Yates placed on leave

BROWNSVILLE — Cameron County Auditor Mark Yates has been placed on administrative leave with pay pending an investigation into an allegation he violated the competitive bidding process for renewing an insurance contract without approval from Commissioners Court.

The county’s state district judges met on Tuesday afternoon and made the decision after talking to Yates, County Judge Carlos H. Cascos said.

“Under the circumstances, this is probably the best thing to do at this point,” Cascos said. “The judges did say that he is innocent until proven guilty and this is for Mark’s benefit as well as for the county’s benefit.”

It was not immediately known if the county’s six state district judges voted unanimously to suspend Yates.

Robert Almon, first assistant auditor, has been appointed interim auditor and will serve in this capacity until the investigation is completed.

The charge against Yates pertain to a $1 million contract with United of Omaha Life Insurance, which he is accused of renewing without seeking bids required by law.

But, just who requested the investigation into the bidding process remained in question on Tuesday after Richard Burst, legal counsel for the county, said his office did not request the Cameron County District Attorney’s Office to review the contract, as was earlier stated by District Attorney Armando Villalobos on Monday.

“That would not be my perception. I cooperated, coordinated and talked to them, but I did not initiate the investigation. I don’t believe I initiated it,” Burst said.

Villalobos said Burst handed him a packet with some 100 pages pertaining to the insurance contract and asked him to look at it. Villalobos said it was to his understanding that Burst wanted the District Attorney’s Office to determine if any wrongdoing had been committed.

“They (police officers) are normally not handing me information for my reading enjoyment. I take any handing of information to me (from law enforcement) as meaning whether — it is expressed to me or not — (that it be reviewed),” Villalobos said.

Villalobos said his office is taking additional statements from individuals and waiting for paperwork subpoenaed from Mutual of Omaha. He added the investigation, which began in January or February, has reached the midpoint.

Cascos believes Yates’ arrest smells of county politics.

“There is no doubt in my mind that this is a political thing,” Cascos said.

Yates was arrested Monday at the county auditor’s office in the historic Dancy Building. He was handcuffed, led out of the building and transported to the Carrizalez-Rucker Detention Center in Olmito where he was arraigned on the charge. He was given a $2,500 personal recognizance bond and released from jail Monday evening.

The offense is a Class B Misdemeanor with punishment of up to 180 days in jail and a fine of up to $2,000. If convicted, Yates would be ineligible to work for any government agency for the next 10 years.

Although it was initially reported that the renewal of the Omaha Life contract in December is costing county taxpayer an extra $600,000 this fiscal year, Burst said the amount is lower than what has been reported.

“I would say $600,000 is (a) high” amount, Burst said, though he could not give an exact figure.

The contract actually renewed in September 2006, but was not realized until December after Carey S. Malek, with United of Omaha Life Insurance, made a presentation before Commissioners Court on the county’s insurance program.

“Had he not made that presentation to Commissioners Court that fateful day … nobody would ever have known it,” Cascos said. “Had he not done that, this would be a moot point.”

Although minutes from Commissioner Court meetings on July 25, 2006, and Sept. 5, 2006, indicate commissioners requested the county seek bids for the insurance contract, nobody followed through to see if it was done, said Cascos, who was not on Commissioners Court at that time.

“Why didn’t anyone follow up from that time July 25,” Cascos said. “The court failed. They should have (questioned the status).”

Yates said the insurance policy and the increase had already been in effect for 90 days by the time he received the renewal form.

The renewal took effect Sept. 1, according to an “ASO and Stop Loss Renewal Terms and Conditions” renewal form.

The county is currently seeking bids for insurance, which was initiated this month.

“Mark isn’t authorized to contract and he knows that, but I don’t think he would have done something that was an intentional misact that he was going to benefit (from),” said Cascos.

“I think what he did was try to fix something because had he not done this, potentially all the employees would be without health insurance coverage” until the Commissioners Court made a decision, Cascos said.

In a separate case, the county is trying to determine how to recoup $100,000 after the County Parks Department failed to meet a reimbursement deadline with the Texas General Land Office for a beach clean up.

The application for reimbursement was left in a desk drawer and never mailed. The county took $50,000 from the County Parks and the Road and Bridge Departments to perform the beach clean up and had expected to be reimbursed.

“Who are you going to hold accountable for that?” Cascos said.