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Archive for the ‘Privatization’ Category

At the risk of being accused of being a one-trick pony because of all or our posts about attempts to privatize the Office of Group Benefits (OGB), we thought we would offer a quick overview of Gov. Bobby Jindal’s policies, of which OGB is but one facet.

Besides OGB, Jindal has already sold off one state agency, the Office of Risk Management. That privatization left many ORM employees years short of retirement age, thus jeopardizing not only their livelihoods, but medical benefits as well.

The sale agreement stipulated that the buyer was required to hire ORM employees for a “minimum” of 12 months. Of course the ORM director was sure to remind his employees who had just had their job security unceremoniously yanked away that he still had his job and, what’s more, would be eligible for retirement in 2012. That must have given everyone there a warm fuzzy.

Jindal tried unsuccessfully to sell several state prisons but was resisted by the legislature. But odds are he will be back next year with another attempt.

A campaign brochure published by candidate Jindal in 2007 touted his love for state employees and his dedication to hard-working civil servants of which, he reminded us, he was one. Maybe so, if you consider Secretary of the Department of Health and Hospitals and head of the University of Louisiana System as fitting the description of civil servant.

Nevertheless, in 2010, he tried unsuccessfully to push through legislation to abolish the Department of Civil Service and to dissolve the Civil Service Board, the only protection, such as it is, available to civil service employees.

He was successful in freezing classified (civil service) pay that same year and extended that freeze in 2011. The reasoning was the opposition to the myth of something referred to as “automatic” pay increases. No one bothered to mention that once an employee maxes out at a particular pay level, there are no more raises unless he or she is promoted. Nothing automatic there.

Many of those civil service workers have college-age children and didn’t help when Jindal endorsed an $84 million college tuition increase. Fortunately for them—and for the rest of parents with college kids—that measure died in the legislature.

This year, Jindal, who has taken the ridiculously entrenched position of no new taxes (not even a routine renewal of cigarette taxes, already one of the lowest rates in the nation), nevertheless tried to push a bill down the throats of those civil servants he so loves that would require that they pony up an additional 3 percent of their frozen paychecks to their retirement contributions.

That idea might actually have had some merit if the extra 3 percent would have been dedicated to paying down the state retirement system’s unfunded liability, but it wasn’t. Instead, the money would have gone directly into the State General Fund to help Jindal look like a financial wizard in using the money to close the $1.6 billion gap in the state budget, a situation civil service employees had no part in creating.

But keep in mind the proposals to increase tuition and civil service employees’ retirement contributions weren’t taxes: they were simply fee increases. But when you’re writing the check, the distinction could be difficult to make.

Bear in mind, too, that Jindal did all this while advocating more and more corporate tax incentives (read: exemptions) for well-heeled campaign contributors.

The governor also laments the loss of our best and brightest college and university graduates to other states but when it comes to his own appointees, he doesn’t seem quite as committed to the concept of hiring Louisiana first.

His first Recovery School District Superintendent was Paul Vallas. Vallas came here from Chicago by way of Philadelphia. His replacement, John White, is from New York. [And who could think it was coincidence that two weeks after White was brought in to replace the departing Vallas as head of RSD, State Superintendent of Education Paul Pastorek resigned and Jindal immediately endorsed White for Pastorek’s job? Who could possibly believe the entire sequence of events was not orchestrated from Jindal’s fourth-floor State Capitol office?]

But we digress. Jindal’s Secretary of the Department of Health and Hospitals (DHH) is Bruce Greenstein of Washington State by way of Maryland.

His Deputy Commissioner of Administration is Mark Brady of New Hampshire and his own press secretary is Kyle Plotkin of New Jersey.

Certainly, there must have been a sufficient pool of Louisiana talent from which to hire for these positions.

But that should come as no surprise, considering his campaign expenses. Of 670 campaign expenditures in 2008, only 219 were paid to Louisiana companies. It seems the governor prefers companies from Virginia, Texas, Maryland, and elsewhere.

And contracts issued to out of state firms throughout the administration number in the hundreds, many of which were issued to campaign contributors. But that’s another story for another day later this week. We promise.

While boasting at every opportunity of his dedication to transparency, openness, and accountability, he saw to it that ethics legislation passed early in his administration would exempt the governor’s office.

When a legislator introduced a bill that would have forced elected officials to publicly report the names of campaign contributors whom officials subsequently hire or appoint, it appeared to have Jindal’s endorsement.

