Innovation Ecosystem

“Backfield in motion”

An investigation by the Attorney General into the contracting practices of Gov. McKee finds big problems but not enough evidence of “quid pro quo” to indict

Photo by Richard Asinof

Attorney General Peter Neronha held a news conference on Wednesday morning, Oct. 30, to answer questions from the news media about his decision not to bring charges against Gov. Dan McKee for what the Attorney General called his "ham-handedness" in his alleged involvement in orchestrating the outcome of a $5.2 million contract with ILO.

By Richard Asinof
Posted 11/4/24
Attorney General Peter Neronha makes public the results of his investigation into the controversial contracting by the state with ILO – and the reasons for not bringing criminal charges against Gov. McKee.
What is the nature of the ongoing relationship between the state of Rhode Island and Chiefs for Change, whose members have been regularly chosen to serve as leaders of the state’s public education system? When will the city of Providence and the city of Central Falls regain control of their public education system? Will the General Assembly move expeditiously to write new laws to protect against bid-rigging by the Governor? What is the relationship between the chronic lead poisoning of children in Providence and low scores in standardized testing? What is the role that Partnership for Rhode Island, a roundtable of the CEOs of Rhode Island’s largest private companies, is playing in state contracting of services?
There is a not-so-hidden media narrative at play in Rhode Island when it comes to the biased role being played by Gene Valicenti, the morning anchor at radio station WPRO and TV anchor at WJAR Channel 10, promoting the agenda of Gov. Dan McKee and as well as that of McKee’s director of the state Department of Transportation, Peter Alviti.
In addition to Valicenti, Dan Yorke, the radio talk show host on WPRO from 3-6 p.m., is an enthusiastic defender of Gov. McKee.
When Attorney General Peter Neronha released his report on the problematic contracting with ILO last week, Yorke defended Gov. McKee, saying that McKee didn’t have “a dirty bone” in his body while at the same time, attacking the integrity of the Attorney General.
The problem for Rhode Islanders is that it created a false media narrative, filled with misleading invective that seeks to exploit the fear and loathing and anxiety, creating a prejudicial platform for Gov. McKee.

PART Two

 PROVIDENCE – The 14-page report by R.I. Attorney General Peter Neronha investigating the circumstances surrounding the awarding of a $5.2 million consulting contract to the ILO group has kicked up a hornet’s nest of political intrigue. [See link to the AG’s report below.]

The report, dated Oct. 28, 2024, was prepared and signed by Neronha; Adi Goldstein, Deputy Attorney General; Stephen G. Dambruch, Assistant Attorney General, Chief, Criminal Division; and John Moreira, Assistant Attorney General, Chief, Public Integrity Unit.

On Wednesday morning, Oct. 30, in the first-floor conference room at the Attorney General’s office on South Main Street, Attorney General Neronha held court, with Goldstein and Moreira standing behind him.

The Attorney General answered any and all questions for about an hour from the news media on what the investigation had uncovered – and why the decision had been reached not to bring criminal charges against the Governor, despite serious problems with the contracting process having been unearthed

Among the reporters asking questions were some of Rhode Island’s best and brightest: WPRO’s Steve Klamkin; WPRI’s Tim White, WJAR’sBrian Crandall; WPRI’s Eli Sherman; The Providence Journal’s Kathy Gregg, Rhode Island Current’s Nancy Lavin; ConvergenceRI’s Richard Asinof, and The Boston Globe’s Edward Fitzpatrick.

The mood of the give-and-take sparring session between Neronha and the reporters was relaxed. When asked what had surprised him the most, Neronha said he had been surprised by what he called the Governor’s “ham-handed-ness” in how the contracting was handled.

Some things were predictable, such as Gregg’s penchant to keep asking questions, making it difficult for other reporters to be heard. But the Attorney General said not to worry; Neronha would stay until every reporter’s questions were answered

The Attorney General resisted efforts by numerous reporters to try to put a price tag on the cost of the effort to investigate the problematic contract, saying that it was part of the office’s responsibilities, and it was important for the public to be given a full picture of what had happened.

A recent U.S. Supreme Court decision had weakened the bribery statute, Neronha explained, making it more difficult to prove the nature of the quid pro quo in court. Further, the state of Rhode Island does not have a law on the book regulating bid rigging of contracts, something lawmakers might consider in the future, Neronha said.

ConvergenceRI asked Neronha whether the problems identified with ILO contracting process reflected a pattern of problems with the Department of Administration under the McKee administration; Neronha said that the question was outside the scope of the current investigation.

In conclusion.  
The succinct conclusion to the report read as follows: “Gov. McKee’s interference in what he and his administration purported to be a competitive and fair procurement process for the School Reopening Contract caused this Office, the Rhode Island State Police, and the public to question whether the award of the School Reopening Contract to ILO was done properly or otherwise.”

The report’s conclusion continued: “The Governor and his administration did not follow state procurement rules and regulations – the evidence of that is plain and cannot be seriously disputed. But enforcing state procurement rules is not within this Office’s responsibilities. Our job is to determine whether crimes have been committed. To that end, the evidentiary trail here was complicated, and understanding its threads and weaving them into apparent truth took considerable time.”

The report concluded by saying the Attorney General’s office was “comfortable” with what it called “the ultimate conclusion.”

  •    Yes, Gov. McKee intentionally and against the findings of an independent state review team steered a lucrative, federally-financed state contract to a company formed for that purpose by Magee’s close associate, Rafal-Baer. 
  •    Yes, Rafal-Baer, along with Magee, himself a close advisor to Gov. McKee, arranged to have SKDK provide communications services to the Governor free of charge. That said, the evidence does not establish beyond a reasonable doubt that the former was in exchange for the latter.
  •    Nor does it establish beyond a reasonable doubt that the Chiefs for Change paid for services SKDK provided to Gov. McKee free of charge for his political, personal benefit rather than for his benefit as a holder of government office. 
  •    The evidence is cloudy and contradictory in places, especially regarding the critical issue of the political versus governmental nature of the services SKDK provided the Governor, paid for by Chiefs for Change.

“But cloudy and contradictory evidence rarely if ever justifies a prosecution, and seldom leads to a successful one. We choose not to bring one here.,” the report concluded.

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