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MD Democratic Party Requests Hogan Administration Documents on HNTB Contract Scandal

Apr 27, 2018

Annapolis, MD — The Maryland Democratic Party is demanding that Larry Hogan come clean about his administration’s dirty dealings with HNTB Corporation and today filed three Public Information Act (PIA) requests for all communications between the Hogan administration, Transportation Secretary Pete Rahn, and HNTB Corporation regarding the nearly $70 million contract the Hogan administration attempted to award to HNTB.

 

Rahn was formerly employed by HNTB  as a senior executive immediately before joining the Hogan administration. After becoming Hogan’s Transportation Secretary, Rahn failed to disclose owning shares in the company on his 2015 financial disclosure forms, then failed to disclose his sale of the shares on his 2016 disclosure. During the bid selection process, Rahn dined with a friend who works with HNTB, and later signed the waiver to expedite the selection process that awarded the construction contract to his former employer. Rahn sought an ethics review of his involvement only after the selection was made. Rahn has disclosed gifts from HNTB each year he has been Transportation Secretary, as well as a gift from Parsons Transportation Group, one of the companies included in the HNTB’s project management contract.

 

HNTB has been a major booster of Hogan’s bid for reelection.  Since November 2016, the company has donated more than $100,000 to Larry Hogan’s campaign, the Maryland Republican Party, and the Republican Governors Association (RGA)—which plans tospend big to reelect Hogan this year. Suspiciously, three quarters of the contributions made directly to the Hogan-Rutherford campaign, as well as the contribution to the Maryland Republican Party, came in between Hogan’s late September announcement of his highway tolling project and HNTB being selected by the Hogan administration for the contract several months later. HNTB had never donated to Hogan amounts that large before the project was announced.

 

“Governor Hogan and Secretary Rahn tried to sweep this scandal under the rug, but there are still many unanswered questions remaining about how and why Secretary Rahn attempted to steer a $70 million contract to his former employer,” said Maryland Democratic Party Chair Kathleen Matthews.  “The Maryland Democratic Party is filing this request because Governor Hogan must be held accountable for his administration’s mismanagement.” 

 

On Friday, Hogan admitted that Transportation Secretary Rahn and Hogan’s Department of Transportation engaged in improper procurement practicesbut failed to accept responsibility or hold his administration accountable.  Hogan cancelled the contract only hours after the Baltimore Sun Editorial Board highlighted Hogan’s failure to hold Rahn to the same standards he holds Democratic officials. 

The party filed a request with the Maryland Department of Transportation (MDOT), as well as two separate requests with the Governor’s Office.

 

The party requested the following documents from the Governor’s Office:

  • All communications between Gov. Larry Hogan/members of the Hogan administration and officials for and representatives of HNTB Corporation since 8/1/2017.
  • Calendar events for all meetings held by Gov. Larry Hogan/members of the Hogan administration and officials for and representatives of HNTB Corporation, including any lobbyists since 8/1/2017.
  • Any notes, minutes, or other documents produced pertaining to those meetings.
  • All emails sent or received by Gov. Larry Hogan or staff members in the governor’s office relating to the $68.5 million contract awarded to HNTB and other partners by the Maryland Department of Transportation.
    • This should include in particular all emails sent or received by Gov. Hogan, Boyd Rutherford, Matt Clark, Mark Newgent, or Doug Mayer containing the search term “HNTB” since 8/1/17
  • Calendar events for all meetings attended by Gov. Larry Hogan/members of the governor’s office relating to the aforementioned HNTB contract
  • Any notes, minutes, or other documents produced pertaining to those meetings.

 

The party requested the following documents from MDOT:

 

  • All emails sent or received by Secretary Pete Rahn relating to the $68.5 million contract awarded to HNTB Corporation and other partners by the Maryland Department of Transportation.
  • All communications, including email communications, between Secretary Pete Rahn and HNTB Corporation, including their representatives or lobbyists.
  • Calendar events for all meetings attended by Secretary Pete Rahn related to this contract.
  • Any notes, minutes, or other documents produced pertaining to those meetings.
  • All communications between the Maryland Department of Transportation and Gov. Larry Hogan or members of the governor’s office relating to this contract.