Davis accuses some DOT commissioners of 'self dealing'

COLUMBIA -- A senator pushing for accountability at the state Department of Transportation on Wednesday told the Senate that two commissioners own or work for companies doing business with DOT and that a Senate leader has an interest in a firm that has reaped millions since 1993 from work with the agency.

Sen. Tom Davis attributed most of his allegations to news articles and said he was not accusing anyone of violating the law or even ethics violations. But he said they were examples of what can happen with a lack of accountability.

"There are instances of what I consider to be self dealing in the commission that this body needs to be aware of," Davis said.

But the two commissioners Davis named, John Hardee and Mike Wooten, told The Greenville News what Davis is alleging is not true

Davis read a story that said Wooten's Myrtle Beach engineering firm has millions of dollars in contracts with local agencies that receive funding from and rely on relationships with DOT.

"My firm has never worked for SCDOT, ever," Wooten said. "We do a lot of work for Horry County. We do a lot of work for Myrtle Beach. But my firm is not qualified to do work for SCDOT."

He said subcontractors have to have their books reviewed regularly by DOT and be set up so the agency can be measured for overhead.

"I never could figure out how to make money with DOT because our firm is so lean," he said. "We do work for private developers and you can't have a bunch of overhead working for private developers. I've never sought DOT work, ever."

Under the RIDE program, which he said is paid for by local penny sales tax programs, work is sometimes managed by DOT and his firm has participated in that. But he said none of the money comes from DOT or federal funds.

"I don't plan ever to do it," he said of working with DOT. "That is not in the business plan for my business."

He said he has sometimes helped clients who have applied for encroachment permits with DOT but has withdrawn from any that may be controversial because he did not want his position influencing such a permit's award.

Davis later said Wooten represented a company that received payments from DOT.  But Wooten said he isn't familiar with the company named by Davis.

Davis alleged that Hardee works for the outdoor advertising firm Lamar Advertising, which he said has a contract with DOT for interstate logos.

Hardee, who is legislative liaison for Lamar Advertising, said his firm does not do work with DOT.

He said an entity started by the Lamar family, Interstate Logos, has a contract with state procurement for the blue sign program on interstates signaling businesses at exits. But he said he has had nothing to do with that program or contract, which he said was initiated before he became commissioner.

"I don't know what he is talking about," he said of Davis.

DOT Commission Chairman Woody Willard, who represents Greenville and Spartanburg Counties, said he is not aware of any conflict of interest situation that has existed with a commissioner since he became a commissioner four years ago.

He said a change in the law last year prevents commissioners from approving any DOT contract. He said the job of the board is with policy matters, not day-to-day operations.

"I'm glad the commission is not approving contracts because that put the commission in day-to-day activities," he said.

Davis said he is not saying Wooten or Hardy has done anything illegal but he thinks such ties are wrong.

He also read an article that said a company, Florence Concrete, has done $30 million in DOT work between 1993-2013 and that Senate President Pro Tempore Hugh Leatherman has an "equity interest" in the firm.

Leatherman, who also chairs the Senate Finance Committee and sits on the state Infrastructure Bank, did not respond to Davis' statements.  A spokesman later told The News that Leatherman had no comment.  A spokesman for Florence Concrete could not be reached for comment.

DOT Secretary Christy Hall said contracts for concrete are awarded in a low-bid process.

Davis proposed an amendment that would prohibit conflicts of interest by commissioners or their family members, banning involvement in contracts, the selection of consultants or having any interest in a company that does business with DOT directly or indirectly. Some of his proposal was already enacted by the Senate Tuesday evening in another amendment. But Davis expanded the idea to include extended family members of commissioners.

The Senate tabled Davis' proposal 26-16.