OPEGA MSHA Report

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Bruce Libby
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Joined: 01/17/2006 - 7:08pm
Now there is something that

Now there is something that one can hang their hat on!
See a lot of the stuff we just hate but connectivity to a staute,policy , procedure is a real key.
Whether there should be or what not there is a difference between inappropriate ,unnecessary etc. etc. and violation of specific statutes.

Just for all who want to yell this is not a defense of any of it but it is what will win in media eventually ! Possibly in other venues also!

Spider
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Joined: 06/16/2011 - 3:13pm
Sent this email to my

Sent this email to my legislators....
I am still following the performance of the Maine State Housing Authority employees, and offer the following thoughts for your consideration.

Given:
“Former director of Maine State Housing Authority (MSHA) Dale McCormick and one of her employees used their personal credit cards to make over $170,000 in purchases for MSHA, racking up cash rewards and airline miles for themselves, according to a report from the Office of Program and Governmental Accountability (OPEGA).
The OPEGA report uncovered the practice at MaineHousing, and since McCormick’s resignation in March, MSHA has put a stop to the questionable method of purchasing.
According to the report, in just five years McCormick was reimbursed $44,028 from MaineHousing, “most of which appear to have been charged on her personal credit card,” according to OPEGA, despite the availability of two company credit cards.
The OPEGA report also found that the MaineHousing IT director used a rewards-style Visa credit card for $127,000 in purchases, which could have resulted in as much as $1,270 or more in cash rewards or other points or gifts.”
…Also:
“It is unclear if MaineHousing will seek reimbursement from McCormick or the IT Director for any rewards or cash received as a result of the frequent and excessive use of their personal credit cards.”
Source: http://www.themainewire.com/2012/06/opega-report-shows-personal-credit-c...

AND:
My comments delivered 6/8 to the Government Oversight Committee (GOC) during the public comment period (scroll down for that).

AND:
My sense that the sentiment of the GOC following the meeting on 6/08/12 was to wait for the full OPEGA report due later in the year before taking any action.

It is my opinion that there is no reason for the former MSHA director and the current IT director not to make voluntary restitution to the taxpayers for any personal gain from the use of personal credit cards that produced sky miles, cash rewards or any other tangible benefits. That would be just, professional and reasonable conduct on their part.

Public comment to Government Oversight Committee
June 8, 2012

Representative Burns – Co-chair:

Members of the Government Oversight Committee.

I was born in Bath, Maine and currently live in Jefferson. I am retired and my wife and I live on a fixed income.
I have been following the ongoing stories associated with the Maine State Housing Authority ever since the newly appointed board began questioning the $300,000 cost of housing units for the ‘needy’.
The subsequent revelations of expenditures of my tax dollars discovered by the ongoing OPEGA review causes me to be here to express my extreme disappointment with the wasteful distribution of funds by the Maine State Housing Authority. My tax dollars have been expended in ways that never benefited the intended end user…those Maine families in need of assistance with housing.
Some examples gleaned from the Maine Wire:
1. Advertising
MaineHousing has spent $2,258,427 on marketing and advertising since 1998; a totally unnecessary expense given the standing waiting list of over 6000 families waiting for MSHA benefits.
2. Catering
In 2010, Maine Housing spent more than $26,000 on catering services. Maine Housing has spent thousands of dollars dining out, including nearly $2,000 in 2010 with the Vickerey Café, a small lunch restaurant around the corner from Maine Housing headquarters in Augusta.
The list of these types of expenditures is extensive, and apparently increasing; you folks are more aware of the details than I am.

There are two catagories of expenses that are of particular concern to me.
1. Carbon Credit Trading:
Maine Housing has paid consultants hundreds of thousands of dollars to develop a process to quantify the amount of carbon saved when a home is weatherized. Maine Houising paid Lee International more than $370,000 over the last three years to help develop the project, which has thus far generated no revenue. Maine Housing has also spent millions of dollars on a computer tracking system to facilitate the carbon quantification project.
Board chair Peter Anastos estimated the total expenditures to be nearly $6 million.
I found this statement in a recent media report:
“Stanford Law School professor and environmental scholar Michael Wara is quoted in a Bloomberg Businessweek article as referring to the Maine Housing carbon deal as a “deceptive marketing claim” — one in which Chevrolet will get credit for the Maine Housing weatherization carbon reduction but that “the government financed most of it.”

