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Archive for the ‘Transparency’ Category

Guest columnist offers response to Gov. Jindal’s appearance, glaring omissions, doubletalk on Meet the Press last Sunday

Posted in Budget, Governor's Office, Guest Columnist, Health Care, Higher Education, Revenue, Transparency on November 21, 2014| 20 Comments »

By James D. Kirylo

Guest Columnist

Governor Jindal recently appeared on Meet the Press. The host Chuck Todd peppered the Governor with a variety of questions, asking why he didn’t expand Medicaid, being that it would be helpful for the 200,000 uninsured people in the state (although the number is likely more toward the 750,000 range).

Todd also reminded the Governor how Louisiana nearly has a billion dollar hole in our budget; how at every midyear review, our deficit has grown; how the big tax cut at the beginning of the governor’s term has not been followed by revenue; and that a majority in Louisiana disapprove of his job as governor.

Governor Jindal predictably deflected much of what Todd said, and stated at the onset that he doesn’t care about the poll numbers and never has. He also proudly mentioned that he’s cut our state budget 26 percent, cut the number of state employees 34 percent, and declared how not spending on Medicaid is another dollar we don’t have to borrow from China, and that we shouldn’t waste those federal tax dollars.

Furthermore, the Governor asserted how we’ve actually improved healthcare access and outcomes here in our state.  Citing an example—how it used to take ten days to get a prescription filled—now one can get it done in ten minutes. Finally, the Governor also touted his so-called school choice program, and concluded that he has balanced the budget every single year without running deficits, and without raising taxes.

As I watched Meet the Press, listening to the least transparent governor in the nation, I was amazed, though not surprised, by what the Governor did not mention, some of which I will, therefore, do here. First, when the Governor says he does not care that the majority of Louisianans disapprove of his job as governor, it obviously means he doesn’t care what I think, what state workers think, and what the hundreds and thousands of us who have been greatly harmed by his policies think. It is obvious there is only one person the Governor cares about.

Of course, he didn’t mention that when he talks about how he has sliced and diced the state budget, it has resulted in the near decimation of higher education. Indeed, universities have been cut 80% in the last several years, tuition has exponentially risen, and the LA Grad Act is simply a devious scheme that fosters a system that unduly taxes students in order to fund higher education. In a poor state like ours, this is simply a formula that further widens the opportunity gap, and further widens the gap between the proverbial “haves” and “have-nots.”

He also didn’t mention that numerous underpaid university people have endured near poverty wages, have endured furloughs, have had no cost of living allowances now inching toward the ten year mark, that numerous individuals can’t afford health care, that top flight faculty have left the state, that public school teachers have been blamed for everything that ails our state, that Louisiana has the nation’s fourth highest high school dropout rate, that our high school graduation rate ranks 45th in the nation, that we have one of the highest childhood poverty rates in the country, and that we have the highest incarceration rate in the country, if not the world.

Of course, he didn’t mention that Louisiana ranks 50th among the states in overall health, and that we lead the nation in the highest infant mortality rate, the highest diabetes-related death rate, and the highest rate of death from breast cancer, and third-highest rate of cancer deaths overall.

And of course, he wouldn’t mention that according to a Washington Post report a short while back, the state of Louisiana is expecting a $1.2 billion budget shortfall next year, which has now risen to 1.4 billion. And this is despite the Jindal administration hiring a New York-based consulting firm for $7.3 million to find ways to generate and save revenue. Finally, he didn’t mention what can be characterized as the Office of Group Benefits (OGB) scandal, where many are asking about the half of the $500 million dollars that was in the OGB reserve fund, but is now gone.

It should be no surprise critics are calling Jindal’s handling of the budget his blind-spot. But that is not his only blind spot. The other one is that he is blind to the fact that he has hurt the lives of so many hard-working Louisianans.  And the irony of ironies when the Governor concluded his visit with Meet the Press, he stated that the American Dream was in jeopardy and that should he run for president, he would focus on restoring that dream.

It was then I turned off my television set, had to shake my head, and grabbed my dictionary to double-check the definition of delusional.

