Attorney General Gentner Drummond has called for the resignation of Oklahoma Tourism Secretary Shelly Zumwalt.
Mr. Zumwalt was appointed Secretary by Governor Stitt in January 2024. Zumwalt also held multiple positions in the Office of Management and Enterprise Services (OMES) and served as Executive Director of the Oklahoma Employment Security Commission (OESC).
This is in response to an audit conducted by State Comptroller and Inspector General Cindy Byrd, according to Drummond’s press release. Drummond alleges that Zumwalt used her position to approve state funding for a company where her husband was vice president. Byrd said Zumwalt checked “no” on her paperwork to show her there was no relationship or conflict of interest in her fund’s contract.
Bird said the audit revealed systemic problems of mismanagement, adding that “questionable conduct led to the misuse of taxpayer dollars.”
The Attorney General’s full statement can be read below.
“The audit findings released today reveal a troubling and all-too-common pattern of mismanagement that has resulted in millions of dollars in losses for taxpayers. This confirms my previous order for a much-needed and long-awaited investigative audit of OMES. “One of the most egregious findings is the utter failure of Secretary Shelley Zumwalt to exploit her position as OESC Executive Director. “It was inappropriate and potentially illegal conduct” for approving a multi-million dollar contract with a software company where her husband was vice president. This level of self-dealing represents an unacceptable act of betrayal that disqualifies Mr. Zumwalt from overseeing the spending of our tax dollars. She should immediately resign and fully cooperate with my office in its investigation into whether she violated Oklahoma law. ”
Cindy Byrd’s office released this as part of the audit summary.
“Subsequent contracts and payments were handled by OESC and signed by Shelley Zumwalt, who was appointed OESC Executive Director in May 2020. By April 2022, Zumwalt will receive additional contracts and payments totaling $8.5 million. ‘, Zumwalt did not disclose the fact that her husband, John Zumwalt, was employed as P2’s vice president. As director of OESC, Mr. Zumwalt was required to complete annual filings certifying that there were no related party transactions in the performance of his duties regarding the disbursement of funds. Zumwalt checked “no” on these forms on her three separate occasions. “Federal law requires companies receiving federal grants to disclose conflicts of interest in writing,” Auditor Byrd reported. “No person who may benefit from federal grants may participate in the selection, awarding, administration, or contracting of those funds.” disclosed her husband’s employment at P2 to the Ethics Committee. ”
In response, Secretary Shelley Zumwalt issued a statement.
“The auditor’s report is misleading. I have never spoken with Auditor Byrd or his team regarding this matter. A thorough review of this situation would indicate that this happened long before I audited it. Many of the authorization and disclosure confusions would have been easily resolved.” Transparency has always been my top priority and I have no intention of resigning. – Shelley Zumwalt, Secretary of State for Tourism, Wildlife and Heritage.”
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