Delaware Political Weekly, Or An Approximation Thereof: August 16-22, 2014
1. The Closed Circle of Sleaze.
This article got lost in the Chip Flowers Implosion, Version 4.0, but it shouldn’t have. House D’s facing primary challenges sending out thinly-veiled campaign lit on the public’s dime. A practice that was discontinued under Speaker Gilligan (Terry Spence was the Godfather of this practice), but reinstated by Speaker Schwartzkopf just in time for the primaries. Now here’s the rest of the story. Complaints regarding this practice were filed with Elaine Manlove of the State Department of Elections. She determined that she had no legal jurisdiction over the complaints, that they did not technically violate state law, and referred them to…The House Ethics Committee. Did I mention that the House Ethics Committee is chaired by Valerie Longhurst, one of the two legislators who it’s been confirmed have sent out these mailers on the taxpayers’ dime? Now, that’s the Delaware Way.
2. Wagner Loses a Stealth Ally With Chip’s Withdrawal?
IMHO, the answer is a clear ‘yes’. It is Wagner’s well-deserved misfortune that Flowers stepped aside and, oh, by the way, admitted that Erika Benner had indeed purchased his Patriots tickets on her state PCard (appearently, her 4th state PCard b/c of alleged charges allegedly not made by her on her previous three state PCards). Wagner’s ‘report’ absolved poor Chipper of being involved in any way. Wagner even took a shot at the press for having the gall to raise these allegations:
Despite public scrutiny and various reports to the contrary, we found that the Treasury employees charged with internal control responsibility followed timely and appropriate procedures, which directly resulted in restitution to the State.
That statement is no longer operative, and was never true. But that’s hardly the end of the cover-up. In fact, this report makes Wagner’s cover-up of Dick Cathcart’s awarding of no-bid contracts at Delaware State University look like merely a warm-up to this main event. Unfortunately, and likely unwittingly, Wagner also reveals yet another, um, omission from the story that Chip told. Did you know that there is someone within the Treasurer’s Office specifically charged with dealing with PCard transactions? Neither did I. But, the Auditor’s report makes clear that there was a Treasury PCard Coordinator who, if the report is to be believed, worked diligently on this but never let his/her boss, the State Treasurer, know. The Auditor stated as fact in the report that the State Treasurer did not know, but provides not a scintilla of supporting evidence. So, folks, I’m gonna print what was in the report, and I’m gonna ask you, does it make any sense at all to believe that the Treasurer, who now admits he knew that Benner bought his Patriots/Cowboys tickets for him on her state PCard was unaware of her illegal purchases? Decide for yourself:
Throughout the period of our review, the former Deputy Treasurer reported fraudulent transactions on her PCard on three separate occasions, which meant that three new PCards were issued to her within two years (Chip didn’t know? Apparently not, according to Wagner).
During our review, the former Deputy Treasurer had 34 instances worth $6,399 of personal transactions charged to her State PCard. Treasury staff questioned the former Deputy Treasurer about the nature of the transactions during the PCard reconciliation process. AOA verified that the former Deputy Treasurer reimbursed the State for every personal transaction identified, including the Cold Stone cake purchase for an employee’s 50-year employment celebration (this is the only specific reimbursement cited in the report; later in the report, the Auditor essentially pooh-poohs this as a harmless use of state funds; which leaves 33 other unidentified transactions). Treasury staff refused to approve the monthly PCard payment until they had supporting receipts or an affidavit for all transactions. Further, in some instances the Treasury staff would wait on the reimbursement from the former Deputy Treasurer before approving the transaction. For these reasons, the monthly payments often extended past the 30-day deadline. This was Treasury staff’s ongoing process during the former Deputy Treasurer’s tenure. Although Treasury staff worked diligently to address the issue, they never directly communicated the former Deputy Treasurer’s issues with the State Treasurer until after he was approached by the Secretary of Finance in April 2013 (there is no citation whatsoever to verify that the Treasurer did not know; it is merely an assertion absent supporting facts; it’s also a way to cover Chip’s ass). After the State Treasurer was notified, the former Deputy State Treasurer made no personal transactions for the remainder of her service to the State.
