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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)


  • Add A Comment

  • CH wrote...
    leave it to a woman
    February 7, 2013 11:11 am
    and money!!
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • bmaddy wrote...
    Here we go again!
    February 7, 2013 11:12 am
    FIRE HER ACE... NOW
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • HPD 5-0 wrote...
    Yet one more example of the corruption of the Dimocratic Party.
    February 7, 2013 11:17 am
    FIRE HER, HER BOSS, HER BOSS'S BOSS...and the Govenor.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • fartforce1 wrote...
    she is a registered Republican
    February 8, 2013 2:59 am
    Sorry.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • CDRyan wrote...
    Exactly..
    February 8, 2013 2:53 pm
    You're pretty dumb dude..
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Rick W7PSK wrote...
    Why is she not fired if not in Jail
    February 7, 2013 11:34 am
    Why? That needs to be pressed there super duper investigative reporters.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • otherpointofview wrote...
    didn't you read the fantastic article
    February 7, 2013 12:32 pm
    it's because she's a valued employee who simply made a mistake..
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • maplefish wrote...
    Unauthorized purchases
    February 7, 2013 5:06 pm
    Is STEALING. Had an f my employees ever had "unauthorized purchase" while or king for me, they would have been terminated. Of course, as a government employee, there o t be any consequences....
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • CDRyan wrote...
    New Keyboard please
    February 8, 2013 2:54 pm
    And thank you
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Saul wrote...
    Terminating a theif
    February 9, 2013 6:44 am
    This smells like a deeper investigation would yeild more dirt. In my experience in private business when someone gets a light slap for something like this and no one presses charges, there is usually a backstory, either someone higher has done worse or a higher powered friend or family member is involved or their has been an affair, please dig in deeper.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • ToldYa wrote...
    and they still want to raise taxes
    February 7, 2013 11:35 am
    without addressing the pervasive fraud and waste in the system.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • cw1997 wrote...
    But
    February 7, 2013 11:43 am
    Remember it IS FOR THE CHILDREN
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • messiah101 wrote...
    Is this the whole story? After all its in Dori Monsons blog
    February 7, 2013 12:07 pm
    People are entitled to 2nd chances however if these charges were made in a attempt to steal money from the State no 2nd chance should have been allowed as it was out and out theft.If it was paid when the bill came in then a 2nd chance would be in order.Now when the the 2nd offence happened perhaps a firing or at least a suspension should have been in order.But the system did work and the employee was caught.I do wonder if this person has a gambling or other type of problem in her life
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • HPD 5-0 wrote...
    I do wonder if this person has a gambling or other type of problem in her life
    February 7, 2013 1:08 pm
    Problem? Yeah. She's a Dimocrat.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • CDRyan wrote...
    Hhaha
    February 8, 2013 2:54 pm
    Nice
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • sm31337 wrote...
    You nailed it.
    February 7, 2013 2:54 pm
    I happen to know that this is how she is not fired. She said she has a gambling problem and therefore is allowed to seek treatment for gambling addiction instead of being fired. She does however continue to go to casinos.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • TiaMaria wrote...
    Gambling....with our money
    February 7, 2013 5:05 pm
    If she has a gambling problem, that treatment takes time before you can say that you don't have a problem anymore. So how do we know she isn't going to find a 'creative' way to spend more of our tax dollars. She has a problem and she stole from our government tax dollars. So if I have a mental health issue of stealing, and I'm going to therapy, that means I'm absolved of my crime??? I don't think so. She and the boss who has decided to keep her on staff must be fired, as well as anyone else higher up that is supporting this decision to keep her. There are plenty of qualified people who aren't going to steal from our government agencies that would like a government position. And by the way, I was a mental health therapist for 20 years.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • ron prevost wrote...
    messiah, you and I well know that ANY addiction would have eaten up far more than $658.63.
    February 7, 2013 4:42 pm
    Heck, oxie can take over $300 PER DAY. ..... So, unless she was into penny slots, she likely just saw these incidentals as job perks. .. Sounds like her only addiction is called entitlementus democratus.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Topiary3 wrote...
    It is NOT the whole story
    February 15, 2013 12:39 am
    Key information was deliberately omitted.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Sassaphrass wrote...
    Are we really
    February 7, 2013 12:17 pm
    going to string this lady up for wasting what amounts to .000005% of the budget aloted to her. I guarantee most of us cost our employers that with slacking off at work, taking smoke breaks and what not. Should you be fired for wasting your employers money? She should have some punishment come from this.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Sassaphrass wrote...
    Especially
    February 7, 2013 12:19 pm
    when our elected officials waste so much more of our money on a daily basis. Start at the top of the pile of filth this state has, not the bottom.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Rick W7PSK wrote...
    I have a Corporate card from my Employer
    February 7, 2013 2:04 pm
    If I used it as she did, I would be terminated instantly.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • TiaMaria wrote...
    No moral filter
    February 7, 2013 5:10 pm
    She was told that she was abusing her work credit card - and continued to do it. Yes, her punishment should be she gets fired. Period.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • HikerACE wrote...
    Nice Logic TiaMaria
    February 7, 2013 9:30 pm
    How dare you interject that into an article about our wonderful democrat led state government. That goes against their core belief, waste.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • monkeyal wrote...
