Daxon Calls For McMahan's Resignation

Republican Party Chairman Tom Daxon (pictured) called today for the resignation of Auditor & Inspector Jeff McMahan after a federal investigation alleged he received illegal campaign donations. Appearing on Oklahoma City radio station KTOK's "First News With Reid Mullins" this morning, Daxon said there is the "appearance...and fact" that wrong-doing occurred in the financing of McMahan's 2002 and 2006 campaigns. He said that confidence in the auditor and inspector's office is at stake and McMahan should resign. For KTOK's continuing coverage, tune to AM-1000.

Daxon followed up his radio statement with this prepared news release: "Former State Auditor and Inspector and current Chairman of the Oklahoma Republican Party, Tom Daxon, today called on Jeff McMahan, current State Auditor, to fire his lieutenant Tim Arbaugh and then resign himself. Arbaugh is the head of the Abstract Division of the State Auditor’s Office. Both McMahan and Arbaugh are embroiled in the Gene Stipe straw donor scandal.

“'An office like State Auditor and Inspector must be above reproach and beyond even the hint of financial scandal,'” said Daxon, who served in the post from 1979-1983. “'Not only is there now a cloud over the office, but the charges go to the very heart of the State Auditor’s responsibilities—protecting the public from crooks. McMahan needs to fire Tim Arbaugh and then McMahan himself needs to resign.'”

McMahan’s office regulates the abstract business in Oklahoma. Several of the people alleged to be straw donors work in the abstract companies owned by Stipe and business partner Steve Phipps, who is also under investigation. The FBI says Arbaugh was a straw donor for Stipe. The FBI also says McMahan has received money from numerous straw donors connected to Stipe.

“'It appears the crooks set out to get their own man in the Auditor’s office by financing McMahan’s campaign,'” Daxon continued. “'McMahan’s responses to his involvement in the scheme have not been credible. The only way to restore public confidence in the auditor’s office is for McMahan and his lieutenant to go.'”

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