Oklahoma Governor and Officials Criticized for Mishandling $39.9 Million in Federal Pandemic Aid, No Criminal Charges Filed

Oklahoma City, OK – A recent investigation by a Multi-County Grand Jury into the management of federal pandemic aid by Governor Kevin Stitt’s administration and State Superintendent Ryan Walters has revealed a pattern of mismanagement. While no criminal charges will be filed, the jurors labeled the administration’s actions regarding the $39.9 million Governor’s Emergency Education Relief Fund (GEER) as “grossly negligent.”

Attorney General Gentner Drummond initiated the probe into the use of the GEER funds earmarked for educational programs amid the COVID-19 crisis. Despite the findings of gross mismanagement, the Grand Jury determined that there wasn’t enough evidence to establish willful corruption or criminal intent.

The Grand Jury’s report, which was released earlier this week, criticizes the Stitt administration’s “irresponsible and indefensible” lack of internal controls. This includes oversight on a program specifically designed by Walters, pointing to an overarching disregard for due process in handling the aid packages.

In defending their positions, spokespeople for Stitt and Walters shifted the blame to external vendors tasked with the administration of certain GEER initiatives. However, according to the Grand Jury’s findings, the primary responsibility lies with the state leaders.

Amidst the uproar, the Governor’s Office has accused Attorney General Drummond of politicizing the Grand Jury’s powers for personal gain in his gubernatorial campaign. “This misuse of the Grand Jury, purely to generate headlines, marks an unlawful application of its intended purpose,” Abegail Cave, the Governor’s communications director, argued.

Financial discrepancies have been highlighted by both state and federal audits. The federal government had previously mandated Oklahoma to refund $650,000 due to questionable cost allocations under the GEER fund. Further scrutiny revealed a more disturbing picture of financial oversight, with state audits pointing to $1.7 million in misspent funds and another $6.5 million in expenditures that warranted additional examination. These funds included spending on private school tuition assistance that deviated from intended purposes.

The Grand Jury suggested that such financial missteps could have been averted if the Oklahoma State Department of Education, rather than private individuals, had been empowered to manage the GEER programs. The report criticized the decisions to assign the program’s administration to unvetted and unqualified private citizens, including Walters at the time, who lacked appropriate federal grant management experience.

Jurors also noted the striking contradiction inherent in assigning key GEER-funded programs to private school choice advocacy leaders, despite advice from then-Secretary of State and Education, Michael Rogers, that favored the Education Department’s involvement. This, jurors suggested, was a political maneuver that sidelined more qualified governmental bodies.

In response to these findings, the Grand Jury recommended the implementation of mandatory grant management training for state agencies receiving federal funds exceeding $10 million. They further suggested establishing clear written policies for grant administration to prevent future mismanagement.

Moreover, the auditors reiterated the call for legislative action to limit the delegation of control over federal funds to private entities, emphasizing that state leadership must utilize available resources and expertise without letting political differences interfere.

In contrast to the mishandling noted in most of the GEER fund’s administration, the Education Department, previously led by State Superintendent Joy Hofmeister, was found to have appropriately utilized all $8 million funneled to it under the program, thereby underscoring the potential for proper governance when established protocols are followed.

Ultimately, the Grand Jury’s findings demand increased accountability and recalibration in the management of taxpayer funds, especially during global crises when such support is most critical.