That's right. A firm hired by the state to detect medicaid fraud and child abuse probes is under investigation for public corruption. (Here is a link to the article that is not behind a paywall.)
The problem with small government, anti-regulation states where crony capitalism and pay to play politics are de rigueur is the predictable. We can end up with a bunch of foxes guarding the public hen houses. And when a fox is caught devouring a hen the usual suspects are shocked, I tell, shocked. Up in arms, hands wringing, politicians demand for heads to roll.
In this case a political appointee, the inspector general of the Texas Health and Human Services Commission, awarded a $110 million dollar no bid contract to a firm committed to detect fraud in medicaid services.
Gregg Cox, director of the district attorney's Public Integrity Unit, said he expects to open a criminal inquiry following two formal complaints into the now-canceled Medicaid fraud detection contracts given to Austin technology firm 21CT by Jack Stick, who last week resigned as general counsel at the state Health and Human Services Commission amid allegations of favoritism.
Jack Stick, the deputy inspector general who awarded the contract has personal ties with lobbyists for the firm that received the contract.
Investigations by the Chronicle and Austin American-Statesman also found that Stick used to work with 21CT's lobbyist and that last summer Stick tried to get his co-workers at the agency to consider giving another data project to the company even though the state already was in negotiations with another firm.
Stick was the deputy inspector general when he signed the Medicaid fraud detection system purchase orders in 2012. He was promoted to general counsel earlier this year and was in that position when the Child Protective Services agreement was signed.
To be fair we do have watchdogs in Texas. Senator John Whitmire (D) of Houston is one of them. Suspecting foul play with the contract award he wrote a letter to the district attorney. The Senator is concerned about the relationship between Mr. Stick and 21CT's principals. The question is if Mr. Stick had a personal financial stake in granting the award.
After this revelation Governor Perry asked for the state's general inspector, Doug Wilson, to resign. Mr. Stick resigned on Friday. An investigation is ongoing and three employees of the commission have been placed on paid leave for the duration of the investigation.
Some safeguards that will demand more scrutiny could be put in place in the 2015 legislative session.
A spokesman for House Speaker Joe Straus on Thursday said the House will propose “a budget in January that requires much more stringent reporting on contracts by state agencies and institutions.” Jason Embry sent the statement in response to inquiries about how the lawmakers might respond to the revelation that state health officials awarded no-bid contracts to 21CT, an Austin data analytics company whose $110 million deal with the Health and Human Services Commission has been the subject of an ongoing American-Statesman investigation.
“Speaker Straus also expects that relevant House committees will investigate this contract and recommend legislative changes,” Embry added.
I am not sure any legislative changes are forthcoming, however, given the make up of the incoming 2015 legislators. I can already hear Lt. Gov. (God help us) Dan Patrick railing against big government interference. Of course he is AOK with shoving big government into the lives of women and our reproductive choices.
Let's hope I am wrong but honestly, we've seen this movie before.
Remember CPRIT, the state's taxpayer funded cancer research institute? I certainly do. I wrote extensively about the scandals at what should have been a jewel in the state's crown.
I remember it well because before retiring last year I worked as an administrator for a scientific institute at a private university in Houston. I understand the grant processes and their awards. I understand the necessity for accountability and transparency. The bottom line is, federal and state agencies, private foundations and corporations, though gifts, want to know how the academic realm is spending the people's and the private money. Annual reports are submitted. Questions will be asked if there is any hint of conflict or if something seems amiss or unclear. No one in my former world resents the scrutiny. It is expected. I was therefore stunned by the complete lack of oversight and pervasive corruption at CPRIT. Who has the state's taxpayers' back? No one, apparently, not even the Attorney General and Governor elect Greg Abbott.
When voters voted for the implementation of the Cancer Prevention and Research Institute of Texas in 2007 there was much excitement, especially in the Houston area. What a perfect place for cancer research given the distinguished academic institutions that comprise the Texas Medical Center. This is especially true of the MD Anderson Cancer Center.
But no good deed goes unpunished. The problem evolved with the perception among voters, scientists and the political appointees and our expectations for CPRIT. Voters thought we voted for potential cures for cancer. Scientists believed they were hired to find cures for cancer. The political appointees were more interested in commercialization, quick fixes and profits. As far as they were concerned cancer research was merely a slush fund for themselves and the politicians that appointed them.
There was very little oversight. Long story short, the Nobel Laureates resigned when they realized the influence and corruption of the political appointees. A criminal investigation took place, and a key player was indicted on a felony. The taxpayers did not get what we voted for. And we are on the hook for the money squandered.
AUSTIN — A former high-ranking official of Texas’ cancer-fighting agency was indicted on a state felony in connection with a $11 million grant to a Dallas-based biotechnology firm, prosecutors announced Friday. Jerald “Jerry” Cobbs is accused of securing execution of a document by deception. State law prohibits a person from causing another to sign a document affecting a financial interest.[...]
The indictment by a Travis County grand jury could be a major blow to CPRIT and Gov. Rick Perry if Cobbs is convicted.
CPRIT is considered one of Perry’s signature accomplishments. Corruption in an agency that the governor championed could shadow Perry on the presidential campaign trail if he seeks the GOP nomination for President in 2016.
CPRIT's funding had been frozen until the agency regrouped and
rebooted.
Please don't be surprised if I am completely unconvinced of a viable outcome for cancer patients and Texas taxpayers concerning the "rebooted" CPRiT. In a state that is so completely in cahoots with the interests of business over individuals and one in which regulators are fired for doing their jobs why should we expect better from our state's agencies and institutes? We will continue to find foxes guarding the hen houses in this culture of kleptocracy and crony capitalism.