Ethical misconduct at Florida Department of Children & Families confirmed

Ethical misconduct at Florida Department of Children & Families
confirmed
Secretary under fire; two officials resign

By DIANE HIRTH

Tallahassee (Fla.) Democrat

The governor's inspector general Thursday substantiated allegations of
ethical misconduct involving Department of Children & Families
Secretary Jerry Regier and two of his top lieutenants, prompting some
child advocates and government watchdogs to question Regier's ability
to continue as the head of the agency.

Chief Inspector General Derry Harper issued a scathing report
describing cozy relationships among administrators, lobbyists and
contractors, influence peddling and exchanges of favors at the highest
levels of DCF, now spending $1 billion a year in almost 900 outside
contracts.

Regier responded by apologizing for his own behavior and by asking for
and accepting the resignations of Ben Harris, the agency's deputy
secretary for operations and technology, and Glenn Palmiere, DCF's
director of information technology.

"I made some mistakes I regret," Regier said in soft, steady tones at
a news conference.

Regier said he did not offer his resignation to Gov. Jeb Bush - and
Bush did not ask for it. "I considered it, but we didn't discuss it,"
Regier said.

Bush "is deeply disappointed by the decisions the secretary has made,"
said Jill Bratina, the governor's communications director. Crediting
Regier for taking responsibility for his actions, Bratina said, "The
governor believes the secretary has charted a course to recommit the
agency to the highest of standards."

According to the report, Regier and several top lieutenants partied
with representatives of private companies and state universities with
DCF contracts and accepted gifts in violation of the governor's
ethical code of conduct.

"The investigation confirmed that senior management employees accepted
gifts, gratuities (and) honoraria from vendors and associations doing
business with DCF," the report said.

Regier acknowledged spending the night at the multimillion-dollar
Longboat Key home of Jim Bax, who as director of a Florida State
University social services research unit, built up contracts with DCF
worth $4 million.

In addition, Regier admitted having his birthday party at Bax's
Tallahassee home and accepting football game tickets from Don Yaeger,
a lobbyist for companies doing business with DCF. He described both as
friends, and said his wife and Bax's wife do Bible study and walk
together.

Regier did not reimburse Bax for the beach-house stay, according to
the report. Regier did say he generally reimbursed his hosts for meals
and gifts or returned the gifts outright.

The report said Harris and Palmiere accepted lodgings and spa massages
provided by private firms with DCF connections.

In a statement, Harris said, "I have acted in accordance with what I
believed was most consistent with state ethics guidelines."

Reaction to the inspector general's report and Regier's response was
swift.

"His ability to lead is in question," said Ben Wilcox, Common Cause of
Florida executive director.

Karen Gievers, a Tallahassee attorney who's fought in court to improve
care for foster children, said: "If his job is to enter into lucrative
contracts with friends or determine how much money people can make
from foster care, he's doing his job. But if his job is to provide for
the safety and well-being of children and to keep them from being
exploited, he's not doing his job.

"He should have offered to step aside," she said.

Privatization changes agency

Appointed two years ago by Bush to replace embattled Broward County
Judge Kathleen Kearney, Regier is the second DCF secretary under Bush
to experience a leadership crisis. "It gives the appearance of
impropriety. I take full responsibility for my actions," Regier said.
"I'm sincerely sorry for my lapses."

Evident in the report and Regier's apology is the changing nature of
this state agency, now in the process of outsourcing all child
protection services, including foster care and adoption, to private
companies. The agency will soon do the same with economic help for
needy families.

Regier said he has been trying to develop a sense of trust with
representatives of outside agencies. DCF officials and their private
partners in "community-based care" for abused kids met regularly not
only at business meetings but at scheduled social receptions.

Although the inspector general's report shows companies elbowing for
DCF contract deals, Regier didn't read it as a cautionary tale on
privatizing the agency. "I certainly don't think we should throw the
baby out with the bath water," he said.

The inspector general, though, noted an climate of uncertainty at DCF
"as to how certain procurement decisions are made, for what purpose,
and whether all appropriate staff and reviewing authorities were
effectively included in the process."

In this "period of unprecedented 'partnering' with the private
sector," Harper said, it is important that ethical relationships
between DCF and private vendors and universities accepting contracts
be more sharply defined.

Among the corrective actions ordered by Regier are assigning DCF
Deputy Secretary Bob Fagin sole responsibility for all contracts;
calling for scrutiny by DCF's chief financial officer of all contracts
associated with Bax and any other contracts recommended for review;
and having his inspector general review whether DCF staff members
follow correct policies and procedures.

Harper called, though, for "an appropriate independent audit source"
to assure that DCF contract safeguards are in place and in use, and he
highlighted technology contracts and contracts lacking cost breakdowns
as most in need of review. And others on the outside say cleaning up
the agency may take more than Regier has promised.

"Clearly, a thorough investigation in my mind would entail an
independent audit, not them investigating themselves," said Rep.
Loranne Ausley, D-Tallahassee.

"I'm not predicting the end of Regier," longtime child advocate Jack
Levine said. "I do see some diminishing of public confidence."
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