Lawyers eye investigation of program

OKLAHOMA CITY (AP) -- Two lawmakers said Thursday they will push a House investigation, possibly issuing subpoenas, to get the facts about a welfare-to-work program criticized in a recent state audit.

Reps. Randall Erwin, D-Nashoba, and Jack Bonny, D-Burns Flat, urged Auditor and Inspector Clifton Scott to speed up an investigation of the program, administered through the Oklahoma Employment Security Commission.

Bonny said Scott's initial audit showed money is being wasted as result of a contract with Industry Exchange Inc. He said problems need to be corrected or Oklahoma's federal funds for such programs could be in jeopardy.

Among other things, state auditors said contracts under the program were being awarded without required competitive bids.

The program is designed to secure jobs for hard-to-employ welfare clients and noncustodial parents.

Auditors looked at four contracts and found problems with two subcontracts IndEx had with the Oklahoma Juvenile Affairs and the Tulsa Housing Authority.

Tulsa-based IndEx contracts with local companies to provide light manufacturing and packaging work. In exchange for their welfare benefits, participants spend half the day in an education program and the other half working.

Auditors said IndEx was paid $415,460 to help 220 welfare recipients find jobs, but only 27 people were served and jobs were found for only three, not counting three workers hired by IndEx.

That translates to $138,487 per successful participant, said Bonny, vice chairman of the House appropriations committee.

"When it takes almost $140,000 in public funds to train and place in a job a single disadvantaged worker, something's very wrong," he said.

Erwin said he's been concerned about the program for years.

The two legislators had previously criticized Gov. Frank Keating for underusing federal jobs funding.