https://www.facebook.com/donald.v.watkins/posts/10209392529592355
Embedded Fraud in Bentley's Prison Plan
By Donald V. Watkins
©Copyrighted and Published (via Facebook) on May 9, 2016
©Copyrighted and Published (via Facebook) on May 9, 2016
On February 23, 2016, Alabama Governor Robert Bentley announced the Alabama Prison Transformation Initiative Act at the state Capitol in Montgomery, Alabama. The legislation, sponsored by State Rep. Steve Clouse (R-Ozark) and State Sen. Trip Pittman (R-Montrose), provided for the construction of four modern prison facilities, three male facilities and one women's facility. House Speaker Mike Hubbard, Senate President Pro Tem Del Marsh and Corrections Commissioner Jeff Dunn joined Bentley at the announcement.
The legislation authorized the issuance of up to $800 million in bonds for up to 30 years by the Alabama Corrections Institutions Finance Authority ("ACIFA") with the debt service on these bonds to be paid from savings within the annual budget of Alabama Department of Corrections ("ADOC"). This initiative was part of Governor Bentley's Great State 2019 Plan.
The prison plan had little public involvement or oversight. It was designed and structured for fraud.
Last Wednesday, a bipartisan and biracial coalition of legislators led by veteran State Representative John Knight (D-Montgomery) killed the legislation that would have breathed life into Bentley's prison plan. As it turned out, the plan was nothing more than a massive "Trojan Horse" fraud scheme that was hatched by Bentley and "de facto" governor Rebekah Mason to enrich themselves, the surrogates of legislators who supported the plan, and their business associates, cronies and special friends.
The heart of the fraud scheme was embedded in §14-2-18(b) of the Act introduced by Bentley, which provided as follows:
" In constructing, reconstructing, or renovating women's and regional prison facilities, the [ACIFA] may enter into contracts or agreements with private parties using alternative project delivery methods, including but not limited to design-build, construction management at risk or private-public partnerships, pursuant to which the design, construction, financing, and maintenance, or any combination thereof, is accomplished on behalf of the [ACIFA] by the private party….".
This key fraud provision survived all amended versions of the Act with only minor changes.
Bentley's Finance Department was charged with developing procedures for all proposals submitted under §14-2-18(b), including "proposal content, selection criteria, prequalification, applicant interview, proposal evaluation, proposal negotiation, selection and award which will be outlined in each request for proposal." The Act made it clear that, regardless of any existing law to the contrary, the ACIFA had the absolute authority to use "alternative project delivery methods" whenever the ACIFA determined, in its sole discretion, that it was in the "best interest of the State of Alabama" to do so.
Noticeably absent from the Act was any provision banning Alabama government officials, registered lobbyists, legislators and/or their surrogates, and the governor's "senior political advisor" from receiving, directly or indirectly, an economic benefit from any company participating in the "alternative project delivery methods" referenced in the Act. Without this ban, the Act provided a financial gravy train for Bentley, his lover, and his political insiders and cronies.
In an effort to buy the silence of black legislators, all of whom are Democrats, the Act included §14-2-12(f) which states: "The [ACIFA] is strongly encouraged to utilize the businesses and companies in all aspects of the bond and construction portion of this chapter that reflect the racial and ethnic diversity of the state". Under this provision, Bentley and Mason would handpick these companies in consultation with black legislators who supported the plan.
As the Act snaked its way through the legislature, Rep. Knight and his bipartisan and biracial coalition of legislators tried to minimize the infrastructure for fraud in the legislation by offering various amendments to the Act that were designed to add financial accountability, independent oversight and much needed transparency. Even in its amended state, the Act contained too many ways for Bentley and Mason to commit financial fraud on the people of Alabama. This is why the Knight coalition killed the Act.
Additionally, Bentley would not publicly specify where the new prisons would be built even though he had privately promised to locate one in Andalusia. This location is in the House district of Republican State Representative Mike Jones, a lawyer who chairs the House Judiciary Committee. Jones, who attended the governor's press conference announcing the prison plan, is a Bentley loyalist who tried unsuccessfully to kill the House's impeachment resolution seeking Bentley's ouster as governor.
Because of her sexual relationship with Bentley, Rebekah Mason was in full and complete charge of the executive branch of state government when Bentley announced his prison plan in February. She tightly controlled access to Bentley, decided what executive actions he would take on major issues, and determined what capital projects would be recommended by Bentley for presentation to the legislature and public.
As first reported on September 25, 2015, in an "Executive Betrayal" article, David Byrne, the governor's chief legal adviser, cleared the way for Rebekah to operate her private public relations firm, RCM Communications, Inc., while working full-time as Bentley's communications director. By 2013, Rebekah had become the governor's "senior political advisor" who was paid by the Bentley campaign and others seeking access to the governor. Undeterred by state ethics laws and protected by Bentley's professed "love" for her, Rebekah conducted RCM business from the governor's office from January 2011 through her forced resignation in March 2016, and she used state resources to further her private business interests.
Companies that desired priority access to Bentley to explore participation in the prison plan paid Rebekah, or RCM, for this access. In 2013 and 2014, this money was paid into Bentley's campaign fund, which then paid Rebekah. Sometimes these access payments were cloaked in secrecy and laundered as "dark money" contributions to Bentley-controlled 501(c)(4) non-profit corporations like the Alabama Council for Excellent Government ("ACEGov"). In April 2016, ACEGov, which is headed by Bentley's former legal adviser, Cooper Shattuck, took down its website and Twitter account after Bentley's "sex for power" relationship with Rebekah became public.
Behind Bentley's prison plan is a cottage industry of investment bankers, architects, building contractors and consultants who have made enormous profits by encouraging local and state governments to borrow billions of dollars to build prisons, jails and detention centers that the public cannot afford. As part of his fraud scheme, Bentley would engage a multitude of non-bid consultants and service providers who had been pre-screened and pre-selected by Rebekah to perform: (a) investment banking services; (b) legal services; (c) architectural services; (d) engineering, construction and procurement ("EPC") services; (e) facilities design services; (f) project manager services; (g) construction accounting services; (h) public relations services; and (i) a litany of other construction-related services. To facilitate his turnkey fraud scheme, Bentley moved the State Building Commission inside of his executive offices. The Commission, which is under Bentley's control and within his line of sight, must approve the plans and specifications for the prison facilities and issue all construction/renovation contracts.
Rebekah's special personal relationship with Bentley allowed her to directly impact the selection process for every major vendor category. If the Act had passed, Bentley was set to approve Rebekah's selections. Under the scheme, the preferred vendors had to hire Rebekah's firm to play in this game. Key legislators who supported the prison plan would be allowed to add their business associates, mistresses, Montgomery "girlfriends", and cronies to the list of politically approved consultants and service providers for prison projects.
The prison plan scheme to defraud taxpayers is part of the ongoing federal investigation into the Bentley-Mason public corruption and racketeering activities.
Donald V. Watkins
No comments:
Post a Comment