Allegations Against Secretary Shelley Zumwalt

Oklahoma Attorney General Gentner Drummond has demanded the resignation of Secretary of Tourism Shelley Zumwalt, citing a recent audit’s claims of misusing millions of tax dollars. The audit, conducted by State Auditor and Inspector Cindy Byrd, alleges that Zumwalt approved contracts worth millions for Phase 2 Development (P2), where her husband served as vice president.

Misuse of Funds

The audit reveals that Zumwalt, while serving as the executive director of the Oklahoma Employment Security Commission (OSEC), greenlit contracts totaling $7 million for P2 between April 2020 and August 2022. These contracts, aimed at stabilizing and updating the OESC mainframe, were not competitively bid, raising concerns about transparency and fair procurement practices.

Conflict of Interest

Moreover, Zumwalt failed to disclose her husband’s employment at P2 on annual forms, despite federal requirements mandating such disclosures for entities receiving federal grant money. This lack of transparency raises questions about ethical conduct and potential conflicts of interest in the allocation of public funds.

Call for Resignation

Drummond has called for Zumwalt’s immediate resignation, emphasizing the severity of the alleged breach of trust. He asserts that such actions disqualify Zumwalt from overseeing taxpayer funds and pledges to investigate potential violations of Oklahoma statutes.

Legislative Action

The audit also scrutinizes the Oklahoma Office of Management and Enterprise Services (OMES) for its handling of vendor contracts, particularly its use of the ‘Rolling Solicitations’ program, which circumvented competitive bidding requirements. Byrd recommends legislative action to investigate and rectify these issues to safeguard taxpayer interests.

Protecting Taxpayer Dollars

Byrd advocates for legislative measures to address the flaws identified in the audit, including:

• Investigating the ‘Rolling Solicitation’ process employed by OMES.
• Examining the revenue stream associated with this process to mitigate potential conflicts of interest.
• Reviewing exemptions to competitive bidding laws to ensure accountability and fiscal responsibility.

Conclusion: Safeguarding Transparency and Accountability

The audit findings underscore the importance of transparent and accountable governance in safeguarding taxpayer dollars. Allegations of misuse and conflicts of interest necessitate swift action to restore public trust and ensure fiscal integrity in government operations.

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