NC Politicians Are In It For Money & Prestige Not Voters...Eliminate Public Corruption

The effects of Public Corruption







Changes in Attitude count



A letter swap between the state's most prominent critic of governmental ethics and Gov. Bev Perdue suggests that this time around, someone in the governor's office is paying attention.

Not so three years ago when a former Democratic campaign consultant, Joe Sinsheimer, wrote then-Gov. Mike Easley about the decline of public confidence in government because of the impression that so many officials are in it for the money.

Sinsheimer, whose Web site jimblackmustgo.com galvanized public attention and prodded federal and state investigators eventually to indict Black on federal and state charges and send him to prison, never heard back from Easley. Now federal and state investigators are looking into Easley's activities, further contributing to the impression of widespread wrongdoing in government.

Lack of Trust in Politicians

As the nonpartisan Elon University Poll reported last week, "North Carolinians lack much trust or faith in politicians, and a majority of citizens question the intent of elected officials to serve the public interest."

The poll found that 6 out of 10 respondents believe corruption is worse than it was 10 years ago and 7 out of 10 "think corruption is common among elected officials." Respondents don't trust either the legislature or Congress.

In a Nov. 18 letter to Perdue, Sinsheimer said "repeated scandals are damaging our state's reputation for honest government and demand executive leadership."

He cited three examples:

Former Easley aide Ruffin Poole should resign from the board of the Golden LEAF foundation after refusing to testify before a recent State Board of Elections hearing into Easley campaign practices. Poole has since been ordered to appear before the board if it meets again.

Sinsheimer is right about this. While Poole has the constitutional right to decline to testify on 5th Amendment grounds, his continued presence on the board not only won't help the foundation gain public confidence and do its critically important job of assisting economically-challenged communities, it also will remind citizens of the close relationship between the Easley administration, the foundation and the law firm where Poole and Easley now work.

The governor should release all investigative reports about missing State Highway Patrol records showing Easley's travel activities. The state has declined to release all those reports, but in the interests of assuring the public about the promised transparency of the Perdue administration, it must do so.

The state should impose a 90-day freeze on environmental permits for a cement plant near Wilmington whose emissions, many local doctors say, would threaten the health of those in the Cape Fear region. The administration has shrugged off questions about the plant or why it has exempted the plant from requirements on the State Environmental Policy Act.

With Federal Investigators questioning several officials at the Department of Environment and Natural Resources regarding the provision of permits for other projects, the public may be wondering who's permitting what in Raleigh these days.

Bev Perdue's timely response

Perdue, who appears to be working pretty hard to avoid the obvious mistakes of her predecessor, responded on Nov. 24 to Sinsheimer - and made sure her response went to the news media.

In it she promised a policy to unseat board members who don't cooperate with investigations. She said she'd make a travel records investigation public after a commission she named to look into the matter finishes its report. And she asked the director of the State Bureau of Investigation to look into the cement plant situation.

Compared to Easley's non-response three years ago, it was one more sign of how different this administration is. What if Easley, first elected to office as a crime-busting prosecutor and later attorney general, had responded in similar fashion? That might have sent a message throughout state government that new standards of conduct and better performance were in order. Instead, the ex-governor's apparent indifference sent an entirely different message: Don't worry, things are fine. But they weren't.

A different attitude at the top

Perdue's attitude shows she understands that - or at least the public perception of it. She thanked Sinsheimer for his interest in government reform and reaffirmed her vow of transparency. She said her staff was already working on "a series of executive orders to raise the ethical standards of those who receive such appointments. Among other measures, my staff is exploring policies to remove any gubernatorial appointee who is indicted or who fails to cooperate with an investigation."

Perdue said she was committed to making sure state government operates "with the highest standards of ethics and transparency and [I] appreciate your effort on behalf of those principles."

We won't know for a while whether Perdue will make a clean sweep of problem appointees or fully clear the air on the travel records and cement plant permit. She is not immune to making mistakes. But she appears determined not to repeat Easley's errors - and to provide some sorely-needed leadership in an ethical vacuum. That counts for a lot.





Public Corruption in North Carolina


North Carolina voters don't have much trust in their politicians, regardless of party.

45% think that the Democrats in state government are corrupt to 27% who think they are not. The Republicans aren't a whole lot better with 37% thinking they're corrupt to just 28% who believe they are not. There are a lot more undecideds about the Republicans probably due to their out of power status.

It's predictable that Democratic voters think Republicans are corrupt and vice versa, but there's actually a decent number of folks who think their own parties are as well. 26% of Democrats think their own party is corrupt and 25% of Republicans say the same of theirs.

