Mississippi critics say the Department of Human Services is still refusing to allow transparency over its secretive subgrant process, despite causing the embarrassment of the worst TANF-related scandal in the state’s history.
“I’ve had concerns about (The Department of Human Service) ever since the exposé of (millions) in misspent TANF funds,” said Rep. Omeria Scott, D-Laurel. “This money should have been used for the state’s social service safety net, and there has not been any oversight from the legislature.”
Mississippi’s ballooning scandal involves former state leaders funneling TANF cash (intended for impoverished Miss. families) to nonprofit owner Nancy New and her family members. Additional public figures mired in the controversy include NFL millionaire Brett Favre and Former Gov. Phil Bryant, who are among many accused by either state officials or private individuals of redistributing or accepting TANF money.
Critics say the process that allowed former Department of Human Services Director John Davis to use clandestine contracts to flitter away millions of dollars of public money to Republican allies and campaign supporters is still vulnerable to manipulation. The DHS subgrant manual lays out rules by which the agency pays nonprofits and third parties for services, but the manual contains no requirement for public scrutiny on how the money is spent, whether it be for investments in a pharmaceutical company allegedly in exchange for lucrative stock options or the construction of a Hattiesburg sports stadium in defiance of restrictions on brick and mortar construction. State employees can tweak contracts to deliver TANF cash to well-connected nonprofits and still retain state employment, complete with pay raises.
“We’re supposed to have an oversight committee for the Department of Human Services, but legislators haven’t even met."
Scott told BGX that state legislators are just as locked out of DHS’ contract spending process as citizens, that agencies permit no knowledge of how money is distributed. She added the state’s Republican legislative leadership appears to have no will for oversight of the Republican-led DHS.
“We’re supposed to have an oversight committee for the Department of Human Services, but legislators haven’t even met,” Scott told BGX.
Mississippians hoping for more transparency appear to be out of luck this year, too, if DHS gets its way. The Department of Human Service recently submitted its proposed amendments for 2024 to its subgrant manual, available at the Secretary of State’s website (pdf). The proposal contains no new sunlight requirements allowing public or state legislators access to the shifty mechanics of nonprofit spending.
Rep. Zakiya Summers, D-Jackson, described the updates as yet another example of Republican hubris and the consequence of one-party control in state government.
“Given the scandal and how those dollars were being wasted, I would think DHS would be taking a deep dive into how they could make their process more transparent. But I’m not really surprised because DHS is an agency that falls under the governor’s office,” said Summers. “The (Republican) governor dictates to (current DHS head) Bob Anderson how the program is set up and how they give money out.”
The rule changes are mere proposals at this point, so concerned citizens can demand an oral proceeding to be held on the proposal if “a political subdivision, an agency or 10 or more persons” submit a written request for a hearing to the agency contact person.
Special Assistant Attorney General Azande Williams told BGX in an email that readers can send requests to MDHS Chief Compliance Officer Kameron Harris at Kameron.Harris@mdhs.ms.gov, or to Harris’ mailing address at P.O Box 352, Jackson, MS 39205. Emailers may also copy Williams to their submission at Azande.williams@ago.ms.gov. However, the submission has a 20-day deadline, giving citizens only until 8/20/24 to make their demand.
Summers said she planned to write a letter as a representative of a “political subdivision,” but Scott asked state residents to ensure a public hearing by submitting their own demands within the remaining window of opportunity.
“I’m hoping that from every corner of this state the outcry will be so great that there will be hundreds of people who will insist upon a public hearing on this,” Scott said.
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