James D. Kirylo is an education professor, a former state teacher of the year, and his most recent book is titled A Critical Pedagogy of Resistance.  He can be reached at jkirylo@yahoo.com

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Gov. Jindal to be on ‘Meet the Press’ Sunday, but what will he talk about? We’re pretty sure of things he won’t discuss

Posted in Budget, Civil Service, Corruption, DOA, Ethics, Governor's Office, Health Care, Higher Education, Jobs, OGB, Office of Group Benefits, Privatization, Retirement, Revenue, State Police, Teague, Transparency on November 14, 2014| 29 Comments »

What will Gov. Bobby Jindal say when he appears on Meet the Press Sunday?

Of course we know he will attack President Obama and the Affordable Care Act, aka ObamaCare while ignoring the fact that his decision not to expand Medicaid may end up costing the state hundreds of millions of dollars. That’s a given.

At the same time he is criticizing Obama for not being more proactive on the Ebola crisis, he will fail to mention his rejection of the Medicaid expansion has been at the expense of health coverage for a couple hundred thousand low-income Louisianans.

He will condemn the president for his lax immigration policy while turning a blind eye to the indisputable fact that Latin Americans who do enter this country generally take low-paying jobs no one else wants. He won’t mention companies like IBM, Dell, ACS, and Pfizer, to name but a few, that have taken advantage of an obscure work visa (the H-1B program) to lay off more than 250,000 Americans from high-tech IT jobs. These companies lay Americans off in favor of importing hundreds of thousands of Indians who work for far less, thus saving these companies billions of dollars.

He will no doubt boast of his accomplishments as governor—claims that simply will not stand up under close examination—apparently pulled off by remote control. This is especially the case during his second term when his title would more accurately be governor in absentia. He has spent an inordinate amount of time traveling outside the state in an attempt to build support for a anemic campaign for the GOP presidential nomination that, despite his near-desperate efforts, is gaining no traction.

He could lambast the Common Core curriculum, once again ignoring that fact that he was in favor of Common Core before he was against it.

There are so many other things he could discuss but probably won’t.

He won’t mention, for instance, his abysmal record in the state’s courtrooms. One of these was his miserably failed effort to jerk retirement benefits from under the feet of active state employees, some of whom would have seen their retirement income plummet to as little as $6,000 a year—with no social security—had he been successful.

He will attempt once again to convince the nation—those of us in Louisiana know better, of course—that he has balanced the state budget while cutting taxes and reducing the number of state employees.

Yes, he has reduced the number of state employees, but at what cost? The Office of Group Benefits (OGB) is a shell of the once smooth-running state office that handled the medical claims of some 230,000 state employees, retirees and dependents. Not that that matters to Commissioner of Administration Kristy Nichols who, we are told, is a member of the LSU health plan and thus unaffected by the changes.

And of course Jindal, through his smoke and mirrors game of premium reductions, has managed to siphon off more than half of OGB’s $500 million reserve fund. He also recently attempted to slash benefits and pile unaffordable co-pay and deductible increases onto the backs of state employees and retirees. In short, his grand scheme to privatize OGB has proven nothing less than an unmitigated disaster of politically humiliating (to him) proportions. His firing of respected CEO Tommy Teague and the mess that has ensued stand as a monument to unparalleled mismanagement and political meddling.

And his budget balancing has produced unprecedented cuts to higher education. Colleges and universities in Louisiana have seen their appropriations gouged by nearly 70 percent during Jindal’s almost seven sorry years in office. God help us if he should somehow be placed in the position of inflicting such carnage on the nation as he has on Louisiana.

And what of that claim of balancing the budget, anyway?

Let’s review.

We will take figures provided to us by State Treasurer John Kennedy that reflect the general fund balances as of Oct. 31. And while we are quick to acknowledge the fact that the numbers will certainly improve next spring when revenues start picking up from state income tax and corporate tax collections, a comparison of the last five Octobers is both startling and sobering.

As of Oct. 31 of this year, the general fund balance reflected a deficit of $924.6 million. That’s just $75.4 million shy of $1 billion—and OGB alone is losing $16 million each month.

And yes, the numbers will improve next spring but let’s look back just one year. As of Oct. 31, 2013, the balance reflected a deficit of $656.7 million. That’s nearly $268 million less in negative spending than for this year.

Still not convinced? Well, for Oct. 31, 2012, the deficit was $476.6 million, about $448 million less than for the same month in 2014.

And while it was slightly higher at $565.2 million on Oct. 31, 2011, the number for 2010 was only $181.5 million—almost three-quarters of a billion dollars billion better than this year.

