Rhode Island Gov. Dan McKee directed a $5.2 million federally funded state contract to a company formed for that purpose, although there’s insufficient evidence to bring a charge in the case, according to findings released Tuesday by Attorney General Peter Neronha.
A legal memo and related documents from Neronha mark the end of a three-year probe into the contract awarded by the state to the ILO Group, which was meant to help with school reopenings after COVID.
According to Neronha, McKee intentionally and against the findings of a state review team directed the lucrative contract “to a company formed for that purpose by” ILO Group CEO Julia Rafal-Baer, who was close to Michael C. McGee, an associate of the governor.
An email sent by Rafal-Baer on the same day the school reopening RFP was posted by the state “further supports the conclusion the procurement process was manipulated from the outset,” Neronha writes.
The email reads in part: “It’s a fixed RFP but luckily I know the person it’s fixed for [smiling winking emoji]”
Rafal-Baer and McGee also arranged for Gov. McKee to get free communication services from the political consulting firm SMDK, although Neronha said it was unclear if that was in exchange for the contract.
The probe examined whether the case involved violations of bribery and campaign finance laws.
While the state did not follow rules and regulations for procurement, Neronha said, enforcing those rules is not within the responsibility of his office.
McKee has maintained that he did nothing wrong in connection with the ILO Group contract.
In a statement Tuesday evening, the governor said, “Today’s report confirms what we’ve been saying for years. No wrongdoing took place and our priority has and will always be delivering for the people of Rhode Island. It’s unfortunate that so much time and taxpayer dollars were wasted on an effort that was always going to come up empty, but now it’s important that we all move forward and continue focusing on the issues that are impacting Rhode Islanders every day.”
John Marion, executive director of Common Cause of Rhode Island, said the findings underscore a need for more transparency in state government.
“No Rhode Islander should feel good about what they read in this report,” Marion said. “The Governor and every elected official are stewards of the taxpayer’s resources. That is why state contracts should be awarded to vendors who provide the best service to the people of the state, not to the politically connected.
“In the coming days Common Cause Rhode Island will look at whether Governor McKee may have violated other applicable sections of the Code of Ethics,” Marion added.
Investigators spoke with more than 25 witnesses. Those who declined to talk with them – “as was their right in a criminal investigation,” Neronha wrote – included McKee, his former Chief of Staff Anthony Silva, current Chief of Staff Antonio Afonso, and ILO Group CEO Julia Rafal-Baer.
Former U.S. Attorney Robert Clark Corrente, representing the ILO Group, issued this statement: “The Attorney General’s report confirmed what we have maintained from the outset: there was absolutely no wrongdoing by ILO Group or any of its personnel. We are pleased that this matter has concluded, and ILO Group looks forward to continuing its work supporting public education nationwide.”
The prosecutor also said it’s uncertain if the free communication services were for McKee’s political, personal benefit or in his role as the holder of a government office.
While the evidence is cloudy and contradictory in places, Neronha wrote, such evidence “rarely if ever justifies a prosecution, and seldom leads to a successful one.”
This story has been updated with comment from Gov. McKee and John Marion.
