Panel says Fletcher signed off on plan to violate hiring laws

Gov. Ernie Fletcher approved a "widespread and coordinated plan" to skirt state hiring laws so political supporters could be rewarded with jobs, according to a special grand jury report released Wednesday.

The scheme, dubbed the "Governor's Personnel Initiative," was designed by Fletcher administration officials and approved by the governor himself, the Franklin County special grand jury said in its report. Those within the administration who interfered were either "fired or moved," the report said.

"We find the evidence shows a systematic abuse of the merit system by engaging in widespread political patronage through the appointment, promotion, demotion, transfer and dismissal of merit employees based on politics," the grand jury found.

Fletcher, in Japan on an economic development mission, released a statement shortly after the grand jury report became public, saying it contained "the same old stuff." Spokeswoman Jodi Whitaker said Fletcher had not seen the report but had discussed it with his lawyers.

Whitaker read a prepared statement on Fletcher's behalf.

"Given that the prosecutors have dropped all charges, the document reads more like a savvy litany of political sound bites rather than a legal document of purported evidence," Fletcher said in the statement. "Under normal circumstances, I would vigorously object. However, it is best for the commonwealth that this chapter is concluded."

Franklin County Circuit Judge Reed Rhorer released the report following a closed-door meeting with Fletcher's attorneys and prosecutors. Prosecutor Scott Crawford-Sutherland said the special grand jury's term ended on Wednesday.

During its investigation, which began in June 2005, the grand jury returned 29 indictments and charged Fletcher with criminal conspiracy, official misconduct and political discrimination. Fletcher's charges were later dropped after an agreement with prosecutors. Fletcher issued a blanket pardon for everyone in his administration, other than himself, who could have faced charges stemming from the investigation.

Attorney General Greg Stumbo, whose office assisted the grand jury with the probe, has said prosecutors agreed to the dismissal of Fletcher's charges because they did not believe he would have ever stood trial. A court order had declared Fletcher could not be tried while in office.

"He has the power to pardon himself and we felt like that he would do so before he left office," Stumbo said at the time.

Stumbo was unavailable for comment Wednesday, his spokeswoman said.

Fletcher, who has announced he is seeking re-election next year, has maintained the investigation was politically motivated. Fletcher has blamed the investigation on Stumbo, one of his potential Democratic gubernatorial challengers. Stumbo has said he expects to make a decision by December on whether he will run for governor.

However, the grand jury disputed the notion it was motivated by politics.

"We heard several times that this investigation was 'political,'" the grand jury said. "It was only political to the extent that Governor Fletcher took something that should remain non-political (the merit system) and created his own political patronage machine."

The grand jury said candidates seeking new jobs or promotions were hurt by the scheme.

"People were wrongfully fired and demoted. Others were transferred to distant locations to pressure them to retire or resign. People less qualified were hired simply because they supported Governor Fletcher financially or politically," the report said.

Kentucky's Merit System was created in 1960, designed to insulate state civil service employees from politics. State law says personnel decisions within the system are supposed to be based on job candidates' qualifications, not politics.

But, certain administration officials were told to ensure Fletcher's political supporters were hired for such jobs, according to the report. That would ensure that if Fletcher was not re-elected "there wouldn't be as many Democrats in state government," the report said.

Many times, Fletcher's supporters were put in jobs and paid more than what was normal, the grand jury found.

"In some cases, the administration had to raise the pay of other state workers because of salaries given to political supporters," the report said. "We view this as waste, fraud and abuse of the highest order."

Charles Wells, executive director of the Kentucky Association of State Employees, called the report "dead on."

"In the 18 years that I have been on this job, I have never seen the blatant abuses of the merit system laws that I have seen with this administration," Wells said. "And the worst part was it wasn't that they didn't know the law. They ignored the law."

Administration officials ignored internal warnings about the legality of what they were doing, the report said. Those who raised questions were told to "get on the same team or if they didn't like it they could leave," according to the report.

Crawford-Sutherland said the grand jury report "speaks for itself."

"This report is not the attorney general's report. It's not the court's report. It's not the governor's report," he said. "It is the people's report, and they will now have an opportunity and they have a right to know what has been going in their government and today they will have that opportunity."