Dale Denwalt|Oklahoman
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The head of an obscure state agencymanaging a multi-billion-dollar portfolioannounced he will resign Aug. 3, just weeks after media began reporting on a possible conflict of interest with one of the agency's investments.
Elliot Chambers has been secretary of the Commissioners of the Land Office since Gov. Kevin Stitt appointed him in July 2020. During a land office commission meeting on Thursday, he announced that he offeredStitt his resignation.
"I committed to serve the state in this capacity for two years when I accepted the appointment –August 3 marks that time," Chambers said.
The commission manages some state assets, including land and mineral rights. According to its most recent annual report, it has a market investment portfolio of $2.7 billion. Last year, the commission distributed$116 million to public schools and universities.
In his statement, Chambers did not answer the criticism he's faced about a decision last year to hire Victorum Capital to manage a state investment, or the fallout within his own agency when members of his staff objected to the deal.
As reported by the Tulsa World, Erin Morgan, an internal auditor at the commission was told Chambers had an existing relationship with Victorum before he recommended the state do business with the Oklahoma City-based investment management firm. She was later fired after raising the issue with her boss.
Morgan's termination was scheduled to be discussed at Thursday's meeting, but the commission members were advised by their attorney to not enter executive session, but instead individually ask counsel questions they may have. State schools Superintendent Joy Hofmeister was the only commissioner in attendance to support going into executive session.
Therelationship between Chambers and Victorum, the Tulsa World noted, was apparently never disclosed to the agency's commissioners, a five-member panel that includes the governor, lieutenant governor, state auditor, state superintendent and the agriculture secretary.
Victorum managing partner James Roller could not be immediately reached for comment.
Victorum contract questioned at Thursday meeting
The state has paid Victorum tens of thousands of dollars in management fees over the past year.
At Thursday's meeting of the commission, the four commissioners present were hesitant to renew Victorum's contract, which was set to expire that day. The agency's legal counsel said he wasn't sure what would happen to the money if the state severed its relationship with Victorum or whether the contract included a contingency for expiring without a vote.
Three of the commissioners, Stitt, Lt. Gov. Matt Pinnell and state Auditor Cindy Byrdultimately agreed to renew the contract on a temporarybasis for another 60 days. Hofmeister voted against renewing the deal.
Hofmeister, who switched political parties in October and is running against Stitt in the race for governor as a Democrat, spoke with reporters after the meeting to address her concerns.
"There's simply questions that have not yet been answered related to conflict of interests,and I would like to have those answers and be fully informed before making a decision on that matter," Hofmeister said.
ElliotChambers the latest Gov. Kevin Stitt appointee to come under fire
Chambers is the latest Stitt appointee to resign amid significant public scrutiny. Others include:
- Jerry Winchester: Served as director of the Oklahoma State Department of Tourism and Recreationuntil he resigned during the Swadley's state park restaurantscandal.
- David Ostrowe: Was secretary of digital transformation and administration. He had been accused of felony bribery of a state official, but those charges were dropped five months later. Ostrowe left state government later that year and has now asked for a special prosecutor to investigate why he was indicted, calling the accusations politically motivated.
- Gino DeMarco: Another tourism official who resigned recently. DeMarco came under scrutiny as state's "PPE czar" during the pandemic and served as deputy director to Winchester at the tourism department while the Swadley's deal was negotiated and approved. Was most recently working for the Oklahoma Health Care Authority.
Ryan Walters, Stitt'sappointed secretary of education,has not resigned from his position, but continues toreceiveheavy criticism about the source of his salary and oversight of a contract that let parents use state school funds for non-educational purposes during the pandemic.
Walters is currently running as acandidate for state superintendent, and is facing a runoff against April Grace in the Republican primary.
Note: An earlier version of this story incorrectly listed the timeline for David Ostrowe's resignation.
Staff writer DaleDenwaltcovers Oklahoma's economy and business news for The Oklahoman. Have a story idea for Dale? He can be reached at ddenwalt@oklahoman.com or on Twitter at @denwalt. Support Dale’s work and that of other Oklahoman journalists by purchasing a digital subscription today at subscribe.oklahoman.com.
