More Questionable Donations from State Contractors to O’Malley Led Organization
FOR IMMEDIATE RELEASE
December 18, 2013
Change Maryland has released new
information that seems to reveal the appearance of a
"pay-to-play" system within the O’Malley-Brown Administration where
contractors received significant benefits from the state either before
or
after their donations to the Democratic Governors Association during
Governor O’Malley’s tenure as its chairman.
"This additional data further suggests a
disturbing pattern of behavior that, at the very least, is unethical and
inappropriate," said Larry Hogan, Chairman of Change Maryland. "I
think the public has a right to know the truth
about these practices. Did the governor and/or others in his
administration solicit large contributions from contractors, then
reciprocate by rewarding those donors with huge state contracts,
contract extensions, or other special favors or decisions in return?"
he added.
Obviously this has serious implications and
gives the appearance of the potential for decisions being influenced by
millions of dollars in "donations." Recognizing the inappropriate and
unethical nature of these relationships,
state law currently prohibits state contractors from making
contributions to an elected official's campaign account. This evidence
indicates the possibility of a deliberate, coordinated effort by this
administration to circumvent the intent of the law by soliciting
huge, unlimited contributions to a federal, rather than state, account.
The report released today by Change
Maryland shows that healthcare services company Express Scripts received
a $2.3 billion contract despite serious concerns about the company’s legal
issues in Maryland and 28 other states. In 2008, the company paid over $9.3 billion in settlement costs to these states.
From March 2011 to February 2012, the
Maryland Board of Public Works was deciding whether to approve the
lucrative contract to Express Scripts to provide prescription drug
services to state employees. In March 2011, two of the
three members voted to postpone a decision out of concerns about the
company’s legal issues and several flaws in the procurement
process. Governor O’Malley was the lone vote to move forward with the
contract.
During this same time, Medco – a company
looking to merge with Express Scripts – donated a combined $225,000 to
the DGA. In fact, their first contribution came just six days after
Governor O’Malley cast the lone vote to move
forward with the drug contract.
In late January 2012, the Board of Public
Works again voted to delay the contract award, drawing significant
criticism from Governor O’Malley at the time who complained about the
endless delays. One month later, the BPW reversed
course, awarding the contract to Express Scripts in a two to one
vote. On March 27, 2012, Medco made their second and final donation to
the DGA: $125,000. Medco and Express Scripts received final Federal
Trade Commission (FTC) approval for their merger on
April 2, 2012.
"Maryland’s working families deserve better
from their elected leaders," Hogan said. "This is what happens when you
have an arrogant monopoly that feels they can get away with anything.
What Maryland desperately needs is a healthy
and competitive two party system, open and honest debate, and some real
checks and balances to keep some of these outrageous abuses from taking
place."
- $375,000
from United Healthcare Services in 2011. Since 2008, the state
Department of Mental Health and Hygiene has paid UHS over $2 billion in
state contracts.
- $125,370 from
2009-2011 from Scientific Games Management Corporation, a gaming
corporation that provides services to state lotteries. While SGMC
donated $25,000 in 2009, they doubled their contribution
in 2010 and 2011. In 2011, Governor O'Malley and the Board of Public
Works approved a contract extension with the company.
- $10,000 from Beowulf
Energy in 2011. Beowulf is interested in building an offshore wind farm
off the coast of Maryland. In 2013, Governor O'Malley signed his
signature wind legislation into law.
- $30,000 from Colorado
Energy, a company with ties to Beowulf Energy, in June of 2011. In July
of 2011, the Maryland Board of Public Works approved a lease of 250
acres of former state prison land to Maryland
Solar, a company created by Beowulf Energy.
Change Maryland is
the state’s largest and fastest-growing grassroots organization. Founded
by Hogan in 2011, the nonpartisan group is dedicated to advocating for
fiscally responsible, common sense government.
Change Maryland currently has over 70,000 members – Republicans
Democrats, and Independents – from every county in the state. The
organization is continuing its investigation and hopes to release its
full report on DGA contributions in January 2014.
###
SOURCES:
City accepts payment in pricing dispute
Baltimore Sun, December 21, 2006
Did O'Malley-Brown Administration Shake-Down State Contractors for Huge Contributions?
Change Maryland, December 10, 2013
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