County vendors fear a shakedown
The Oklahoman, May 20, 2007
Randy Ellis and John Estus

The state county commissioners association mailed letters to private vendors this year seeking donations for a scholarship program to benefit commissioners' children who are headed to college, an investigation by The Oklahoman has confirmed.

"There's so many things wrong with (the letters)," former U.S. Attorney Bill Price said. "Obviously, it could be viewed by vendors as being extortion.

"I don't believe that any public officials or a public officials' association should set up a scholarship fund for their children and solicit funds from people who do business with the government," said Price, whose office led a multiyear investigation of county commissioners that culminated in the early 1980s with 162 commissioners and 62 suppliers convicted of kickback and bribery-related charges.

The controversial letters encouraged vendor affiliates to donate to the scholarship fund through an auction and golf tournament.

Several vendors complained privately to The Oklahoman that they felt pressured to give if they wanted to continue getting business from counties.

However, the executive director and officers of the association said extortion was never their intention, and it never crossed their minds the letters might be interpreted that way.

"At no time has anybody been pressured to give to this," said Gayle Ward, executive director of the Association of County Commissioners of Oklahoma. "This was just supposed to be a fun thing."

Echoing Ward's comments were Johnston County Commissioner Mike Thompson, who is president of the commissioners' association, and Roger Mills County Commissioner Jerry Dean, the state group's secretary-treasurer.

"I don't even know who donated," Dean said, adding that donations play no role in his purchasing decisions.

"It don't make no difference to me," Thompson said. "I come from an extremely poor county. Usually, we buy what's the cheapest."

Ward said the association may halt vendor participation in the scholarship program, which raised about $10,000 for scholarships this year.

"Now that it has caused a problem, we probably won't do it," she said.

Are the letters legal?

It is questionable whether the letters are legal.

Price said the solicitation may violate the commissioners' oath of office, which states public officials will not knowingly receive, "directly or indirectly, any money or other valuable thing, for the performance or nonperformance of any act or duty pertaining to my office."

Accepting scholarship money from a company that does business with the county the commissioner serves could be interpreted as indirectly receiving money for job performance, Price said.

"You're not supposed to receive anything directly or indirectly other than compensation allowed by law," Price said. "I'd be hard pressed to think that vendors would normally contribute to county commissioners kids' scholarship funds."

Oklahoma County Commissioner Ray Vaughn, also an attorney, said a commissioner could argue that compensation and a donation are different, and that the money their children receive through the association's scholarship program is more of a donation than compensation.

"Personally, I would not do it," Vaughn said. "I think somebody could misconstrue that as compensation."

Attorney General Drew Edmondson said he thinks the letters are legal.

"I don't see any violation of criminal statutes with this letter," Edmondson's spokesman, Charlie Price, quoted the attorney general as saying. The spokesman said Edmondson emphasized he was addressing only the legality of the letter, not the ethics of sending it.

Oklahoma County District Attorney David Prater said the letter doesn't pass the "smell test."

"I don't like it," Prater said. "I think it stinks horribly. That just doesn't pass the smell test, but I can't tell you it's illegal. It doesn't seem real ethical to me."

How the program works

The letters generating the controversy were signed by Thompson on Feb. 27 and mailed to vendor affiliates.

The letters encourage vendors to donate through an auction and golf tournament that are intended to benefit a "scholarship program that enables many college-bound children of county commissioners to further their education."

Companies that donate the most money in each category will be named vendor affiliates of the year and awarded plaques in July, the letter said.

"Event tickets, golfing/hunting/fishing trips and gear, sports memorabilia, tools, paintings, safes, centennial items, travel vouchers, (and) weekend getaway packages," were listed in the letter as suggested auction items.

Vendors also were invited to donate by bidding on auction merchandise, Ward said.

"Actually, vendors do not donate many items," she said. "It's the commissioners, themselves, who do most of the donating and purchasing at the auction. The vendors are more a part of the golf tournament."

Vendor reaction

The Oklahoman called dozens of vendors, many of whom complained that they felt pressured to give in order to win business. However, they said they didn't want their names in the newspaper because they feared it would hurt their businesses.

One western Oklahoma vendor initially said he could be named, but called back in desperation the next day saying he had changed his mind because he feared it would be a detriment to his business.

"I feel pressure," the vendor said when first called. "I don't think they (county commissioner association) ought to do that."

The man said he didn't donate because he has to put his children through college.

If commissioners find out who donated to the scholarship fund, they might steer business toward those companies instead of companies that didn't donate, he said.

Many other vendors said they didn't feel pressured by the letter.

"That (donating) wouldn't make any difference," in receiving business, said Mike Heim, owner of Mike's Equipment Repair in Enid.

Heim said he also doesn't donate to the scholarship fund but still receives business repairing county equipment.

Still, Vaughn said he would feel uncomfortable asking a vendor to provide scholarship money for his children.

"In government, you just have to be so careful to avoid any appearance of impropriety," he said.

Vaughn also said if he was in a vendor's position, he would "feel pressured."

Auctions spirited

Thompson described the auction as a spirited event where commissioners get into good-natured bidding wars over things like University of Oklahoma and Oklahoma State University sportswear and memorabilia  with supporters of each school trying to upstage each other.

Vendor affiliates were invited to participate so they could take part in the fun, Ward said.

Companies that do business with counties pay $200 a year to be vendor affiliates. Affiliates receive and are listed in an association directory and are invited to association events where they can put up booths, host hospitality rooms and socially interact with commissioners, she said.

When vendors have donated items for the auction, they've usually been items such as caps or toy John Deere tractors that promote their companies, Ward said. Hunting trips are among the items on which vendors most like to bid, she said.

The scholarship auction has been going on for 11 years. Vendor affiliates have participated in the past, but this is the first year "vendor of the year" plaques will be presented to vendors who donate the most through the auction and golf tournament, Ward said.

Although the auction was in early April, Ward said she didn't yet know who would receive the plaques because the association's accountant has changed.

Nim Razook, a professor who teaches business ethics at OU, said he can understand why the letters caused some vendors to "raise an eyebrow."

Related Information

Scholarships questioned

A controversial program partially funded by donations from companies that do business with county governments provides college-bound children of county commissioners with scholarships.

"Scholarship amounts have ranged from about $250 to $550 since the program began 11 years ago.

"About $10,000 was raised for this year's scholarships at an annual auction last month.

"The total amount of scholarship money raised each year is divided by the number of college-bound children of county commissioners to determine the size of each scholarship.

County Commissioners Association

The Association of County Commissioners of Oklahoma is a private, nonprofit corporation formed to assist the state's 231 county commissioners in the performance of their public duties. The organization is involved in education, training, lobbying and providing technical assistance to commissioners. Counties use taxpayer funds to pay dues to the association, which last year ranged from $2,000 to $8,000, depending on the value of property in each county.

Source: Gayle Ward, executive director of the Association of County Commissioners of Oklahoma