John Kowalko Jr. is a former Delaware state representative and a resident of Newark.
As a lifelong Democrat, who served for 16 years in the Delaware General Assembly, I have growing concerns about the 2023 embezzlement of $181,000 from the Division of Unemployment Insurance trust fund. One of my concerns is the strong possibility that Democratic state officials — both elected and appointed — may be involved in collusion and a cover-up, with the intent to hide the embezzlement from the public. Another concern I have is the apparent lack of Democratic leadership in the General Assembly’s Senate and House of Representatives. It seems that leadership has chosen to ignore the embezzlement problem and is failing to act in the public interest. It may be time for new leadership in the General Assembly’s Democratic Party.
Delawareans deserve answers to pressing questions in the aftermath of any embezzlement involving public funds. I’m not only talking about who, how much or how it happened — law enforcement already concluded an investigation in August 2023. My question is, why was the embezzlement hidden from the public?
Did the secretary of finance, the secretary of labor and the state auditor collude and then engage in a cover-up to hide the embezzlement? Did the governor influence the secretary of finance, the secretary of labor and the state auditor to exclude the act of embezzlement in official reports?
The public deserves a full accounting of any possible collusion and/or cover-up by high-ranking state officials, regardless of political party. The Democratic Party’s leadership in Dover appears to have embraced political expediency rather than unqualified support for the public’s right to know. By withholding a detailed accounting of any investigation, the Democratic leaders have chosen to ignore their responsibility to serve the best interests of Delawareans.
Another serious concern is that the theft of state and federal funds was deliberately hidden by the Department of Labor, the Department of Finance’s Division of Accounting and the Office of the Auditor of Accounts. The public learned about the theft because a whistleblower came forward to the news media, which reported the embezzlement in May — more than a year after the crime and about eight months after law enforcement’s investigation ended. There was certainly plenty of time for state officials to report the embezzlement via a press conference or in written reports. Without the whistleblower’s alert, I am confident that the public would still be clueless about the theft.
Unfortunately, it seems that the whole affair has an odor of collusion and cover-up. An investigation is needed to hold those accountable for any violations of the Delaware Code, which clearly states that illegal activity must be disclosed in written reports by the Division of Accounting (in the Department of Finance) and by the Office of the Auditor of Accounts.
The Democratic Party’s majority leadership appears to be dragging its feet in fulfilling its obligations to the public regarding full transparency and exposing the truth. Otherwise, one could conclude that a handful of Democratic leaders seems to be more interested in hushing up the embezzlement problem than getting to the truth.
One example, as reported in an Aug. 2 WHYY news article: “He (Senate Majority Leader Bryan Townsend of Newark) wasn’t shutting the door on hearings, but said (the hearings) would likely be held next year, if at all.” The statement, “if at all,” is not reassuring. If there is no investigation in the General Assembly, the Democratic Party’s leadership needs to consider that, in the eyes of the public, they are perpetuating a cover-up, obstructing justice and breaching their official duty. Moreover, if state officials with investigative powers do nothing, their inactions have the appearance of impeding an investigation.
The Democratic Party’s majority leadership consists of Senate Pro Tempore Dave Sokola of Newark; Senate Majority Leader Bryan Townsend; Senate Majority Whip Elizabeth “Tizzy” Lockman of Wilmington; House Speaker Valerie Longhurst of Bear; House Majority Leader Melissa Minor-Brown of New Castle; House Majority Whip Kerri Evelyn Harris of Dover; and Gov. John Carney.
Is any member of the Democratic Party’s leadership willing to address wrongdoing and pursue an investigation?
Respect for elected public servants has to be earned, and my respect for the Democratic Party leadership has been seriously eroding. Barring any commitment to investigate possible collusion and a cover-up, changes in Democratic Party leadership may be in order when the General Assembly caucuses meet at the end of the year.
Finally, let me remind you that the failure in this embezzlement investigation is just another reason why Delaware needs an independent and nonpartisan Office of Inspector General.
Reader reactions, pro or con, are welcomed at civiltalk@iniusa.org.