In five short years, the October deficit for the state general fund balance has increased fivefold.

The historically high negative balance, which arrives just a few months into each new fiscal year (which begins on July 1), “is forcing fund borrowing to sustain cash flow,” Kennedy says. “It darkly foreshadows the challenge ahead for lawmakers and the governor in the 2015 regular session. A budget shortfall of at least $1.2 billion is expected, but it’s clearly a figure that could move. It also increases the likelihood of midyear budget cuts in the minds of some.” (The administration finally admitted this even as this post was being written on Friday. Spending for the next seven months will have to be slashed by at least $171 million because of lower than anticipated revenues.) http://theadvocate.com/news/10833948-123/state-needs-mid-year-budget-correction

And here is the rub that has Kennedy and Nichols crossing swords: Kennedy says to some lawmakers, “the negative balance is at a critical high because the state started the fiscal year with a deficit cash balance of $141 million and because expenses actually are greater than revenues,” Kennedy said.

Nichols, however, vehemently disagrees, claiming instead that the administration stumbled upon some $320 million in extra cash from prior years lying around in agencies scattered across the state which she claims gives the state an actual surplus of nearly $179 million.

The problem she has, however, is that no one believes her—including two former commissioners of administration interviewed by LouisianaVoice, both of whom say it’s just not feasible that that much money could have been just lying around all these years without anyone’s knowing of its existence.

Nichols, of course, has to maintain a brave face in order that her boss can save face.

You see, as Bob Mann points out in his latest posting on his blog Something Like the Truth, Jindal “must never have raised a tax” and “must never have presided over an unbalanced state budget” if he wishes to cling to any fading hopes of the GOP presidential nomination.

“All your advantages—your personality, your policy credentials, the importance of your state in Electoral College politics—won’t help you much if you don’t meet these basic qualifications,” Mann said. http://bobmannblog.com/

“Jindal knows Republican audiences in Iowa and elsewhere will pay him little mind if they learn about his fiscal recklessness,” he said. “So, he and Nichols tried to cover their tracks, including dishonestly blaming their budget deficit on state Treasurer John Kennedy.”

Jindal, of course, won’t address any of these issues. But were he of a mind to do so, he could even discuss on his Meet the Press appearance how he tried to frame Murphy Painter, former director of the Office of Alcohol and Tobacco Control after Painter refused to knuckle under to demands that he look the other way on behalf of New Orleans Saints owner Tom Benson over Budweiser’s application for an alcohol permit at Champion’s Square. He could tell how that effort backfired and the state was forced to pay Painter’s legal bills of some $300,000. But he probably won’t

He could discuss how he attempted unsuccessfully to circumvent state law and obtain a hefty $55,000 per year increase in pension benefits for his state police commander. But most likely, he won’t.

And he could disclose how much it has cost Louisiana taxpayers in terms of payroll, meals and lodging for state police security as he jets around the country in pursuit of his presidential aspirations. But don’t expect him to.

Yes, Jindal could discuss these and other matters during Sunday’s program, but he won’t.

The simple fact is, by virtue of his bottom-feeding position as the anchor in the GOP nominee sweepstakes, he just can’t afford to.

And saddest of all, no one on the program’s panel is likely to inquire about these issues.

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Did Brant Thompson receive preferential treatment from Auctioneer Licensing Board because he is senator’s son?

Posted in Boards, Corruption, Ethics, Fraud, Governor's Office, Guest Columnist, Public Records, Transparency on November 10, 2014| 17 Comments »

By Guest Columnist Robert Burns

Tom recently posted that Louisiana Sen. Rick Gallot may have used his influence to expedite and circumvent safety standards for a private school.  Another Louisiana Senator, Francis Thompson (D-Delhi) may have well had his son, Brant, utilize his dad’s status to obtain fair and equitable treatment from the Louisiana Auctioneer Licensing Board (LALB).  He was fully entitled to such fair and equitable treatment, but it begs the question as to why other Louisiana citizens, especially elderly widow auction victims, are given the shaft.

