not provide printing services for the Northwestern State University student newspaper because Times Publisher Lovan Thomas was a member of the Board of Trustees for State Colleges and Universities, the governing board for state colleges and universities, including Northwestern. The LSU Board of Supervisors is preparing to accept a memorandum of understanding from a Shreveport foundation to take over two LSU-run hospitals in Shreveport and Monroe even though the foundation’s incoming CEO is a member of the LSU Board of supervisors.

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LSU Board member named CEO of foundation taking over two LSU hospitals; ethics violation? What ethics violation?

Posted in Boards, Ethics, Governor's Office, Health Care, Higher Education, LSU, Privatization on March 18, 2013| 11 Comments »

This week’s civics lesson will take a look at how ethics for public officials, much like the Golden Rule, is based in large part on who has the gold.

And apparently, if you are appointed to the LSU Board of Supervisors by Gov. Bobby Jindal, you are considered golden.

Now, with the pending approval of the takeover of two LSU-run hospitals by a Shreveport foundation, it’s déjà vu all over again—except different.

On Jan. 16, 1996, the State Board of ethics issued an opinion that Lovan Thomas, owner and publisher of the Natchitoches Times newspaper and of Springhill Press printing company, violated state ethics laws when his printing company printed a tourism brochure promoting the Cane River through the Kisatchie National Forest.

Though Thomas was a member of the Natchitoches Parish Tourist Commission, the printing project was not initially a project of the tourist commission and Springhill Press, in late 1993 charged $10,000 for printing the brochure, a practice the ethics board more than two years later ruled was an ethics violation.

On July 17, 1996, the State Board of Ethics issued a second opinion that the Times could not provide printing services for the student newspaper at Northwestern State University in Natchitoches because Thomas was a member of the Louisiana Board of Trustees for State Colleges and Universities, the governing board for the university.

Three months later, on Oct. 25, the Board of Ethics struck again. This time the board ruled that the Times was prohibited from publishing an NSU legal notice for bids on a printing contract despite a state law which required that public notices by public bodies “shall be published in a newspaper of general circulation printed in the parish in which the budget unit (NSU) is situated.”

The Times was the only newspaper of general circulation in Natchitoches Parish. Moreover, the Times was the Natchitoches Parish Police Jury’s official legal journal and it was generally understood that NSU was required to publish its legal notices in the parish’s legal journal.

The ethics board ruled that Thomas was prohibited from assisting the Times in its contract with Northwestern while receiving compensation through his publishing company.

So, instead of printing its paper at home, NSU was forced to travel 70 miles to Shreveport for the service. And instead of paying $4 a square (100 words), NSU was forced to place its legal advertisements in the Shreveport Times at a cost of about $25 per square.

Disgusted with the entire process, Lovan resigned from the Board of Trustees and the parish tourist commission.

Even then, the Ethics Board continued to thwart Thomas in his attempts to do business with Northwestern.

On May 21, 1997, the board ruled that because state law required a two-year waiting period from the date of his resignation from the Board of Trustees, Thomas and the Natchitoches Times were still prohibited from bidding on and receiving advertising contracts with the university.

But now, not quite 16 years later, and with a State Ethics Board that has been gutted by Gov. Bobby Jindal, it is somehow okay for a foundation to enter into an agreement to take over two LSU public hospitals in Shreveport and Monroe even though the vice chairman and incoming president/CEO of the foundation slated to take over the facilities also sits on the LSU Board of Supervisors which currently oversees the hospitals.

The LSU Board of Supervisors on Monday tabled until March 27 approval of a memorandum of understanding (MOU) between the board and the Biomedical Research Foundation (BRF) that would call for the foundation to enter into a partnership with LSU Medical Center in Shreveport and E.A. Conway Hospital in Monroe.

Willis-Knighten Health System and Christus Health Shreveport-Bossier had expressed interest in the Shreveport facility when LSU first started seeking partners with available cash in 2012.

In Monroe, negotiations had been ongoing between E.A. Conway and St. Francis Medical Center but those talks were broken off by the state last week when LSU officials suddenly decided that the grass was greener on BRF’s side of the fence.

