Civil Rights group calls for investigation of La. Legis. Auditor and state offices for discrimination

10th April 2017   ·   0 Comments

By C.C. Campbell-Rock
Contributing Writer

After a succession of African-American officials and directors have been investigated by the Louisiana Legislative Auditor (LLA) a local think tank, Justice & Beyond, is asking the Louisiana Legislative Black Caucus and Governor John Bel Edwards’ office to investigate the LLA. The group is also calling for a review of the state’s compliance with federal Equal Employment Opportunity Act rules.

The LLA is a joint committee of the Louisiana Legislature. The Council is composed of five senators and five representatives. The Council is charged with oversight of the legislative auditor and, most importantly, resolving audit findings contained in audits issued by the legislative auditor and private accounting firms performing governmental audits in-lieu of the legislative auditor.

“Our coalition has been presented evidence that suggests racial targeting and disparate legislative outcomes depending on who is being investigated by the Louisiana Legislative Auditor,” Justice & Beyond leaders wrote when requesting the investigation.

Justice & Beyond issued the call when it noticed suspect findings in an LLA Report of the Health Education Authority of Louisiana, headed by Jacob Johnson, another African-American man. In fairness to the LLA, it does investigate a range of state-funded entities, but relative to the above cases, the findings amounted to much ado about nothing.

Orleans Parish Sheriff Marlin N. Gusman, Civil District Court Judge Kern A. Reese, and Arthur Morell, Clerk of Criminal District Court, all African-American elected officials, have been investigated by the LLA.

“They spent two years investigating my office. Initially, they came to investigate the claims of guys who went to jail but the investigation turned up nothing,” says Orleans Parish Sheriff Marlin Gusman.

The Orleans Parish Civil District Court was also the subject of an investigation for two years by the LLA. As was the case with the Sheriff’s office, the LLA ultimately focused on travel expenditures. “We were only told that we need to watch how we spend our money,” says CDC Chief Judge Kern Reese. Judge Reese asked the LLA how many courts had been investigated and found that the majority African-American led CDC was the first and only court to be scrutinized.

Jacob C. Johnson, MPA, CLED, executive director of the quasi-state agency, Health Education Authority of Louisiana, (HEAL) became the latest target. After a year-long ‘fraud complaint’ investigation, from 2015-2016, the LLA released a report on HEAL filled with inaccuracies and false claims.

HEAL was created in 1968, to promote medical and/or health education activities in Louisiana and to help primary institutions obtain tax-free bonds to construct, renovate or enhance their facilities.

LLA’s allegations of misuse of funds, excessive travel, contracts signed without proper authority clearances, a lack of projects since 2004, and other charges tantamount to fraud, included in the LLA’s December 2016 Report, proved to be inaccurate at best and patently false, at worst.

When Jacob Johnson appeared before the state’s LLA Audit Advisory Council on January 26, 2017 at the State Capitol, to answer the charges in the LLA Report, Johnson gave legislators a three-ring binder with documents, six inches tall, refuting the LLA’s claims. Attachment A gave a line by line account of each LLA claim, in which HEAL’s attorney, Henry W. Kinney of Kinney, Ellenhausen, Richard & DeShazo, denied each LLA assertion of wrongdoing. Then Johnson threw down the gauntlet calling the LLA fraud investigation a “witch hunt.”

“Members of the LLA Audit team have confirmed to me that the unusual way it (audit) was conducted was a witch hunt motivated by my race.” Johnson reminded the panel, inclusive of Orleans Parish Senator Wesley Bishop and Rep. Jimmy Harris, that since 2010, “I started independent audits. 1995-1996 was when the last audit was done.”

Johnson accused the LLA of being biased. “When I’m being told that organizations with executive directors that are people of color are treated differently than those that have whites, that’s a problem. When the LLA offices wants to cripple HEAL and targets one African-American contractor and sat here and said they do not influence legislation, it says to me their goal is to black ball me from state government. We have a problem,” Johnson continued.

He said the LLA met HEAL’s chair & secretary and accused the executive director of misappropriating funds, manipulating financial records, paying himself for travel, malfeasance in office and that he improperly hired a civil servant. “The chair informed me that he was told I bullied employees at LDH & LLA. I think those allegations warrant an investigation. Today, I’m urging you to ask a third party to investigate the LLA, HEAL and the LDH and to look at similar issues (discrimination) with the state and its employees,” Johnson added.

The LLA’s HEAL Report ended with several recommendations, including greater supervision and oversight of Johnson, and placing HEAL back under a state agency.

The LLA’s advice was shocking in that in 2016, State Senator Karen Carter-Peterson authored and successfully passed SB 577/ACT 230, which gave HEAL autonomy, removed it from under the Louisiana Department of Health, doubled its bonding capacity from $400 million to $800 million, and empowering HEAL to operate statewide, instead of just within a 10-mile radius in Orleans Parish and Shreveport.