Key administration officials worked the legislator over a period of five months and helped draft the language of the bill, which easily passed both houses.

Jindal promptly vetoed the bill.

Could that have been because Jindal appointed more than 200 contributors to some of the state’s most influential boards and commissions? Those appointees contributed more than $784,000 to his campaign in 2007 and 2008.

While no governor could be expected to appoint political opponents to these positions, the campaign contributions do tend to raise eyebrows. “Appointments to boards and commissions are based strictly on an individual’s experience, recommendations, and suitability for the position,” sniffed Jersey Boy Plotkin.

Jindal’s “transparency and accountability” mantra takes on something of a hollow ring when official actions are examined more closely.

When DHH selected a winner for a 10-year, $34 million-per-year technology contract, DHH Secretary Greenstein did everything possible to resist divulging the name of that contractor to the Senate and Governmental Affairs Committee that was considering his confirmation as secretary of the agency. Only after 90 minutes of back and forth bantering, did Greenstein finally admit that the winner was CNSI of Gaithersburg, Maryland, a firm for whom he once worked and one that outsources much of its work to its Technology Development Center—in India.

During his repeated refusals to name the contract, he was asked by senators who his boss was, to whom does he answer.

His answer: “The governor.”

Jindal’s Secretary of the Louisiana Office of Economic Development flatly refused to provide documents to the Legislative Auditor’s office during a routine state audit. This, even though state law clearly directs all agencies to provide all requested materials to state auditors so as not to restrict them in their duties.

Commissioner of Administration Paul Rainwater also attempted to deny auditors access to a report by Chaffe & Associates of New Orleans on the financial assets of OGB.

Rainwater went even further in first approving release of the report to the Senate and Governmental Affairs Committee member Karen Peterson and then doing an about-face and to instruct OGB CEO Scott Kipper to not release the report to anyone.

Kipper subsequently resigned, effective, June 24, which will give him tenure of a little more than two months after replacing former CEO Tommy Teague, who was fired on April 15.

Rainwater has repeatedly made the claim of “deliberative process” in denying access to the report. The deliberative process term emanates from that same State Capitol fourth floor.

Only one question needs to be asked about the Chaffe report that should put everything in perspective as regards Jindal’s efforts to privatize OGB:

If Chaffe & Associates said in that report things that the governor wanted to hear, that supported his unrelenting efforts to sell an agency with a $500 million surplus, is it even remotely possible that the administration would be attempting to withhold the document?

Put another way, if the report supported Jindal’s desire to sell OGB, what possible reason would he have to keep the report secret?

Put still another way, who among you believes Gov. Bobby Jindal has the best interest of state employees at heart? Indeed, who even believes he has the best interest of Louisiana at heart?

Who believes that all those out-of-state trips to support congressional and gubernatorial candidates in Florida, Missouri, Wisconsin, and other states were for the benefit of Louisiana? Why would he support a Florida gubernatorial candidate who headed a company hit with the largest Medicare fraud fine in history?

That candidate, Rick Scott, incidentally, won election.

Who can stretch credulity to the point of believing his frequent trips to other states to promote his book was for the benefit of Louisiana and its citizens?

Who can believe all those out-of-state campaign fundraising trips were for the overall benefit of Louisiana?

All these, the campaigning, the book tours, the fundraisers, occurred during a time of unprecedented financial crisis at home. And security details and aides who travel with him must be fed and housed on those trips—all on the state dime.

If you are a Louisiana public employee or simply a Louisiana citizen and you don’t stand up right now and defend this state from the encroachments and abuses of this governor, then you are part of the problem.

It should be clear by now that Gov. Jindal is oblivious to the plight of this state’s citizenry. This is your future. This is your government. This is your state. It does not 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, Bruce Greenstein, Kyle Plotkin, and Goldman Sachs.

Our governor has no right to operate behind a curtain of secrecy, to push his agenda with no input from the governed. He is answerable to the Legislature and he is certainly answerable to the citizens of this state.

His first responsibility is not to the big dollar contributors.

That distinction rightly belongs to you.

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Members of the Senate and Governmental Affairs Committee received copies of the report of Chaffe & Associates of New Orleans that the Division of Administration, through Commissioner of Administration Paul Rainwater, has attempted to withhold from release.

It was only a partial victory for the committee, particularly Sen. Ed Murray who had moved successfully on Wednesday for the committee to subpoena the report on the financial assets of the Office of Group Benefits (OGB).