State Sen. Francis Thompson (D-Delhi) called the BRF model “the innovative, forward-thinking model that would elevate what are already the best hospitals of their kind in Louisiana and beyond. It also keeps both hospitals under the same management umbrella, which is appropriate,” he said.

Biomedical Research Foundation currently leases research labs to the LSU System. The annual lease payments of $4 million to $5 million paid by LSU represent a major source of income for the foundation.

John F. George, Jr., M.D. is Vice Chairman of Biomedical Research Foundation and is slated to become BRF President and CEO on March 27, the same date as the scheduled vote on the foundation’s takeover of the two hospitals. The Jindal administration has dismissed any talk of a conflict of interest by pointing out that George will not receive a salary as president and CEO of the foundation, thereby allowing him to remain as a member of the LSU Board of Supervisors.

George, who made two contributions of $5,000 each to Jindal’s campaign in 2007 and 2008, according to campaign records, said he will recuse himself from the LSU board’s action on March 27.

But that Oct. 25, 1996, Ethics Board opinion would seem to indicate that recusal was not sufficient to avoid a conflict. That ruling, in addition to saying that state ethics laws prohibited Thomas from participating in the Board of Trustees’ decision to contract with the Natchitoches Times for printing services, also said the participation question “cannot be cured by recusal since (state law) prohibits an appointed member of a Board from curing a participating problem through disqualification.”

Salary or no, recusal or no, the appearance of impropriety should be sufficient in some quarters as to demand George’s resignation from the LSU Board of Supervisors in light of his cozy relationship with BRF.

But appearances, like beauty, appear to be in the eye of the beholder—in this case, Gov. Bobby Jindal.

And Jindal wrote—that is, re-wrote—the ethics rules within weeks of taking office in January of 2008, prompting the mass resignation of nine of the board’s 11 members, including board administrator Richard Sherburne, in July of that year.

So now, with watered-down rules and a puppet board, there appears to be no one left to challenge the administration’s claim of no conflict of interest.

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ATC Director Troy Hebert orders background investigation of….LouisianaVoice publisher Tom Aswell; but did we pass?

Posted in ATC, Ethics, Politics on March 11, 2013| 93 Comments »

Well, folks, we’re received another letter here at LouisianaVoice Control Central and this time it’s signed.

It seems that Louisiana Alcohol and Tobacco Control (ATC) Director Troy Hebert is experiencing yet more PR problems for himself and his beleaguered office. That’s not to say, of course, that he doesn’t bring a lot of those problems on himself.

And like any good politician, he chooses to blame the messenger for his deteriorating public image—even going to the point of spending tax dollars ordering an investigation of yours truly which, I’m told, came up empty.

“You call yourselves investigators,” he told his agents a few weeks ago as he ordered them “to investigate Tom Aswell” because my credibility apparently isn’t as good as one might believe, according to one agent he fired two weeks ago. Apparently she didn’t come up with the negative background information Hebert wanted on this writer.

It’s not that Michelle Chavis didn’t try. In an interview with LouisianaVoice today, she said she checked all the newspapers for which I formerly worked as a reporter or editor—and came up dry. “You’re pretty boring,” she joked. “Actually, I found that you were very credible as a reporter and were well-respected by the older reporters and editors who remembered you.”

Well respected? Older reporters and editors? Who remembered me? If she found someone old enough to remember me, they must be in a home somewhere with a lap blanket and shoulder shawl eating bland pudding and waiting for a sponge bath from someone named Dutch.

And I haven’t spent 40 years as a reporter to be “well respected.” What kind of wimp-out is that?

Well, she did compare me favorably to the late John Copes who once had a web blog called The Deduct Box and for that comparison, I am flattered and humbled.

Be that as it may, Ms. Chavis, a veteran of 16 years in law enforcement was given her walking papers in a one-sentence note from Hebert after only four months on the job as a training specialist.

“I never saw it coming,” she said. “I’ve worked for the Shreveport Police Department and the Bossier Parish Sheriff’s Office and I’ve never been terminated from a job.

“Everything I ever suggested in the way of training was rejected out of hand by Mr. Hebert. The place was a mad house. And I can tell you that it’s true that he requires his employees to stand and chirp ‘Good morning, commissioner’ every time he enters a room.”