In early 2012, Brant Thompson allegedly consigned merchandise to auctioneer Bruce Miller.  I use the word “allegedly” because, at a May 6, 2014 hearing, LALB investigator Jim Steele, as evidenced by this 4-second video clip, said, “There’s no indication that Mr. Thompson was a consignor at this auction whatsoever.”  Nobody knows what may have happened to Mr. Thompson’s items, and auctioneer Bruce Miller died of a massive heart attack two days after his last auction.  Mr. Thompson never received a dime for his items, nor did he ever even see his merchandise again.  Understandably, Mr. Thompson got upset and justifiably filed a complaint with the LALB.  Like so many other complainants, Mr. Thompson was frustrated when he received this brief letter from LALB attorney Anna Dow dated 1/16/14 indicating that, because the LALB could not ascertain if a violation had occurred, it was “closing the investigation……No further action will be taken.”

Thompson, like many other aggrieved complainants, wasn’t happy, so he drafted this terse two-page response dated 2/3/14.  He indicated that he “takes exception” to the finding and states that “The system designed to protect me failed.”  He emphasized that he was aware auctioneers carry a bond, and he relayed that he expected that bond to cover his alleged losses.  Mr. Thompson is correct in his assessment that the LALB failed him, but it has done the same for a litany of other complainants.  Mr. Thompson, however, was shrewd enough to copy Ms. Holly Robinson, Gov. Jindal’s then-Heard of Boards and Commissions.  Obviously, Ms. Robinson would be very familiar with the fact Brant is Francis’ son.  What transpired upon Robinson’s receipt of the letter?  Who knows, but we do know this:  in lightening-fast speed, the LALB, in an unprecedented move, not only “reopened” a closed investigation, but it actually conducted a full-blown hearing (on a deceased auctioneer) on 5/6/14.  Remember Mr. Thompson’s goal of collecting on Miller’s bond.  Now, watch this brief one-minute video clip excerpt from the hearing.  Notice how Mr. Thompson is gently guided regarding the bond’s parameters (that it’s for $10,000 and has a 3-year filing period in which the LALB can file for him).  Mr. Thompson, who speaks in a smooth and cavalier manner, is spoken to in turn by LALB members and its attorney in an almost reverent-like manner.  The LALB not only filed the bond for Mr. Thompson, but in breakneck speed, he received a $3,500 check from the bonding company in early October of 2014 even though the company said the itemized list it was provided depicted ordinary household items that were “virtually worthless.”

Let’s contrast Mr. Thompson’s revered status as a Louisiana senator’s son with the tone and attitude taken with complainant Judy Fasola.  In late 2012, Ms. Fasola contracted with notoriously-problematic auctioneer Ken Buhler for the disposition of her terminally-ill, 93-year-old mother’s estate.  Ms. Fasola asserted at her hearing, which was in March of 2013, that Mr. Buhler adamantly refused to place reserves on her marque items and instead, over time, just kept defiantly selling them at pennies on the dollar (Fasola relayed she later learned Buhler sold many marque items to his own mother, mother-in-law, and other Buhler relatives) against her express desire and instructions.  When she threatened an LALB complaint, he finally returned what few items he hadn’t sold in defiance of her instructions, and Fasola relayed he did so in a fit of anger, slamming her items on her floor and breaking most items in the process.  Fasola filed an LALB complaint, and the LALB fined his father, Mac, who is not an auctioneer but was deemed the responsible party for Ken’s company, Estate Auction Services, $500 for “sloppy recordkeeping.”  Due to Ken’s license being revoked from 2005-2010 (due to massive consignor losses), the LALB insisted that Mac oversee all negotiations and communication with customers.  Ken had defied that restriction in negotiating with Ms. Fasola, but she was unaware of the LALB restrictions on Ken’s license.  Ms. Fasola, like Brant, repeatedly asked the LALB to file a bond claim for her, but the LALB has steadfastly refused to do so.  When Ms. Fasola learned of Mr. Thompson’s ease of obtaining a bond payment, she was understandably upset and requested to be heard on the matter at the 11/5/14 meeting to air her frustrations.  Let’s examine, mainly through video excerpts of the meeting, just how she got treated.

Fasola began by giving an introductory statement relaying how she, like Brant, felt the system had failed her, and she asked if she may have been treated more fairly “if I were the daughter of a Louisiana State Senator?”  LALB Vice Chairman James Sims tersely denied any knowledge that Brant was the son of a Louisiana senator until “seven days after the hearing.”  There simply is no way to adequately place in words the hostility shown toward Ms. Fasola (and me, for that matter) at the meeting, so I ask readers’ indulgence in watching a 9-minute video clip of the highlights of Ms. Fasola’s presentation, along with captions wherein Ms. Fasola catches board members, attorneys, and the executive director in one contradiction and falsehood after another (proven by video clips merged into this 9-minute video clip which I strongly encourage readers to watch).  In watching the video, it becomes apparent why I videotape these meetings because these board members flat-out misrepresent what they’ve said and done in prior meetings.

