Monday, January 28, 2008

IT TOOK CHARACTER TO QUIT!
by Steve Fair
On Monday, Oklahoma Speaker of the House Lance Cargill stepped down from the Speaker’s chair. At the age of thirty-six, Cargill was the youngest speaker in the United States. Cargill had come under fire this month for failing to file his personal income tax returns and for being late paying his property tax. He is also under investigation by the State Ethics Commission on how some checks written in 2004 that were intended for the Oklahoma State Republican Party made their way into the Oklahoma County Republican Party account.

After The Sunday Oklahoman broke their story about Cargill being delinquent six years in a row in paying property tax on his Harrah law office. The former speaker didn’t make any excuses and in fact was contrite in his response. “I take full responsibility for this error,” he said on Friday. "Í apologize to the people of Oklahoma and to my colleagues.” In fact, Cargill called a number of his fellow Republican colleagues and extended to them a personal apology. In the end, that wasn’t enough and his poor judgment cost him his dream job.

State Representative David Dank- R-OKC said it best when he said that Cargill’s troubles were of his own making. “It is unfortunate that it had to come to this, but Speaker Cargill brought his troubles on himself,” Dank said. “The people of Oklahoma have a right to expect exemplary conduct from those they send to the state Capitol and he failed that basic test.” Cargill's conduct may not have been exemplary, but his resignation was. It spoke volumes about the differences between the Republicans and Democrats. Republicans don’t excuse misbehavior, even in their own ranks.

Dank, who is introducing sweeping ethics and campaign finance reform legislation this session, says, "Oklahomans should know that his resignation came after considerable pressure from members of his own party," he said. "We are determined to advance a true reform agenda during the upcoming session, including passage of the ethics and campaign finance reform bill I have introduced to address many of the same issues that led to Speaker Cargill’s resignation. I look forward to working with the new House leadership to make that bill a reality."

Oklahoma Republicans called for his resignation and Cargill had enough character to step aside. In his resignation letter, Cargill said, “I want nothing more than to have good ideas to move forward without the burden of being weighed down by personal stories about me.” “I have always said my leadership has been about good ideas and this move should allow those ideas to flourish as they should."

Cargill had to resign. The average person does not have the luxury of ignoring the rule of law. They can’t file their income returns late or pay their taxes chronically late and expect to get a pass. The average citizen has a right to expect their leaders to be following the rule of law.

Republicans hold their leaders to a higher standard. As Dank said, "the public should expect exemplary behavior from their leaders- no matter their party affiliation.”

What compounds the situation is when you have another Republican lawmaker who justifies his negligence and non-compliance of not filing their tax returns by saying, “He was too busy doing the people’s work.” Are you kidding me? Leading by example is doing the people’s work. Complying with the rules and laws that all of us have to submit to is the peoples work. Whining, justifying and blaming others for their negligence is not the people’s work. That type of response is childish, immature, and arrogant. Those who engage in it are unfit for public office. How a person responds when they are attacked for something they have done wrong reveals a lot about their character or lack of it.

For example, take State Auditor and Inspector Jeff McMahan. McMahan was indicted by a federal grand jury over a week ago. In spite of dozens of calls for his resignation (many within his own party), he has yet to comply. Cargill’s supposed crime involved private money and he did not misappropriate any taxpayer monies, but McMahan’s is alleged to have "turned his head" when he was supposed to be watching out for the people’s money in exchange for illegal campaign contributions.

Lance Cargill obviously made some poor judgments in his life, but stepping aside was not one of them. By voluntarily doing so, he proved the cause he was laboring for was greater than he was. That’s a rare quality in politicians and it shows more character than most politicians exhibit. Doing the right thing is never the wrong thing to do.