Chavis, after repeated unsuccessful attempts to gain an audience with Hebert to get an explanation for her dismissal, finally fired off a letter to her former boss.

With her permission, we edited some of the more inflammatory content.

Otherwise, the letter is as follows.:

Mr. Troy Hebert:

Two weeks ago, per your directive, I was issued my letter of termination by SAC Banks. After spending eight days in Baton Rouge and making regular contact with you during that time, it was a shame you could not have taken a moment to discuss the thought of dismissing me from the Agency. As a dedicated employee with exceptional PBS rankings, going above and beyond in my work and no inkling of a problem, an explanation on your decision would have been courteous.

I have few very basic expectations from this Agency; however, the spontaneous last-minute training session that you required was unorganized and shoddy. As a specialist, I should have been included on the planning and organization. A schedule and itinerary with a curriculum should have been a basic starting point. In November 2012, I submitted a very detailed list of suggested classes. Instead, I showed up and was required me to “perform on demand”—which I managed. I am not blaming Director Penouilh, as I believe he was doing the best he could with your last minute, over demanding brainstorm idea for a training session.

You wandered in and out of our training, shiftless seeking fault in others. You have a sharp dressed, useless look about you that may have worked for you when Gov. Jindal appointed you, but now that you actually have responsibility to run the ATC, you pawn it off on overworked staff, hoping their talent will cover for you flaring ineptitude. After your consistent and annoying harassment of my co-workers and me during our training session, with your childish accusations and finger pointing, I can only surmise that YOU are one of the few true wastes of our time and taxpayer dollars.

Asking me, a Training Specialist, to literally “read line for line” over 350 pages to college educated employees was not only a nuisance, insult and waste of time, but also a waste of precious oxygen. You want to criticize how ATC Agents waste taxpayer dollars and you give me a ridiculous directive to READ to eighteen Agents for TWO days? Adult learners respond best to visual, auditory, kinesthetic and environmental teaching. The number one style to AVOID is to READ to an adult.

I was hired because I know how to train employees. And you were apparently hired to supply amusement to Governor Jindal, who watches as you vainly attempt to understand the concept of running and agency while you sit back in your “private office” with you and your personal attorney Not all of us can play on our iPhones and chew bubble gum during your meetings without repercussions as does your legal counsel.

And last, but not least, during our meeting you quoted your height and weight and stated you didn’t understand why Tom Aswell’s readers refer to you as Little Troy Hebert. It was that moment that I realized just how incredibly naïve you are. Let me help you, sir. The readers are not referring to your physical description. They are referring to your character.

It was YOU who gave Agents the directive to read the articles posted on LouisianaVoice. Until then, I had never heard of the blog. It was also YOU who gave the directive to research Tom Aswell. Well sir, I have done my homework. I have found him to have to same humor and talent as John Copes of deductbox.com. If only John Copes were alive today …. I am sure he would have a field day with your shenanigans.

Sincerely,

Michelle Chavis

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Letter to U.S. Attorney, LouisianaVoice claims continuing pattern of RFP bid rigging, vendor favortism at OGB, DOA

Posted in Attorney General, Ethics, Governor's Office, Legislature, Legislators, OGB, Office of Group Benefits, Privatization, RFP, Request for Proposals on March 9, 2013| 20 Comments »

New claims of possible bid rigging and unfair trade practices within the Office of Group Benefits (OGB) and the Division of Administration (DOA), have surfaced in a two-page letter sent to the U.S. Attorney’s office and to LouisianaVoice this week.

OGB is a multi-billion dollar agency which administers health benefit claims for state employees, retirees and their dependents.

If true, it would be the third time in less than two years that insider negotiations have been conducted between a potential bidder, OGB and DOA preparatory to DOA’s issuing a request for proposals (RFP).

A copy of the unsigned, undated letter also was addressed to State Rep. Katrina Jackson (D-Monroe) and to Louisiana Inspector General (IG) Stephen Street, though the writer expressed skepticism over any anticipated action by the IG’s office.

