April 28, 2022 video. Rep. Ryan Martinez speaks about ongoing investigation.
Oklahoma House appropriations chair Rep. Ryan Martinez, R-Edmond, said the Legislature will be seeking accountability after a possibly fraudulent state contract was canceled.
The Oklahoma Tourism and Recreation Department canceled its contract with Swadley’s Bar-B-Q due to “suspected fraudulent activity and questionable business practices."
A March 25 Legislative Office of Fiscal Transparency report showed the vendor was paid nearly $17 million to operate Foggy Bottom Kitchens in seven parks. That covered management fees, annual losses and amounts to renovate and operate the properties.
The restaurant opened its first four Foggy Bottom Kitchens in 2020 and two more the following year. A seventh planned location was canceled.
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A whistleblower spoke to the Oklahoman with allegations of excessive management and consulting fees, over charges on items and possible kickbacks. Questions surround the terms of contract, which differ from previous ones.
"I've had whistleblowers reach out to me — how people are trying to throw their influence and power around," Martinez said.
This led to a formal request for a forensic audit from Oklahoma County District Attorney David Prater to the State Auditor and Inspector’s Office.
A special 15-member House committee will be formed to investigate potential misuse of taxpayer funds, officials said. The committee's meetings will be public.
“If there’s a vendor out there or there’s a contract that this contract or this vendor is not performing correctly, or overcharging the state, we will find that out, we will terminate that, we will sue that vendor, and we will get the taxpayers’ money back,” Gov. Kevin Stitt said just before the contract was canceled.
“If there’s someone in state government who is not doing things the right way, I want to shine a light on any kind of corruption or anything that’s going on in state government. So we will get to the bottom of it, and we’ll find out if there’s a bad vendor.”
Stitt said Thursday in a statement that he has "called for more audits than any other governor in state history"
The governor said he welcomes the Legislature's efforts to "protect the taxpayers and shine a light on any kind of corruption or bad actors involved in state government."
“The state does business with more than 4,600 companies, and I welcome a review of each one to provide maximum transparency for Oklahomans," Stitt said.
Martinez said Thursday the goal is to weed out bad actors to ensure taxpayers have faith in the state tourism agency.
