Did O’Malley-Brown Administration Shake-Down State Contractors For Huge Contributions?

ANNAPOLIS – Change Maryland released initial findings that show a relationship between 2011 contributions to the Democratic Governor’s Association (DGA) and the award of state contracts. The group found that in many cases, DGA contributors received significant state benefits shortly before, or after, making generous donations to the organization Governor Martin O’Malley chaired.

"Our preliminary research indicates a disturbing 'pay to play' pattern emerging from the O’Malley-Brown Administration where some DGA donors received a substantial, and increased, state benefits before and after making a contribution," charged Larry Hogan, Chairman of Change Maryland. "Did the Governor solicit large contributions to help further his national aspirations and reward those donors with huge state contracts and/or implement policies that help them significantly?"

While state law prohibits state contractors from making contributions to an elected official’s state account, nothing prohibits those doing business with the state from making contributions to a national organization.

"Our initial research of DGA financial records is just the tip of the iceberg," said Hogan. "It establishes a troubling trend which, when complete, may require a deeper investigation."

Change Maryland expects to release its full report in January 2014. A 2011 Baltimore Sun piece identified a couple of questionable contributions and Change Maryland has identified more, including the following activities:

Beowulf Energy, a company interested in building an offshore wind farm off of the coast of Maryland. In 2011, the Baltimore Sun reported that Beowulf donated 10,000 to the DGA. The firm’s acting director, Michael Enright, is former chief of staff to and lifelong friend of Governor O’Malley. O’Malley signed the Maryland Offshore Wind Energy Act into law in 2013.
Change Maryland took their investigation one step further than the Sun, and found that in addition, Colorado Energy, LLC, a subsidiary of Beowulf Energy, donated $30,000 to the DGA on June 14, 2011. On July 27, 2011, the Maryland Board of Public Works approved a lease of 250 acres of former state prison land to Maryland Solar, LLC to construct a solar farm. Maryland Solar was created by Beowulf Energy.

United Healthcare Services, which donated $375,000 to the DGA in 2011. Since 2008, the Department of Mental Health and Hygiene has paid UHS over $2 billion in state contracts.

Scientific Games Management Corporation, a multifaceted gaming company that provides services to state lotteries. Scientific Games donated $25,000 in 2009, $50,370 in 2010, and $50,000 in 2011, the year that Governor O’Malley and the Board of Public Works approved a contract extension with the company. The company doubled their donations as the contract renewal approached.

"Marylanders deserve better than this," Hogan continued. "Marylanders deserve honest leadership that will create opportunity for the people, not the politicians.”