Roy McGrath at April 15 press conference at the State House

Patrick Siebert / Courtesy of the Executive Office of the Governor

A group of Maryland lawmakers continued their investigation into Roy McGrath, Gov. Larry Hogan’s former chief of staff, and the $233,000 severance package he received when he departed from his position as director of the Maryland Environmental Service, an independent state agency.

McGrath appeared with his lawyer Bruce Marcus virtually before a legislative oversight committee Wednesday, to answer lawmakers’ questions under subpoena. Prior to the hearing, McGrath denied multiple requests by lawmakers to appear before the committee. In the end, lawmakers were left with more questions than answers as McGrath’s response to most of their questions was, “on the advice of my counsel and pursuant to my legal rights I respectfully decline to answer this question.”

Ward Coe, legal counsel for the committee, questioned McGrath for more than three hours about the severance package, his expense reports — which totaled more than $129,700 over three years, and the role he played in helping Hogan acquire 500,000 COVID-19 tests from South Korea in April.

McGrath served at MES for a little over three years. His severance was more than seven-times the amount Beth Wojton, the agency’s former deputy director, was paid — $32,000 — after her more than 32 years of service at the agency.

However, McGrath wrote in an August op-ed in the Baltimore Sun and on his personal Facebook page that his severance was non-taxpayer funded and was in line with usual policies and practices at MES.

He also wrote that the severance package was administered in mid-May “when the fiscal circumstances were certainly not the same as today. It was not long into the pandemic, and the full impact was only beginning to unfold. If the same decision were being made today, with the knowledge we now have, it may have been handled differently, such as better calling it an earned performance bonus, which is what it effectively was, not severance.”

During the hearing, Coe showed an email McGrath sent to Hogan’s Deputy Chief of Staff Stephen Schatz in May, saying that the state’s revenue shortfalls were going to hit MES projects and they would not be able to pay “its own fixed and variable costs.”

After McGrath’s initial severance payout was made public, Hogan in a statement said he was unaware of the hefty payout. The following day, according to Coe, McGrath attempted to contact Hogan via text message, writing, “the statement yesterday is being misinterpreted. Can you please say something about us discussing severance?…with your support it looks like I mislead MES. I did not. I’ve been one of your loyalist supporters from the beginning. Never asked for anything, but need your help now, please. This is devastating my life.”

Coe then moved to the long list of expenses McGrath racked up during his time at the agency totaling more than $129,000. Those expenses in his three years at the agency were six times higher than what was spent individually by former directors in their 11 years at the agency.

During his time as director, McGrath had 24 out-of-state trips to various leadership conferences totaling more than $35,900 and three trips abroad totaling more than $19,800. McGrath also charged multiple overnight stays at local hotels in Annapolis and Baltimore and meals to MES.

An independent audit of the agency determined that at least $55,800 of McGrath’s expense reports had issues. Those issues included that McGrath was reimbursed for more than the appropriate amount based on the agency’s policies, that he did not use state service contracts when booking hotels and flights, that he did not submit expenses within five days of incurring them, that the expenses were not listed as acceptable expenses and receipts were not attached to some expenses, and that McGrath submitted expenses after leaving the agency.

Lawmakers also questioned McGrath about his involvement in acquiring the 500,000 COVID-19 tests from South Korea. In April, Hogan thanked him for spearheading the procurement of the tests, which in the end were not used by the state because they were incomplete and not accurate, according to The Washington Post. McGrath said he helped in logistics and transportation of test kits while still working as MES’s director, but was unaware that the tests were not usable.

“I was not involved with purchasing these [tests]. I was involved in the supply chain part of it,” McGrath told the committee.

At the conclusion of the testimony, Del. Erik Barron (D-Prince George’s County) said the evidence was overwhelming.

“Seems to me we’ve heard a lot of evidence about large, unwarranted, unprecedented payouts for a lateral move within state government,” Barron told the committee. “And I haven’t heard much opposition to that or anything to counter that evidence.”

Sen. Clarence Lam (D-Baltimore and Howard counties) also lamented the lack of information provided during McGrath’s testimony.

“It’s really disappointing to all of the hard-working folks within state government who are working really, really hard hours during a pandemic, facing financial challenges and a shortage of resources, and yet you were globetrotting and spending and receiving a wild severance benefit while leaving one state agency to take a position at another,” Lam told McGrath. “I hope we can get to the bottom of what occurred here. I don’t think we have complete answers.”

Lawmakers are left with a few options, according to state house aides familiar with the investigation. They could re-interview board members and others at the agency or they could request the state prosecutor to press charges against McGrath given the evidence already collected.

In response to the investigation into McGrath and MES, Hogan issued an executive order Wednesday creating a transparency and accountability reform commission to provide oversight of the state’s quasi-governmental agencies.

“Since taking office, our administration has pushed to restore integrity and accountability to our state government and to ensure that the best interests of Maryland’s citizens are being represented fairly and honestly. We need to take a long and hard look at the way that our quasi-governmental agencies operate, and focus on making real and systemic reforms,” Hogan said in a statement.

The commission will be chaired by former Sen. Andrew Serafini and will be run by members of the governor’s cabinet and members of the legislature.