State auditor turns over records on suspicious no-bid contract to attorney general, state patrol

State Auditor Mike Foley said he’s turned over to authorities documents related to a suspicious no-bid contract between the governor’s office and a consultant.

In a Thursday legislative hearing, Foley said he provided documents to the attorney general and the Nebraska State Patrol that show suspicious behavior in the governor’s office pertaining to the $2.5 million contract awarded to agricultural tech CEO Julie Bushell. In January, Foley said he suspected the Economic Development Department broke state law by not clearly reasoning why a company known to Pillen should be awarded a multi-million contract.

DED said it was an emergency contract, which allowed the department to sidestep a required process to shop for bids on projects worth more than $50,000. In the audit letter, Foley criticized DED for leaving blank a section that details what emergency is justifying the quick contract. The auditor has also claimed the department back-dated documents and didn’t meet legal deadlines for report requirements.

“There’s really two key issues. One is the question of, ‘Was there an emergency?’ I say, no, there wasn’t. And secondly, what about this backdating of documents and trying to deceive the auditor in both instances? I’m very concerned about that, and I think that law enforcement ought to follow up,” Foley said.

The auditor said it’s a misdemeanor crime to deceive the state auditor.

The records referral from the auditor’s office is the latest step in a back-and-forth between Foley’s office and Gov. Pillen’s office. Last month, Pillen said in an interview with NTV that he believes Foley is, “100 percent wrong.”

A spokesperson for the office told the Nebraska Examiner that Bushell’s company was “instrumental in achieving” savings for the state of Nebraska and capturing federal assistance.