To believe that Chip didn’t know, one would have to believe that diligent staff never thought to let him ‘directly’ know about a clear pattern of fiscal misbehavior on the part of his top official. And that it never dawned on Chip that something wasn’t quite right. Oh, and remember how Chip blamed the Markell Administration for not keeping him in the loop?:
DOA sent eight emails to the Treasury PCard Coordinator over a 17-month period requesting validation of the former Deputy Treasurer’s questionable purchases without copying or notifying the State Treasurer until April 2013. As a result of the Secretary of Finance contacting the State Treasurer, the State Treasurer began discussion with his accounting staff and subsequently making improvements to Treasury’s PCard process, ordering an internal review of the Treasury’s PCard program, and addressing the Treasury staff’s perception of an unapproachable tone of management(?). With the aid of his accounting staff, the State Treasurer also obtained personal reimbursement from the former Deputy Treasurer. We confirmed that all personal transactions were repaid.
Got that? The Treasurer’s Office was notified, but Chip was apparently blissfully unaware as he was not cc’d on the correspondence. Unless, of course, he was bc’d. Or he’s full of BS. Did the Auditor’s Office review the e-mails in question or did they just accept someone’s (Chip’s) word for it? Who did the office interview? Shouldn’t that be made public? Not that it matters.
This is your State Auditor, ladies and gentlemen. He does not really audit. Just as in the Cathcart case, political motivations are behind the report. I think Wagner saw Chip as someone who could ‘cut’ Brenda Mayrack in the black community (I think he was wrong) and help Wagner get reelected this year. So, the report was designed to help Chip in the primary. There is no other explanation, other than gross ineptitude, that makes sense in putting out a report that went to such lengths to absolve Flowers of any responsibility in the fiascoes that enveloped his office. The report is no longer operative. One can only hope that, come November, neither is Wagner.
3. One More Name On the Ballot.
The R’s have filed a candidate in the 16th RD, currently ably represented by James ‘JJ’ Johnson. He has a credible background, assuming that it’s this Gregory Coverdale. Member of the Delaware State Board of Education, trustee for several non-profits, and has his Bachelors’ in Business from Del State. Real good credentials. Too bad he’s not taking on someone of a less-deserving caliber, since there are several of that category in the same area (Val Longhurst and John Viola immediately come to mind).
4. Chip Hasn’t Withdrawn His Name.
Maybe he wants to be like Tom Sawyer and Huck Finn. You know, attending his funeral while still alive. He’s got the crying down pat. According to Elaine Manlove in today’s News-Journal, should Chip withdraw his name, the primary for D State Treasurer would be removed from the primary ballot, and Sean Barney’s name would be placed on the November ballot. As of now, Flowers’ name remains on the primary ballot, and will stay there, unless Chip withdraws.
That’s all I got. What’d I miss, and whaddayathink?
Tags: Chip Flowers, Dennis E. Williams, El Somnambulo, Featured, Greg Coverdale, Pete Schwartzkopf, Steve Tanzer Delaware, Tom Wagner, Valerie Longhurst
The “Willing Suspenders of Disbelief” strikes again. I heard him interviewed and his case for re-election appears to be:
1) One party government is bad, and
2) the job of auditor is non-partisan.
It made about as much sense as one of his “audits.”
The job of auditor should be conducted in a non-political manner.
Wagner has failed miserably to do that. Or, for that matter, to do virtually anything.
FYI, Treasurer Flowers has withdrawn. His paperwork was filed yesterday.
Nice summary. Thanks.
Good report. Did I miss the analysis/predictions of the House? Inquiring minds want to know.
Thanks
Chip’s papers were filed yes. But the full story from the Department of Elections is that the documents won’t be activated until August 28th. So what does that mean for the ballot? The staffer said only Manlove could answer that so I have a call in.
It is likely that his name will remain on the ballot and, as stated in an earlier news account, there will be information posted in the polling place that he has withdrawn.
DL should be taking odds on what percentage of the vote he’ll get.
I’ve met Greg Coverdale (yes, the same as who is linked above). He’s a smart cookie. But J.J. has fought hard for his constituents on pollution issues.
J.J. Johnson’s big slip for me came with his part in the unanimous JFC vote to remove $3 million in funds from the FY 2015 budget because, as Harris McDowell was quoted saying “When people get bogged down in the mud, sometimes you need to get a mule to pull them out,” JFC co-chair Sen. Harris McDowell, D-Wilmington, told the paper. ‘We want them to get off the dime and decide what they want to do.”
http://www.philly.com/philly/blogs/inq-phillydeals/Democrats-trying-to-force-university-to-accept-controversial-data-center.html#d6RaUc3SckYx1ICX.01
The News Journal Voters Guide now has primary candidates’ surveys posted but I am not seeing it linked on their main web page.
Yes, it won’t be activated until next week because Chip apparently post-dated the signature, causing all the elections folks more work.
http://www.delawaregrapevine.com/8-14flowerscandidacy.asp
Like so many breakups, this one has continued to go badly.