These numbers are a good indication of why corruption hasn't been a particularly effective electoral issue for Republicans in 2006 and 2008 despite the number of Democratic scandals. The voters don't really trust them any more than they do the Democrats.

North Carolinians also think that corruption in the state is on the rise. 55% believe there is more of it going on in state government than there was 25 years ago with only 8% feeling it's on the decline. Even compared to just five years ago 43% think it's becoming more common to 9% who believe it's become less so.

We've talked frequently about how North Carolina gives its politicians some of the lowest approval ratings of any state in the country- these findings may at least be a start to explaining some of that- elected officials just haven't earned a whole lot of trust from their constituents.




Fire Harry Jones, Tomorrow


Over the years I’ve defended County Manager Harry Jones in public and private as a competent manager who seems to have the right goals and standards in place for Mecklenburg County. But his handling of the DSS mess is a firing offense, specifically his move to quiet a critic of DSS by calling the man’s employer to silence him.

Jones has not said why he contacted Bank of America after a local BAC employee complained that he felt “duped” by giving money to DSS’ charitable efforts for kids. That is no doubt because the tone of the email exchange is unmistakable — and chilling.

“There seems to be a need for a wholesale cleanup of many county agencies, and I think that starts from the top down,” BofA employee Harry Lomax wrote to county officials. A week later, Jones sent the email on to a BofA VP with an ominous “Do you know Harry Lomax” addition.

The response was immediate from BofA government liaison Betty Turner. Lomax’s email was deemed “embarassing” and Jones was assured that BofA execs were on to Lomax: “I am tracking it down. I don’t know him – I have alerted charles. Will be back to you.” Question: Who the hell is “charles?” The Uptown paper of record account leaves this out.

Anyone with even a glancing understanding of Charlotte’s history is probably flashing back to the time when uppity mill hands who questioned local leaders were met with, “What’s your name again? I know your pastor.” The threat was clear — shut up and know your place.

Harry Jones clearly has no problem pulling the same power levers as boss men of years past. And no doubt Jones has done this sort of thing before to be so comfortable as to put such a smoking gun in email form, and on such a high profile matter as DSS’s continued money and management woes. For that reason, the “isolated incident” defense we are sure to get this week does not wash.

Harry Jones has proven he does not have the temperament required of highly compensated public employees, particularly at a time when revenues are tight and citizens are concerned about spending. Criticism from engaged citizens — Harry Lomax was concerned that a county Christmas charity was misusing funds — must be welcomed and encouraged, not kick off corporate retaliation efforts among the lock-step Uptown crowd.

A unanimous vote by the Mecklenburg County commission to remove Jones from his position is the only thing which can restore confidence in the notion that local government works for local citizens rather than actively conspires against them.

Update: Betty Turner is a registered lobbyist for BAC in both North Carolina and Virginia.




Bev Perdue mulls Ethics Policy



Gov. Bev Perdue says her staff is exploring a policy that would give the boot to appointees under indictment.

Perdue, a Democrat, was responding to a letter sent by Democratic consultant and watchdog Joe Sinsheimer. The letter called on Perdue to unappoint Ruffin Poole from the Golden LEAF board because Poole refused to testify at a State Board of Elections hearing on former Gov. Mike Easley.

Perdue said her staff is looking into a policy that would remove a gubernatorial appointee who is under indictment or refuses to cooperate with an investigation.

"Like all of us who have the honor of serving in government, those who serve on state boards and committees must be held to high standards," Perdue wrote in her response to Sinsheimer.

Sinsheimer also called on Perdue to release all reports on missing gubernatorial travel records from 2005. Perdue has so far refused to release the records. She wrote that she has appointed a panel to look into the missing records and when that investigation is complete she would release all records.






NC Watchdog wants Reforms


NC Campaign Finance Watchdog Joe Sinsheimer is urging Gov. Bev Perdue to remove Ruffin Poole, a former top aide to Gov. Mike Easley, from the Golden LEAF board because he refused to testify at last month's state elections board hearing.

Sinsheimer, a Democratic political consultant who has emerged as an advocate of transparent government and campaign finance reforms, also said Perdue should release all reports on missing gubernatorial travel records from 2005, J. Andrew Curliss reports on the Investigations blog.

Perdue has so far refused to release the records.

In addition, he asks for a review of the permitting process surrounding a controversial cement plant near Wilmington, citing ongoing revelations about the state's environmental agency.

There was no immediate response from Perdue.

Update: A spokeswoman for Perdue said this afternoon that the governor is reviewing the letter and did not have a detailed response about Poole.





Bev Perdue not releasing Internal Inquiry


Gov. Beverly Perdue today declined to take steps to make public an internal state Highway Patrol investigation into missing records pertaining to her predecessor's travels in 2005.

