Posted on 05/09/2002 12:26:57 PM PDT by ElkGroveDan
FOR IMMEDIATE RELEASE May 9, 2002
SIMON CALLS FOR GRAY DAVIS TO RELEASE ALL 'SOLE SOURCE' CONTRACTS
MONTEREY - Gubernatorial nominee Bill Simon today delivered the following remarks to reporters concerning a letter he sent to Governor Gray Davis urging the governor to publicly disclose all "sole source" contracts the state has entered into since 1999:
"Thank you all for attending. I am here today at ACWA to talk about California's growing crisis - no not the parade of scandals that have been dogging the Davis administration for the past two years - but another crisis, that in many respects has also been created by Governor Davis. That crisis is an inadequate supply of water for our citizens.
"When I speak to ACWA members, I intend to present my ideas and solicit their input on how to solve our looming water crisis.
"This governor essentially inherited a Cal Fed process that had achieved consensus among the stakeholders. This process could have provided for our water needs for decades to come, addressing California's population growth, economic and agricultural needs, and increased demands for environmental protection.
"But as is typical with this governor, this serious process was placed on the back burner. When it comes to Governor Davis, substance and policy is a distant second when it comes to his first love - campaign fundraising. After reading the deluge of daily stories, I see that the governor seems to take an interest in policy matters only when the interests of campaign fundraising intersect.
"Because of all of the issues surrounding the governor and his fundraising activities, if he has nothing to hide, he should release his fundraising calendar and let the Legislature and public decide in the light of day, and with the sanitizing affect of sunshine whether Davis' campaign fundraising is directly tied to his administration's policy decisions.
"Today, I am sending a letter to Governor Davis requesting him to release the list of all sole-source contracts granted during his administration. Abuse of "sole-source" contracting is not new. What is new is that the abuse of "sole-source" contracts has emanated directly from the governor's office. In 1994, Governor Wilson issued an Executive Order limiting the use of "sole-source" contracts to emergencies. My question to the Governor: "Have you revoked that Executive Order?"
"Governor Davis stated that his latest scandal was simply a rainstorm that would pass over us. Well ladies and gentlemen, after reading yet another story tying a nearly half billion dollar contract to Governor Davis' fundraising activities, and one of his chief political operatives, I believe that Governor Davis should start looking for timber to construct an ark. This storm shows little chance of letting up in 40 days and 40 nights.
"Next week, Governor Davis will submit his revised budget estimates. We already know from the legislative analyst that the shortfall will be in excess of $20 billion. I find it abhorrent that at least $41 million and perhaps much more will have been flushed down the drain for software licenses and a program that was virtually unnecessary.
"Ladies and gentlemen, the press has taken to calling this the Oracle scandal. The truth is, after observing the parade of scandals emanating from the Davis administration, we should consolidate this and call it what it is: The scandal that is the Davis administration.
"I have closely observed Governor Davis and his entire administration. It is their style to deflect attention from Davis' failures by attacking others and shifting blame. Over the past two days, Governor Davis has been speaking out on the Enron scandal and calling for a criminal investigation.
"I share the governor's concern, and have already called for a thorough investigation into all aspects of Enron's activities in California during the energy crisis. If, Enron did, as it appears, manipulate the market and engage in criminal activity, they should face the full weight of the law and receive a harsh penalty.
"On this, it appears Governor Davis and I agree.
"Where we differ is, while the governor has spent a lot of time waving the "smoking gun" evidence of price manipulation by Enron in the last few days, he hasn't found time to return his contributions from Enron. Gray Davis has taken over $120,000 from Enron, more than any member of the United States Congress or any politician in California. In addition, investigative journalist Lowell Bergman, in interviews with Enron Chairman Kenneth Lay, identified Governor Gray Davis as a frequent seeker of Enron's favors and its attention.
"Clearly, along with his Oracle contributions, the Governor should have enough information now to return his Enron contributions.
