NEWS RELEASE
For Immediate Release
Contact: Steve Halvonik 717-787-1381

Auditor General Jack Wagner Says He Will Review Awarding of Contract to Husband of Liquor Control Board Exec

HARRISBURG (March 13, 2009) – Auditor General Jack Wagner said today that he would review the Pennsylvania Liquor Control Board’s awarding of a $173,000 contract to a Pittsburgh firm owned by the husband of the PLCB’s regional manager for Western Pennsylvania.

Wagner made the announcement after receiving a request from PLCB Chairman Patrick J. Stapleton III.

“State agencies must go the extra mile, especially during difficult financial times, to assure taxpayers that there is no favoritism or conflict of interest occurring in the awarding of contracts to private vendors,” Wagner said. “The Department of the Auditor General will conduct a thorough review to make sure that a contract given to Solutions 21 was awarded properly, and according to all applicable state laws and guidelines.”

The PLCB awarded a contract to Solutions 21 to provide customer courtesy training to nearly 4,000 employees, including 670 management-level workers, according to newspaper reports. Competing bidders charged that the PLCB rushed its decision to award the training contract to Solutions 21, whose president, Buddy Hobart, is the husband of Susanne Hobart, a high-ranking PLCB official.

Gov. Rendell on Wednesday called for a review of how the contract was awarded, saying, “All conflicts of interest should be investigated.”

In his letter to Wagner, Stapleton said, “We are confident that any fair review of the process will find that both the PLCB and Solutions 21 acted appropriately at all times. Accordingly, we would ask your office to conduct expeditiously a financial review of this matter.”

Wagner said that the Department of the Auditor General would conduct an internal review to determine how to proceed with the review and would announce details shortly.

The Department of the Auditor General’s Bureau of Federal Audits conducts an annual financial audit of the Liquor Control Board. The last audit was issued for the fiscal year ending June 30, 2007. In addition, the department’s Bureau of Liquor Audits conducts annual performance audits of the individual state liquor stores.

Auditor General Jack Wagner is responsible for ensuring that all state money is spent legally and properly. He is the commonwealth’s elected independent fiscal watchdog, conducting financial audits, performance audits, and special investigations. The Department of the Auditor General conducts approximately 5,000 audits per year. To learn more about the Department of the Auditor General, taxpayers are encouraged to visit the department’s website at www.auditorgen.state.pa.us.

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