Patrol officials say the internal affairs investigation, the second of two internal probes into the missing records, cleared a patrol supervisor involved in the records' disappearance, Capt. Alan Melvin. But neither the patrol or its boss, state Crime Control Secretary Reuben Young, are making the report public.

They cite state law that keeps most personnel matters secret. But the law includes an exemption for the release of personnel records when an agency's integrity is in question.

Perdue did not directly answer a reporter's question as to whether she would order the report released. She suggested she did not have the legal authority to do so.

"I'm not a lawyer," said Perdue, a New Bern Democrat. "I'm trying to follow the rules of the law ... I'm constantly told this is privileged information."

The missing records have created a storm of controversy for the patrol and are now part of state and federal investigations into perks provided to then-Gov. Mike Easley and his family.

Records the patrol has found and released have helped show that Easley received free air travel from fundraisers whom he appointed to important positions in state government.

The first internal probe, released last week, said that a patrol secretary had been told by Melvin in February 2006 to download the records on to a computer disk to give to him. Melvin headed Easley's security detail from 2003 to 2007.

The patrol secretary, Diane Bumgardner, said that Melvin then told her to delete the records from her computer to "free up space on the computer."

She said in an interview with The News & Observer on Friday that she never expressed a problem with the computer's space capacity.

Young said that interview caused him to request an independent investigation of the missing records, and to put Melvin back on administrative duty. The patrol has yet to announce who would conduct that probe.

Senate Minority Leader Phil Berger, a Rockingham County Republican, and Joe Sinsheimer, a Democratic consultant turned government watchdog, said the internal affairs investigation needs to be released. They said the first internal probe raises far more questions than it answers.

Sinsheimer said the initial probe looked "amateurish."

"It just looked to me like someone going through the motions to say they did it," Sinsheimer said.

Both said an independent investigation is needed and the findings need to be made public.

"There are all kinds of conflicts of interest that are sweeping through this whole thing and it just cries out for an independent prosecutor," Berger said.

Perdue said she too is having a hard time with the explanations offered so far for the records' disappearance.

"It may have been a mistake," she said, "but it's a mistake that's hard to swallow."

She has ordered the patrol to take steps to maintain its security detail records.




The Charlotte-Mecklenburg DSS Fraud mystery: Where did money go?


Internal e-mails reveal new allegations of misspending at the Charlotte-Mecklenburg County Department of Social Services, raising more unanswered questions about what happened to money intended to help needy children.

Some of the more than 1,000 e-mails the Charlotte Observer obtained through a Public Records Request provide the most detailed account to date about the agency's accounting fiasco.

E-mails show:

Officials suspected an employee wrote $80,000 in checks to herself from donations.

An administrator questioned why other donations were used to buy $340 diamond earrings, leather coats and a $300 DVD player.

A top executive complained that a senior fiscal administrator frustrated co-workers with her "inability to explain the simplest concepts of revenue and expenses."

After nearly a year, officials have never said who was at fault for $162,000 that disappeared or whether anyone was disciplined.

No one has been charged in an ongoing police investigation and a county report says officials cannot be certain where the money went.

Meanwhile, donors are left to wonder whether their generosity ever helped buy Christmas gifts for those in need.

In one e-mail, a woman describes calling the county in 2007 to give $900 for single mothers at Christmas. The person who answered the phone told her to make a check payable to the worker's sister.

The donor said she grew suspicious and made the check out to the county, but the idea that it may still have been misused is "like a kick in the stomach."

In another e-mail, a founder of Second String Santa said he was concerned whether kids received the more than 50,000 toys his group had donated since 1989.

Will Miller said he believes some of the toys reached children, but he's not sure about the rest.

"Will we ever know? Probably not," he said.

Two Charlotte-Mecklenburg County Commissioners said they have asked County Administrators for a full accounting of what went wrong at DSS but have yet to receive answers. County officials have never explained who was responsible, they said.

"To fix it, you have to admit all the stuff that is messed up," Commissioner Bill James said. "They don't want to do too much digging."

County administrators declined interview requests. Instead, a county spokesman released a prepared statement saying appropriate fiscal controls have been installed in response to an outside audit and an internal investigation.

"Our review of the e-mails we provided and your follow up questions did not reveal any new information that would suggest any change in the audit findings or in management's response to those findings," the statement said.

Some commissioners said they have been told that the employees involved have either left county government or been placed in new positions.

Unusual spending patterns

DSS spends $176 million annually and employs 1,200 workers to assist Mecklenburg's poor and neglected. The agency administers everything from food stamps to foster care and child protection services.

Last spring, DSS Director Mary Wilson ordered financial audits following reports of suspicious spending.