    Almost $11,000,000,000 in
    February 7, 2013 12:29 pm
    state administered contracts?? !11 Billion?? Really?? What besides credit cards adds up to $11 billion? Surely, there are other credit card abuses in all levels of government.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • The Real Me wrote...
    30 Years In State Service . . .
    February 7, 2013 12:34 pm
    I have 30 years in state service, working in budget and accounting. The problem is that these people are protected by Unions that are right in bed with the Democrats (noticed how things have gone downhill in WA state government for the past 25 years? Who has been in charge for the past 25 years - Democrats and Unions). State employees hate the unions because they suck us dry for dues, and if someone actually gets fired they are just replaced with another dues-paying drone. Firings are rare. In state government, DES is considered an out of control joke - the former "General Administration" was just a roadblock to getting anything done and ran up the cost of everything. Nothing has changed, in spite of Gov Grinch's merging of agencies. Creating mega-agencies out of smaller ones just creates more bureaucracy and cost - we inside government know it but never say anything out loud because of fear of reprisal. Politics outweighs truth, and the truth is suppressed or spun into whatever makes elected officials and executives look good. Every now and then, some poor idiot like Neva gets caught doing what many state employees do - hers is more blatant, but abuse is rampant. If the public only knew the truth and something could actually get done in terms of real reform, starting with our clueless elected officals - most of whom have no idea how government agencies actually run - we might start seeing improvement. In the meantime, taxes will only ever go up, while services continue to diminish or are reduced. I hope they can this idiot, but she will simply be reassigned, given a "Y-rating" which means she keeps her current pay, and everyone will forget the whole thing.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • William Lawn wrote...
    Do you actually know she is union?
    February 7, 2013 1:35 pm
    Not saying she isn't, but her job description certainly doesn't sound like union work.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • TiaMaria wrote...
    Unions
    February 7, 2013 5:19 pm
    Good post. I agree about unions. They aren't what they were originally meant to be - to protect the workers from original abuse/unfair labor practice. If everyone got together and decided to not pay dues and say they don't want a union, maybe things would be different. We have an internal Union (with people who work in various positions - in house), and it isn't perfect, but it's much better than being told by an outside Union (who doesn't usually know our jobs anyway)what issue they are or aren't going to vote or decide on. I say stand up and say No More To Unions and get people involved in creating an internal Union. I think we need to say no more to taxes until the government can get their proverbial S__t together, get people on board who know how to run it right FOR THE PEOPLE, WHO ARE PAYING WITH THEIR HARD EARNED TAX DOLLARS, TRUSTING THAT THEY WILL DO THE BEST THEY CAN.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • myopinion wrote...
    This has`
    February 7, 2013 12:35 pm
    Nothing to do with either party, this has everything to do with the union and thier ability to control state goveenment and how they manager thier employees. I was a manager with the state for may years and it is next to impossible to fire anyone, especially if she has has good reviews every year. But this goes beyone a "good employee" that made a "mistake" she basically misappropriated money. Had a director done that they would have been fired. But they are not covered by any unions.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • HPD 5-0 wrote...
    Nothing to do with either party, this has everything to do with the union and thier ability to control state goveenment
    February 7, 2013 1:49 pm
    Pleeez. Yes it indeed does have to do with one party, THE DIMOCRATS, since they are the only idiots to blindy follow & support unions and allow this type of fraud. Nice try though.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • DonVigo wrote...
    Further proof the government is as bad off as it is...
    February 7, 2013 2:42 pm
    ... Because our society is full of blatant, loudmouth, morons. Seriously, say "dimocrats" again, 'cause nobody is getting the asinine point you're trying to fart out on your keyboard. Hey, MORON, you realize the larger problem in the government is the petty bickering between the two parties, and their inability to get anything done beyond the simple playground antics that seem to be... Well, your entire life... Right? This kind of rhetoric makes the worse place to live in, and it's people like you making it that way. Do the rest of us a favor, and just don't vote. You're clearly too stupid to formulate an intellegent political opinion, and prove that voting should be a privelege and not a right. Maybe if we had less sub-sophmoric children in the political realm we could pull out of the tailspin we're in and accomplish ANYTHING. Some blame Bush, some blame Obama, but I blame the people that deserve it. The people messing things up such as the example in the story, and more so, the entitled, loudmouth, arrogent, ignoramouses that keep extremely rooting for one side or the other. Keep pretending you're part of the solution, you walking problem.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • TiaMaria wrote...
    Blinded
    February 7, 2013 5:40 pm
    It's really too bad that you focus on one governmental Party as the problem, it happens with both parties, and this is why many of us try so hard to educate those of you who are blinded by your own censorship of a bigger truth. Please look at the issue and not focus on a specific position of blame for everyone in one party being the same and being exactly the opposite of another party, this is, and always has been a dangerous position and creates a division rather than looking at each situation for what it is.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • TiaMaria wrote...
    Dem's & Repub's
    February 7, 2013 5:35 pm
    Agreed. A director in any other agency would usually be fired because of keeping on someone who is stealing from funds, and so would the person stealing from the agency.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • { "Thumbs Up":"1","Thumbs Down":"-1" }