The More Things Change, The More They Stay the Same

AZ DES

The ongoing “Chinese Wuhan Virus” lockdown provides us plenty of time to think and consider significant Arizona events today and over the past few years. Consequently, it was more than a bit of shock to see the Arizona Republic by way of Craig Harris, their chief poison pen, finally investigate and report on the questionable ethics and integrity of Kirk Adams, the former Chief of Staff and Machiavellian muscle for Governor Doug Ducey. Even for the unbelieving, the rightly unfavorable reporting on Kirk Adams highlights that miracles do happen for those who do not expect it.

https://www.azcentral.com/story/news/politics/arizona/2020/04/22/former-ducey-chief-staff-kirk-adams-helped-clients-do-business-with-arizona/4860991002/

Rarely do we highlight the reporting of the Arizona Republic, but the linked article is a must-read for anyone who pines for a bright light to showcase the insidious dealings in the Arizona state government swamp as perpetuated by the Ducey Administration. Not surprisingly, the investigative piece by Craig Harris outlines that Kirk Adams may have resigned as Ducey’s Chief of Staff well over a year ago, but Adams continues to engage, support and shadow the Administration that many Capitol insiders still feel he puppets in various unethical ways. In short, Adams still looms large over the Ducey Administration. It makes us skeptics and cynics wonder “What does Kirk know?”

Hacienda Healthcare Rape Scandal

The recent reporting on Adams leads us to consider the return from retirement of Director Tom Betlach, the former director of Arizona Health Cost Containment System (AHCCS) to the state government machine as the still-new “interim” director of Arizona Department of Economic Security (ADES). Among the many things the Arizona Daily Independent can find issue with Director Betlach’s long tenure as AHCCS director, we note Director Betlach’s failure to decisively deal with Hacienda Healthcare and ably manage the HEA Plus medical and social services eligibility system.

The ongoing saga and failures of the Hacienda Healthcare (“Hacienda”) Rape Scandal have been widely reported throughout Arizona, America and even the United Kingdom. More than a year after the horrific revelations about sexual abuse and below-standard healthcare at Hacienda, it begs the questions, “Why has ONLY the rapist of the defenseless San Carlos Apache woman been charged criminally?” and “How and why is Hacienda still in business?”

Related:

Nurse arrested for allegedly raping helpless Hacienda woman

Timmons Resigns From Hacienda, Previous Cover-Ups Alleged

Why did the state ignore warnings leading to rape of unconscious Hacienda patient?

These questions and related matters are particularly stark since former DES Director Tim Jeffries commenced confidential efforts to close the politically connected Hacienda in 2016 (unbeknownst to Jeffries at the time, his final year as a highly respected member of the Governor’s Cabinet). This good government initiative took place almost five years ago was further solidified at the time by Jeffries tasking former Chief Law Enforcement Officer Charles Loftus to partner with the Arizona Attorney General’s Office to open a criminal investigation into alleged financial fraud by Hacienda and their officers. Approximately one month after the Hacienda criminal investigation was finally opened Jeffries, Loftus and the DES Inspector General Juan Arcellana were ousted the day before Thanksgiving on November 23, 2016. They were then smeared one week later with what Jeffries continues to call “guns and ammo fake news” that was now quite ironically fed by Kirk Adams and his team to Craig Harris at the Arizona Republic.

HEA Plus, $250 Million and Counting

Another dark shadow of mismanagement that covers the Ducey Administration and Director Betlach, (the “interim” replacement for the feckless former Director Michael Trailor, the make-zero-waves replacement to the bureaucracy wrecking ball that Jeffries was as he unabashedly attacked fraud, waste and abuse throughout the calcified DES bureaucracy) is the still significant issues revolving around the HEA Plus medical and social services eligibility system (“HEA Plus”). In March 2017, ADI reported that the targeted two-year project at the taxpayer expense of $47 million had ballooned to a five-year $142 million taxpayer-funded technical debacle (a full three years ago).