Auditors looked at multiple spending programs and financial practices in the agency. They found a $10,000 check made out to an employee, missing and altered receipts and money for kids spent on office supplies.

County leaders responded by suspending the programs, putting DSS finance under direct county control, training workers on accounting procedures and ordering a review of financial procedures in each county agency.

The Observer reviewed e-mails dating from December 2008 to July 2009 for seven current and former county administrators, including Wilson, County Manager Harry Jones, County Finance Director Dena Diorio and Internal Auditor Cornita Spears.

E-mails show county officials noticed unusual spending patterns as early as last December but did not disclose problems to the public until March.

On New Year's Eve, Wilson told staff she had suspended a voucher program the agency used to purchase clothes and other items for clients at local stores. She wrote that officials were worried about a lack of oversight and a spike in spending.

One monthly retail bill leapt from between $5,000 and $6,000 to more than $20,000 in October 2008, the e-mail says. Employees turned in receipts only 30 to 35 percent of the time, she wrote.

At one time or another, workers possessed or had access to numerous credit cards and gift cards, including some to Bath & Body Works, Bass Pro Shops, Macy's, the Cheesecake Factory and Outback Steakhouse.

Outside auditors verified for county administrators that DSS workers possessed county-issued credit cards, including 10 credit cards for Sam's Club, three for Harris Teeter and an online charge account with Amazon.com

In February, county officials asked internal auditors to look into questionable spending, including purchases of diamond earrings, leather coats and a DVD player.

An e-mail to one of the auditors from a human resources consultant said the purchases raise "many questions and concerns."

According to the county's statement, most gifts were typical children's items such as toys, clothes and books. More expensive items such as diamond earrings and leather coats were approved purchases for foster children who reached special milestones like high school graduation, the statement says.

"Receiving a gift of some significant value was viewed as an incentive for other children who were in foster care to set goals and accomplish them," the statement said.

Commissioner Harold Cogdell said he spent part of his early childhood in foster care and believes the gifts are a good idea.

"It makes sense to me to show the kids some love," Cogdell said.

A new Accountant

DSS has endured multiple management shakeups in recent years. The latest came when Wilson reorganized the agency after she was hired in July 2008.

She laid out the reasons to hire a new finance director in a February e-mail.

Wilson wrote that the senior fiscal administrator who managed DSS finances failed to provide reports about oversight, alienated staff and lacked the ability to conduct productive discussions with senior county executives. The e-mail does not name the senior fiscal administrator.

DSS later hired accountant Angela Hurlburt to oversee its finances.

James, the commissioner, said he has asked for the names and background information on Hurlburt's predecessors. He wants them to answer questions from the Board of Commissioners' Audit Review Committee, which investigated accounting lapses at DSS.

He said administrators have failed to respond to his requests and complained that officials "keep us in the dark."

Other Charlotte-Mecklenburg Commissioners disagreed.

Chairman Jennifer Roberts and Commissioner Dumont Clarke said county leaders have already put in place reforms that will protect taxpayer and donor money.

"The highest priority" is implementing new financial controls, Clarke said.

Shifting the Finances

Auditors from Cherry, Bekaert & Holland reviewed DSS and found that Mecklenburg officials responded appropriately. The county's Audit Review Committee came to the same conclusion.

But DSS Director Wilson bristled at one of the major reforms.

Leaders put DSS finance under the direct control of the county's main finance department after allegations of misspending surfaced.

In April, Wilson sent an e-mail to County General Manager Michelle Lancaster to complain. Calling the decision "premature" and "shortsighted," Wilson said there are emergencies when DSS workers must write checks immediately, including occasions when the agency takes children in custody who need clothes, toiletries and school supplies.

"I understand the urgency at the time, but there was a reason DSS had check writing capability and I think we threw the baby out with the bathwater instead of fixing the underlying issue, which is documentation and accountability," Wilson wrote.

Donors left with questions

Past supporters of the DSS Christmas charity include Young Lawyers, employees of Wachovia and Bank of America, and Project Joy, the holiday fund drive initiated by Observer columnist Tommy Tomlinson. The Christmas charity, known as the Giving Tree, is now run by the Salvation Army.

The donor who gave $900 e-mailed the county in July after learning about accounting failures from news accounts. She attached a picture of the check copy she made around Christmas in 2007.

She wrote that she did not remember the name of the woman she spoke with on the phone.

The donor said she and her family all pitched in to raise the money so she could assist women like her who had struggled as single mothers.

When she heard there were allegations of misspending in a DSS charity program, "It's like your stomach just drops."



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Sources: McClatchy Newspapers, Charlotte Observer, Under The Dome, Public Policy Polling, The Meck Deck Blog, John Locke Foundation, FBI, Charmeck.org, Amazon.com, Youtube, Google Maps