Texas Dept of Health and Human Services Scandal Unfolds – Janek Twisting in the Wind

The Austin American Statesman reports that an investigation into the no-bid contracting scandal at the Texas Department of Health and Human Services is critical of Commissioner and former State Senator Kyle Janek.  Janek, appointed by Perry, has watched as the agency he directed has come under assault for awarding multi-million contracts to unqualified companies with connections to former HHS General Counsel Jack Stick – who along with 2 others has already resigned.   Janek is also under investigation for his award of tuition grants to seemingly unqualified recipients.  The main focus is the agency’s contract to 21CT – an untested company awarded a lucrative contract without competitive bidding.

The multimillion-dollar, no-bid state deals with Austin tech firm 21CT “skirted the limits” of the law and was a “policy fiasco” that illustrates the need for changes in the leadership structure at the Health and Human Services Commission, according to a report released by the governor’s office Monday.

A so-called strike force assembled by Gov. Greg Abbott conducted 50 interviews and found the Medicaid fraud deal with 21CT was pursued by state officials who “exercised judgment so poor that it put HHSC’s credibility at risk.”

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