Abbott Orders Changes After $110M No-Bid Contract Scandal

Republican Gov. Greg Abbott is ordering stricter rules for state contracts with private companies even before the new protocols become law.

The directive Wednesday comes on the heels of a criminal investigation into $110 million in no-bid contracts awarded to an Austin tech company hired to help Texas root out Medicaid fraud.

That contract was canceled and several high-ranking officials with the state Health and Human Services Commission have resigned.

Abbott told state agency leaders in a letter that they "must" begin implementing proposed contract reforms immediately. That includes publicly disclosing all no-bid deals.

Abbott is using a bill filed by Republican state Sen. Jane Nelson as his blueprint. The Texas Legislature convened only two weeks ago and the bill has yet to even receive a hearing.

Copyright AP - Associated Press
Contact Us