Monday, January 21, 2008

WALLBUILDER'S VOTER GUIDE
Wallbuilders has an excellent voter guide for those interested in where the major candidates stand on faith-based issues. You can access it at:

http://www.wallbuilders.com/LIBissuesArticles.asp?id=5386
WHEN WILL WE EVER LEARN?
By Steve Fair
In 1975, Democrat Oklahoma Governor David Hall was indicted three days after he left office and eventually was found guilty of federal racketeering and extortion. In 1984, Oklahoma had what has been described as the most wide spread political scandal in America. Sixty of the seventy-seven counties in our state had at least one of their county commissioners indicted in a kickback scheme that had been going on for decades, Most of the convictions involved companies supplying road repair equipment or materials. Over 220 convictions resulted from that scandal. The vast majority of those indicted were Democrats. In their book, Bad Times for Good Ol' Boys, Harry Holloway and Frank Meyers said the reason given by the commissioners for their illegal acts varied from-“ the job does not pay enough, to everybody knows about and expects the kickbacks, and they are really part of a commissioner's salary.”

In 1994, Democrat Governor David Walters reluctantly opted not to run for re-election after a grand jury recommended impeachment. Walters eventually pled guilty to a misdemeanor campaign finance violation. In 2003, former Democrat state legislators- Gene Stipe and Mike Mass- were indicted on charges they funneled thousands of dollars illegally to Democrats running for office. Former Democrat Insurance Commissioner Carroll Fisher resigned from office in 2004 and was convicted of embezzlement and perjury at a 2006 trial on corruption charges. He was sentenced to three years in prison. Once again political scandal hits Oklahoma. Once again political scandal hits Oklahoma.

On Friday January 18, 2008, the federal grand jury in Muskogee returned nine federal indictments against Democrat Oklahoma State Auditor and Inspector Jeff McMahan and his wife Lori. The indictments allege that McMahan and his wife used a variety of schemes and straw donotions to funnel over $100,000 into his 2002 campaign. If the Auditor is found guilty on these charges, he and his wife could face millions of dollars in fines and years in jail.

The disturbing thing about this latest indictment is that it involves the office of the state’s watchdog. The office of SA&I is one that audits county government and state agencies. The SA&I require a person who has principles and integrity and will watch out for the taxpayers of the state.

In February of 2003, I wrote an article that appeared in The Duncan Banner entitled Is Big Daddy(Steve Phipps nickname) McMahan’s Sugar Daddy? You can read it on this blog. I re-posted it last Friday after the indictments came down. Back in February 2005, McMahan responded to that article with a vengeance, sending The Banner a full-page rebuttal attacking me. He denied all the allegations and claimed he did not know Steve Phipps. That claim was false- he did know Phipps. That fact, along with all of the allegations in the Big Daddy article printed three years ago were confirmed in the sixteen-page indictment returned on Friday.

Governor Brad Henry, Attorney General Drew Edmondson, State House Minority Leader Morgan, and other leading Democrats have urged McMahan to step down until this matter is off the table. Former Auditor and Inspector Clifton Scott is among those who supposedly counseled his former protégé McMahan to take a leave of absence and turn the operations of the office over to a top deputy.

The associate vice chancellor of finance and budget for the State Regents for Higher Education, Greg Sawyer, confirms he has been approached by a representative of Governor Brad Henry about being appointed auditor and inspector. The Governor’s office has denied that claim and said they have not approached anyone about the Auditor’s job.

I have a suggestion for filling the job- how about McMahan’s opponent in his last two elections? In the 2002 race, acording to the indictment, over $100,000 in straw donor contributions were funneled into the race yet, this person lost by less than 28,000 votes statewide. It clear the 2002 and 2006 races were stolen from this person. If illegal money would not have been used to buy more broadcast media, this person would have been elected.

This person has the qualifications. They are a CPA and a Certified Fraud Examiner. They understand the budget process. They will watch out for the taxpayers money. The person is Gary Jones. The challenge for Henry is that Gary currently serves as Chairman of the State Republican Party. That would require Henry, a Democrat, to cross the aisle and show bi-partisanship to appoint him. In reality, the State Auditor’s job shouldn’t be a partisan one. The SA&I should be someone that understands accounting and is honest. Party affiliation should not matter.

