GOP Lawmakers Encourage Federal Investigation Into McCrory Administration
With the recent news that the Department of Health and Human Services is facing a federal criminal investigation over no-bid contracts, some GOP lawmakers are supporting the probe, saying they've long suspected malfeasance at the agency.
Local legislators are expressing disappointment, but not surprise, that U.S. attorneys have issued subpoenas for employment and outsourcing contracts for former health Secretary Dr. Aldona Wos and the N.C. Department of Health and Human Services.
They also said they support prosecution if warranted.
Subpoenas were issued July 27 for Wos, three former high-level individual contractors, the current DHHS operations contractor and the former head of the Office of Medicaid Management Information Systems Services.
The combined contracts are close to $12 million.
“The subjects that are being investigated are issues that have been of concern to members of the legislative oversight committee for some time,” said Sen. Joyce Krawiec, R-Forsyth.
Legislators from both parties questioned the need for six-figure individual and seven-figure outsourcing contracts, saying full-time state employees could have performed the tasks for lower cost, and likely done a better job with budgeting and tracking spending.
A controversial no-bid operations contract with the professional-consulting firm Alvarez & Marsal is now valued at close to $11 million. Alvarez & Marsal develops budgets, manages cash and contracts, and prepares reports for the legislature and governor.
Wos often responded to questions by downplaying the costs and lack of results, though one contract for $310,000 for 11 months was to an executive, Joe Hauck, who worked for her husband’s company before accepting the assignment.