I feel like I'm taking
crazy pills.
Ken Blackwell, that arbiter of moral politics, admitted yesterday that he owned stock in Diebold, the infamous company that requires no introduction to the Daily Kos Community. And beyond the obvious problems with this--Blackwell oversaw the 2004 presidential election, and has offered a no bid contract to Diebold previously--is the terrible chance that Blackwell may yet get away with this egregious offense by claiming ignorance.
And why is it doubtful that Blackwell's 178 shares had been purchased unbeknownst to him? As mspicata points out in the comments:
First, direct stock purchases are generally made in round lots of 100. A 178-share purchase looks like a private transaction. Second, a good broker doesn't sell less than 100 shares, because extra fees for handling a less-than-100 share lot apply; so that initial sale of 95 shares looks suspect.
Join me on the flip, won't you?
And, incidentally, nuestro amigo Newt Gingrich has just announced that he's endorsing Blackwel:
"Ken Blackwell is a man, cast in the mold of President Ronald Reagan, with powerful ideas that will empower individuals and spur job creation in the Buckeye State," said Gingrich. "His new ideas, new strategies and new solutions will set Ohio back on the right path."
"I am honored to have the support of a true hero in the conservative movement," said Blackwell. "The overwhelming support of conservative leaders is a testament to my adherence to the core principles that have made the Republican Party the nation's party of ideas and progress."
This morning's Columbus Dispatch reports:
Ohio Secretary of State J. Kenneth Blackwell revealed yesterday that he owned stock in Diebold, a voting-machine manufacturer, at the same time his office negotiated a deal that critics have said was an attempt to steer business to the company.
But Blackwell said his investments were handled by a financial manager without his advice or review, and after he discovered during the past weekend that he owned stock in Diebold Inc., he sold his shares yesterday at a loss.
It's time for journalists and bloggers to investigate that claim--that claim of "hear no evil, see no evil, speak no evil." We've got to get on the horn and find out what Blackwell knew and when he knew it. As of now, his story is as follows:
Blackwell filed a letter with his report in which he said that the stocks in his multimilliondollar portfolios are handled by a financial manager who does not consult him on specific decisions.
Blackwell said that a past manager was given verbal instructions about stocks to avoid. But Blackwell changed managers at the end of 2004, and the new one did not follow those instructions and bought 178 shares of Diebold stock in January 2005 for $53.67 a share, or $9,553.
Blackwell said he conducts an annual review of his holdings when his report is prepared and first discovered this weekend that he owned stock in Diebold, whose primary business is making automated teller machines.
He said 95 shares were sold sometime last year at a loss of $15.68 a share, and the remaining shares were sold yesterday at a loss of $12.41 a share.
"While I was unaware of this stock in my portfolio, its mere presence may be viewed as a conflict and is therefore not acceptable," Blackwell wrote, adding that he is moving his portfolio to a blind trust.
The stench of bullcrap is overwhelming.
But it's piled high and deep, my friends.
After initially declaring that counties could buy only optical-scan devices in January 2005, Blackwell issued a new directive three months later saying his office had negotiated a best-in-the-nation price for Diebold touch-screens.
Rival vendors and several counties complained that Blackwell was trying to steer business to Diebold, and they sued Blackwell to allow other companies to offer their touch-screen machines.
Matthew Damschroder, director of the Franklin County Board of Elections, also has said that former Diebold contractor Pasquale "Pat" Gallina had boasted of a $50,000 donation to Blackwell's "political interests."
Blackwell has vehemently denied that allegation, and Diebold officials say they were unaware of Gallina's activities.
It's time to act.
Here's a press release announcing Blackwell's deal with Diebold:
OLUMBUS – Ohio Secretary of State J. Kenneth Blackwell today announced a best-in-the-nation negotiated price deal with Canton’s Diebold Election Systems. The negotiated deal allows county boards of elections to obtain electronic voting devices with voter verified paper audit trails under Ohio’s Help America Vote Act (HAVA) implementation plan.
“We demonstrated a willingness to move forward without electronic voting machines if vendors did not meet our budget and standards,” said Blackwell. “Our resolve has paid dividends. Ohio’s taxpayers will now receive an extraordinary value. Ohio’s voters will receive a state-of-the-art electronic voting machine that has passed our stringent security testing and will provide Ohioans with the additional assurance of a voter verifiable paper audit trail.”
