After donating to McCrory election effort, company receives no-bid contract costing taxpayers millions

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An “emergency” contract originally slated for $3.2M grows to $8M with partners cashing in at $473/hours… all at taxpayer expense… and the meter is still running.

Once again, Gov. Pat McCrory faces serious questions of a conflict of interest after reports that his administration gave millions of taxpayer dollars in a runaway no-bid contract to a firm which made large donations supporting McCrory’s election effort.

From the Raleigh News & Observer’s Craig Jarvis:

A no-bid state consulting contract originally valued at $3.2 million for a Washington, D.C., consulting firm has grown to almost $8 million one year later, records show.

Campaign finance records show that the firm contributed $25,000 to the Republican Governor’s Association in April 2012 as Gov. Pat McCrory was running for office, and that the donation was used in the campaign to help elect him.

The no-bid contract underscores a pattern of conflicts of interest raised by the governor’s business dealings before and since taking office. In January, the State Ethics Commission received a 50-page complaint which outlines the governor’s repeated omissions of large payments and financial holdings involving companies that are regulated by the state, as well as Gov. McCrory’s role in a company which lists state contractors as clients.

Progress NC Action executive director Gerrick Brenner issued the following statement regarding the runaway no-bid contract and the governor’s repeated conflicts of interest:

“A runaway no-bid contract that balloons from $3 million to $8 million is alarming enough,” said Brenner. “But when the contractor is also a political contributor, it raises serious questions of ‘pay-to-play.’ Taxpayers have questions, and the governor should immediately come clean with answers.”

Gov. McCrory’s Department of Health and Human Services is no stranger to controversial no-bid contracts. In 2013, DHHS Secretary Aldona Wos hired an executive with her husband’s logistics company as a “senior advisor.” Joe Hauck was paid $310,000 for eleven months of contract consulting at DHHS, and his track record of work there was never made entirely clear.

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Comments

  1. Suzanne Mitchell's avatar
    Suzanne Mitchell
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    It should not be up to the taxpayers to "pay back" political contributors. This one is particularly egregious due to the extreme cost overrun. I will NEVER forget when McCrory hired those 2 inexperienced, unqualified 24 yr. old "kids" for highly paid upper level jobs at DHHS. And, after just a few months gave them large raises--while freezing salaries for everyone else. How blatant!
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