What you need to know before the House inquiry into Swadley's-Tourism deal starts Thursday
A House Special Investigative Committee on Thursday will open its inquiry into the deal currently under a criminal probe between the Oklahoma Tourism and Recreation Department and Swadley's Bar-B-Q.
The public meeting will stream live on the House website, www.okhouse.gov, starting at 11 a.m. from Room 206 of the state Capitol.
The committee was ordered by Oklahoma House Speaker Charles McCall, R-Atoka, to investigate potential misuses of taxpayer funds through a one-of-a-kind vendor agreement with Swadley's, which developed and operated Swadley's Foggy Bottom Kitchen cafes at six state parks from summer 2020 until last month.
The 15-member, bipartisan committee will review circumstances surrounding the deal, which gave Brent Swadley generous terms and extraordinary power that raised questions with legislators.
More: Foggy Bottom breakdown: Staff left stranded as legislators call for tourism director's job
Why is Swadley's being investigated?
A March report from the Legislative Office of Fiscal Transparency, which questioned the contract and showed sloppy accounting, triggered an Oklahoma State Bureau of Investigation probe. The tourism department announced it canceled its contract with Swadley's due to "suspected fraudulent activity" and subsequently filed a breach of contract suit against the company.
“Basic facts and finances are the focus of the committee’s first meeting," said Edmond Republican Rep. Ryan Martinez, who chairs the investigative panel. "A refresher on LOFT’s findings and testimony from the executive budget agency about its observations will lay the foundation for the committee to begin digging deeper."
LOFT Executive Director Mike Jackson is scheduled to speak to the panel on Thursday, along with Brandy Manek, state director of budget, policy and gaming compliance.
“We intend to get a full explanation for the taxpaying public,” McCall said when he announced the investigative committee.
The committee began gathering documents and records to prepare for upcoming testimony, which will be given under oath.
“The contract alone reeked from top to bottom, and continuing revelations about the activities surrounding it have been even more troubling,” Martinez said. “There have been too many incomplete, inconsistent answers to legitimate questions about how millions of tax dollars were spent.”
How much did the Foggy Bottom Kitchen contract cost?
The state has paid Swadley's about $16.7 million in management fees and reimbursements since the deal was struck, according to the LOFT report. State records show charges often lacked receipts and emails. Text messages obtained by The Oklahoman raise questions about potential overcharges that were ultimately footed by taxpayers.
“Our goal isn’t finger-pointing. Our goal is determining what happened and providing solutions to restore trust in the agency so the tourism sector can continue moving forward,” said committee Vice Chairman Rep. Jeff Boatman, R-Tulsa. “Sustaining and growing Oklahoma’s vibrant tourism sector cannot occur with a cloud hanging over this agency.”
At the conclusion of Thursday's proceedings, the committee will determine and announce the next steps, according to McCall's office.
Oklahoma Tourism and Recreation Department director resigns
The Tourism and Recreation Department was led into the deal by then-Executive Director Jerry Winchester, who was appointed by Gov. Kevin Stitt in 2019, and his deputy director Gino DeMarco. Martinez has previously indicated he intends to speak to former department staff.
"We have every intention of bringing former employees and current employees before our committee and asking questions," he said.
An investigation by The Oklahoman showed DeMarco, who still serves on the Oklahoma Health Care Authority Board, also purchased and sold property less than four miles from the site of a new marina the agency finished last May on Lake Murray.
"This is gonna be something that we're gonna be asking about (in the hearings)," Martinez said in response to the reporting.
Last week, the state Tourism and Recreation Department announced it is seeking a new business partner to take over the restaurant spaces left vacant after the agency canceled the Swadley's Foggy Bottom Kitchen deal. The deadline for bids is June 17.
More: Swadley's whistleblower alleges overcharges, excessive fees in Oklahoma tourism deal
Special House Investigative Committee
• Rep. Ryan Martinez, R-Edmond, chairman
• Rep. Jeff Boatman, R-Tulsa, vice chairman
• Rep. Meloyde Blancett, D-Tulsa
• Rep. Andy Fugate, D-Del City
• Rep. Jim Grego, R-Wilburton
• Rep. Justin Humphrey, R-Lane
• Rep. Gerrid Kendrix, R-Altus
• Rep. Nicole Miller, R-Edmond
• Rep. Jim Olsen, R-Roland
• Rep. Mike Osburn, R-Edmond
• Rep. John Pfeiffer, R-Orlando
• Rep. Jay Steagall, R-Yukon
• Minority Leader Emily Virgin, D-Norman
• Rep. Kevin West, R-Moore
• Rep. Danny Williams, R-Seminole
Links
•Tourism official's land buy near Lake Murray State Park happened amid park improvements
•Oklahoma seeks new operator for state park restaurants after Swadley's scandal
•Oklahoma House to investigate Swadley's, tourism deal as failed fire inspection surfaces
•Oklahoma tourism leader resigns, state files lawsuit against Swadley's after parks deal
•Foggy Bottom breakdown: Staff left stranded as legislators call for tourism director's job
• DA requests forensic audit in Swadley's deal with Tourism as part of criminal probe
• Legislators grill Oklahoma Tourism director over Swadley's contract at state parks
• Was Swadley's state parks deal with Oklahoma too lucrative? We dive into records
•Swadley's whistleblower alleges overcharges, excessive fees in Oklahoma tourism deal
• Gov. Kevin Stitt vows to get to the bottom of Swadley's scandal, recoup any misspent money
This article originally appeared on Oklahoman: A deal between Swadley's Bar-B-Q and Tourism has sparked a House inquiry
