State Auditor General Jack Wagner this morning told reporters that the Pennsylvania Liquor Control Board did not violate any state law when it awarded a controversial contract to the husband of an agency employee - but it did exercise "poor judgment."
Wagner was referring to the $173,000 that the Liquor Control Board (LCB) recently awarded to Solutions 21 of Pittsburgh, whose president is married to one of the agency's regional managers. The contract is to train store clerks and managers in the basics of customer service.
The Auditor General said his office's audit of the contract found that the board "should have anticipated the reasonable public questioning that would result over a potential conflict of interest, regardless of whether that conflict was an actual conflict or the appearance of a conflict."
Wagner also said that given the tight economic times, it might have been more prudent for the LCB to delay spending money on employee training.
From the start, Liquor Control Board officials have defended the deal, saying Solutions 21 submitted "the lowest and best" offer among five firms that bid for the contract. They also have asserted that the contract complied with the state's Adverse Interest Act, and that the training is a necessary part of its mission to make its 619 stores more customer-friendly.
In a statement today, board chairman Patrick J. "P.J." Stapleton III said he was pleased the examination did not reveal any violations of state laws or codes, and said the agency agreed with the list of recommendations Wagner made to help it improve it contracting and procurement process.
Click here for Philly.com's politics page.