In keeping with a tenure rampant with travel, credit card and personnel issues in the treasurer’s office, a power struggle over the state’s investment authority, and feuds with the governor, Cabinet secretaries, the legislature and his own party, Flowers still has it in him to make another fuss.
He has delayed the official withdrawal of his candidacy, a time lapse that has left the primary, the state election officials and ultimately the voters in a hard-hearted limbo.
Election officials were led to believe Flowers would drop out by Tuesday, then Wednesday, then Thursday, only to have Flowers put them off again with another dismaying development.
“He told me he was going to post-date it for next week,” said Elaine Manlove, the commissioner.
He did, too. Flowers’ withdrawal is not effective until Aug. 28 at 4 p.m., according to election officials.
This is hardly what the election officials needed. They were already sweating it. They have 900 voting machines to get ready, and time was closing in.
Manlove pressed Flowers for a reason for the postponement, and she said he told her he was working to restore his reputation before he formally withdrew.
Whatever that means. Flowers did not respond to a request for an interview to explain.
Mitch – I’ve heard that he post-dated his withdrawal to the end of next week. Have you also heard about this detail? Do you know why this would not be effective immediately? Is this standard practice?
Genuinely just curious if this is normal, since the whole situation is pretty abnormal.
Why would it be standard practice? He’s said he’s quitting, leaving politics, and moving to another state. Unless he’s lying – and that’s not outside the realm of possibility for such a fuckwad – he has no reason to do anything but get his name off the ballot quickly. No one in his situation would.
Make no mistake: Chip could have had his letter signed and ready to go that Friday. He could have driven it over to Elaine Manlove’s office himself immediately after the press conference, and taken care of it right then & there.
Instead, he says “fuck all ya assholes” and gives a great big middle finger to Delaware taxpayers on his way out the door, while kicking back and smirking as he thinks just how much he’s making Sean Barney sweat.
What a dickweed.
But the person I most feel sorry for now is his new deputy, who has to manage the staff and keep the paper flowing while simultaneously looking for a new job, while the boss is out of town for a few months planning his wedding. Of course, there’s no deputy treasurer listed on his website, so who the fuck knows who’s actually giving orders over there?
There is no new deputy. There hasn’t been a deputy since Benner went into rehab last summer. She was never replaced. If he couldn’t find anyone to take the job for a year and a half (and it’s easy to understand why), there’s no reason to think it would be filled for the next 4 1/2 months. Why would you think that an interim appointee would even have a chance at gaining the respect of the office staff?
Better that the place runs on autopilot until January.
If Chip withdraws, does that mean that there is only one fundraising cycle for Sean Barney (since he wouldn’t have a primary opponent). That could be bad, if he has already spent a lot of money trying to beat a guy that isn’t running any more.
SussexWatcher, I nearly fell of my chair from your post! Thanks for the laugh.
So if there’s no new deputy, I feel sorry for whoever’s in charge over there / left holding the bag over there.
Wagner report is an audit, which is based on evidence. El Som’s analysis is based on intuition. The photo at the football game is not a smoking gun forf anything. You can argue that Wagner should have been more skeptical. but he has to work with the evidence at hand. An auditor can’t write a report that concludes “Come on – the subject is a clown and should have known.” That is conjecture, not evidence. Bloggers have that liberty but an auditor does not. A picture of Flowers at the football game printed on the front cover would not have added any evidence to the report.
Uh, wrong again, Puck. The Auditor reaches conclusions w/o providing evidence.
He tried to absolve the Treasurer without providing evidence that the Treasurer deserved absolution. Quite the contrary.
I relied on analytics and the evidence that the Auditor either provided or failed to provide. If that’s an audit, that’s a sorry-ass audit worthy of a sorry-ass auditor.
The only intuition in my piece was sussing out Wagner’s motive for kissing Chip’s ass. I think it makes a lot of sense. Prove me wrong. For once.
There is no doubt the introductory language of Wagner’s report has a political spin, probably for the reasons you describe. But the burden of an audit is to lay out evidence of misconduct, not to “provide evidence that the Treasurer deserved absolution.” Is there any hard evidence missing from the report? Bloggers can use their suspicions to fill in the gaps in the evidence – that is what they do – but an auditor cannot.
Puh-leeze. Wagner presented as facts assertions for which he had no evidence. He stated as fact that the Treasurer did not know of the issues roiling around Benner, but he provided not a single fact to prove it. Had he said, for example, that he could find no proof, that’s one thing. But that’s not what he did.