Now, in the above 9-minute video clip, considerable focus was placed on the above-mentioned restrictions on Ken Buhler’s license.  When Estate Auction Services (Mac Buhler) was fined $500 and found guilty in March of 2013, the bonding company immediately canceled its bond.  As mentioned above, Ken, pursuant to the restrictions on his license, was totally dependent upon his dad to remain in business; however, his dad could no longer operate due to lack of a bond.  How did the LALB solve Ken’s problem in that regard?  They simply convened another “hearing” on May 20, 2013 for the sole purpose of removing all restrictions on Ken’s license.  Nevertheless, as evidenced by the video clip, LALB Vice Chairman James Sims kept insisting (incorrectly, on no less that three occasions) that the restrictions were lifted prior to Fasola’s auction.  In reality, the restrictions were lifted after and as a result of Fasola’s auction.  Hence, as Fasola pointed out, Buhler was actually rewarded for his victimizing of her!  Also, although LALB Chairman Tessa Steinkamp literally blew a gasket at the 6:27 mark of the video when Fasola referenced concerns for her personal safety when dealing with Ken Buhler, Ms. Fasola had genuine reason for concern.  Even as she was dealing with him, he was arrested and criminally charged for domestic abuse against his wife (the latest court date is Monday, 11/10/14).  Additionally, Mr. Buhler was also found to have civil liability for the fraudulent use of interstate commerce instrumentalities in Federal Court in mid-2011.  The LALB was notified of that fact, but they were completely indifferent to the fact it transpired, notwithstanding the fact that his liability entailed securities fraud directly related to his auction business.

As evidenced by the preceding video clip, the LALB basically continued to tell Ms. Fasola to “go to hell” regarding its filing her bond claim for her.  Quite a contrast to the reverent tone taken with Brant Thompson, son of State Sen. Francis Thompson, huh?  What’s alarming is the sheer number of elderly victims of auctioneers.  Let me provide the following table of four such instances that readily come to mind:

Auction Victim’s Name Reason for Auction Auctioneer and Appx. Date
Ms. Linda Williams Liquidating 91-year-old mother’s belongings days before her death.  Click here to listen to an impassioned plea by Ms. Williams for the LALB to NOT reinstate Ken Buhler’s license in 2010. Ken Buhler. Months prior to his auction license being revoked in 2005.
Mr. David Swift Liquidating the belongings of his 80-something father soon after his death. Gary & Randy Hayes (business applicants like Mac Buhler), two guys who, to their credit, told the LALB at their 1/14 hearing, “We never should have been granted a license.”   They went on to relay they’d lost over $100,000 of their retirement savings and would NEVER be in the auction business again.
Ms. Judy Fasola Liquidating 93-year-old terminally-ill mother’s belongings months before her imminent death. Ken Buhler. September, 2012.
Ms. Betty Story Liquidating her belongings (and two homes) in order to move into an assisted living facility in Alexandria, LA.  LA Voice readers may recall this 9/27/14 post on what a disaster her auction was.  I’m happy to report that Ms. Story, serving as a pro se litigant (at 84 years old!!), scored a major victory in 36th JDC on 10/29/14 when Judge Martha O’Neal stopped the trial after Ms. Story presented only her second witness, with Judge O’Neal saying, “I’ve heard all I need to hear.”  When auctioneer Schmidt asked if he’d be permitted to put on his defense and call witnesses, O’Neal said, “Yes, but you’re not going to be able to undo the damage you’ve already done on this witness stand in answering my questions,” (Story had him on the witness stand under direct examination).  Click here if you’d like to watch a post-trial interview with Ms. Story.  Her LALB litigation remains ongoing. Marlo Schmidt. November   17, 2012.

 

I recently made a public records request of the LALB seeking all bond claims it has ever filed.  They could produce only two:  Mr. Thompson and Mr. Swift.  It’s interesting to note that these two claims were likely filed (beyond Thompson’s status as a Louisiana Senator’s son) because there would be no auctioneer pushback in either case.  Mr. Miller is dead, so he won’t get upset.  Gary and Randy Hayes, as evidenced by the brief video clip above, readily stated they’ll never be in the auction business again (hence no pushback from them).  In sharp contrast, Ken Buhler and Marlo Schmidt are active auctioneers who would be very upset with LALB members if claims were filed against their bonds!

