Inspector General Joseph Fisch has ordered an independent investigation of the State Insurance Fund in the wake of a slew of allegations of mismanagement, abuse and waste at the agency, which is being described by a whistle-blower as a landing spot for political patronage appointees.
Fisch said Tuesday he called for the probe of "the Hinton case" to respond to a sworn statement he received from Edward Obertubbesing, an insurance fund lawyer who once managed Randall Hinton, the fund's director of investigation. Hinton was featured in a Times Union story last month in which Obertubbesing confirmed that Hinton has been given almost nothing to do for most of the past decade.
Hinton said he listens to music and watches traffic outside his window while being paid almost $94,000 a year. Hinton says he's being retaliated against by Republicans controlling the fund.
"We are conducting a full investigation of the allegations relating to the State Insurance Fund," Fisch said in an interview. He said he is also monitoring a Human Rights Division complaint Hinton filed last month alleging he is being discriminated against for having sued the state during the administration of Gov. George Pataki. He is an American Indian. As part of a settlement of his suit years ago, Hinton was guaranteed a job as director of investigations at the fund. He alleges he got the post, but no responsibilities that comport with the job, and Obertubbesing said Hinton was blackballed and intentionally deprived of meaningful work by the top brass of the fund, who are serving in long-term appointments made by Pataki.
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Allegations by Obertubbesing, which were also sent to the Insurance Fund's chairman, the Attorney General's Office, the Office of the State Comptroller and the Civil Service commissioner, include the fund's practice of hiring people at the behest of Republican leaders such as Pataki or former Senate Majority Leader Joseph L. Bruno, giving them work that does not match up with Civil Service titles and relatively high salaries. The situation, Obertubbesing said, harmed morale among civil servants who had to pass tests for their posts and in many cases had to train the higher-paid appointees. Such long-serving employees, he said, were denied opportunities for advancement and better pay while the fund's management violated labor agreements and state regulations.
A look at the fund's payroll shows several people formerly working for Pataki in the executive branch received posts around the time of his departure from office at the end of 2006. Others got high-wage jobs well before Pataki's last term. For instance, Elizabeth Sweeney, the first wife of Pataki's first labor commissioner, former Rep. John Sweeney, was hired in 1998 as a secretary. She retains that title and is paid the same pay as Hinton, $93,803. She and the former congressman did not return a call Tuesday seeking comment.
That's some prime Albany dysfunction they got there.