It wasn’t just what he wrote in the intro. It was the blatant use of assertions to cover up the lack of facts. He stated things as facts, yet provided no evidence. This was a cover-up masquerading as a ‘report’.
I couldn’t even remember Wagner’s name until he filed for re-election. He’s the invisible man.
It does seem like Wagner was trying to help Chip but I can’t figure out the political calculation in doing so.
My take is that Wagner thought that Chip could cut Brenda Mayrack in black communities. I think his calculation was incorrect, but what would you expect?
In reading the report, I got the distinct sense that Wagner and Chip had spoken quote a bit in preparing the report, since Wagner cited no other sources for his assertions that Chip had done no wrong. Which means, he was both playing, and got played. They both deserve each other.
“Is there any hard evidence missing from the report?”
Ms. Benner said in the News Journal article that no one from the Auditor’s office ever tried to contact her.
Hmm. Chip had been saying for months that the Auditor report would come out and clear him.
“Ms. Benner said in the News Journal article that no one from the Auditor’s office ever tried to contact her.”
What evidence could she have added? Personal opinons and stories, or denials and accustions, are not evidence. I know you all wanted it to be a rambling Ken Starr Whitewater investigation, but an audit is not a special prosecutor’s report; it just includes receipts and dates and numbers. It does NOT include her poss’s alleged state of mind or knowledge at the time. According to the audit, she went to the game, bought the tickets and improperly used her state credit card, and paid the state back in three months. Is there something else to add?
There is Ms. Benner’s claim that the ticket purchase was authorized by the Treasurer because they were meeting with “investment bankers”. That is certainly fair game for the auditor to explore. Because if her boss authorized that purchase, then her card was not improperly used. Or improperly used with his permission.
“The photo at the football game is not a smoking gun forf anything.”
It’s a smoking gun for Chip being a liar. He said he wasn’t there.
“It’s a smoking gun for Chip being a liar. He said he wasn’t there.”
That’s true, but it is a social lie, not a crime against the state or evidence of misconduct, and certainly out of scope for a state auditor.
“Because if her boss authorized that purchase…”
Yawn… if, if, if. Wake me up wnen somebody comes up with a signature by Flowers authorizing the purchase in advance. The picture at the football game ain’t it.
let me know wnen somebody comes up with a signature by Flowers authorizing the purchase in advance
And if the Auditor was doing his job, he might have looked for that.
” if the Auditor was doing his job, he might have looked for that.”
You have more “ifs” than Mike Castle had “howevers.”
There’s just one if and one related to the finding of concrete fact that you keep bleating about. Either you are interested in objective fact or not. And the Auditor not paying attention to Benner’s claim that Flowers authorized that purchase should count as malpractice.
“Wake me up wnen somebody comes up with a signature by Flowers authorizing the purchase in advance.”
Authorization to use a Pcard for a specific purchase does not typically require a signature. It’s not always possible to get that – like if an inspector is out in the field, for example – so it may just be a verbal OK from the manager.
What *is* supposed to happen in terms of paperwork, according to a friend in state government, is that the supervisor signs off on all purchases on a special form after the fact. The form is accompanied by receipts, dates of purchase, and other details about the purpose.
So if Chip was doing his job, that should have come across his desk for his signature. That’s proper oversight. It sounds like it didn’t happen, and Benner was just giving the OK for all her purchases – which leads to a situation ripe for shit like this.
Sounds like he was an absentee boss who delegated the actual work.
Mike Castle had a lot of “howevers” because he was smart enough to see them. Take a hint.
So if Chip was doing his job, that should have come across his desk for his signature. That’s proper oversight. It sounds like it didn’t happen, and Benner was just giving the OK for all her purchases – which leads to a situation ripe for shit like this.
Sounds like he was an absentee boss who delegated the actual work.
@SW — you’re getting close.
Benner was, for all intents and purposes, the final authority on credit card usage at Treasury, and the folks on staff who handled the paperwork neither liked nor trusted her. Had they tried to dime her out to the boss, they doubted their concerns would be taken seriously and they feared retaliation by her. So nothing much happened until the Division of Accounting started taking a look … and it’s all downhill from there.
So this is Chip’s way of getting the last word? He seems like the kind of person that always needs to have that get back moment. He should probably tread a little more lightly so the truth about his relationship with Erika Benner doesn’t really come out and people begin to figure out how much he really knew. I guess that doesn’t matter now since he is the disgraced, soon to be former treasurer. Or does it?