I’d like to conclude this Louisiana Voice post by expressing gratitude to Tom because I’ve presented the above cases to MSM outlets in Baton Rouge.  While an Advocate reporter has expressed strong interest in publishing LALB elderly victimizations, his editors have said, “It’s a small board and nobody will read the article.”  Further, 13 months ago, Ms. Linda Williams, the first victim listed above, suggested that I contact Chris Nakamoto of Channel 2 here in Baton Rouge.  I still maintain a computer folder of numerous emails back-and-forth between Mr. Nakamoto and myself regarding a television investigative report on elderly abuse by auctioneers.  He did qualify any such potential report, however, with the fact that, like the Advocate reporter, his editors too had to give the “thumbs up.”  All I can tell Louisiana Voice readers is that, days prior to New Year’s Day of 2014, Mr. Nakamoto ceased all communication with me without even so much as a courtesy explanation of why he’d gone from responding to my emails within hours (often minutes) to suddenly no response at all.

In closing, if you or anyone you know is considering hiring an auctioneer, you owe it to yourself to visit Consumer Option # 2 on LAPA’s website, which is an alphabetical index of auctioneer issues since LAPA’s archive began in 2010 and also Consumer Option # 3 on LAPA’s website, which is guidance on conducting auctioneer due diligence.  If it’s not conducted, the results, as illustrated above, can be devastating.

Lastly, anyone knowing of an elderly person (or the caretaker of such an individual) who is considering hiring an auctioneer, please bookmark this post and forward it to them.  Why?  Because auctioneers exist out there who view such elderly prospective clients just like lambs headed for slaughter.

Regrettably, we have a Governor and his LALB appointees who are only too happy to help with hoisting the guillotine.

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When a legislator (or a governor) doesn’t like the message, the obvious solution is to pull Inspector General’s funding

Posted in Attorney General, Budget, Corruption, Ethics, Fraud, Governor's Office, Legislature, Legislators, Politicians, State Fire Marshal, State Police, Transparency on November 4, 2014| 2 Comments »

What kind of person, serving as a municipal fire chief, would purchase ribbons and decorations of previous conflicts from a military surplus store and pen them on his own uniform?

Apparently the kind of person that Deputy Secretary of the Department of Public Safety (DPS) and Gov. Bobby Jindal would want to protect even to the point of prevailing upon an ally in the legislature to file an amendment to abolish the very agency conducting an investigation of that and other offenses.

At the same time State Fire Marshal Butch Browning was being reinstated in May of 2012 by his boss, Mike Edmonson who serves as both State Police Superintendent and Deputy Secretary of DPS, State Rep. Joe Harrison (R-Napoleonville) was introducing an amendment to House Bill 1, the state’s operating budget, to pull the $1.7 million funding for the Office of Inspector General (OIG) in the middle of OIG’s investigation of allegations of payroll fraud and a sloppy inspection of a carnival ride in Greensburg only seven hours before teenage siblings were injured by the ride.

The timing of the amendment was enough to make you toss your lunch of stone cold ethics and hot back room politics.

Browning “retired” on April 18 in the middle of that investigation but returned just 12 days later, on April 30, with an $8,000-per-year increase in pay after being “cleared” by Edmonson of any wrongdoing—six months before an investigative report by OIG was even issued.

But if Jindal and his co-conspirators intended to thwart the investigation by abolishing the agency led by Stephen Street, those efforts wilted in a backlash of public support for the office immediately ensued which caused the legislature—and Jindal—to back down from the effort despite a favorable 11-5 vote on Harrison’s amendment by the House Appropriations Committee.

Remember, this is the same governor who two years later would attempt to sneak through another amendment granting Edmonson a lucrative $55,000-a-year increase in retirement benefits only to have that plan crash and burn when LouisianaVoice learned of the implications of the amendment by State Sen. Neil Riser (R-Columbia).

OIG serves as white-collar watchdog and as an internal affairs division within state government but Harrison, in offering his amendment, argued that OIG’s functions overlapped those of State Police and the Attorney General’s Office.

