SAGAC and the Pay-to-Play Oklahoma Scam

When you think of the political elite in Oklahoma, I’m sure one’s mind conjure ups thoughts of Senator Coburn, Senator Inhofe, and Governor Fallin. What if I told you the political elite are names like Jody Thomas, Trey Richardson, Karma Robinson and Josh Kivett? I’m sure those names don’t ring any alarms, but maybe they should. They all work for a Washington, DC public affairs firm called SAGAC.

SAGAC, according to their website, is a team of “experts in research, management, finance, marketing and communications.” In a political sense, they are a team of political advisors working as a consulting firm aligning businesses with politicians promoting a pay-to-play system in Oklahoma. It’s in this alliance where backroom deals are made, special favors are created for political expediency, and protection is promised for a long political career.

The consulting firm wins by making money from fees and contracts with successful political candidates and money from businesses. The Politicians win by having the protection from the business community and receiving money from the special interest PAC’s. And, the businesses win by having influence over certain legislation and receiving appointments on boards/commissions laden with favorable regulations. A true win-win-win for everyone involved.

And, SAGAC is the largest Washington DC political consulting firm controlling many of the politicians, political organizations, and businesses in Oklahoma. Their clients consist of Governor Mary Fallin, Senator Coburn, Senator, Inhofe, Representative James Lankford, Representative Tom Cole, and Representative Frank Lucas, and Romney for President. They also consult organizations like The Republican Party of Oklahoma, MAPS, GOPAC, US House of Representatives, the Republican Senate Victory PAC and the Oklahoma State Republican Senatorial Committee. And, they consult businesses and special interest like Devon Energy, American College of Cardiology, American Council of Life Insurance, American Medical Association, American Dental Association, ConocoPhillips, and Associated Builders and Contractors.

The past Oklahoma Gubernatorial primary exhibits the power SAGAC has over Oklahoma GOP races. In the beginning, two SAGAC clients were discussed as potential candidates for governor, Mary Fallin and JC Watts. Even after repeated polls showing JC Watts winning over Mary Fallin, a consulting decision was made not to run JC Watts. Without a public vote, JC Watts was out and Mary Fallin was chosen. So, Fallin paid SAGAC (Jody Thomas) nearly $650,000 to help her campaign.
During her run, she received financial support from SAGAC clients who are now receiving benefits:

Devon Energy continued giving contributions to her campaign by exceeding $35,000 over the life of her political career, according OpenSecrets.com . Devon also held “bundling” parties where others within the oil and gas industry gave contributions. For Devon’s support, Mary Fallin named Larry Nichols, CEO of Devon Energy, as the Co-Chair of her transitional team after she won the Governor’s seat. Devon Energy was handed the power to appoint Devon-friendly Cabinet positions including Secretary of Commerce and the Secretary of Energy which regulates their industry. Once in office, Governor Mary Fallin continues to offer tax credits to spur wind energy and compressed natural gas (CNG); both Devon investments. All this favoritism while Devon Energy already dodges the state corporate tax of 6% by paying only .6%, according to okpolicy.org.

While campaigning, Mary Fallin visited the Medical Park Center in Bartlesville, meeting with medical professionals and discussing ways to bring more affordable, quality care to Oklahomans. She toured the facility with Dr. Stan Defehr, a cardiologist who is the Governor of the Oklahoma State Chapter of the American College of Cardiology (ACC). The ACC is also a client of SAGAC and advocated healthcare exchanges (a key component to Obamacare) and state grants to help implement the federal program.

The American Medical Association (AMA), another SAGAC client, also advocated for healthcare exchanges as well as tort reform. Many of the doctors associated with both the ACC and AMA gave generously to Fallin’s campaign. For their faithfulness, Mary continues to appoint "friends." Vice president and national director of Cancer Treatment Centers of America, Joe Nicholson, was appointed to the Oklahoma Health Information Exchange Trust (OHIET).

This legislative session, Oklahoma will move legislation to empower the OHIET to except federal grants and to operate a State Health Exchange. Now, organizations who have advocated for a Healthcare Exchange will now be in position to implement it without Legislative oversight.

The list is long with examples of pay-to-play schemes connected to SAGAC. There is the American Council of Life Insurance, under the leadership of former Oklahoma Governor Frank Keating, who advocated for TARP. Keating gave a $5000 campaign contribution to fellow SAGAC client and TARP supporter, Mary Fallin. Now, Frank’s twin brother, Dan, receives a governor’s appointment.

The Associated Builders and Contractors (ABC) and Mary Fallin have a long history together; both SAGAC clients. The ABC promotes that Mary Fallin, since she was in Congress, has a 100% voting record for ABC causes. Much of the causes were for TARP, specific industry tax breaks, and subsidies supporting the industry. The Associated Builders and Contractors PAC gave $5000 to Fallin’s campaign and Tony Boevers, an ABC member, was appointed to the Construction Industry Board.

I still haven’t mentioned where the Republican Senate Victory PAC gave $2000 to Fallin. Energy for Oklahoma gave $5000. Oklahoma Medical PAC gave $5000. ConocoPhillips gave $5000. And, the Home Builders PAC gave $5000. All of these organizations are clients of SAGAC.

SAGAC is where crony-capitalism lives. Their business clients will find government favor by getting key appointments on boards and committees that regulate their business. Their political clients are assured hefty donations and job security by eliminating political competition. SAGAC is the glue that keeps the scam together.

So, if you are a political novice, have no money and you desire a shot at an open US House Seat in Oklahoma, who would you call for help? Rep. James Lankford must have known the answer. He bellied up to the political bar, sign on with SAGAC, who controls the US Houses money, received the endorsement of fellow SAGAC clients (Cole and Watts) and received hefty campaign donations from SAGAC clients.

The game continues……