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TechnographAudit: Blagojevich budget office improperly issues contracts
By John O'Connor, The Associated Press
Posted: 5/29/08 Section: News
SPRINGFIELD, Ill. - Gov. Rod Blagojevich's Office of Management and Budget improperly awarded state contracts and had difficulty monitoring others, a state audit said Wednesday.
The review by Auditor General William Holland found that the budget office did not issue contracts based on required competitive bidding procedures. It also wrongly paid employees for travel expenses and failed to document workers' pay raises.
"As the management agency of state government, they're setting a poor example," Holland said.
Holland's auditors looked at 21 OMB contracts worth $7.3 million.
The audit found two contracts for legal work worth $90,000 were not bid. For such "professional and artistic" contracts of $20,000 or more, an agency must solicit competitive bids unless it publishes a notice that only one contractor meets the criteria.
The contracts for legal work went to two firms which, combined, have contributed about $78,000 to Blagojevich's campaign fund, according to state records.
Federal prosecutors have been investigating the Blagojevich administration over allegations of trading jobs and contracts for campaign contributions. A spokeswoman did not immediately comment Wednesday about the legal contractors, but Blagojevich aides have steadfastly denied there's a connection between campaign fundraising and state work.
Ethics legislation struggling for survival in the General Assembly would bar contractors with state deals of $50,000 or more from giving campaign money to the officeholder hiring them.
A third of the contracts for which bids were sought, according to the audit, were not awarded to the contractor with the best proposal.
Notices of awards for eight of the contracts were published as much as 301 days late or not at all.
The audit covered the two years ending in June 2007.
OMB has added a checklist to contracting procedures to make sure all steps are followed, spokeswoman Kelley Quinn said.
The review by Auditor General William Holland found that the budget office did not issue contracts based on required competitive bidding procedures. It also wrongly paid employees for travel expenses and failed to document workers' pay raises.
"As the management agency of state government, they're setting a poor example," Holland said.
Holland's auditors looked at 21 OMB contracts worth $7.3 million.
The audit found two contracts for legal work worth $90,000 were not bid. For such "professional and artistic" contracts of $20,000 or more, an agency must solicit competitive bids unless it publishes a notice that only one contractor meets the criteria.
The contracts for legal work went to two firms which, combined, have contributed about $78,000 to Blagojevich's campaign fund, according to state records.
Federal prosecutors have been investigating the Blagojevich administration over allegations of trading jobs and contracts for campaign contributions. A spokeswoman did not immediately comment Wednesday about the legal contractors, but Blagojevich aides have steadfastly denied there's a connection between campaign fundraising and state work.
Ethics legislation struggling for survival in the General Assembly would bar contractors with state deals of $50,000 or more from giving campaign money to the officeholder hiring them.
A third of the contracts for which bids were sought, according to the audit, were not awarded to the contractor with the best proposal.
Notices of awards for eight of the contracts were published as much as 301 days late or not at all.
The audit covered the two years ending in June 2007.
OMB has added a checklist to contracting procedures to make sure all steps are followed, spokeswoman Kelley Quinn said.
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