Based on the elections of ’02 and ’06, it’s clear that a large percentage of Oklahomans wanted Jones in the job. I would urge Governor Henry to do the right thing and appoint Jones until the November general election. The SA&I race should be placed on the November 2008 ballot. This would allow voters to choose a permanent replacement instead of allowing a political appointment to serve the remaining three years of McMahan’s term. Bottom line- it’s the right thing to do.

Friday, January 18, 2008

EXCLUSIVE INTERVIEW WITH GARY JONES
By Steve Fair- From Washington DC

Do you feel vindicated by the indictment of Jeff McMahan?
I have known this information for three years, so his indictment wasn't a surprise. The surprise is how long it took.

Were there more or less indictments or accusations than you anticipated?
More- I knew they were involved in scheming with Steve Phipps, but the alleged taking of cash was something I did not anticipate.

Do you think McMahan will go to jail?
If the allegations are proven and he has broken the people's trust, yes he should go to jail.

Did you suspect his wife was as involved as the indictments allege?
No, she on numerous occasions accused me of making false accusations and lying about her husband's activities, but I never suspected she was involved to the extent the indictments allege.

In point #17, on page 5 of the Overt Acts section of the indictments, it is alleged the McMahan's solicited CASH donations to their campaign. Was this a surprise to you?
Yes, the fact they took straw donations was not a surprise, but when it alleges they were taking cash it was a shock.

What should McMahan do?
If he is innocent as he claims, he should at the very least take a leave of absence until this situation is resolved. I believe the Governor has asked him to do that and I have released a Press Release echoing that.

Will you be scheduling a press conference next week to discuss these indictments?
We'll see. The disappointing thing is that once again a state-wide elected official from the Democratic party has allegedly violated the citizens trust.


Mississippi Governor Haley Barbour spoke today- 1/18/08- to the Republican National Committee in Washington D.C. To a crowd of party faithful, Barbour half-jokingly said Republicans have one very powerful trick up their sleeves. "At some point, the Democrats must nominate someone." Barbour said the Democrats message of change is disingenuous. "Change is a constant." "The key is to have a President and a Congress that can manage change." "The Democrats have proven they are ineffective in doing this." Barbour says the Democrat's prayer for 2008 is "Get through 2008 by advocating change." Much like their message in 2006 of "Vote for us- we're not Republicans, it's a message that has no substance."
Today, three years after this article appeared in THE DUNCAN BANNER, State Auditor and Inspector Jeff McMahan has been indicted by a federal grand jury. After the article appeared, State Auditor Jeff McMahan wrote a full page response that appeared in a Sunday edition. In his rebuttal, he falsely claimed he didn't know Steve Phipps. He has since said that he did know him and took campaign contributions from him. Jeff said I was the mouthpiece for the State GOP. He was right about the MOUTHPIECE part, but not for the State GOP. By special request, here is the infamous BIG DADDY article. Enjoy!
Is Big Daddy McMahan’s Sugar Daddy?
by Steve Fair

