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Reported Shredded State Documents Seized

CHP Undertakes Investigation

POSTED: 5:50 p.m. PDT May 2, 2002
UPDATED: 11:43 a.m. PDT May 3, 2002

Reports of document shredding at the California Department of Information Technology prompted a California Highway Patrol investigation and the seizure of a large trash receptacle by Department of Justice agents, adding new intrigue to a growing Capitol scandal over a software contract with the Oracle Corp.

State Trash Bin Seizure

The growing scandal prompted Republican calls for the U.S. Attorney's Office to step in. They want an investigation into a six-year, $95 million software contract with Oracle. A state auditor said that the contract could cost taxpayers millions of dollars.

Republicans turned up the heat, accusing Gov. Gray Davis of stonewalling the investigation that could prove embarrassing to his administration.

"Any attempt to hide the truth about the details of this ongoing scandal are simply unacceptable. It's obvious that political forces would rather see this matter swept under the rug," Assembly Republican Leader Dave Cox said.

Cox based his accusations on remarks made by a key Democratic lawmaker to the San Jose Mercury News, saying Davis administration officials were pressuring him to back off on the Legislature's investigation. A member of the investigative panel echoed that account.

"The Joint Legislative Audit Committee, I know, is being pushed behind the scenes to not look into it," Sen. Ray Haynes, R-Riverside, said.

State Capitol

But on Thursday, the head of that committee, Dean Florez, would not confirm the statement, while acknowledging he's dealing with a very hot potato.

"Everywhere throughout the Capitol, I'm hearing people saying, 'go forward with the hearing.' I've heard people say, 'don't go forward with the hearing,'" Florez said.

The administration said that it wants to have a full and open investigation.

"I think the administration, thus far, has produced every single person the committee wants to produce and talk to," Florez said.

"There's been absolutely no attempt to stonewall, slow down. We are cooperating fully," Davis' spokesman Steve Maviglio, said.

Republicans also called on Attorney General Bill Lockyer to step aside from his investigation, suggesting that he has a conflict because of Oracle contributions. Nathan Barankan, a Lockyer spokesman, angrily denied that.

"There is no conflict of interest. All there is is the law. If Assemblyman Cox would like to try to insult the integrity of the 5,000 people who work at the Department of Justice, he's more than welcome to do that," Barankan said.

The scandal, which the state auditor says could cost taxpayers $41 million, has already claimed two jobs. Barry Keene resigned last week as head of General Services and Arun Baheti quit Thursday as the governor's director of E-Government.

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