“I am writing as a concerned citizen who has had enough,” the letter said. “I write out of concern that there is something fundamentally wrong with the operations of the Division of Administration. I included the Inspector General out of protocol, but not with the expectation that he will act.”

The letter accused DOA, through OGB of engaging “in a pattern of behavior that has to be, at the very least, unethical” in its dealings with a South Carolina company.

“Within the past few months, the staff of the Office of Group Benefits has been instructed to conduct multiple meetings with a business called BenefitFocus (which is in the business of group health eligibility activity).

“The problem with these meetings is that the blatantly expressed reason for the meetings is the preparation of an RFP on which the company will then bid.

“In fact, in the last meeting,” the writer said, “there was an open discussion on how to either construct an RFP that will yield the company an insurmountable advantage or (that would) make the company a ‘sole source’ vendor that will eliminate competition.”

BenefitFocus is headquartered in Charleston, S.C. and its web page describes it as “the country’s leading provider of benefits technology.” It claims more than 18 million members and 300,000 employers who manage “all types of benefits” through the company which “provides employers, insurance carriers, consumers and government entities with cloud-based technology to shop, enroll, manage and exchange benefits information.

“BenefitFocus clients include small, medium and large employers from all industries, as well as the nation’s top insurance companies,” the website says.

Among the clients listed were Blue Cross/Blue Shield in several states, including Louisiana.
The anonymous writer described the activity between OGB and BenefitFocus as a “pattern,” saying such events have occurred at least twice before.

“The first instance was when OGB (by order of DOA) was looking for a financial advisor. The eventual successful vendor was Goldman Sachs, who had participated in multiple OGB meetings before the bid process and who even had the audacity to help write the RFP,” the letter said.

On April 13, 2011, CNS learned that Goldman Sachs had been active in discussions about the planned privatization of OGB as far back as October or November of 2010. That was about the same time that the idea of privatizing OGB was first floated to then-OGB CEO Tommy Teague in a meeting between then-Deputy Commissioner of Administration Mark Brady, Teague and four representatives of Goldman Sachs.

Teague was fired two days after LouisianaVoice published that story.

When it came time to open the proposals for the project, Goldman Sachs was the only bidder and stood to receive $6 million in fees for its services, whether it was successful in finding a buyer for OGB or not.

Gov. Bobby Jindal eventually rejected the Goldman Sachs bid after details of the Wall Street banking firm’s involvement were made public and Blue Cross/Blue Shield of Louisiana was ultimately awarded the contract to serve as a third party administrator over OGB’s preferred provider (PPO) organization. BCBS also administers other claims for OGB under a separate contract.

“Earlier in 2012, the letter said, “OGB staff was directed to have multiple meetings with Extend Health, a company in the Medicare Advantage exchange business. The staff attended the meetings and helped answer background questions.

“In later activity with the company, an RFP was drafted (a very narrow drafting) that gave Extend Health a nearly sickening advantage in the bidding,” the writer said. “Of course, Extend Health won.”

Extend Health, the largest private Medicare exchange in the U.S., offers access to multiple Medicare plans for 2013. Retirees who enroll in a Medicare plan through the Extend Health exchange are enrolled in a health reimbursement arrangement (HRA) and received HRA credits of $200 to $300 per month from the state up to a maximum of $2,400 per year for single coverage and $3,600 for family coverage.

The credits may be used to pay premiums for Medicare Advantage plans, Medicare Part B. Medicare Part D prescription drug plans, Medigap plans and dental and vision plans.

LouisianaVoice has made public records requests for copies of all correspondence between OGB, DOA and BenefitFocus.

Let’s see how long it takes DOA to invoke the ol’ “deliberative process” exemption.

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The Jindal paradox: he adores but would never work in the private sector (but he would make a splendid Sheldon sub)

Posted in ALEC, American Legislative Exchange Council, Campaign Contributions, Civil Service, Contract, Contracts, Education, Ethics, Governor's Office, Health Care, Higher Education, Layoffs, Legislature, Legislators, Privatization, State Agencies, Transparency on February 24, 2013| 12 Comments »

The burning paradox that is Gov. Bobby Jindal comes down to this: for someone who so obviously loves and embraces the private sector, it’s curious that he has never earned his livelihood in it.

