Press Releases

Carcieri's no-bid express keeps rolling along

Despite fiscal crisis, Governor agrees to millions in legal fees with no accountability

Mismanagement, lack of communication, and incompetence at DEM

PAWTUCKET- "Who is running the show?" That's the question Rhode Island Democratic Party Chairman William Lynch posed to the governor today after a story in the Providence Journal exposed another no-bid deal engineered by the Carcieri administration that could end up costing the taxpayers close to four million dollars.

"Governor Carcieri talks tough about spending cuts when the TV cameras are rolling, but behind closed doors, he sings another tune. Not only has he hired a high-priced, out-of-state law firm to take on Southern Union without going out to bid, but members of his own staff admit that, as of today, the state doesn't have a way of paying their legal bills - which are already more than $413,000," Lynch said.

According to a report in today's Providence Journal, DEM Director Michael Sullivan couldn't offer any specifics or articulate a plan to pay the mounting legal services of Sutherland, Asbill & Brennan - the Washington law firm picked to handle the case against Southern Union. Rather, the administration is hoping the General Assembly will pass legislation increasing DEM fines now building up against Southern Union from $1,000 to $50,000 day. The only catch: For the state to see any of that money it has to either win the case, which could be dragged out for years, or negotiate a settlement from Southern Union.

"The fact is, we have no idea how or why this law firm was chosen. The governor's top lawyer, Andrew Hodgkin, says the work need not be put up for bid, but I couldn't disagree more. This case could end up costing the taxpayers almost four million dollars while the governor stonewalls information about how that money is being spent," Lynch said.

When asked about receipts from Sutherland Asbill's reimbursement for travel, lodging and meals, DEM executive counsel Patty Fairweather said she didn't have them, but Director Sullivan says he won't reimburse for anything not "fully itemized."

"Looks like they have a major problem. The bill is past due, you've got a law firm looking for payment and there's no documentation to justify what the state would be paying out. This is simply an irresponsible and unacceptable approach to managing the people's money," Lynch said.

The chairman also noted that former DEM Director and current Tiverton Town Council President Louise Durfee questioned how Sutherland Asbill was chosen and why the project was not put out to bid.

"While former Director Durfee often sought outside legal counsel, she did so only after going through a competitive bid process. That was the right thing to do, but this governor and his administration have demonstrated a clear disdain for that process as they head off on another unchecked spending binge," Lynch said.

"It's time the governor take a break from the overblown public relations stunts and get his own house in order. It's tough to be taken seriously as a leader on solving the state's budget crisis when you continuously rack up bills without a way to pay them," Lynch said.

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