I don’t believe Carbon Dioxide in the atmosphere causes global warming.
That is why the term “global warming” has fallen into disuse. If you want to be current, you use the term “climate change”.
Nonetheless - Those are my tax dollars in play in the carbon market…millions of them… I want the Carbon project cancelled and I want my money back.

2. Use of personal credit cards.
Incredibly the former director and some senior staff members have used their personal credit cards to make purchases for Maine Housing.
“Former director of Maine State Housing Authority (MSHA) Dale McCormick and one of her employees used their personal credit cards to make over $170,000 in purchases for MSHA, racking up cash rewards and airline miles for themselves, according to a report from the Office of Program and Governmental Accountability (OPEGA).”
“The OPEGA report also found that the Maine Housing IT director used a rewards-style Visa credit card for $127,000 in purchases, which could have resulted in as much as $1,270 or more in cash rewards or other points or gifts.”
According to OPEGA, the excessive use of personal credit cards opened the door for “personal gain” by McCormick and the other employee, “in the form of cash back, points and other rewards.”
If it can be shown that the former director and the current IT director have enjoyed personal gain at taxpayer expense…I expect charges to be filed.
***
By keeping my commentary brief, you may have missed the emotional flavor….let me say this: I am totally ripped to think I can’t stay at home and trust public servants not to squander our tax dollars in these stressful economic times. I would like you to send a crystal clear message to the rest of the state of Maine public servants who may be part of that same culture.

That concludes my comments. If there are no questions, I will stand down.
Thank you for listening to me.

Naran
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Joined: 10/06/2004 - 12:01am
Spider - well done. McCormick

Spider - well done.

McCormick and Breitner should make restitution to MSHA for any financial gains they reaped by using personal credit cards instead of the agency credit cards, for all the years they were/are employed by the agency.

It's unfortunate that there is likely no recourse for the millions squandered on the carbon credit scheme, the disastrous inspection scandals, and the green energy equipment boondoggles.

***************

BUREAU OF HUMAN RESOURCES
HUMAN RESOURCES POLICY AND PRACTICES MANUAL

6.5 ACCEPTING GIFTS

It is against State policy for an employee to accept gifts from any person or business that conducts business, or expects to conduct business, with the State of Maine.

Further, it is unlawful (Title 17-A M.R.S.A. Sections 602, 604, 605 and 606) for persons or businesses to give gifts to State employees and for State employees to accept gifts that are intended to improperly influence the State employees in the exercise of their duties.

For the purpose of administrative guidance, gifts do not include advertising items of nominal value such as calendars, pens, or pencils. However, goods and services which involve a pecuniary benefit should be considered to be gifts.

http://www.maine.gov/bhr/rules_policies/policy_manual/6_5.htm

***************

I'd like to see somebody who could prove that airline miles and cash rewards did not confer a "pecuniary benefit" to McCormick and Breitner.

Pecuniary

pe·cu·ni·ar·y (p-kyn-r)
adj.
1. Of or relating to money: a pecuniary loss; pecuniary motives.
2. Requiring payment of money: a pecuniary offense.
[Latin pecnirius, from pecnia, property, wealth; see peku- in Indo-European roots.]

http://www.thefreedictionary.com/pecuniary

alter ego
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Joined: 12/28/2010 - 9:40pm
Well done, Spider. Do not

Well done, Spider.

Do not want backroom deals preempting orange jumpsuit, as another posted. GOP cannot compromise with Dems, no matter what is offered. Make average joe remember which is party of graft.

Robert Reed
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Joined: 11/08/2007 - 1:53pm
Technical question - are they

Technical question - are they considered state employees as they work for a quasi or are they considered quasi employees thus the statute MIGHT not apply?

Bruce Libby
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Joined: 01/17/2006 - 7:08pm
Robert I believe they would

Robert I believe they would be since they can belong to Retirement and funding is sourced from State general fund.
I would also says since Gov. could have terminated the director would support that claim.
As much as I would like to see it in one way ,there is a danger here of premature wishes for a "orange jumpsuit".

The very fact as reported the words of caution and concern from the committee on the rapid report alone indicates a slow and methodical approach is warranted.
I doubt we will see a final report before November,and any anticipated action by AG office there after.
The issues are starting to get traction outside of our sphere and that needs to continue aftr=er all what else does the opposition have aug the moment?