Conflicting reports said Rainwater reportedly was served with the subpoena late Wednesday but still refused to turn the report over to the committee, maintaining that the subpoena was not signed by a judge. Another source said Rainwater gave the report to senators before actually being served with the subpoena.

One report said the report was provided by the Legislative Auditor’s office which had, after several attempts of its own, been provided with a copy of the report but that could not be confirmed. That same report said that because the report came from the auditor’s office which is conducting an investigation, senators were required to sign a confidentiality agreement not to divulge the contents of the report.

Rainwater, when turning over the report, reportedly asked that senators not to divulge the contents because of sensitive information contained in the report.

Another source said the report was released to the members of the committee for investigative purposes relative to committee confirmation hearings only.

Confirmation hearings for Rainwater and Deputy Commissioner of Administration Mark Brady were held by the committee last week.

Apparently, the only thing know for certain is that senators have the report in hand but won’t release it themselves.

LouisianaVoice has tried unsuccessfully on five separate occasions to get DOA to release the report but DOA first said the report had not been received, then said the report was not final but on May 29, said it had received the report on the 25th but because it was part of the “deliberative process,” was not public record.

DOA attorney Paul Holmes further cited two court cases in which the Public Service Commission and the Louisiana Department of Insurance each prevailed in efforts to keep records from being made public. Those cases, however, in no way pertained to LouisianaVoice’s request for the report.

Chaffe had been retained to produce the report by the March 19 deadline for Gov. Bobby Jindal to submit his executive budget but nothing from such report was included in the budget. That led to speculation—and actual reports—that Chaffe reported that the only advantage to privatizing OGB would be for the purchaser to retain the agency’s $500 million surplus.

The Senate and Governmental Affairs Committee elicited a promise from Rainwater during last week’s confirmation hearing that he would make the report available to Sen. Karen Peterson (D-New Orleans) vice-chairperson of the committee.

When Rainwater backed out on that promise and instructed OGB CEO Scott Kipper not to produce the report, Kipper tendered his resignation, effective June 24. It was the second time within six weeks that OGB had lost a CEO.

Last week’s confirmation hearing also included Kipper, who was named to replace former CEO Tommy Teague on April 15, the same day Teague was fired just six months short of his qualifying for retirement.

The committee peppered Kipper with a withering barrage of questions about his disavowal of any knowledge of the contents of the Chaffe report. That led to Murray’s motion on Wednesday to subpoena the report.

Brady received and read the latest request by LouisianaVoice for the public record on Thursday but did not respond.

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BATON ROUGE (CNS)—Paul Rainwater is welshing on a promise, Scott Kipper is out as the CEO of the Office of Group Benefits (OGB), Goldman Sachs is back in the mix, the Chaffe report on the privatization of OGB doesn’t say what the administration wanted to hear, and OGB employees have been placed under a gag order.

LouisianaVoice learned that, in a nutshell, is what has transpired only days after Rainwater promised the Senate and Governmental Affairs Committee on Tuesday that committee member Sen. Karen Carter Peterson (D-New Orleans) would be provided a copy of a report done by Chaffe & Associates of New Orleans.

The most bizarre of a series of bizarre developments in the ongoing saga of Jindal’s efforts to privatize the agency that provides health coverage for more than 250,000 state employees, retirees and dependents is the apparent decision to take Kipper out of the decision-making loop until after adjournment of the current legislative session whereupon he will resign.

Deputy Commissioner of Administration Mark Brady and Kipper became involved in a standoff on Thursday after Kipper defied instructions to go back on Rainwater’s promise to make the Chaffe report available to legislators, according to sources.

The latest developments have prompted immediate reaction from State Sen. D.A. “Butch” Gautreaux (D-Morgan City), chairman of the Senate Retirement Committee.

“I intend to submit a joint resolution in the Senate on Monday or Tuesday urging Gov. Jindal not to privatize the Office of Group Benefits,” Gautreaux said Sunday. He said if the Senate approves his resolution it would go to the House for concurrence.

A resolution, as opposed to an actual bill, has no effect of law. Instead, its purpose would be to display a united front on a particular issue. But Gautreaux said he is also working on other action that might be legally binding.

He said the Senate legal staff is looking into a possible course of legislative action to block efforts by Jindal to sale or privatize OGB. He did not specify what type of action he is planning to block the administration.