As we have already seen, State Police, under the direction of Edmonson, gave Browning high marks in exonerating him from any wrongdoing and as we have also seen in other matters, the Attorney General’s Office is more than a little reluctant to involve itself in the investigation of any state agency—except of course in a situation such as that of former Department of Health and Hospitals Secretary Bruce Greenstein where the feds are already actively investigating a questionable contract with Greenstein’s former employer.

In that case, Attorney General intervention made good press.

In fact, since the 1974 State Constitution was adopted over the objections of then-Attorney General Billy Guste, the Attorney General’s duties are primarily restricted to defending state agencies, not investigating them and can generally enter a local matter at the express invitation of the local district attorney. In fact, the Attorney General has even begged off certain investigative matters, citing a potential conflict of interest should his office be called to defend or represent the agency.

Hammond attorney and state government watchdog C.B. Forgotston, former chief counsel for the House Appropriations Committee disagreed with Harrison’s contention that the OIG is “pretty much redundant.”

Forgotston said the office might be redundant “if any other agency in the state was stopping waste and fraud within the executive branch. Nobody at the state level is pursuing corruption in Louisiana,” he said.

Street said he linked his office’s funding to the amount of money it uncovers through wrongdoing by state officials and contractors. OIG’s annual report in 2012 showed the office had uncovered $3.2 million in fraud and waste the previous fiscal year, nearly double the office’s $1.7 million budget appropriation.

The reaction to Harrison’s bill and to Jindal’s transparent ploy was immediate.

“Is it a bargain to spend $1 to root out nearly $2 in fraud in Louisiana?” the Lake Charles American Press asked in a May 15, 2012, editorial. http://www.americanpress.com/AP-Editorial-5-16-12

“Apparently, some members of the state Legislature don’t think so,” the editorial said, adding that Harrison had admitted that he did not agree with the OIG’s investigation of Browning. He said there should have been no investigation in the first place but Street said his office had received a complaint (from the New Orleans Metropolitan Crime Commission) about how Browning was doing his job and so he launched an investigation. “I was told if you do this (job) right, you’ll eventually have people trying to shut you down,” Street was quoted by the paper as saying.

The editorial disagreed with Harrison’s claim that State Police and the Attorney General’s Office could take up the slack. “The attorney general in Louisiana is too much of a political species to launch investigations into wrongdoing by other politicians or political agencies,” it said in something of an understatement. “An office that ferrets out nearly $2 in fraud for every $1 it costs is too valuable to Louisiana to eliminate.”

The non-partisan Public Affairs Research Council (PAR) agreed. “The state needs a self-motivated watchdog agency to stop waste, mismanagement, abuse and fraud in executive-branch government,” it said in a May 7, 2012, news release. http://www.parlouisiana.com/explore.cfm/parpublications/commentariesandletters/100092

“Stephen Street… is a former criminal staff lawyer with the Third Circuit Court of Appeal, a former public defender and a former Section Chief with the state Attorney General’s Insurance Fraud Support Unit who handled white-collar prosecutions. He has extensive experience teaching courses on white-collar crime investigation,” the PAR release said.

“A sudden halt in funding of the Inspector General would terminate ongoing investigations and send a message nationwide that Louisiana government is open for corrupt or wasteful business. Lawmakers who oppose continued funding of the office while also criticizing particular ongoing investigations are running the risk of deeply politicizing the state’s law enforcement systems. If these efforts at shutting down the Inspector General’s office are successful, their effect will be to strongly encourage further political interference in the law enforcement profession throughout the state,” the release said.

James Gill, then a columnist for the New Orleans Times-Picayune, wasn’t nearly as charitable. As only he can, Gill noted that Edmonson had exonerated and reinstated Browning even before Street’s investigation was complete. Then came Gill’s zinger: “Perhaps Edmonson forgot that he had claimed Browning’s resignation had nothing to do with the allegations against him.” http://www.nola.com/opinions/index.ssf/2012/05/battle_over_funding_for_louisi.html

Gill quoted Harrison as claiming that he had thought for two years that Louisiana did not need an inspector general. “Anyone but a politician would be carted off to the funny farm for saying that,” he wrote, adding that despite Harrison’s claim that his amendment had nothing to do with Browning, he launched into “a passionate denunciation of the inspector general’s office over its treatment of browning.” Gill quoted Harrison as saying no good investigator “would bring it (the investigation) to this point without verifying information.”

