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Neva Peckham, a contract specialist in the Washington State Department of Enterprise Services, repeatedly used her state-issued travel card for personal purchases, including a visit to a nail salon. At the time, Peckham managed a $10 billion contract for credit cards issued by the state. (Photo: Brandi Kruse/KIRO Radio)

Exclusive: State employee in charge of $10B in contracts misused taxpayer money

BY Brandi Kruse  on February 7, 2013 @ 11:29 am (Updated: 12:28 pm - 2/10/13 )

An employee who was in charge of billions of dollars in contracts for the state of Washington still has her job after using her state-issued travel card for personal purchases such as groceries and a trip to a nail salon, KIRO Radio has learned.

Neva Peckham, a contract specialist in the Washington State Department of Enterprise Services, was in charge of awarding $10,896,190,903 worth of contracts, including those involving state-issued credit and travel cards.

According to documents obtained through public disclosure after a source within DES brought the misuse to KIRO Radio's attention, Peckham repeatedly used her state-issued travel card in and around Olympia from January 2012 to June 2012. Unauthorized purchases included multiple trips to grocery stores, gas stations and restaurants. She also spent $30.00 during a visit to a nail salon and spa in McCleary, Wash.

The total amount of unauthorized purchases was $658.63.

Peckham was warned about personal use of her card in June of last year when it came to the department's attention, but used it five additional times for personal purchases the following month, according to documents.

"Personal use of your issued state travel card is considered a serious violation of ethics in public service, state statutory and administrative requirements regarding use of state funds," Roselyn Marcus, assistant director for contacts and legal services, wrote to Peckham in a letter dated Oct. 8, 2012. "Accordingly, this type of violation seriously reflects on your ethics, your knowledge, our division, and the agency."

Peckham not only managed the state credit card program at the time of the misuse, but helped the Office of Financial Management write administrative and accounting policies surrounding card use, according to a DES memo. She also worked with U.S. Bank to "guide agencies on avoiding fraud."

"It's an ethical violation," said DES Spokesperson Steve Valandra. "It's a serious matter for this agency and I think any state agency."

As a result of the misuse, Peckham is in the process of being transferred from her duties handling the state's credit card contracts. She now manages more than $230 million in contracts for state-owned vehicles.

Her state-issued travel card has been cancelled.

A source within DES believes Peckham should have been fired.

"She violated the trust of her superiors, the agency, the people of the state of Washington," the source told KIRO Radio. "There are a lot of good people that are out of work right now that are trustful and honest and I'm sure they'd love to trade places with her."

Valandra said Peckham is a valued employee who simply "made a mistake."

Brandi Kruse, KIRO Radio Reporter
Brandi Kruse is a reporter for KIRO Radio who is as spontaneous and adventurous in her free time as she is on the job. Brandi arrived at KIRO Radio in March 2011 and has already collected three regional Edward R. Murrow awards for her reporting.
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Comments (69)


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  • Beaten Down Dead Horse wrote...
    Steal $100 from any menial job you will be fired.
    February 8, 2013 7:33 am
    Aquantance I know stole $100 cash from a minimum wage employer and was immediatly terminated. ONLY a govnmnt job would give anyone multiple "second chances" + keep job. UNFREAKINBELEIVABLE
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  • raftertie wrote...
    That's the
    February 8, 2013 7:42 am
    problem with unions. You can't get rid of these types of employees.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Cabezon wrote...
    What is your source?
    February 8, 2013 8:44 am
    Where do you get that you cant fire union employees? Or is it just something you heard. Anyone can be fired, you just need management that is willing to do it. You can blame the union or you can blame the management for accepting the problem and not putting in the work to fix the problem. In the past 30 years this state has become filled with lazy loudmouths that would rather complain than get to work.
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  • NoiseMan wrote...
    This Question is to You Mr. Inslee
    February 8, 2013 7:56 am
    This is now what would be considered as "under your watch." Not the crime, but the response falls squarely on you. I then ask you "What are you going to do about this?." This story broke a couple of days ago and I have seen nothing from your office. This is an important issue and so far, you've failed every honest Washington State employee (public or private). What troubles me is not only the lack of consequence for the criminal, but the Manager, Steve Valandra that would support the internal cover up by publically stating that "Peckham is a valued employee who simply "made a mistake." That sounds a lot like police protecting bad police that have committed a crime. I strongly feel that because of his choice of actions, Mr. Valandra is as much a part of the problem. Here is my promise to you Mr. Inslee: I am going to watch this story and if nothing more develops, I will not forget this. In three years, I will make every effort to post this story on every media blog available to make this a story ripe your opposition. It will not be difficult for your opposition to link you and the unions to this incident. This is your first test, and YOU need to step in and show what your leadership is made of.
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  • Rick W7PSK wrote...
    I can guarantee Mr Noiseman
    February 8, 2013 8:05 am
    you wont hear a peep from Jay.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • dew999 wrote...
    theft
    February 8, 2013 3:07 pm
    how come we dont see this in the news? It is theft and should be delt with accordingly.All credibility gone.Should be unemployed.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Topiary3 wrote...
    This is NOT and "exclusive"
    February 15, 2013 12:38 am
    I happen to know Ms. Peckham and have a lot of respect for her. This is NOT an exclusive "report", it is a misreported story. There are severe holes and a fair amount of misinformation which is today's norm of mainstream media's take on journalism. Shame on Mr. Monson for not taking responsibility of the "reporter" that file this story on his behalf and must answer why this hack job was filed. Was it just an opportunity to call out a state employee? Believe me, there are a lot more stories in Olympia that would curl your hair! For those of you that have been taunting and threatening Ms. Peckham, think about what it would be like if you were the topic of misinformation. Get a life!
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