Taking over the helm of HEAL in 2011, Johnson made huge strides in reactivating the dormant agency, which had not been reaching goals, whose board seldom met, and which had not been audited in years. Coming aboard, Johnson righted the ship, ordered audits, added $24 million in new projects, and operated the entity, in spite of a gubernatorial appointed Board that seldom had a quorum and did not live up to its bylaw rule of meeting quarterly. Several governor-appointed members live across the state and failed to attend meetings. Nonetheless, Johnson continued to make progress.

State Rep. Bishop took exception to the LLA’s recommendation to put HEAL back under state control.

Nicole Edmonson, Asst. Legislative Auditor denied that the LLA had taken a position in making the suggestion. “There is no supervision of the entity now. Based on the issues we found, we think if legislators were aware at the time, they may not have passed the legislation. We’re saying you may wish to consider that because of the seriousness of the issues.”

“How is that not taking a position,” Bishop asked, “you’re making a recommendation to this body to undo what was done. You didn’t take a position when the bill was on the floor.”

The 2016 legislation did put HEAL under the state’s Department of Education but HEAL retained autonomy.

“There is no authority or oversight. You may want to have a little oversight of them, until the issues are resolved,” Edmonson suggested.

Bishop said in the six years he has been in the Legislature, “I’ve never seen a recommendation where we are asked to undo legislation.”

Dr. Wayne Babovich, an attorney and college professor, testified on Johnson’s behalf.

“I’ve known Mr. Johnson for many years. His reputation is exemplary. He always dots the t’s and I’s. He has been an excellent executive director. HEAL has a new Board of Trustees and things may have to be corrected but don’t throw the baby out with the bath water.”

LLA’s motivation for wanting HEAL back under state rule, it has been alleged, may have something to do with HEAL’s expanded reach and autonomy, increased bond capacity, and the money state agencies were getting from HEAL. HEAL regularly paid the Louisiana Department of Health for support services. One document showed HEAL owed LDH at least $100,000 at the end of 2015. HEAL is self-funded. It receives revenues from its Gravier Street public parking garage.

Pat Bryant, co-chair of Justice & Beyond, called the LLA’s allegations against Johnson “a modern-day lynching.” The reputation of the LLA being discriminatory goes back to the days of civil rights leaders State Rep. Rev. Avery C. Alexander and Charlie Johnson, Bryant added. “Rev. once said that the ‘LLA has crippled and damaged the work of POC and they should be investigated.’”

“We plan to hold forums on the role of the LLA as it relates to African Americans and people of color in this state,” be continued.

“Mr. Johnson’s work is exemplary. On the other hand, you’re looking at a Board that puts its officer in a strange place by not meeting. Now they put HEAL under an agency that provides no oversight. We need to look at what the LLA does all over the state,” said Bryant.

At the January hearing, it was evident that the LLA was not the only entity trying to get rid of Johnson. HEAL outgoing Interim Chair Kurt Weigle, executive director, New Orleans Downtown Development District and HEAL’s new Board Chair David Groner (on the Board for 24 hours), disputed Johnson’s claims of LLA‘s discrimination and biased actions. Louisiana Senator Michael Walsworth of northern Louisiana concurred. “I’m disturbed by some of the comments you made to the legislative auditor. I’ve never known them not to be a professional group.”

Sources close to the HEAL situation last month told the Louisiana Weekly, that a bill would be introduced in the upcoming state legislative session that will abolish HEAL and that Senator Karen Carter-Peterson will introduce the bill. The La Weekly called the senator’s office then and spoke to legislative aide Catherine Cates. Mrs. Cates said Senator Peterson was out-of-town but suggested the reporter email the legislator. Since then, numerous calls to Sen. Peterson’s office and a subsequent FOIA request have gone unanswered. On March 31, 2017, Senator Carter-Peterson filed SB224-Abolishing HEAL. The session starts on April 10, 2017.

Justice & Beyond has asked the Louisiana Legislative Black Caucus (LLBC) and Louisiana Governor John Bel Edwards to pass/support a law requiring every Louisiana department, agency, board and commission to hold legislative hearings in each congressional district of Louisiana, to determine whether there is racial discrimination and selective persecution of African-American targets by the Louisiana Legislative Auditor.

The justice forum also wants Gov. Edwards and the LLBC to request the legislative auditor to immediately complete the EEO-1 form (profile of workforce). “We want to know how many African Americans work for the auditor and where they rank in the organization.”

The group also wants the LLBC to pass a law requiring every Louisiana department, agency, board and commission to complete a form similar to the EEO-1 annually. Governor Edwards has said on many occasions that he wants a state workforce that “looks like the State of Louisiana.” “Here is one way we can measure progress toward that laudable goal that we all share.

“Caucus members on the Louisiana Legislative Audit Council are aware of the concerns indicated and we are waiting for their feedback.” On the EEO-1 Form, the LLBC is working on getting that information from each state governmental agency,” said LLBC Chair, State Representative Dr. Joseph Bouie, Jr.

This article originally published in the April 10, 2017 print edition of The Louisiana Weekly newspaper.