Weekly Opinion Editorial
DISMANTLE OMES!
by Steve Fair
Oklahoma State Auditor and Inspector (SA&I) Cindy Byrd released the
annual audit results from the Federal Single Audit this week. The audit covered 2022 expenditures. The annual audit is mandated by the feds to
make sure COVID 19 Relief grant money is spent in accordance with federal regulations.
This is the second year the SA&I has found questionable practices by the
state in using the federal funds. In
this year’s audit, Byrd found the following:
Oklahoma Office of Management and Enterprise Services (OMES) did not
follow the state law requiring competitive bidding for vendors. Using COVID as an excuse, the bureaucratic
heavy agency waived the law and conducted what they termed, ‘rolling
solicitations,’ with established vendors.
Byrd says this was in clear violation of the provisions set forth in the
federal grant program.
Byrd claims OMES also did a poor job verifying the work of a consulting
firm hired to oversee the CARES grant process.
The consultant was paid over $1 million dollars and Bryd says it’s not
clear all the work the consultant claimed to have done was done. The consultant counters they did a stellar
job.
Byrd alleges the State Tourism Executive Director Shelley Zumwalt husband’s
software firm benefited from more than $8 million of computer work at the
Oklahoma Employment Security Commission.
Zumwalt denied wrongdoing and welcomes an investigation. Three observations about the audit:
First, circumventing the competitive bid process is problematic. State law is clear! Oklahoma law requires
competitive bidding. OMES was created in
2012 for the purpose of overseeing the state’s accounting, budgeting, capital
assets management, information technology, HR, and making sure agencies follow
procurement standards (competitive bidding).
OMES is controlled solely by the governor. The director is appointed by the
governor. OMES was created to give the
governor more power. OMES has evolved
into what critics of its initial creation thought it would become- an arrogant,
self-important bureaucracy and an unnecessarily created extra layer of
government.
What exactly is ‘rolling solicitations?’
Apparently, it is a program that favors the incumbent vendor and blocks
other vendors from getting the opportunity to bid? What mental giant came up with that strategy? It clearly violates state law and the people
responsible should be held accountable. Not having a competitive bid process
will result in corruption and good ole boy network.
Second, state officials can’t do business with the state. Zumwalt isn’t the first (and will not be the
last) elected official/appointee to see nothing wrong with doing commerce with
the state, but it is clearly a conflict of interest. It doesn’t matter if the state got a fair
deal in the transaction, it shouldn’t happen.
If a person has to make a buck off taxpayers, don’t work for the
state. It’s that simple!
Third, government is not a private business. Government should be businesslike, but rules
that apply to government aren’t always applicable to business. A private business can award contracts to a
vendor without doing competitive bidding.
They can do business with their friends and willingly pay a higher price
for goods and services. They are
accountable only to ownership.
Government is accountable to voters/citizens. That requires transparency, a deliberate,
intentional and often tedious process. A
competitive bid process can be viewed as inefficient, cumbersome and time
consuming. That is when geniuses come up
with programs like, ‘rolling solicitation,’ to bypass state law. If an elected official or appointed
bureaucrat can’t follow those pesky, annoying state laws, then they shouldn’t
run for office or accept an appointment to work in government. It’s too restrictive and cumbersome for their
superior intellect. They should stick to
the private sector.
The elected official serving as SA&I is Oklahoma’s watchdog. They are directly elected by the people. In the past 15 years, the state legislature has done everything possible to diminish the authority and bypass the office instead of partnering with the SA&I. It’s time for that to change and while they are at it to dismantle OMES.