WILMINGTON, Del.- After being indicted on charges relating to abuse of power, Delaware State Auditor Kathy McGuiness has turned herself in to New Castle County Superior Court.
According to the Delaware Department of Justice, McGuiness waived her right of hearing the charges and pleaded not guilty to all charges. Bail is set at $50,000 unsecured. The DOJ says McGuiness cannot contact any former Office Of The Auditor Of Accounts workers or discuss the ongoing investigation with current employees.
On Monday, McGuiness was charged with Conflict of Interest, in violation of the State Officials’ Code of Conduct; Felony Theft; Non-Compliance With Procurement Law by structuring State payments; Official Misconduct; and Felony Witness Intimidation.
McGuiness’s attorney Steven Wood said his client did nothing wrong.
“Kathy McGuiness is absolutely innocent of these charges. The Grand Jury’s Indictment, like all Grand Jury Indictments, was based upon a one-sided presentation from witnesses and documents selected by the Attorney General. The Indictment is full of misleading statements and half-truths.”
Prosecutors allege McGuiness structured payments on a political contract to cover up her spending and avoid oversight. But McGuiness' lawyer says "the contractor in question has performed policy development services for other elected officials in Delaware before, including a former Governor. All of the relevant contracts were entirely lawful. "
In response to the DOJ's claim that McGuiness hired and then supervised her teenage daughter and a friend without going through proper channels and disregarding conflict of interest, Wood says Delaware law does not prohibit the hiring. Wood's statement also fires back at the claim that McGuiness' daughter received a state paycheck without doing work, in person or remotely.
"The Indictment’s assumption that the only way for a state worker to work remotely is by using the State’s email network is false," he says.
The DOJ says McGuiness also asked to surveil the emails of employees who questioned her misconduct. Wood says McGuiness' Witness Intimidation charge is "pure fiction."
During Monday’s indictment, Attorney General Kathy Jennings said McGuiness failed to withhold her promise of protecting Delaware’s tax money.
“The auditor whose job is to root out fraud handed out state contracts to a campaign consultant and deliberately avoided oversight and protect taxpayers from the very fraud and abuse she swore to root out," says Jennings.
The Delaware Department of Justice says the pending criminal charges do not require McGuiness to step down or be removed from office. According to Wood, McGuiness has no plans on resigning.
"Ms. McGuiness will continue to work hard on behalf of Delaware’s taxpayers and intends to focus on the job that she was elected to do. She will have no further comment on this matter. When the whole story is finally heard, the facts will speak for themselves."
Jennings also said that no findings in the ongoing investigation are related to McGuiness’s time as a Rehoboth Beach Commissioner. The City of Rehoboth Beach declined to comment on the state matter.
Delaware Governor John Carney responded to the indictment and if McGuiness should resign.
"Obviously what's been alleged is very concerning," Carney said. "I think that's a decision she has to make with respect to that."
The DOJ says that the first case review will take place on Monday morning in Wilmington.
