From the Tribune:
Fawell testifies Ryan relied on staff's advice
Aides guided boss on tech contracts
By Matt O'Connor and Rudolph Bush
Tribune staff reporters
Published October 18, 2005
Former Gov. George Ryan's longtime closest aide testified Monday that he
never knew his boss to accept money or gifts in return for awarding leases and
contracts.
Scott Fawell said the contracts--to install a mainframe computer, produce
license-plate stickers and change over to digital driver's licenses--were awarded
on the recommendation of professionals in the secretary of state's office.
Under questioning for a third day by Dan Webb, Ryan's lead lawyer, Fawell
said Ryan played little if any role in reviewing the contracts or the lease for
a secretary of state facility at 17 N. State St.
Fawell has been the lone witness so far in the first six days of testimony
in Ryan's trial on charges he took cash, gifts and vacations for himself and relatives
in return for steering state contracts and leases to friends.
Also on trial is Ryan's friend Lawrence Warner, who is charged with pocketing
about $3million in the deals through his clout with Ryan.
Fawell struggled to provide details about the office's bidding on those
contracts because of the passage of time and his scant involvement.
But he bolstered the portrayal of Ryan by his lawyers in opening statements
that the former governor was a hands-off boss who relied on professionals in the
secretary of state's office for direction on which vendors should receive contracts
and leases.
Questioned about several of the deals, Fawell stated in each case that he
didn't know of Ryan being improperly influenced to accept one proposal over another.
Typically, Ryan, and even Fawell, would never see a final lease or contract,
Fawell said. Once the agency's legal and technical staff signed off on a contract
or lease, a machine would stamp it with Ryan's signature.
With the office's mainframe computer system near collapse in 1996, Ryan
awarded a five-year, $26 million contract to IBM after his top computer expert,
a technical review committee and an outside consultant all recommended the company,
Fawell said.
In a letter to Ryan, Frank Cavallaro, the office's director of data processing,
said IBM's rival, Honeywell, was comparable on price but couldn't deliver its
system for at least a year.
Fawell testified "from what I was hearing" the mainframe computer
was in danger of running out of spare parts and the office couldn't wait that
long for a replacement. Besides, on such a complex technical issue, Fawell said
he and Ryan had to rely on experts for advice.
"We weren't high-tech guys," he said.
Prosecutors contended in their opening statement that Warner and another
Ryan friend, Donald Udstuen, demanded $250,000 from Honeywell for the mainframe
contract.
The company balked and complained to Ryan, prosecutors have said.
Fawell testified previously that he was unaware of Honeywell's complaint.
On another major contract, Fawell said Monday that he and Ryan backed the
recommendations of key employees that Massachusetts-based Viisage Technology convert
driver's licenses to digital technology in 1997.
Fawell testified that Viisage's unique, facial-recognition technology, which
enabled computers to recognize drivers' photographs, gave the company an advantage
over competitors because law enforcement saw it as a way to prevent counterfeiting.
One of Fawell's closest friends, lobbyist Al Ronan, was connected to rival
bidder Unisys, Fawell acknowledged, but he said he still supported Viisage because
of the recommendation from the office's technical professionals.
Earlier in the trial, under questioning by prosecutors, Fawell testified
that he and Ryan were aware Warner represented Viisage.
Fawell said then that he had sought unsuccessfully to forge a "marriage"
between Unisys and Viisage so "everybody was happy."
Fawell also testified Monday that he had little contact involving another
major contract producing license-plate stickers other than being called into a
meeting by Ryan on the subject.
Fawell recalled little about the meeting in 1995. But Webb suggested through
his questioning that secretary of state staffers had failed to consult with law
enforcement about whether it wanted the contract to remain with American Decal
& Manufacturing because of its unique metallic security feature that made
counterfeiting more difficult.
"Certainly, we wouldn't want to do anything law enforcement wouldn't
support," Fawell said.
Webb also hinted that Ryan was concerned about American Decal, a Chicago
firm, losing jobs if the contract went to 3M, based in Minnesota.
Fawell said he was aware that Warner was a lobbyist for American Decal,
but he said he didn't know of any undue influence Warner placed on Ryan to win
his support for the contract.
Under earlier questioning by prosecutors, Fawell said Ryan had become angry
at the meeting with subordinates who removed the metallic security feature from
the contract. If that had happened, Warner's client, American Decal, risked losing
the lucrative contract.
Following the meeting, Ryan told Fawell to return the one-of-a-kind specification
to the contract, ensuring American Decal would hold onto the business, prosecutors
maintain.
Fawell also testified that the lease at 17 N. State St. had won the approval
of the office's technical and legal experts.
Fawell said he was aware that Warner played some role in representing the
owner of the property.
"Larry helped secure the property and knew the guy who owned it, and
Larry acted as an agent," he said.
Prosecutors allege that Warner publicly hid his role in the deal and pocketed
a 6 percent commission worth several hundreds of thousands of dollars.