Lawyer Basic Gentner Drummond has known as for the resignation of Shelly Zumwalt, the secretary of tourism for Oklahoma.
Zumwalt was named secretary in Jan. 2024 by Gov. Stitt. Zumwalt additionally served in a number of roles on the Workplace of Administration and Enterprise Companies (OMES) and was the Govt Director of Oklahoma Employment Safety Fee (OESC).
The press launch from Drummond says that is in response to an audit carried out by State Auditor and Inspector Cindy Chook. Drummond alleges that Zumwalt used her place to approve state funds for a corporation the place her husband was vp. In accordance with Byrd, Zumwalt checked ‘no’ on types, indicating that there was no relation or battle of curiosity within the contracting of the funds.
Byrd says the audit present a systemic downside with mismanagement , saying “questionable conduct has led to an abuse of taxpayer {dollars}.”
The Lawyer Basic’s full assertion may be learn beneath:
“The audit findings launched at the moment present troubling and all too acquainted patterns of mismanagement, costing taxpayers hundreds of thousands consequently. Right this moment’s report confirms my earlier order of an investigative audit of OMES, which is sorely wanted and lengthy overdue.
“One of the egregious findings is the wholly inappropriate and probably illegal actions of Secretary Shelley Zumwalt, who used her place as government director of OESC to approve hundreds of thousands of {dollars} in contracts for a software program firm the place her husband was a vp. This stage of self-dealing represents an unforgiveable breach of belief that disqualifies Ms. Zumwalt from overseeing the expenditure of our tax {dollars}. She ought to resign instantly and cooperate totally with my workplace as I search to find out whether or not any Oklahoma statutes had been violated.”
Cindy Chook’s workplace launched this as a part of her abstract of the audit:
“Subsequent contracting and funds had been transacted by OESC and signed by Shelley Zumwalt, who was appointed because the Govt Director of OESC in Could 2020. By April 2022, Zumwalt had accepted extra contracts and alter orders to P2 totaling $8.5 Million.
“Throughout this era, Zumwalt didn’t disclose the truth that her husband, John Zumwalt, was employed because the Vice-President of P2. Because the Director of OESC, Zumwalt was required to finish annual types testifying that no associated occasion transactions existed within the efficiency of her duties concerning the expenditure of funds. In three separate cases, Zumwalt checked ‘No’ on these types.
“Federal regulation requires that any entity receiving Federal grant cash should disclose any battle of curiosity in writing,” reported Auditor Byrd. “Any one that may probably profit from a Federal grant can’t be a part of the choice, award, administration, or contracting of that cash.”
“Within the Fall of 2022, laws went into impact requiring appointees to heads of companies to reveal any conflicts of curiosity to the Ethics Fee. Zumwalt lastly disclosed her husband’s employment at P2 after she was named the Govt Director of Tourism in 2022.”
Secretary Shelley Zumwalt launched a press release in response:
“The Auditor’s report is deceptive. I’ve by no means had a dialog with Auditor Byrd or her group concerning this matter. A radical assessment of this case would have simply cleared up any confusion on the numerous sign-offs and disclosures that occurred properly earlier than I used to be named government director of OESC. Transparency has at all times been a high precedence of mine, and I cannot be resigning.
-Shelley Zumwalt, Secretary of Tourism, Wildlife & Heritage”