Commentary

Transparency and Morales

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INDIANAPOLIS — The worst-kept secret at the Statehouse is that Secretary of State Diego Morales has employed his brother-in-law in his office with a six-figure salary and a bonus of more than $15,000.

Or that Secretary Morales doled out more than $300,000 in staff bonuses during his first year in office.

The unknown here was how the elected overseers in the General Assembly would react to this gravy train. During a Jan. 15 House Ways and Means Committee hearing, we got a glimpse of this dawning reality in what has essentially become a one-party state.

Morales, a Republican who was elected secretary of state in 2022, presented a 44-slide PowerPoint detailing his $24.48 million budget. In his opening remarks, Morales said that during his years in office he has held to “four pillars,” which include being “welcoming, responsive, efficient and innovative.” He said he wanted to be “detailed and responsive to any questions the committee has.”

As for his brother-in-law, Shawn Grady, who is co-director of the Auto Dealer Services Division and is paid $108,000 annually, Secretary Morales’ 14th PowerPoint slide noted the division “improved efficiency and responsiveness” and deployed an AI chatbot named “Otto” to assist constituents on the website.

A video clip making the rounds on the briefly banned TikTok reveals state Rep. Ed DeLaney, D-Indianapolis, questioning Secretary Morales.

DeLaney: How many relatives, including in-laws, do you have on your payroll?

Morales: You know, we hire based on qualifications, and solely based on qualifications.

DeLaney: I’m assuming they’re all beautifully qualified. How many of these beautifully qualified relatives do you have on your staff, in-laws or not in-laws?

Morales: Everyone on my staff are uniquely qualified for the positions they are in.

DeLaney: I’m not questioning that. I think they’re all great. How many of them are there and what is their relationship? And what are you paying them?

Morales: I appreciate the question, sir, but I came here to do a job and I’m gonna get the best of the best —

DeLaney: Did you hire one of your brother-in-laws for a newly created position and pay him more than $100,000?

Morales: I appreciate the question, sir.

DeLaney: You did, didn’t you?

Morales: [silence]

It’s worth noting Indiana has a law designed to prevent nepotism. Apparently, it doesn’t address employing in-laws.

DeLaney switched gears, asking Morales about taking no-bid contracts with firms that later made campaign contributions to the secretary. “Are you going to continue giving no-bid contracts?” DeLaney asked, adding that some of these contracts were in the $1 million range.

Morales responded, “I appreciate the question. I am not an attorney, so I’m going to let my general counsel answer you.” Morales later said that because of one no-bid contract, he had saved the state around $1 million.

DeLaney asked, “How do you know you saved money when you didn’t bid?”

Morales responded, “Probably if I do that I lose time and we’re going to lose resources. I need to deliver to Hoosiers who elected me.”

DeLaney noted that two IT vendors receiving no-bid contracts made “substantial” campaign contributions to Morales.

“We don’t mix political and official business here,” Morales responded.

DeLaney then asked, “What is a spot bonus?”

“May I ask what are you referring to specifically?” Morales responded.

DeLaney mentioned a 2023 Capital Chronicle story about the $300,000 bonuses that the secretary had handed out.

“Well, I’m glad you asked that question,” Morales replied. “Unfortunately, everything you read is not true, but I will be more than happy to clarify this.”

Morales said that after taking office in 2023, he met with employees on the first day and was told, “We were promised bonuses and raises. We were never given them. I’m going to have to move to another agency, find another job.” Morales reminded the committee that he had sought a 12.5% pay raise and bonuses for employees.

Asked if there would be “spot bonuses in the future,” Morales responded, “It was only one time. Certainly, we are going to respond with raises.”

DeLaney said he would vote against any portion of the budget for the secretary of state’s office.

DeLaney concluded his questioning by noting that he has been legislating and overseeing biennial budgets at the Statehouse “a loooong time” and added, “but I’ve never seen such an abject refusal to tell the public what you’re doing. And you’re here asking for millions of dollars of increases for your office and you won’t answer these fundamental questions. …

“You take no-bid contracts; you have a bonus program that is not an organized program; you won’t tell me who your in-laws are or relatives who work for you,” the Indianapolis Democrat added. “You won’t deal with the fact that you give no-bid contracts and then get tens of thousands of dollars in political contributions. So, just for the record, I’m not asking any more questions because I’m sick of these refusals.”

DeLaney is a superminority Democrat. None of the supermajority Republicans on the committee asked anything of the secretary.

When Chairman Jeff Thompson, a Republican, asked if there were any other questions, it was, well, just ... crickets.

 

Brian A. Howey is senior writer and columnist for Howey Politics Indiana/State Affairs. Find Howey on X @hwypol.


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