Whitmer angered by allegation of payoff
Gov. won’t answer some questions on ex-health chief
Gov. Gretchen Whitmer says she “bristles” at characterizations that her office’s decision to pay the former health department director more than $155,000 not to work for the state amounts to “hush money.”
However, she again declined to answer several questions about the departure of Robert Gordon from the health department and why separation agreements with confidentiality clauses are a necessary use of taxpayer dollars.
“I really bristle at that characterization. It is the nature of a separation agreement, when someone in a leadership position leaves … that there are terms to it and you can’t share every term to it. That’s simply what it is,” Whitmer said Tuesday during a news conference.
The agreement between Gordon and the state following Gordon’s resignation in January garnered substantial pushback from Republican lawmakers and the party. Whitmer argued such agreements are common in the public and private sectors, without saying why it was necessary to pay Gordon and potentially others after they left their roles.
“Robert Gordon and his team were an incredibly important part of our response (to the pandemic) and I appreciated his service to our state,” Whitmer said.
“Due to the nature of the agreement, there’s not a lot more that I can say on the subject. However, I do want to say this: there were not any improprieties with Director Gordon’s work. It’s simply that he tendered his resignation and I accepted it.”
Although GOP criticism of the governor is common, the level of backlash could foreshadow legislative acts aimed again at curtailing executive power or intended to expand transparency.
“It’s very troubling, especially given that the director was basically the most powerful person in our government during this pandemic,” said Sen. Ed McBroom, R-Vulcan and chairman of the Senate Oversight Committee.
“I don’t necessarily think that the severance idea is untenable. I think we all under
stand that it may be necessary at times to offer a severance. But, it’s the agreement about keeping all information tight-lipped, and perhaps even promulgating a lie about what happened, that’s really troubling.”
Both McBroom and House Oversight Committee Chairman Steven Johnson, R-Wayland, told the Free Press they plan to hold hearings examining Gordon’s departure and the separation agreement. They also said they will request documents and haven’t ruled out asking the full House or Senate for subpoena power if necessary.
Whitmer has repeatedly dodged questions about why Gordon resigned as director of the Department of Health and Human Services in January. A separation agreement between Gordon and the state outlines not only his compensation — nine months pay and health coverage — but also includes a confidentiality agreement.
“In consideration for releasing all claims against employer arising out of his employment, employer will pay employee the sum of $155,506.05,” reads the deal, dated Feb. 22.
Gordon declined to discuss the deal when contacted by the Free Press on Monday. In a statement posted online Tuesday, he called the last year grueling while noting his father recently died after contracting COVID-19.
“I’ve served in government a long time, and I believe that elected chief executives need to make final decisions about policy with confidential advice. They also need to be comfortable with their agency heads,” Gordon said in the statement.
“Since the pandemic began, many leadership changes have happened in other states. It’s no surprise they would happen in Michigan.”
A second separation agreement, involving former deputy director Sarah Esty, was also obtained by the Free Press on Tuesday. It states she was placed on paid administrative leave from Jan. 31 through Feb. 26. With an annual salary of about $156,000, that means she was paid between $11,000 and $13,000 during her leave.
The deal, and other records regarding the departures from the health department, were received after filing Freedom of Information Act requests.
Gordon announced his decision to resign via Twitter on Jan. 22. Later that day, Whitmer announced department executive Elizabeth Hertel would succeed Gordon. The announcement did not say why Gordon left or thank him for his service to the state.
On Monday, the governor’s office declined to answer specific questions about the separation agreement. Bobby Leddy, Whitmer’s press secretary, did say agreements with confidentiality clauses and promises to release any claims against an employer are “fairly standard practice.”
However, Republicans have been quick to note that while she served as Democratic minority leader in the state Senate, Whitmer blasted then-Gov. Rick Snyder and a state department after questions surfaced about payments to a cabinet secretary.
In October 2013, Andy Dillon resigned as head of the Department of Treasury. However, he was kept on as a paid adviser for months. After the publication, Motor City Muckracker published an article indicating Dillon was on a cruise during what was supposed to be his last week as a consultant for the state, Whitmer called for an investigation.
“The governor needs to stop trying to cover this up and come clean about the sweetheart deals and cronyism that is rampant in the Department of Treasury,” Whitmer said in February 2014.
“These people are supposed to be charged with improving the state’s finances, not their own, and Michigan taxpayers deserve a thorough review of what is really going on with their money.”
They also pointed to one of Whitmer’s first acts as governor: signing an executive directive aimed at increasing government accountability and transparency.
“State government must be open, transparent and accountable to taxpayers,” Whitmer said at the time.
“I’m signing this executive directive to ensure that Michiganders have open access to state records and meetings, and to help the public navigate their state government. This is an important step to infuse integrity in governance and earn back public trust.”
Several GOP lawmakers said late Monday they were shocked and upset by the decision to pay Gordon after he left and include confidentiality clauses. They pointed to the confidentiality portions, arguing this is evidence Gordon may have something to say about COVID-19 policies or other department actions but won’t be allowed to speak because of the agreement.
“We are working with our legal counsel to see what are legal remedies are for this,” said Johnson, the House Oversight Committee chairman.
“There is no transparency there is no communication. This is not how our system of government is supposed to work.”
Gordon routinely defended the actions of the department, especially those that mandated restrictions on businesses and other venues in an effort to stop the spread of the virus.
Rep. Annette Glenn, R-Midland, deemed the arrangement a “hush money contract” and vowed to take legislative action in response.
“When it comes to state agencies responsible for decisions that put public safety and people’s lives and livelihoods on the line, the people of Michigan have every right to full disclosure and transparency,” Glenn said in a news release.
“Gov. Whitmer should not be allowed to use state tax dollars to pay ‘hush money’ to departing state regulators, and now that it’s been revealed, she should reverse her attempt to force taxpayers to foot the bill for buying Mr. Gordon’s silence.”
Glenn chairs the House budget subcommittee that focuses on the state Department of Environment, Great Lakes, and Energy. She pledged to amend legislation allocating funds to the department so that it would “prohibit using tax dollars for such payoffs if designed to silence departing officials.” She’s calling on other lawmakers to make similar amendments to budget proposals for other departments.
The renewed scrutiny of Gordon’s departure comes at the same time Hertel faces more opposition in the state Senate.
Three Republican lawmakers have come out against the appointment of Hertel: Sen. Lana Theis, R-Brighton, Sen. Ruth Johnson, R-Holly, and Sen. Kim LaSata, R-Bainbridge Township.
In a statement, Theis said lawmakers should consider rejecting Hertel’s appointment unless she “fully commits to reopening the state immediately.” The vast majority of businesses, schools and other venues are open, while some capacity and operating safety restrictions remain in place.
Johnson was more direct in her call for her colleagues to reject Hertel.
“I was hopeful and open-minded about this appointment; we were getting indications that this was someone who would be more transparent with the Legislature and the public,” Johnson said in a news release.
“But after reviewing last week’s hearing, I do not believe that is the case.”
Hertel, who served in a high-ranking role at the department before her appointment as director in January, met with the Senate Advice and Consent Committee last week. She told lawmakers she has full autonomy over health orders, but Johnson took issue with Hertel’s inability to immediately give a detailed answer to a question about the department’s biggest mistake during the pandemic.
“Hertel’s elusive and noncommittal responses to very specific questions proved to me DHHS remains, at best, an organization operating entirely in an echo chamber of yes-people,” LaSata said in a statement.
The same committee is set to speak with Hertel again on Thursday.