It is good she is gone, changes implemented to heighten accountability,which I am not sure are sufficient enough yet need also to be done.
Of the many issues if we are going to have quasi anything the over site and control has to be extremely tight.
Could you see that coming from the legislature this session ?
List any of them who stood up and said no to any project in their districts carried out by MSHA. I bet there is probably pictures of groundbreakings etc. that speak volumes.

Naran
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Joined: 10/06/2004 - 12:01am
One year later, and things

One year later, and things are looking way, way up at MSHA.

**************************

After mismanagement questions, MaineHousing audits cause for confidence

By John Gallagher, Special to the BDN
Posted Oct. 13, 2013, at 10:41 a.m.

MaineHousing recently received the results of three audits that are worth noting. The positive outcomes provide our staff, our board and the public confidence in the work of MaineHousing. ...
...snip

.... This past year we created 46 percent more affordable housing units at a cost that is 36 percent lower than the year before.
These results underscore the dedication of our staff and board to provide efficient, quality services to the people of Maine.

John Gallagher is director of the Maine State Housing Authority.

Good Reforms = Good Results.

*****************

Thank you to Gov. LePage and his team, for the good reforms at MSHA. If not for their hard work, Dale McCormick would still be using the public checkbook like a personal ATM, buying flowers, fancy lunches and massages for employees. Affordable housing in Maine is once again back on track, and real cost-efficiencies are being achieved for the first time in years.

Spider
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Joined: 06/16/2011 - 3:13pm
http://www.themainewire.com/2

http://www.themainewire.com/2012/09/mainehousing-spent-7-million-compute...
…” During an audit meeting in May with Baker Newman Noyes, MaineHousing’s
accounting firm, the board of commissioners learned that while $100,000 was
budgeted for computer services last year, $800,000 was spent.

…“That actually got the board pretty excited,” Merrill said. “You budgeted
$100,000, but spent $800,000 in one year? Who’s in charge here? This is
unbelievable. It makes you wonder, where does the money come from?”

…”Merrill agreed. “We need to focus on core mission, not trading carbon credits or providing dance lessons for recently released inmates,” he said. “We’re supposed to be providing safe and affordable housing to as many people as possible.” - See more at: http://www.themainewire.com/2012/09/mainehousing-spent-7-million-compute... Merrill agreed. “We need to focus on core mission, not trading carbon credits or providing dance lessons for recently released inmates,” he said. “We’re supposed to be providing safe and affordable housing to as many people as possible.”

--------------------------

Dale McCormick, democrat, former state treasurer, also:
…” Former director of Maine State Housing Authority (MSHA) Dale McCormick and one of her employees used their personal credit cards to make over $170,000 in purchases for MSHA, racking up cash rewards and airline miles for themselves, according to a report from the Office of Program and Governmental Accountability (OPEGA”
Source: http://www.themainewire.com/2012/06/opega-report-shows-personal-credit-c...

------------------------

And from the liberals you hear crickets. Why in H E double- hockey- sticks, would you even think about attempting to negotiate anything with a liberal democrat? Time to speak up to your neighbors folks…inform the conservatives and get right in the face of the liberals. That’s what I think.

Melvin Udall
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Joined: 05/01/2002 - 12:01am
From news a few years

From news a few years ago:

McCormick, who did not attend Tuesday’s meeting but took a call later from OPEGA Director Beth Ashcroft about the planned review, had a simple reaction. “Bring it on,” she said. “I think the more people know about what we do and how we do it, the prouder they are going to be. I think we are a model for how quasi-government agencies should be operated.”

Sun Journal, 10/19/11

Naran
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Joined: 10/06/2004 - 12:01am
And, now, rumor has it that

And, now, rumor has it that McCormick may be running for the Augusta city council.

Perhaps she thinks the city should be providing more flowers, massages and karaoke parties for their employees.

pmconusa
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Joined: 04/20/2000 - 12:01am
When you elect thieves to

When you elect thieves to public office who do you expect they will nominate to run the public's business?

Spider
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Joined: 06/16/2011 - 3:13pm
You know how rumors work;

You know how rumors work; maybe a little smoke, maybe a little fire, maybe nothing.
However:
Senator Roger Katz, serving on the oversight committee, is fully informed regarding the character of McCormick, and the history of her public service....and he will have something to say about Dale McCormick serving in a public position should the rumor turn out to be verified. I think he will anyway. Well.....maybe; maybe not.