“The new agreement allows Ohio to meet all federal and state voting machine requirements on budget and on time,” Blackwell added. “I encourage our two other formerly HAVA approved electronic voting device vendors to move swiftly, obtain all necessary federal and state certifications, and match Diebold’s current price offering.”
Under the new terms, Diebold Election Systems will offer the state of Ohio its federally certified AccuVote-TSX electronic voting machine with AccuView Printer Module at a total cost of ownership of $2,700 per unit. The prior Ohio contract price for the Diebold AccuVote-TS without a voter verified paper audit trail was $2,964.96 per unit.
Previously, legislatively mandated voter verified paper audit trails, limited federal funding and the absence of voting systems meeting state and federal standards prohibited the purchase of electronic machines as a primary voting system. As a result, Secretary Blackwell limited Ohio’s primary voting systems to precinct count optical scan devices under the state HAVA implementation plan.
With the recent federal certification of its AccuVote-TSX voting device with AccuView Printer Module and its willingness to negotiate price, Diebold Election Systems will be the first HAVA approved vendor to meet federal and state requirements for electronic voting devices. The AccuVote-TSX voting device with AccuView Printer Module has successfully completed the Ohio secretary of state’s comprehensive and multi-staged voting machine security testing process conducted by Compuware Corporation. The State Board of Voting Machine Examiners’ approval of the new voting system is pending receipt of all federal accreditation information.
Vendors who initially qualified under Ohio’s HAVA implementation plan, but have not met new requirements for voter verified paper audit trails must obtain all necessary federal and state certifications by May 13.
Pending final certification by the State Board of Voting Machine Examiners, the Diebold AccuVote-TSX with AccuView Printer Module will join Diebold’s AccuVote-OS and Election Systems and Software’s Model 100 precinct count optical scan voting devices on Ohio’s HAVA approved county board of elections selection menu. Boards of elections that have not selected a voting system or previously selected an optical scan system may now opt for the electronic machine with voter verified paper audit trail. Boards of elections must notify the secretary of state of their preferred voting system by May 24.
And to further my concerns, this old story from the Cleveland Plain Dealer reminds me of the illegalities of Blackwell's behavior prior to the '04 election. And gee, Diebold was there to hold his hand along the way.
COLUMBUS - The head of a company vying to sell voting machines in Ohio told Republicans in a recent fund-raising letter that he is "committed to helping Ohio deliver its electoral votes to the president next year."
The Aug. 14 letter from Walden O'Dell, chief executive of Diebold Inc. - who has become active in the re-election effort of President Bush - prompted Democrats this week to question the propriety of allowing O'Dell's company to calculate votes in the 2004 presidential election.
O'Dell attended a strategy pow-wow with wealthy Bush benefactors - known as Rangers and Pioneers - at the president's Crawford, Texas, ranch earlier this month. The next week, he penned invitations to a $1,000-a-plate fund-raiser to benefit the Ohio Republican Party's federal campaign fund - partially benefiting Bush - at his mansion in the Columbus suburb of Upper Arlington.
The letter went out the day before Ohio Secretary of State Ken Blackwell, also a Republican, was set to qualify Diebold as one of three firms eligible to sell upgraded electronic voting machines to Ohio counties in time for the 2004 election.
Blackwell's announcement is still in limbo because of a court challenge over the fairness of the selection process by a disqualified bidder, Sequoia Voting Systems.
In his invitation letter, O'Dell asked guests to consider donating or raising up to $10,000 each for the federal account that the state GOP will use to help Bush and other federal candidates - money that legislative Democratic leaders charged could come back to benefit Blackwell.
They urged Blackwell to remove Diebold from the field of voting-machine companies eligible to sell to Ohio counties.
This is the second such request in as many months. State Sen. Jeff Jacobson, a Dayton-area Republican, asked Blackwell in July to disqualify Diebold after security concerns arose over its equipment.
"Ordinary Ohioans may infer that Blackwell's office is looking past Diebold's security issues because its CEO is seeking $10,000 donations for Blackwell's party - donations that could be made with statewide elected officials right there in the same room," said Senate Democratic Leader Greg DiDonato.
Here is some relevant contact information:
Call his office: 614.466.2655
Or visit him on the first floor of the James Rhodes State Office Tower, and begin asking questions. The citizens of Ohio deserve the truth.
Does Blackwell respect the citizens he purports to represent enough to follow the law? He certainly hasn't in the past.
But as his website explains, "Change Our World." Yes, I'd like to change it--by kicking out one corrupt politician at a time.
Won't you join me on my quest?