Gentner demands Zumwalt’s resignation following audit results
Oklahoma Attorney General, Gentner Drummond, has called for the resignation of Secretary Shelley Zumwalt from the Tourism, Wildlife, and Heritage Department due to an audit revealing her approval of a multi-million contract involving her husband’s company. The State Auditor’s report disclosed a substantial payment history between the Oklahoma Employment Securities Commission and Phase 2 Development where Zumwalt’s husband held a high position. The situation raises concerns regarding conflict of interest and lack of competitive bidding for the contract.
(The Center Square) – Oklahoma Attorney General Gentner Drummond called for the resignation of Tourism, Wildlife and Heritage Secretary Shelley Zumwalt after an audit showed she approved a multi-million contract for a company where her husband worked while working for another state agency.
The report released by State Auditor Cindy Byrd Tuesday afternoon shows that a contract was made between Phase 2 Development and the Oklahoma Employment Securities Commission for improvements to the computer system. Zumwalt’s husband, John, was vice-president of the company.
“Between April 2020 and August 2022, OMES, through a contract and multiple change orders, paid P2 a total of $7 Million to stabilize and update the OESC mainframe,” according to a news release from Byrd’s office. “Subsequent contracting and payments were transacted by OESC and signed by Shelley Zumwalt, who was appointed as the Executive Director of OESC in May 2020. By April 2022, Zumwalt had approved additional contracts and change orders to P2 totaling $8.5 Million.”
The contract was never bid, Byrd said in an interview with The Center Square.
“It’s important to note that her husband was vice-president and we have no evidence that he is owner of the company or anything else, he is just vice-president,” Byrd said. “However, federal guidelines prohibit anyone who is in a position to contract or administer federal funds, you are not allowed to handle those funds if you have a conflict of interest.”
Zumwalt had three opportunities to disclose the relationship and did not, Byrd said.
“We do think that is an issue for the federal government to look into but there was never an RFP process, we don’t even have any evidence of another company being considered for this,” Byrd said.
Attorney General Gentner Drummond said the findings on Zumwalt are “one of the most egregious.”
“This level of self-dealing represents an unforgivable breach of trust that disqualifies Ms. Zumwalt from overseeing the expenditure of our tax dollars,” Drummond said. “She should resign immediately and cooperate fully with my office as I seek to determine whether any Oklahoma statutes were violated.”
Zumwalt said in a statement published on Tulsa’s KOTV: “The Auditor’s report is misleading. I’ve never had a conversation with Auditor Byrd or her team regarding this matter. A thorough review of this situation would have easily cleared up any confusion on the many sign-offs and disclosures that happened well before I was named executive director of OESC. Transparency has always been a top priority of mine, and I will not be resigning.”
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