Yes, we know that he “worked” for four whole months for McKinsey & Co. in 1994 but that could hardly be considered as the private sector since the firm primarily serves as a training ground for future bureaucrats and elected public servants.

To paraphrase a 1981 line from actor Burt Reynolds at his Friars Club roast, he’d probably like to thank the little people for putting him into office—but he’d never associate with them.

Of course, should he ever decide to re-enter the private sector and if Jim Parsons should decide to leave the CBS sitcom The Big Bang Theory, Jindal could step right into the role of Dr. Sheldon Cooper and never miss a beat.

Sheldon Cooper, in case you are not a regular viewer (you can catch the show on CBS at 7 p.m. Thursdays or reruns on Tuesdays at 7 p.m. on TBS), is the glue that holds the popular show together. He is academically brilliant (as most would concede Jindal to be) but completely unable to relate to mere mortals (as all would have to agree is a persona that fits Jindal like a glove).

Sheldon is a fount of book knowledge, possessed of an eidetic memory and able to spout figures, dates and statistics with the comparative ease of reciting one’s ABCs but is unable—or unwilling—to perform the simple task of driving a car.

Jindal is a fount of book knowledge, possessed of an eidetic memory and able to spout figures, dates and statistics with the comparative ease….well you get the picture.

Sheldon is completely and totally devoid of human emotion, is unfeeling and unable to communicate in a normal conversation because he has no empathy for his fellow human being. Even in casual conversation, it is impossible for him to avoid insulting the intelligence of those around him, be they peers or subordinates.

Jindal is similarly lacking in those same qualities and likewise cannot speak without offending—be it civil service employees, department heads or fellow Republicans whom he now publicly refers to as being stupid.

Sheldon, when playing board games or video games with his friends, is prone to make up his own rules as he goes along—much to the consternation of Leonard, Raj and Howard, his three friends on the show.

Jindal also is not above tweaking the rules to his advantage as in his exempting the governor’s office from the state’s public records laws—much to the consternation of the media.

But most striking of all the similarities between the two: Sheldon is stubborn and steadfastly refuses to admit to the prospect that he could ever be wrong—about anything.

Jindal, too, is mulishly stubborn and just as steadfastly refuses to entertain the thought that he might be wrong about anything—a trait that goes at least as far back as middle school, according to a former teacher who described him as unwilling to accept correction even then.

But back to Jindal’s undying devotion to the private sector:

His is a strange relationship indeed.

Visit the home a professor, and you’re likely to find shelves upon shelves of books. Visit a hunter and you will find hunting rifles and mounted deer, elk and moose heads. Same with fishermen and the mounted bass that adorn their den walls.

Visit an aficionado of the private sector like, say, the governor of Louisiana and you’re likely to find…photos of smiling campaign contributors.

But you would never find him putting in a typical 8 to 5 day in a cubicle or toiling away in the workaday world like the rest of us. That is so far beneath him as to be comical to even consider.

No, he would never stoop to such a low level. That is for people who can be manipulated, used and even fired at will—by people like him.

Instead, Jindal chooses to reciprocate the private sector’s political campaign contribution largesse by selling off the state, piece by piece, agency by agency to his corporate benefactors while at the same time, selling out hard-working, dedicated state workers without so much as a second thought or a thank you.

The private sector is Jindal’s benefactor, not his employer. Accordingly, he must pander to the corporate suits like Rupert Murdoch, K12, Dell Computers, Marathon Oil, Wireless Generation, Altria, Hospital Corp. of America, Magellan Health Services, Meridian, CNSI, Information Management Consultants, Innovative Emergency Management, Anheuser-Busch, Corrections Corp. of America, AT&T, Koch Industries, the entire membership of the American Legislative Exchange Council (ALEC), and most of his appointees to prestigious boards and commissions.

No, Bobby Jindal would never earn—has never earned—his living from the private sector.

But make no mistake about it: he owes his political existence to corporate America and the private sector.

And he believes with equal conviction that he owes nothing to state employees or the public sector.

Yes, he could step right in and fill Jim Parsons’ role as Sheldon and the difference would be negligible—except for the obvious cultural imbalance that would create.

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