Feds Clear DHHS Of Criminal Wrong Doing In No-Bid Contracts Print
Federal Government
By Administrator   
Friday, 12 August 2016 15:36
Federal prosecutors have delivered a finding of criminal wrongdoing after their investigation into expensive contracts for consultants at the state Department of Health and Human Services according to the Raleigh News and Observer.
 
John Bruce, the acting U.S Attorney for the Eastern District of North Carolina, and David A. Bragdon, a federal prosecutor in the criminal division, informed attorneys in a letter dated Aug. 10.
 
The probe began after state audits accused Angeline Sligh, a former manager who supervised the replacement of North Carolina’s Medicaid billing system, of wasting more than $1 million and hiring people with whom she had personal connections. It was not immediately known if Sligh’s actions were covered by the letter, which went to attorneys for former DHHS Secretary Aldona Wos, Joe Hauck, who was a senior adviser to Wos and had worked with her husband’s company, and the Washington, D.C., consulting firm of Alvarez & Marsal.
 
Alvarez & Marsal was hired on a no-bid, $3.2 million contract that later was expanded to more than $9 million.
 
The U.S. attorney’s office demanded records related to Wos, Hauck, Alvarez & Marsal and Les Merritt, a former state auditor.