More Questionable Donations From State Contractors To O’Malley Led Organization

Change Maryland has released new information that seems to reveal the appearance of a "pay-to-play" system within the O’Malley-Brown Administration where contractors received significant benefits from the state either before or after their donations to the Democratic Governors Association during Governor O’Malley’s tenure as its chairman.

"This additional data further suggests a disturbing pattern of behavior that, at the very least, is unethical and inappropriate," said Larry Hogan, Chairman of Change Maryland.  "I think the public has a right to know the truth about these practices. Did the governor and/or others in his administration solicit large contributions from contractors, then reciprocate by rewarding those donors with huge state contracts, contract extensions, or other special favors or decisions in return?" he added.

Obviously this has serious implications and gives the appearance of the potential for decisions being influenced by millions of dollars in "donations." Recognizing the inappropriate and unethical nature of these relationships, state law currently prohibits state contractors from making contributions to an elected official's campaign account. This evidence indicates the possibility of a deliberate, coordinated effort by this administration to circumvent the intent of the law by soliciting huge, unlimited contributions to a federal, rather than state, account.

The report released today by Change Maryland shows that healthcare services company Express Scripts received a $2.3 billion contract despite serious concerns about the company’s legal issues in Maryland and 28 other states.  In 2008, the company paid over $9.3 billion in settlement costs to these states. 

From March 2011 to February 2012, the Maryland Board of Public Works was deciding whether to approve the lucrative contract to Express Scripts to provide prescription drug services to state employees.  In March 2011, two of the three members voted to postpone a decision out of concerns about the company’s legal issues and several flaws in the procurement process.  Governor O’Malley was the lone vote to move forward with the contract. 

During this same time, Medco – a company looking to merge with Express Scripts – donated a combined $225,000 to the DGA.  In fact, their first contribution came just six days after Governor O’Malley cast the lone vote to move forward with the drug contract.

In late January 2012, the Board of Public Works again voted to delay the contract award, drawing significant criticism from Governor O’Malley at the time who complained about the endless delays.  One month later, the BPW reversed course, awarding the contract to Express Scripts in a two to one vote.  On March 27, 2012, Medco made their second and final donation to the DGA: $125,000.  Medco and Express Scripts received final Federal Trade Commission (FTC) approval for their merger on April 2, 2012.

"Maryland’s working families deserve better from their elected leaders," Hogan said. "This is what happens when you have an arrogant monopoly that feels they can get away with anything. What Maryland desperately needs is a healthy and competitive two party system, open and honest debate, and some real checks and balances to keep some of these outrageous abuses from taking place."

In addition to this most recent research, Change Maryland released other questionable contributions from state contractors to the DGA, including:

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

• $125,370 from 2009-2011 from Scientific Games Management Corporation, a gaming corporation that provides services to state lotteries. While SGMC donated $25,000 in 2009, they doubled their contribution in 2010 and 2011. In 2011, Governor O'Malley and the Board of Public Works approved a contract extension with the company.

• $10,000 from Beowulf Energy in 2011. Beowulf is interested in building an offshore wind farm off the coast of Maryland. In 2013, Governor O'Malley signed his signature wind legislation into law.

• $30,000 from Colorado Energy, a company with ties to Beowulf Energy, in June of 2011. In July of 2011, the Maryland Board of Public Works approved a lease of 250 acres of former state prison land to Maryland Solar, a company created by Beowulf Energy.

Change Maryland is the state’s largest and fastest-growing grassroots organization. Founded by Hogan in 2011, the nonpartisan group is dedicated to advocating for fiscally responsible, common sense government. Change Maryland currently has over 70,000 members – Republicans Democrats, and Independents – from every county in the state. The organization is continuing its investigation and hopes to release its full report on DGA contributions in January 2014.