"I also note that while Oracle stated today that Davis was giving back the $25,000 exchanged between an Oracle lobbyist and a close confidante, former campaign official, and high level state employee of the governor, the contributions actually total $45,000. And the governor has backed off from even giving the $25,000 back.
"I encourage the governor to apply the same standard of scrutiny to himself and his administration that he is applying to Enron, since the types of activities are starting to show some similarities.
"Finally, let me leave you with a few interesting facts that have come to light and that we should expect answers from the governor on:
"The Oracle contract was for far more software units than there are state employees. And it appears that many state agencies already possessed licenses, which the Davis administration had previously purchased.
"How did a contract of $100 million fly through the administration within 9 days without the chief legal counsel at the control agency reviewing the document in its entirety. Instead, it was placed on her desk only hours before the contract was approved by the governor's closest advisors.
"Why, six days later, did the governor's handpicked political operative and e-government chief, who had shepherded the contract through the process, take a $25,000 check from an Oracle lobbyist? And for ten month since, the governor and his top aides have repeatedly lied about their roles.
"What led the governor's press secretary to, in effect, accuse respected civil servants of lying under oath, when they were only doing their jobs?
"Lastly, once again, in an embarrassing spectacle, the governor has been forced to admit that there was more contact between Oracle's CEO and the governor's office than has been previously admitted. The governor should release all staff notes and phone logs, not only from his official state phones, but also the campaign phones, which sit in his office.
"The governor's dealings have impacted Californians' morale and have helped to lead many of our fellow citizens to believe that the Golden State is on the wrong track. That is one of the many reasons why Gray Davis must be voted out of office in November.
"And, when I am elected governor, I will restore California's faith in its government."
May 9, 2002
The Honorable Gray Davis:
It seems that each day brings a new revelation in the press regarding your administration's use of "sole-source" contracts for state services. Equally troubling is the appearance that campaign contributions to your re-election effort are a required "ante" to be considered for and awarded these lucrative contracts.
Our California Supreme Court has stated that California's time-honored tradition of requiring competitive bidding exists "for the purpose of inviting competition, to guard against favoritism, improvidence, extravagance, fraud and corruption, and to secure the best work or supplies at the lowest price practicable." (Domar Electric, Inc. v. City of Los Angeles (1994) 9 Cal. 4th 161, 173). Abuse of "sole-source" contracting is not new. What is new is that the abuse of "sole-source" contracts appears to emanate directly from senior officials in your administration.
In 1994, Governor Wilson issued Executive Order W 103-94, which limits the use of "sole-source" contracts to emergencies. What is the status of this Executive Order in your administration? Specifically, have you revoked that Executive Order?
In order to answer the many questions surrounding your administrations use of "sole-source" contracts, it is important that you publicly disclose every "sole-source" contract that your administration has entered since taking office in 1999. You should identify: 1) the agency entering the contract; 2) the entity awarded the contract; 3) the date the contract was entered; 4) the length or term of the contract; 5) the amount to be paid under the contract; and 6) the agency justification for eschewing the competitive bidding requirement under the Public Contracts Code and Executive Order W 103-94.
Please consider this letter a request for these documents under the California Public Records Act. It is critically important that the public know the truth. They deserve no less from your administration.
Bill Simon
It's up to us at FR to spread the word to our friends and neighbors that we have a SOUND, SANE alternative to Gray Davis: his name is Bill Simon and he is a conservative!
Go Simon!
a close confidante, former campaign official, and high level state employee of the governor
That should be "confidant," without the e, since Arun Baheti is a mister.
the governor has backed off from even giving the $25,000 back.
Is Davis returning the $25k or not? I heard he was. (I guess he's definitely not returning $45k.)
That must be a really good deal for Oracle: pay $45k in bribe money, get a $95M sweetheart no-bid contract, and then get the bribes returned.
calgov2002:
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Dan, could you add me to the ping list? Thank you.
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