Bryant Fails Accountablility Test In Beef Plant Fiasco

In a press conference held today, State Rep. Jamie Franks, Democratic nominee for Lt. Governor, exposed State Auditor Phil Bryant's role in the 2004 failure of the Mississippi Beef Processors program which cost the taxpayers of Mississippi over $54 million dollars.

Friday's sentencing of project CEO Richard Hall to eight years in the federal penitentiary as a principal player in the beef plant debacle brings into focus the serious lack of responsibility the State Auditor demonstrated during the two years he was directly associated with the program.


PR OPPORTUNITY TRUMPS INVESTIGATIVE RESPONSIBILITIES

Accounting standards are clear: when official auditors are assigned to a case, they are required to report to the proper authorities any problems they encounter, especially those that appear to be criminal.1

"When it became certain that criminal activity had taken place, Bryant recklessly announced his investigation before the media2 without alerting or cooperating with the other investigative authorities. In so doing, he demolished the potential for a criminal case that would have punished everyone responsible for the debacle and recovered millions in damages for the state," Franks said.

"But Bryant, with complete disregard for proper protocol, chose instead to use the disaster as a publicity stunt. While the full extent of the loss can never be known, Bryant's lapse of common sense and professional conduct cost the state millions in unrecoverable damages and ensured any other responsible parties, aside from Richard Hall, would never be brought to justice by the state," Franks said. "In Saturday's editorial, the Clarion-Ledger asked why.3 Here is their answer."

"Despite having ruined the state's efforts to apprehend others involved in the fiasco, Bryant is still pretending that his investigation may result in indictments,4" Franks said. "He knows this is not true."

BRYANT KNEW FROM THE BEGINNING

"Although the State Auditor has been eager to keep the finger of blame pointing at others, in fact he bears a large responsibility for the failure of Mississippi Beef Processors and its cost to the taxpayers of Mississippi," Franks said.

"Phil Bryant and two of his staffers were present at a closed-door meeting in April of 2002, when concerns over the program's financial problems were aired5," Franks said. "It was Bryant's duty as State Auditor to investigate those problems and share them with the Legislature. If he had done his job early in the game, the whole disaster could have been avoided. But he did nothing."

CHOOSES TO MONITOR INSTEAD OF ASSIST

In early March 2003, Bryant's office was allocated $50,0006 to assist the Land, Water and Timber Resource Board with the administration of their various projects, the largest of which was the beef plant. The Legislative intent of that bill was for the Auditor to help the board, not watch its actions from afar.

Instead of employing his accountants to sort out the financial aspects of the project, Bryant assigned it to his Performance Audit Division7 for monitoring.

Bryant produced carefully crafted, encouraging reports to the Legislature8 until it became public knowledge that the project was in shambles. Once the plant fiasco became talk radio fodder, just a few weeks before it went under, Bryant finally issued a report exposing financial problems with the project.9"

"Mississippi taxpayers are not financial experts. They employ a team of professional accountants to oversee our investments and protect our money – the State Auditor's Office," Franks said. "Bryant had a staff of accountants and $50,000 at his disposal. It's not as if he didn't have the resources to look at the plant's finances. He simply didn't do his job."

By the time the plant collapsed, Bryant had only spent $10,00010. When asked about his accountability, Bryant took offense that Legislators were daring to question the timeliness of his reports in early 200511.

DOESN'T DESERVE PROMOTION

"The fact is, Bryant's failure to do the job to which he was elected has cost Mississippi millions of dollars in this one project alone," Franks said. "We simply cannot afford to elevate him to an office that oversees the entire budget of the State of Mississippi."

Jamie Franks, the Democratic nominee for Mississippi's Lt. Governor is a member of the Mississippi House of Representatives from the 19th House District, representing Lee, Itawamba, and Tishomingo counties. He currently serves as the Majority whip and Chairman of the Conservation & Water Resources committee.