THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Friday, December 15, 1995 TAG: 9512150477
SECTION: LOCAL PAGE: B1 EDITION: NORTH CAROLINA
SOURCE: BY DENNIS PATTERSON, ASSOCIATED PRESS
DATELINE: RALEIGH LENGTH: Medium: 88 lines
Secretary of State Rufus Edmisten ran a lax operation, abused his authority and wasted taxpayers' money, according to an audit released Thursday.
Attorney General Mike Easley immediately asked the State Bureau of Investigation to look into any criminal wrongdoing uncovered by the audit.
The audit questioned more than $390,000 in spending by Edmisten's office, including possible misuse of state employees for personal errands and using an ``investor awareness'' fund to pay for the secretary's overseas trips.
``Taken together, the findings illustrate a pattern of both unacceptable behavior as well as very lax administrative practices in conducting public business in accordance with the policies and regulations'' of the state, State Auditor Ralph Campbell said in the report's summary.
``I appreciate the relentless thoroughness that your staff exhibited in pursuit of their task,'' Edmisten said in his written response to the report. ``You can be sure that they left no stone unturned.''
The audit criticizes Edmisten for using department employees as drivers and ``advance men'' for out-of-town trips; for using a state vehicle to drive Edmisten and Rosemary McBryde, the daughter of a family friend, to various locations; for unduly using his influence to get McBryde a state job; and for using state employees to install cabinets at McBryde's home and to do yard work at his home.
Other findings criticize Galen Newsom, the chief investigator for securities, for using his ``blue light,'' a law enforcement light on his dashboard, to stop a vehicle. He also is criticized for asking two employees for a cash contribution to Edmisten and for taking his state car to political events.
The report questions why the department paid for college courses on western civilization, microeconomics and Spanish for a receptionist. Edmisten, in his response, says the courses were necessary for her work.
The office is not in compliance with state rules on payroll, expenses, hiring and record-keeping, the audit said.
During the audit, the secretary of state's office discovered that an employee had embezzled $150 Aug. 1, and may have embezzled more. The employee was fired, and the audit says evidence of the embezzlement has been turned over to the Wake County district attorney.
Easley received a copy of the audit report Thursday to consider whether criminal charges were warranted.
``I am extremely disturbed by the findings in this audit,'' Easley said in a prepared statement several hours after the report was released. ``I have requested SBI director Jim Coman to initiate immediately a complete investigation into any possible criminal violations raised by the audit.''
The SBI report will be sent to the Wake County district attorney when the investigation is completed.
``I also have instructed my staff to help the state auditor insure that the state obtains full repayment for all misuses of state property identified in the audit,'' Easley said.
Edmisten announced Tuesday that he will not seek re-election next year. He said he will work during the final year of his term to fix the major problems outlined in the audit, and he took full responsibility for the problems.
He also implied at Tuesday's news conference that other agencies would look just as bad if subjected to as intense an audit.
Campbell, at a news conference Thursday, disputed that.
``From my experience in state government, which is about 18 years now, I would say it is not typical of what you see in state offices,'' Campbell said of Edmisten's office.
The audit report recommends a complete reorganization of the office to clarify the lines of authority, eliminate duplication and enhance performance.
Campbell said the state invested about 5,100 hours of time in conducting the audit. He said a conservative estimate of the cost to the state would be $40 an hour, for a total cost of $204,000.
Asked if Edmisten was capable of cleaning up the office in the next year, as he wants to do, Campbell replied, ``That's going to be a challenge. That's going to have to be a decision that rests entirely with the secretary of state.''
Campbell, a fellow Democrat who sits with Edmisten on the Council of State, said the audit report shows that the constitutional system of checks and balances works. But he said it was not easy.
``This is one of the most sensitive issues that this department or I have had to face,'' Campbell said. ILLUSTRATION: ASSOCIATED PRESS color photo
State Auditor Ralph Campbell leaves a new conference after answering
questions about his audit of Secretary of State Rufus Edmisten.
by CNB