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Lynch asks Auditor General to investigate Governor's use of temp worker agency

Providence - In a letter sent today to the State's Auditor General, the Chairman of the Rhode Island Democratic Party William Lynch, has asked Auditor General Ernest Almonte for a "forensic audit" of the states dealings with Smart Staffing, the Foxboro, Mass.-based temporary worker agency that received a no-bid contract from the Carcieri Administration.

"Yesterday the Governor responded to criticism of the use of this firm by saying I and other Democratic leaders, 'don't have their facts straight, they don't know what they are talking about.' Today Governor, I am asking the Auditor General to investigate with a forensic audit and report back the facts. The only reason taxpayers would not have all the facts is because the Governor has spent much time shrouding this no-bid contract in a veil of secrecy," said Lynch.

Lynch believes it would be helpful if the Governor invited in the auditor General and cooperated in the process of finding out all the facts of the case.

As critics call on the Governor to explain the no-bid contract, Governor Carcieri has claimed that the use of this agency is saving the State tax dollars and is not an attempt to circumvent long-standing state hiring policies. Lynch disagrees and believes an impartial audit by the Auditor General would bring to light the facts of the case.

"Here is the Governor, someone who on the campaign trail talked about transparency in government. As the Governor often does he simply says one thing and does another. He said that critics don't know all the facts. Well, Governor let an impartial entity find the facts and report them to the public. If it is saving the state money and does not circumvent state hiring practices then the Governor has nothing to worry about. If the opposite is true then the Governor has some explaining to do to the taxpayers of this State," Lynch said.

One of Lynch's main concerns is the lack of accountability and public oversight in the Governor's use of "temporary agencies" in filling numerous state positions.

"The Governor has to remember that just because he was once a CEO it does not mean he is now above answering questions regarding how he spends taxpayer dollars. I mean saying these folks are not full time employees and saying that he is cutting the workforce is nothing but a former CEO cooking the books and playing a shell game,"

Lynch would also like to know how Smart Staffing received what he compares to a no-interest loan from the state since the Massachusetts-based company was only licensed to do business in the state for 4 days prior to the beginning of their no bid contract.

"The Governor's office says this company was in the right place and the right time. Why would you just provide a loan to a company so quickly? There must be some knowledge of the business. If not I would say that is a completely irresponsible of the Administration to entrust a large sum of taxpayers dollars to a company that has no proven track record in our state. Well I want to know what the connection is between this company and the Governor," said Lynch.

Lynch says a forensic audit of the Administration's action in this manner will bring to light all aspects of the situation and it will be better than the piece by piece information being extracted from the Governor.

"He is not fully disclosing all the aspects of this contract and trying to make the issue go away explanation by explanation. Governor it is time to let an independent third party come in and shine sunlight on this issue," stated Lynch. "Are you up for that challenge?"

Letter from the Chairman to Auditor General

March 27, 2007

Auditor General Ernest A. Almonte, CPA, CFE
Office of the Auditor General
86 Weybosset Street
Providence, RI 02903

Dear Auditor General Almonte:

I am writing you today to ask for an investigation, including a forensic audit, into the awarding of a no-bid contract by the Carcieri Administration to Smart Staffing, Inc., a temporary worker placement agency based in Foxboro Massachusetts, to place people into state funded positions.

I ask for this review to help answer the following questions that have arisen from the Governor's awarding of the contract:

1. Is the Governor's use of Smart Staffing, Inc. proper in relation to the procedures for hiring of state employees?
2. Was it proper to award an emergency no-bid contract to the out-of-state company or should have there been a bid process?
3. Is it proper for the state to provide millions in state funds to a private company so that they are able to provide the services they were contracted for?
4. What is the relationship between the incorporators of Smart Staffing, Inc. and the Governor's office?

While there are other aspects of this no-bid contract that concern me, the preceding questions I believe are the main questions that should be answered for the taxpayers of Rhode Island.

Thank you for your attention to this matter.

Sincerely,

William J. Lynch, Chairman
RI Democratic State Committee

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