AUSTIN – Gov. Rick Perry said Friday that his pick for inspector general of the Texas health mega-agency will resign later this month amid mounting questions about how the agency gave $110 million in state contracts to a local company without any competition.
Doug Wilson, who was appointed in 2011 to the powerful post overseeing all investigations of waste, fraud and abuse in state health and human services, will step down Dec. 31, said Perry spokeswoman Lucy Nashed.
"Ongoing questions regarding the awarding of contracts at the Texas Health and Human Services Commission have caused the governor to lose confidence in Wilson’s ability to carry out the important oversight responsibilities of this office," Nashed said.
In a separate announcement at almost exactly the same time, Executive Commissioner Kyle Janek announced that three staffers would be put on paid leave amid a joint investigation by the State Auditor’s Office and the Travis County District Attorney’s Office.
The developments added to a scandal that has already caused two contracts to be canceled and claimed the job of one official, Jack Stick, who has this year served as the health commission’s top lawyer, but worked as Wilson’s deputy when the first of the contracts was approved in 2012.
Among the employees put on leave were Stick’s wife, Erica, who serves as Janek’s chief of staff, and Stick’s former chief of staff, Cody Cazares. Wilson’s wife, Frianita Wilson, who also works for the commission, also was put on leave.