Idaho: Gov’s statement doesn’t pass the smell test idahostatesman/2014/10/16/3430976_emails-show-otters-staff-involved.html?sp=/99/101/&rh=1 Emails show Otters top staff involved in questionable settlement deal with prison contractor BY ROCKY BARKER AND CYNTHIA SEWELL October 16, 2014 Updated 21 hours ago Idaho Gov. Butch Otter said in two debates this month that he had nothing to do with a settlement between the state of Idaho and Corrections Corp. of America, a private prison contractor whose contract ended amid a federal investigation of fraudulent billing and understaffing at the facility it ran south of Boise. But emails obtained by the Idaho Statesman under the states open records law show that top members of Otters staff were involved directly in negotiations with CCA, reviewed the settlement and urged lawmakers to support it prior to its approval. The staff also coordinated public release of the news about the settlement and about the no-action-warranted conclusion of a state investigation into CCA that later was revealed not to have occurred. The FBI now is investigating CCA. Otters statement that he had recused himself from settlement talks pertained only to himself, not to members his staff, said press secretary Jon Hanian. The governor (Tuesday) night was not talking about his staff, said Hanian. He was talking about his own personal level of involvement regarding the settlement. Asked whether the staff briefed Otter or discussed the negotiations with him, Hanian said: What we said and what the governor was suggesting ... is that he was not involved in any of the decision-making process regarding the settlement. He did not participate in any discussion, debate or anything else that could possibly be construed as approving or denying the settlement in part or in whole. Decision-making authority on the settlement itself resided with the (Corrections) Board/Department. Democratic challenger A.J. Balukoff has criticized Otters handling of the CCA contract and scandals, saying the governor overlooked the defrauding of taxpayers and failed to insist on accountability in state government. An out-of-state corporation was apparently stealing from Idaho taxpayers, and Gov. Butch Otter was asleep at the wheel, Balukoff wrote in an opinion article for the Statesman. In a debate before the Idaho Falls City Club on Oct. 9, Balukoff repeated his criticism, specifically citing Otters role in the $1 million settlement with CCA. But Otter was adamant that he was not responsible. I personally did not involve myself in the negotiations of the settlement with CCA because I had received money from CCA for my campaign, Otter said. So I recused myself and let the professionals make that decision. Otter has received $20,000 from CCA since 2003. Hanian said Otter did not write a document of recusal on this matter, nor is that required. The Idaho Attorney Generals Office refused to answer questions about whether Otter consulted Attorney General Lawrence Wasden about recusing himself or followed state law detailing how an elected official declares a conflict of interest. In a debate Tuesday on KTVB, Otter again said he had recused himself from involvement in the CCA dealings: I had nothing to do with it. In a Feb. 2, 2014, email to legislative leaders, Otter aide Mark Warbis - liaison between Otters office and the Board of Corrections - outlined the confidential settlement offer of $1 million and CCAs willingness to forgo more than $300,000 that the company said it was still owed. The governors office believes the proposal accomplishes our goals of certainty, closure and fairness to taxpayers, Warbis wrote. It will help us to move forward with the transition to state control of the (Idaho Correctional Center) in an amicable manner. Later that day, Warbis emailed Corrections Director Brent Reinke asking to see a settlement proposal document that David, Tom Perry, and I could review as early as possible tomorrow, before the (Corrections) Board meeting please? The men referenced were David Hensley, Otters chief of staff, and Tom Perry, Otters chief counsel. In a Feb. 3 email to CCA Vice President Brad Regens, Warbis wrote: I would be interested in seeing any indemnifying language that CCA would propose as a part of the agreement, the timing of the payment, etc. - not for the joint statement, but for our and the boards consideration. Warbis sent Reinke an email Feb. 3 asking him to please convey three points to the board, including: The joint statement upon which we have agreed should not be issued until the final agreement is approved. ... The investigation should be closed, the joint statement issued and the KPMG (forensic audit) report released to the public records request we already have received as soon as the final agreement is approved. The agreement was announced Feb. 4. The next day, the Idaho State Police said that it had never investigated understaffing. No detective was assigned, said Capt. William Gardiner. There was no investigation. On Feb. 7, Otter denied Wasdens request to launch a criminal investigation, saying that ISP had assessed the case and found no reason to pursue a criminal investigation. But on Feb 18, Otter reversed himself and ordered the investigation. The FBI took over March 7, and continues to investigate. Conveniently for CCA, state officials agreed to accept $1 million from CCA to settle the overstaffing question - before the results of an investigation are known, Balukoff wrote in his Statesman piece. The monetary settlement ended a dispute over what the state called violations by the Nashville, Tenn., firm contracted to operate the states largest prison. In 2013, CCA said its employees had falsified staffing records given to the state, violating its $29 million annual contract. In 2010, inmates sued, asking for additional guards and other changes at a prison so violent that it was dubbed gladiator school. In the gubernatorial debates, Otter said that if the FBI finds anything improper, the settlement is set aside and then we can go after CCA. Otter is a longtime supporter of privatizing prisons and expressed disappointment when he announced in January that the state would be forced to take over the CCA-run facility. Otter cant separate himself from the work of his staff, Balukoff spokesman Mike Lanza said Wednesday. For the governor to claim that he was not communicating with CCA about this when his staff clearly was is just being dishonest with the people of Idaho, Lanza said. Rocky Barker: 377-6484
Posted on: Sun, 19 Oct 2014 10:32:27 +0000
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