Related:

Jeffries Details Failures Of HEA Plus, Arizonans Wrongly Denied Medicaid Benefits

Failures Of AZDES System HEA Plus Leads To $142 Million Wasted Taxpayer Funds

Ducey Shuts Down Testimony By Jeffries, Loftus On DES Debacle

Based on comments from DES insiders, the HEA Plus system continues to operate at a substandard level and estimates are the vendor SIS LLC has billed Arizona state government over $250 million largely offset by Federal government tax dollars (and let’s never forget those are our hard-earned tax dollars). This purported price tag of a QUARTER OF A BILLION DOLLARS and counting does not include internal estimates of $150 million in DES and AHCCS employee time and materials. What adds to the abject travesty of wasted of hard-earned taxpayer dollars (especially with our country now suffering a recession catalyzed by the Chinese Wuhan Virus) is that AHCCS under Director Betlach’s leadership did not sign the vendor SIS LLC to an actual contract clearly outlining project benchmarks, performance measures and non-performance claw backs. SIS LLC was signed to a time and materials purchase order which is the layman equivalent of “Go to work and send us your bills.”

Director Betlach

Director Betlach, a cabinet darling of both the Governor and Adams, remains a significant (though unreported until now) common thread in the international scandal surrounding Hacienda Healthcare and the 8 year $250 million odyssey with SIS LLC, the small Denver firm awarded tasked to build an enterprise-wide software system. After Betlach surely aided and abetted the squashing of the criminal investigation of Hacienda in favor of civil litigation and his years of staunchly defending the HEA Plus platform and vendor it remains a big mystery to ADI that Betlach has remained publicly unscathed, let alone was rehired as an apparent savior for the very DES that he looked down on from his lofty heralded AHCCS perch.

The fact that the State has aggressively fought in State courts the release of potential evidence regarding Hacienda Healthcare and the HEA Plus that Jeffries and Loftus feel will provide insights into why their good government efforts were crushed and maligned leads ADI to surmise there is much, much more to this unfolding story.

Related:

Jeffries Files Notice Of Claim Against State For False DPS Statements In DES Audit

Loftus Files Notice Of Claim For False Statements In DPS DES Audit

 Jeffries, Loftus Fight Against State Corruption Advances In Court

Kirk Adams

We have previously reported that Kirk Adams asked Jeffries to resign the first time on October 20, 2016 when Jeffries was expanding his Governor-supported attacks on fraud, waste and abuse throughout DES and Arizona. In fact, Jeffries and the DES law enforcement team led by Charles Loftus was hot in the investigative pursuit of another member Arizona House of Representatives who was financially exploiting an elder parent. Jeffries refused to resign, the Governor retained him, and Adams killed the DES Adult Protective Services investigation of the offending member of the Arizona House.

Ever the man behind the dark curtain of state machinery and the sordid swamp of State government, Adams was incensed that Jeffries was not terminated then. He was further incensed when Jeffries refused to relent from his pursuit of good government initiatives even though Adams with the Governor’s approval had stripped Jeffries of his ability to terminate problem employees.

Related:

Rep. Cecilia Velasquez Indicted For Suspected Food Stamp Fraud

Audit Finds DES Vocational Rehab Needed Reforms Jeffries Sought

The mainstream media led by Craig Harris at the Arizona Republic reveled in the public feeding frenzy on the sensational and malicious leaks proffered by Adams and others in the Ducey Administration. Then and now, Jeffries does not hesitate to call the 33 days prior to his sensational ouster on 11/23/16 as a “The Manufactured Crisis” designed to kill his efforts to root out fraud, waste and abuse. The “DES guns and ammo nonsense” as Jeffries and Loftus are apt to call it was shared with the Arizona and national press a full week after their ouster in an effort to “make them radioactive” thereby undermining and ultimately crushing all their reforms and reform initiatives.

Related:

DPS Changing Stories On DES Report Defy Logic And Interim Inspector General’s Claims

DES, DPS Investigation Details Documented By Many

DPS Audit Of DES Raises Questions, Provides Few Answers

DES Details Drip Out To Contradict DPS Audit

Initial DPS DES Report Shows “Average” Munitions, Weapons

 Ducey Admin Delays Delivery Of DPS DES Report

It is no wonder that the Ducey Administration has authorized and expended close to ONE MILLION DOLLARS in external legal fees to fight Jeffries and Loftus quest to secure information and evidence regarding fraud, waste and abuse with Hacienda Healthcare and HEA Plus. The management role of Director Betlach played as the AHCCS Director in the genesis and evolution of these two government sins are known. How deep his engagement with and orchestration of these two failed vendors is still unknown. The actual involvement and orchestration of Kirk Adams is nowhere close to being fully know and exposed in these matters. If the State prevails in their aggressive defense against Jeffries and Loftus more than likely the general public will never know what strings Adams pulled and why those strings were pulled so hard to the detriment of taxpayers, particularly the defenseless San Carlos Apache woman at Hacienda.

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