Chaffe was awarded a $49,999.99 contract to do its report, apparently in an effort to develop figures in time for Jindal’s proposed state budget that was submitted on March 19. The contract amount was one penny less than the amount that would have required approval by the Office of Contractual Review, giving the appearance that Jindal was attempting to circumvent contract regulations.

Rainwater also assured the committee that the Chaffe report merely “validated” information that the Division of Administration (DOA) already had, thanks to Goldman Sachs, the Wall Street banking firm that assisted in the drafting of the original Request for Proposals (RFP) for a financial analyst to conduct a financial assessment of OGB and to help market the agency to potential buyers.

Rainwater may have fudged a bit in telling the committee during that same hearing that the report contained no significant information. It was learned Friday that the Chaffe report indicated the only advantage to privatizing OGB would be if the buyer retained the entire agency surplus of $500 million.

Some might consider that significant, especially in light that Rainwater first said the surplus would be attractive to a buyer but then denied the agency was for sale. Instead, he said the administration was simply seeking a third party administrator for the agency’s Preferred Provider Operation. He later added that the agency’s HMO, presently administered by Blue Cross/Blue Shield, might be included in the RFP.

Sen. Ed Murray (D-New Orleans) had posed the very scenario contained in the report last Tuesday when he asked why Kipper had not been provided a copy of the report. “What if that report says privatizing Group Benefits is not a good idea?” he asked. Kipper was provided a copy of the report following the hearing.

Rainwater, through Deputy Commissioner of Administration Mark Brady, instructed Kipper two days after Tuesday’s committee meeting to give the Chaffe report to no one, “not even legislators,” according to DOA sources.

Rainwater may have had his change of heart as a result of persistence on the part of LouisianaVoice, which had been refused access to the report on four separate occasions prior to Tuesday. The first three times, Rainwater’s office simply said there was no report. When it became known that DOA received the report on May 25, DOA attorney Paul Holmes responded to a fourth request that the report was exempt from the public records law.

When Rainwater promised the report would be made available to Peterson, however, LouisianaVoice immediately fired off a fifth request for the report under the state’s Public Records Statute.

When Brady instructed Kipper to hold the report back, Kipper balked, saying that Rainwater had made a promise in an open committee meeting. Kipper even offered to resign.

At that, Brady made a brief telephone call, and then informed Kipper that his nomination for confirmation as OGB CEO would be withdrawn and that Kipper would remain on the job until June 24, the day after the current legislative session adjourns at which time he would tender his resignation.

Kipper was appointed to the OGB position on April 15, the same day his predecessor, Tommy Teague, was fired for a “lack of leadership,” according to Rainwater. Teague, in five years at the helm of OGB, had taken the agency from a $60 million deficit to a $500 million surplus.

Rainwater now apparently has found Kipper lacking in leadership, or more accurately perhaps, followship. Kipper previously had worked for the Louisiana Department of Insurance and prior to that, worked for insurance regulatory agencies in several other states.

Kipper will be out of the office Wednesday, Thursday, and Friday on vacation, a fact that further irritated Gautreaux, who said he does not like the timing of Kipper’s trip. “I am concerned and upset about the lack of answers from the administration and I particularly don’t like the idea of Mr. Kipper leaving the state at such a critical time,” he said. The deadline for proposals from financial advisors to conduct a financial assessment of OGB is Monday with selection of the contractor scheduled for June 15.

“I will instruct my staff to attempt to contact Mr. Kipper and have him call me. I want him to answer questions and I will keep attempting to reach him every day,” Gautreaux said.

LouisianaVoice also has learned that Goldman Sachs is back in the picture and is one of four companies which have indicated an interest in submitting proposals on the financial assessment project. The deadline for proposals is Monday with selection and notification of a contract award scheduled for June 15.

When Goldman Sachs, which assisted in drafting the original RFP was subsequently the only one to submit a proposal, Goldman Sachs withdrew after an impasse was reached over the company’s insistence on indemnification against any future litigation.

The proposed privatization has met with opposition from several different fronts. The most significant objection came from the Louisiana District Judges Association which adopted a unanimous resolution in opposition to the privatization at its annual spring judges’ conference in Lafayette on April 7.

Legislators also have received hundreds of phone calls, emails and letters as well, virtually all in opposition to the OGB privatization.

