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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 (65)


  • Add A Comment

  • longwayhome wrote...
    So what
    February 7, 2013 7:17 pm
    $600.00 Not worth the time reporting it. Someone has a conflict with her, probably a republican. Another sore loser.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Rick W7PSK wrote...
    Sorry LW This is not a Party Issue
    February 8, 2013 4:07 am
    If I misused my Corporate card like that, I would be done in the company. No if ands or butts. Why do you think a government employee should be any different.

    And why should a manager that condones it with only a "She is valued" BS should be still managing?

    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Cabezon wrote...
    you must be a low performer
    February 8, 2013 8:40 am
    You use that tired line that you would be fired and we have no way of fact checking that. I have worked for small businesses, fortune 500 companies, the state and the federal gov. While working in private industry I have seen employees steal from the company, their customers, use drugs on duty sexually harass coworkers and it has all been overlooked by management if the employee was a "performer". Please don’t act like the private sector is any different than the government. Guess where the government gets their employees. Not Mexico like so many businesses, the government gets their employees from the private sector. Government employees are no different than you, don’t be mad because someone has a pension. And don’t give me the tired line that you pay for their benefits. Guess what you still have to pay taxes when you work for the government. If you are going to throw a fit with gov waste then throw a fit with private sector waste. Be mad when you go into a store and see employees just talking and not working, they aren’t added value to whatever you purchase they are raising the price.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Howdy wrote...
    Cabezon
    February 8, 2013 10:06 am
    As taxpayers we are investors (by force) in this failing 'company' known as our state government. I think we have a right to call for the dismissal and prosecution for someone stealing from our investment. You're store analogy doesn't work since nobody is forcing you to spend your money there.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Cabezon wrote...
    Fire away
    February 8, 2013 11:35 am
    Fire whoever you like but enough with the fake outrage and the government, Obama, Democrat, liberal scapegoating. This happens everywhere, in many buisinesses you do use. Nobody forces you to invest in anything you chose this lifestyle. You could choose to live in the Cascades (or the streets or at sea for that matter) and pay no taxes. But thats what blowhards do, they blow hard and nothing else. And maybe you can pay a private company to prosecute this lady so tax money wont go to that.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Howdy wrote...
    It's not outrage
    February 8, 2013 12:00 pm
    And I'm not blaming Obama, or Bush for that matter. I blame the person responsible (Peckham). Most people (like me) do not have a problem with paying taxes, but we do have a problem with theft and I would bet that this is not an isolated case. Pilfering money might be ok in you circle but where I come from it deserves punishment. Does that make me a "blowhard"?
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Cabezon wrote...
    blowhard
    February 8, 2013 12:09 pm
    Its the rest of your post that makes you a blowhard. Fine, fire her and 10 other people to make the point. Just dont act like this is confined to the government. I dont think pilfering money is ok but the fact is that it does happen and is tolerated in the private sector, lots of things are tolerated as long as you are a performer. And since you brought it up where do you come from? Maybe you should go back. I come from Washington, I'm not some doughy blowhard with a victim mentality.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Howdy wrote...
    Where do I "act like this is confined to the government"?
    February 8, 2013 1:07 pm
    You disagree with theft yet you feel it's okay to look the other way. You must do that alot because all of that spinning around seems to have made you dizzy. I come from right here, lived in WA all of my life- I was referring to the way I was brought up. I guess pointing out that this woman stole from the taxpayers of Washington (not some private business) is a useless effort on you- move along.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • TimeForNewLeadership wrote...
    There is no excuse...
    February 7, 2013 9:10 pm
    for those purchases. They are obviously not business related and that amounts to theft. She should be terminated. I am sure there are other people who are qualified for her position.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • AKAF wrote...
    Oh my....
    February 7, 2013 11:15 pm
    This is a minor individual, regardless of the media hype or should I say over hype...btw..I don't believe the media and what this worker actually controlled, that had no clue what she was doing. Charging the state for her charges seems a little clueless but since it was minor it seems she had no clue on the situation. She was given the proper discipline. It's a minor situation...Brandy and Dori needs to find bigger fish to fry.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Rick W7PSK wrote...
    Ill ask you AKAF same as above
    February 8, 2013 4:08 am
    If I misused my Corporate card like that, I would be done in the company. No if ands or butts. Why do you think a government employee should be any different. And why should a manager that condones it with only a "She is valued" BS should be still managing?
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Rangerhawk wrote...
    Only $658.63 !
    February 8, 2013 2:59 am
    This woman is a horrible democrat and obvious novice at taxpayer bilking! I wouldn't be surprised if she switched to the Republican party and stopped smoking pot. What a loser.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • SickofSeattleite wrote...
    what????
    February 8, 2013 5:21 am
    more fraud and corruption within Govt run entities??? No way!!!
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Zoeller wrote...
    "But we have cut to the bone."
    February 8, 2013 6:18 am
    Just ask former Governor Chrissy.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Hopefortheworld wrote...
    How is she not fired?
    February 8, 2013 6:43 am
    Sure hope they are in the process of confirming the misuse and firing her. I, Joe Citizen, am her employer, not "the government".
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • 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
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • 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.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • 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.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • 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" }
  • { "Thumbs Up":"1","Thumbs Down":"-1" }