DES MOINES, Iowa (AP) - Gov. Terry Branstad reversed course and fired the director of the Iowa Department of Administrative Services on Tuesday after a former employee’s attorney forwarded emails to lawmakers that clearly show the state paid the woman for secrecy.
Mike Carroll, who was appointed by Branstad in 2011, told the Government Oversight Committee last week the testimony of former employees was untrue and no settlement agreements included money for silence. Branstad had stood behind Carroll as recently as Monday, saying he believed Carroll and not the “disgruntled” employees.
Carol Frank released emails Tuesday through her attorney showing that after she lost her job in a 2011 government reorganization, she was clearly offered additional money for her silence in a settlement agreement.
The emails, released by Senate Oversight Committee Chairwoman Janet Petersen, were provided by Frank’s attorney. They include an email dated March 6, 2013, from former DAS attorney Ryan Lamb, indicating that Lamb agrees to “offer $6,500 for additional term.”
A response from Frank’s attorney dated the next day says: “Ms. Frank accepts your offer to add the confidentiality provision for payment of an additional $6,500. Please send us a revised agreement and we will begin getting signatures.”
The response from Lamb dated March 7, 2013, said “Excellent. Will do.”
While the settlement agreement does not specifically mention money for silence, the additional amount shows up in the final agreement signed by Carroll.
Initially the settlement agreement offered Frank $70,826, but after the emails the final agreement provided $77,326. It was signed by Carroll and Frank on March 11, 2013.
Branstad called the new information deeply troubling and disappointing. In a statement, the governor said he fired Carroll because new facts “directly contradict what he told me and what he stated before the Government Oversight Committee. This is unacceptable.”
“Confidentiality provisions in personnel settlements should have never been used,” Branstad said. “The use of such provisions was wrong. Taxpayer dollars should have never been used in relation to confidentiality provisions.”
Carroll’s termination was effective immediately. Branstad named Janet Phipps the interim director of DAS.
The issue has embroiled Branstad in controversy for three weeks. He had immediately prohibited settlement agreements in the future with an executive order, but Democratic lawmakers continued to insist that he find who was responsible and take disciplinary action.
Petersen said in an interview the documents released show Carroll was not being truthful at the hearing last week and his dismissal was necessary.
“That’s just the first step. Unfortunately, I believe there’s more to the issue than just Mike Carroll, and we’re going to be digging in a little bit deeper,” she said.
She set a meeting for Wednesday and has called Michelle Minnehan, the top human resources executive at DAS and Jim Riordan, chairman of the Public Employment Relations Board, to appear before the oversight committee.
She said Branstad should ask the Iowa State Patrol to immediately secure records and that two executives who answered to Carroll should be placed on paid administrative leave “until the full extent of their involvement in these matters can be determined.”
The DAS spokesman did not immediately respond to a request for comment from Carroll.
Lamb, who now works for The Weitz Co., a construction general contractor, did not return messages.
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