All this comes at a time when the Senate and Governmental Affairs Committee still must make its recommendation on confirmation of Rainwater, Brady, and ostensibly, Kipper to the full Senate. The Senate would then have to approve each of the Jindal appointees by simple majority votes.

Anyone who watched the debacle unfold at the Senate and Governmental Affairs Committee confirmation hearings On May 31 saw the callous manner in which Rainwater allowed Kipper to be hammered by committee members for his evasive answers, most likely at the behest of Rainwater himself. Friday’s action by Rainwater was merely the crowning display of arrogance that seems to have permeated the Jindal administration from the top down.

As bad as that performance was, the beginning of the end for Kipper most probably occurred on May 10. Kipper, testifying before the Senate Insurance Committee, was asked by Sen. Eric LaFleur (D-Ville Platte) how many OGB employees he would cut if OGB was not privatized.

“Let’s assume this RFP doesn’t go anywhere and we’re right back where we are right now, who…how many people would you cut from OGB.”

“If we continue to operate as we do now, there would be no significant cuts,” Kipper responded, visibly upsetting Rainwater seated next to him. “There’s not a lot of excess now,” Kipper said. Rainwater has insisted that the agency needs to cut at least 149 positions.

Now the question must be whether or not Kipper will have the courage to step up to the plate on behalf of his OGB employees, half of whom could lose their jobs if the agency is privatized, and make the contents of the Chaffe report public.

Or will he choose instead to protect his career and sacrifice his integrity by going quietly into the night?

He could refuse to resign and force the administration’s hand. In that event, whatever course of action Rainwater would take almost certainly would prove embarrassing and leave Jindal with egg on his face. In the event Rainwater and Brady end up firing Kipper, what would that say about the administration’s vetting of its choices to run OGB?

Firing two CEOs of OGB within six weeks, all in the middle of attempts to privatize such a large agency would not look good under any circumstances.

It’s a call only Kipper can make.

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“We view the scope of services of the financial advisor is to primarily be that of a supportative and advisory role to the Office of Group Benefits, and therefore anticipate engagements with any committee of the Louisiana Legislature or other tribunal to be limited and infrequent.”

Division of Administration response to a question (posed by the Division of Administration) contained in addendum 4 to a Request for Proposals (RFP) for services of a financial advisor to conduct a financial analysis of OGB.

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Members of the Senate and Governmental Affairs Committee, led by Sen. Ed Murray (D-New Orleans), grilled three of Gov. Bobby Jindal’s appointees in 40 minutes of tense confirmation hearings on Tuesday.

The committee will make its recommendations on the confirmations of Commissioner of Administration Paul Rainwater, Deputy Commissioner Mark Brady, and Office of Group Benefits (OGB) CEO Scott Kipper to the full Senate which will then vote on those recommendations.

It didn’t take long for Rainwater’s survival instincts to kick in at the expense of Kipper who, it seemed, had been instructed to say as little as possible but soon found himself in trouble as members of the committee quickly smelled blood and moved in for the kill.

The thrust of the questioning of Rainwater and Kipper (Brady, who spent the first few minutes of questioning fidgeting in his chair, was all but ignored) centered around administration efforts to privatize OGB and the existence and availability of a report generated by a New Orleans firm.

Chaffe and Associates was hired in March by the administration to generate a rush financial analysis of OGB preparatory to the receipt of proposals from financial analysts with experience in negotiating sales of insurance companies.

Committee staff members had received an email from Paul Holmes, an attorney with DOA, that was identical to one he sent LouisianaVoice on Friday (see May 31 posting) that denied access to the Chaffe report, a denial not well received by committee members.

During the questioning process, Rainwater threw his two subordinates under the bus by denying knowledge of conversations between Brady and Kipper relative to keeping the Chaffe report from the public. Rainwater seemed content to leave Kipper twisting in the wind while he busied himself with texting.

Requests by LouisianaVoice for a copy of the Chaffe report were sent directly to Rainwater which would seem to weaken his deniability of any knowledge of efforts by Brady and Kipper to keep the report confidential.

That comment came after Kipper, appearing to be taking directions from higher ups to reveal as little as possible to the committee, first said he had no knowledge that the Chaffe report existed and that he wouldn’t have wanted to see it at any rate because of an existing request for proposals (RFP) on the OGB privatization. He said he feared the Chaffe report might jade his decisions on the RFP if he knew its contents.

