Past ties raise ethics issue
Past ties raise ethics issue

By Tony Thornton and Michael McNutt Comments 3
Published: February 23, 2008
Modified: February 25, 2008 at 10:28 am

A co-chairman of the House committee that will explore impeachment proceedings against state Auditor and Inspector Jeff McMahan has a possible conflict of interest, The Oklahoman confirmed Friday.

Rep. David Braddock, D-Altus, tried to buy an Altus abstract company in a deal that was contingent upon McMahan squashing another man's effort to open a competing company, sources said.

The sale of Jackson County Abstract Co. fell through in 2006 after McMahan declined to deny the competing permit request, said the company's owner, Donna Haffner.

"It never even came to a (discussion of) price because of that permit,” Haffner said.

‘I feel no conflict at all'

McMahan's former deputy auditor, Jim McGoodwin, said he recalls a meeting in which lobbyist and former legislator Bart Bates discussed the need for McMahan to deny a pending abstract permit from another Altus businessman, John Bailey.

Haffner, who owns the company with her husband, said Bates was a broker "who brought the offer to us” and stood to make a commission if the abstract company sale went through.

Braddock confirmed that he was part of discussions to buy an abstract company. However, Braddock said he remained interested in buying Jackson County Abstract despite McMahan's approval of the competing permit.

"Obviously it would have looked better if they had denied it, but they had issued it. It definitely changes the value, for sure.

"The bottom line was they (the auditor's office) issued it, and we never could come to terms on a valuation that they (the Haffners) could live with and we could live with, so we never had a deal,” Braddock said.

Braddock, an attorney, said he doesn't think the situation affects his ability to be impartial in the impeachment matter.

"It has nothing to do with looking into whether or not the state auditor violated any of his oath and shouldn't basically remain in office. That's a whole other set of issues. I feel no conflict at all,” Braddock said.

Braddock said neither he nor anyone acting on his behalf asked McMahan to deny Bailey's permit.

"Bart Bates wasn't working for me — never,” Braddock said.

Bates said he was contacted about finding a possible buyer for the Jackson County Abstract Co., "and I found one.”

As to what killed the sale, Bates said, "That's between Mr. Braddock and the Haffners.”

He declined further comment.

McMahan's office regulated the abstract industry until Jan. 1. Legislators last year created a separate agency for that purpose amid reports that McMahan went on trips funded by abstract company owner Steve Phipps.

A federal indictment issued in January accuses McMahan and his wife of accepting bribes from Phipps, including trips and more than $100,000 in illegal campaign contributions. They face charges of conspiracy, mail fraud and violations of the Travel Act for the purpose of bribery.

House Speaker Chris Benge this week appointed four Democrats and four Republicans to a committee to look at whether McMahan violated his oath of office and the responsibilities he swore to uphold.

Braddock was named one of two chairmen for that committee.

"I certainly didn't campaign for it, but they asked me to do that and I said I'd be glad to,” he said.

Benge, R-Tulsa, said he wasn't aware of Braddock's specific situation.

"I have full confidence in every member of the special investigating committee and their ability to handle the situation in front of them with fairness and objectivity,” Benge said.