Wednesday, April 4, 2007

Are Edmondson, McMahan Interfering With Probe?


Rep. Mike Reynolds

Questions Attorney General's

Request For Investigative Audit By State Auditor
State Rep. Mike Reynolds is questioning whether the attorney general and auditor are interfering with an ongoing Federal investigation.
Earlier this week, the office of attorney General Drew Edmondson requested that State Auditor Jeff McMahan conduct an investigative audit of the Little Dixie Community Action Agency.
The Little Dixie Community Action Agency is currently led by Randall Erwin, a former Democratic state legislator. Randal Erwin is currently being investigated by the federal government for a scheme where Erwin allegedly funneled state "special project" money to certain interests in exchange for kickbacks.
According to federal investigators, one of the alleged beneficiaries of the illegal scheme is Steve Phipps, who has also been accused of illegally funneling money to the campaign of State Auditor Jeff McMahan and other elected officials through straw donors.
Just a few weeks ago, Attorney General Drew Edmondson gave back several thousand dollars in campaign contributions that may have been tied to the Erwin/Phipps/McMahan illegal straw donors.
About the same time, Edmondson’s office asked McMahan to conduct an investigative audit of Erwin’s Little Dixie Community Action Agency.
Reynolds immediately started asking questions upon learning that Edmondson and McMahan were attempting to get involved in the investigation process.
“I called Drew Edmondson's office and asked what gave them the right to enter the investigation under the circumstances. They couldn't give me a straight answer," Reynolds said, adding that “there is a current federal investigation being conducted and Edmondson and McMahan's attempt to now get involved after questions have been raised about connections they had to the illegal funds is an obvious conflict of interest.
"The State of Oklahoma will be better served by the federal investigators finishing their efforts without being hampered by state officials who may be associated with the alleged criminals or absconded funds," Reynolds said.

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