Robert Reed
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Joined: 11/08/2007 - 1:53pm
Katz do something...I won't

Katz do something...I won't hold my breath..he is part of the problem, not the solution...

Naran
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Joined: 10/06/2004 - 12:01am
Bumped at request of a

Bumped at request of a reader.

This BDN article shows that 46% more affordable housing is being constructed, at 36% less cost than under McCormick.

Given McCormick's record at MSHA, I wouldn't ever vote to put her in any elected position.

Bruce Libby
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Joined: 01/17/2006 - 7:08pm
Naran You are forgetting the

Naran
You are forgetting the most pertinent factors:
Lesbian
Left job voluntarily ( the cloud doesn't matter)
Victim of that mean Gov. LePage and henchman Poliquin !

I wouldn't be surprised !!

Melvin Udall
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Joined: 05/01/2002 - 12:01am
What does the fact that she's

What does the fact that she's from Beirut have to do with anything?

Robert Reed
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Joined: 11/08/2007 - 1:53pm
I'm sure it wouldn't b that

I'm sure it wouldn't b that hard to find glowing reviews of her work, even from Republicans if you go back far enough..its all about not making waves..pre-LePage!

Mainelion
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Joined: 08/11/2005 - 12:01am
I sure wouldn't be surprised

I sure wouldn't be surprised to find out that someone like Peter "freaking" Mills gave her a glowing endorsement.

Naran
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Joined: 10/06/2004 - 12:01am
The rumors are true.

The rumors are true. McCormick has minions sending letters of support to the papers for her, and golly gee, look at this:

Is she running on a platform of bringing fresh flowers, B&B outings, and chair massages to the Augusta city workers?

Does she really, truly think Mainers will have forgotten about the investigations, the scandals, and what the OPEGA report showed about her lousy "management" of MSHA?

"Fresh ideas," indeed. Maybe someone can ask her what happened to the $6 million dollar carbon credit scheme she fostered at MSHA. McCormick is the "poster child" for someone who doesn't deserve public office.

I'd sooner vote for Paul Violette -- at least he kept things looking good and running well at the MTA, even though he was ripping us off all those years.

Naran
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Joined: 10/06/2004 - 12:01am
A small look-back at just one

A small look-back at just one of the articles from the Maine Wire on MSHA and McCormick's slush-fund spending habits.

Reprinted with Permission.

The Maine Wire

Though the vendor list retrieved by Maine Heritage has raised the lid of Pandora’s box, MHPC has thus far received only a portion of the mandated response to the Freedom of Access Act request filed approximately seven months ago. The vendor list released to date contains names of vendors but MSHA has not yet revealed dates and amounts of payments to vendors.

Caesars Palace. The luxury boutique hotel George. Posh hotel accommodations throughout the country. BYOB dance clubs. Funtown/Splashtown USA. Portland Pirates hockey team. The Great Falls Balloon Festival. Sunday River Ski Resort. A magician. A masseuse. High priced motivational speakers and corporate training companies. Pricey bed and breakfasts. Donations to political groups. Donations to theaters and social justice groups and arts and theater organizations. The list goes on and on.

Even with the omissions, the vendor list was impressive enough to provoke irate demands for explanations from both members of the public and from newly appointed MSHA commissioners — and from legislators. MSHA Director Dale McCormick has been short on concrete explanations.

Following the release of the vendor list came the discovery that MaineHousing, in the middle of a state wage and benefit freeze, handed out between $144,000 and $147,000 non-performance based bonuses — $1000 to each employee — solely contingent on the recipient having been employed at the housing agency on the last day of 2009.

Spider
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Joined: 06/16/2011 - 3:13pm
The people need to be

The people need to be reminded.

Naran
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Joined: 10/06/2004 - 12:01am
I have posted links at the KJ

I have posted links at the KJ and the MS on letters written by her supporters, but (of course) they've already been deleted once.

Naran
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Joined: 10/06/2004 - 12:01am
This article from July

This article from July outlines the incumbent and the challengers for the position on the Augusta city council. The Kennebec Journal article is honest about some of the troublesome background with McCormick and MSHA, which is to their credit.

Augusta City Council Race

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