Branstad’s cabinet officials knew about secret settlements, former attorney says

Former Department of Administrative Services Director Mike Carroll repeated Wednesday he did not know about money paid to terminated employees in exchange for confidentiality, despite contradictory testimony from the agency's former attorney.

'I knew the settlement agreements were there. I signed the agreements, I've never denied that,” Carroll told the Senate Oversight Committee at a hearing in Des Moines. 'I was not aware there was any money paid for the confidentiality clauses in any of those agreements.”

State officials have acknowledged 24 confidential settlements - 10 with lump-sum payments - signed with dismissed state workers since January 2011.

Carroll testified April 3 before the oversight panel he did not believe hush money had been paid.

Iowa Gov. Terry Branstad fired Carroll April 8 after emails surfaced showing former DAS legal counsel Ryan Lamb negotiated a $6,500 payment to Carol Frank, a senior construction engineer who was laid off, to sign a confidentiality agreement.

Carroll testified Wednesday he asked Lamb before the April 3 hearing whether hush money had been paid and Lamb said no. When Lamb later called to say there might be emails that could be interpreted as indicating payments for silence, Carroll had his staff review hundreds of Lamb's emails and found nothing, Carroll testified Wednesday.

He compared it to missing the final minutes of the US/Portugal soccer match, in which Portugal tied the score.

'I hadn't gotten to see the last minute of the game,” he said 'It (information about payments) hadn't been made available to me.”

Lamb, who testified for nearly four hours before Carroll, said his former boss knew about the payments.

'With respect to money as consideration for confidentiality, the issue was raised with Director Carroll,” Lamb said.

Lamb said he didn't know why Carroll told the Oversight Committee April 3 no hush money had been paid. 'He was mistaken or forgot, perhaps, that one of the settlement agreements appears to have payment in exchange for confidentiality,” Lamb said.

At least two members of Branstad's cabinet knew about the settlements, Lamb said. He consulted with Jeff Boeyink, Branstad's former chief of staff, about the terms of one settlement and Brenna Findley, Branstad's legal counsel, was aware of several deals.

As Iowa Democrats called on Findley to resign based on the testimony, Branstad Spokesman Jimmy Centers released a statement Wednesday afternoon:

'Neither Ms. Findley nor anyone else in our office knew confidentiality provisions were being used. Findley nor our office suggested or advised their use. Upon learning of their ill-advised use, Gov. Branstad signed Executive Order 85 to end the use of confidentiality provisions and increase openness and transparency in government.”

The oversight panel called seven people to testify Wednesday in Des Moines, but only talked with Lamb and Carroll.

Senate Resolution 121 grants the committee authority through Dec. 31 to call witnesses, administer oaths, issue subpoenas, and cite and impose punishment for contempt - ranging from a $500 fine for an initial citation, $1,000 for a second or subsequent citation and the power to impose imprisonment for a period of up to six months.