In the 1970s, a popular television show was The Dukes of Hazard. In every episode, Bo and Luke Duke battled the local political boss- appropriately named Boss Hogg. It was not your classic case of good vs. evil, because sometimes the Duke boys bent the law a little to suit their taste, but fundamentally they were the good guys. Boss Hogg had his dirty work done by Roscoe the dim-witted sheriff and Cletus, the Deputy. Roscoe never worried about re-election so long as the Boss was happy. The Boss reigned sovereign in Hazard County! It was good entertainment because we knew that in every episode, the Dukes would win out over Boss Hogg. It wasn’t set in Oklahoma because in the Sooner state unfortunately, the good guys don’t always win.
For decades when one thought of sleazy, backroom politics in Oklahoma, Gene Stipe instantly came to mind. Stipe was at one time the longest serving elected official in America. Serving over 50 years in the Oklahoma state legislature, he was the poster boy for term limits. During his reign, Stipe abused his office as State Senator by using his power to build what can only be described as an empire in Southeast Oklahoma. Senator Stipe was so notorious that he earned the nickname “The Prince of Darkness”- a real-life Boss Hogg. It seems the Prince has left his mark on many associates and partners that will perpetuate the Good Ole Boy network for decades to come in Oklahoma. Stipe followers have watched their idol rule over the State in a way that only a mafia boss could appreciate.
The good Senator manipulated and abused the system so effectively that his personal wealth is estimated to be over 26 million dollars. Many Oklahomans were hopeful that the day of Good Ole Boy politics in Oklahoma had come to an end when Stipe was forced to resign in shame. He pled guilty of violating federal campaign laws by illegally funneling $50,000 into Walt Roberts failed Congressional campaign, but it appears he hasn’t learned his lesson yet. Now, one of Stipe’s minions, Steve Phipps along with the former Senator are being investigated for what appears to be a scam to open a dog food plant in McAlester. The plant, which was financed by state and city tax dollars, has not produced a single can or bag of dog food. It has not created the 25 jobs that were promised. However: the facility has been utilized to service Indian gaming machines.
Phipps owns a business that provides that service to the tribes and he evidently, is using the facility to work on one arm bandits, but not to make pet food. Who is Steve Phipps? His nickname is “Big Daddy.” It seems that the dog food factory isn’t the only connection Big Daddy has to the Prince. Phipps and Stipe are partners in abstract companies across Southeast Oklahoma. Anyone selling or refinancing property in Oklahoma are required to have titles brought up to date within a 90 day period. Abstract companies are the only place to get that done in the state. In many counties, Phipps and Stipe own the only abstract office in town. To add insult to injury, abstractors set their own rates. What an industry-to have customers that have to do business with you- on your terms- at your price?
One has to ask how such a system could be allowed to exist in Oklahoma? Who is responsible for watching the abstractors? That responsibility falls to the Oklahoma State Auditor and Inspector. The author of the bill that gave the Auditor’s office that job? That’s right- Senator Gene Stipe. The Bellamy Brothers sang, What you need is a Sugar Daddy. It looks like Jeff McMahan has found one- maybe two. Now we learn that Big Daddy, The Prince and many of their employees and associates contributed to the 2002 campaign war chest of State Auditor Jeff McMahan. When asked about the contributions McMahan stated that he would take any “legal campaign contribution.” He went on to say that anyone contributing to him was doing so because they “believed in good government.” The average Oklahoma taxpayer’s idea of good government and Phipps’ and Stipe’s idea might be a much different. To accept campaign contributions from any and everyone shows a serious lack of judgment on McMahan’s part. Who says that contributing to campaigns doesn’t pay dividends? It has paid excellent dividends for Phipps and Stipe. McMahan has refused to audit the Private Economic Authority that gave the money to Phipps to build the phantom pet food plant. The land the authority gave to Phipps was purchased from Gene Stipe at more than 2 ½ times the assessed value. This whole multi-pronged transaction doesn’t pass the “smell” test.
And when Steve Phipps-aka- Big Daddy- feels the need to meet with someone at the State Capital to try to get laws passed, who does he call?. He calls his good buddy Jeff McMahan. Evidently, Steve Phipps has used the State Auditor’s office to meet with legislators and others on numerous occasions while trying to influence legislation. He may have gotten some wording inserted into a bill that gave him a competitive advantage to produce Indian Gaming machines. As private citizens and taxpayers, we may not be able to do much about Stipe and Phipps and their shady dealings. That will be left to the investigators and prosecutors, but McMahan is another matter. His ties to Stipe and Phipps are troubling. We need to change our image in Oklahoma. McMahan is up for re-election in 2006 and we need to McFIRE him.
CURRY TO DELAY ANNOUNCEMENT

General Jerry Curry, retired U.S. Army, has decided to cancel his January 23, 2008 Presidential Candidacy announcement in the Rotunda of the State Capital. General Curry’s wife, Charlene, has developed an Embolism in one of her legs. A suspected heart attack led to her being taken to a hospital. Very few details are available.

Gen. Curry will announce his candidacy at the January 24th Helen Cole banquet. For those of you who wish to attend the banquet, tickets are still available. Contact Jim Helm at
229-4807.