Tuesday, January 22, 2008

Oklahoman Editorial: McMahan Should Step Down

Governor Brad Henry wasted no time suggesting Auditor and Inspector Jeff McMahan take administrative leave to deal with an indictment alleging serious ethical and legal misdeeds by McMahan and his wife. The auditor would be wise to heed Henry's advice.

Given the nature of the work conducted by the office, it's imperative the state auditor and inspector be above reproach. Selling himself as such will be difficult indeed for McMahan while the indictment lingers.

The federal indictment was issued Friday, shortly after jurors heard testimony from Steve Phipps, who owns several abstract companies. The indictment alleges Phipps gave more than $100,000 in illegal campaign contributions and was generous in other ways to McMahan's family, and that in return, McMahan did favors for Phipps.

The abstract industry used to be regulated by the state auditor's office. Now it's regulated by a separate agency, the result of a bill passed last session. McMahan told us last year he was glad his office would be getting out of that business. He also told our editorial board that claims made by his 2006 opponent, Gary Jones, that McMahan's ties to Phipps were stronger than the auditor was letting on, were malarkey. Details in the indictment would seem to indicate that Jones was doing more than just slinging mud.

The indictment alleges Phipps paid McMahan's way for business and leisure trips; that Phipps used straw donors to contribute $77,000 to McMahan's 2002 campaign, then gave McMahan's wife, Lori, another $27,000 in cash for use in that campaign; and that Phipps bought a $1,640 ring for Lori McMahan.

McMahan's attorney says his client is innocent until proven guilty. True enough. But for now, McMahan should listen to the governor and take a leave, allowing someone else to conduct the people's business while he tends to his own.

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