Rainwater spent much of the time Kipper was testifying taking notes and openly texting at the witness table, never once coming to the aid of his subordinate to clarify an answer or to assist Kipper when he faltered. Instead, he appeared perfectly willing to let Kipper suffer the wrath of the committee for actions perpetrated by his (Rainwater’s) office.

Murray was incredulous that Kipper, as CEO of OGB had not seen a report that potentially “could affect thousands of people.”

But that was not the most damaging part of Kipper’s testimony. Earlier, he bantered with Murray over the very existence of the report and quickly lost credibility with the committee.

When he asked Kipper if a third party had been brought in to conduct a financial analysis of OGB, Kipper replied, “Not that I’m aware of.” That answer set off a firestorm of questioning from several senators.

Murray later came back to say, “I’m told a report was done but the Legislative Auditor was denied access to that document because it was part of the ‘deliberative process.’ Now we have another report (Chaffe) that was requested by members of the Senate staff and you won’t turn it over. Are you telling this is not true?” he asked.

“I’ve not seen the report,” Kipper said.

“So it does not exist?”

“I have no knowledge that it exists.”

“You’re the CEO of OGB and you’re telling me you have not seen a report that would impact OGB? Other people have seen it. When will you see it?” Murray asked. “Have you asked for it?”

“I have not.”

“This is really disturbing to me that you, as CEO of OGB, have not seen a report that is out there that is so important to so many people,” Murray said. “The report might tell you there is no need to privatize OGB. Don’t you think you need the benefit of that information? Who suggested that Chaffe do the report?”

“I don’t know,” Kipper said.

“You don’t know that either? Who’s running OGB?”

In fairness to Kipper, the Chaffe contract was issued prior to the firing of Kipper’s predecessor, Tommy Teague, on April 15.

Sen. Karen Carter Peterson (D-New Orleans), vice chairman of the committee, raised the issue of transparency with Rainwater.

“Did you commission the Chaffe report?” she asked.

“Yes,” said Rainwater.

“Wouldn’t it be helpful for Mr. Kipper to have the report?”

“He will get the information, obviously,” Rainwater said.

“No, it’s not obvious,” she said. “Why would the CEO of the agency not have the information before making a major decision on the agency’s fate?”

“It (the Chaffe report) was more of a validation of what we already had,” Rainwater responded, not saying that the data validated had been compiled with the aid of Goldman Sachs which helped draft the original RFP on which Goldman Sachs was the lone bidder. “The numbers came back as we thought they would,” he said.

“We’re looking in this hearing at character and judgment. How can I have confidence in confirming anyone if I don’t have confidence in their character, judgment and integrity?” Peterson asked.

“Transparency is something touted by the administration but to withhold information from key department officials is significant.”

Sen. Jack Donahue (R-Mandeville), directing his remarks to Rainwater, noted that Kipper had testified that he did not want to review the Chaffe report.

“That was a conversation between Mr. Kipper and my deputy commissioner (Brady). I was not aware of those discussions.”

“If you spent money on this report, it would seem that everything should be on the table,” Donahue said. “I’m surprised by your answers to tell you the truth.”

“I’m surprised by the conversations my staff has had,” Rainwater countered, again revealing his willingness to deflect criticism onto his lieutenants for actions that, ultimately, were his responsibility.

Peterson returned to Kipper’s testimony about his lack of knowledge about the existence of the Chaffe report. “You testified you didn’t know if the report existed,” she said. “You raised your right hand and took an oath. Are you sure you don’t want to try again?

“The first element in these jobs is integrity. I don’t think that of you, Mr. Kipper. I think you’re fudging. I think you’re teetering and for someone in your position, there is a fundamental element of trust necessary. I don’t have that today. Do you want to try again on that report?”

“Senator, I’ve not seen the report,” Kipper said.

“Do you know the report exists?” she asked.

When Kipper hesitated, she again asked, “Do you know the report exists?”

“I think the report exists,” he responded.

At that point Murray said, “Even after the commissioner (Rainwater) told you the report exists, you still don’t know it exists?”

“I believe it exists,” Kipper said again.

“This is absolutely amazing to me that you can sit there and give answers like that,” Murray said.

“It disturbs me that the CEO of OGB sat there and I had to pull it out of him that the report even existed and even as I was asking Mr. Kipper those questions, his bosses (Rainwater and Brady) sat right next to him and said nothing,” he said.

“I hope you change your attitude,” he said to Kipper. “If you are confirmed, I hope you will take your job more seriously and treat us with more candor.”

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