“Even a politician deserves a trip to the funny farm for spouting such nonsense,” said Gill at his derisive best.

But even more to the point, Gill observed that “Since Browning has already been returned to duty, it may not matter much what conclusions the inspector general reaches.”

May not indeed. This administration is, after all, the gold standard of ethics.

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Sec. of State Tom Schedler furious over DOA order to destroy OGB records; Atty. Gen. Buddy Caldwell refuses to intervene

Posted in Attorney General, DOA, Governor's Office, OGB, Office of Group Benefits, Public Records, State Agencies, Transparency on October 29, 2014| 30 Comments »

The controversy surrounding the sweeping changes being proposed for the Office of Group Benefits just got a little dicier with new information obtained by LouisianaVoice about the departure of Division of Administration executive counsel Liz Murrill and the possibly illegal destruction of public records from the Office of Group Benefits (OGB) and the involvement of at least two other state agencies.

While it was not immediately clear which OGB records were involved, information obtained by LouisianaVoice indicate that Murrill refused to sign off on written authorization to destroy documents from OGB.

We first reported her departure on Oct. 14 and then on Oct. 22, we followed up with a report that Murrill had confided to associates that she could no longer legally carry out some of the duties assigned to her as the DOA attorney.

But now we learn that the issue has spilled over into two other agencies besides OGB and DOA because of a state statute dealing with the retention of public documents for eventual delivery to State Archives, a division of Secretary of State Tom Schedler’s office.

Reports indicate that Schedler became furious when he learned of the destruction or planned destruction of the records because records should, according to R.S. 44:36, be retained for three years and then delivered to the state archivist and director of the division of Archives, records management and history. https://www.legis.la.gov/legis/Law.aspx?d=99704

Schedler reportedly became so upset with the decision to destroy the records that he copied Attorney General Buddy Caldwell with a letter he wrote to Nichols directing that DOA comply with the statute but Caldwell for his part, refused to intervene, saying he did not want to become involved.

If that indeed is the case, then LouisianaVoice goes on record here and now as contending that Caldwell is unfit to serve in that capacity and should resign immediately.

We made every effort to allow Caldwell to respond. We called his office and asked to speak to Buddy Caldwell or his son, Assistant Attorney General David Caldwell. We were told, “We don’t put calls through to them; we take a message and they may call you back.” They never did. We also spoke with AG Press Secretary Laure Gerdes and explained the story we were working on and told her if we did not hear back from Caldwell, we would suggest that he was unfit to serve as AG. Again, we never heard back from either Caldwell.

The attorney general simply cannot cherry pick which laws he feels should be enforced and to allow the destruction of vital public documents, particularly at a time when so much raw emotion has erupted over changes to the OGB benefit structure. To sit idly back and allow the administration to flout the law in the faces of 230,000 OGB members, retirees and beneficiaries is unconscionable and if Caldwell allows such action without at least advising DOA of the consequences he is not worthy of calling himself a public servant. He should take his Elvis impersonation act back to Tallulah.

And if Caldwell is reluctant to give legal advice to DOA, then Hillar Moore, as District Attorney for the 19th Judicial District, has all the statutory authority required to prosecute state officials should he ever decide to exercise that authority. The state government, after all, is domiciled in East Baton Rouge Parish.

Too much is at stake and those records could hold the key to the motives behind the administration’s decision to dramatically increase co-pays and deductibles. LouisianaVoice made requests for certain OGB records on Oct. 14 and those records have yet to be produced by DOA. We have no way of knowing if the records we requested are part of those documents which were ordered destroyed but if so, we plan to initiate legal action against the state promptly.

DOA has been habitually reluctant to produce public records at our request in a timely manner and this action could be the proverbial straw that breaks the camel’s back. Without the support and backing of the state’s highest legal authority, we are powerless to force compliance other than through the courts.

But the question that should be uppermost in the minds of Louisiana’s citizens is this: If those records were important enough to fire an attorney over her refusal to sign off on their destruction or for that attorney to place her career in jeopardy over that same issue, we are more curious than ever to know the contents of those documents—and we have the right to know.

And even more significant in this entire affair, if Liz Murrill did in fact refuse to compromise herself and her reputation by refusing to sign off on an illegal act, then we can only say good for her! She has shown far more integrity than our attorney general.

 

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