Former deputy chief of staff David Morales testified about several conversations he had with Richard McDonough, a close friend of DiMasi, about performance management software.
Gov. Deval Patrick, left, is seen here with former Speaker of the House Salvatore DiMasi.By KYLE CHENEY
BOSTON - Richard McDonough, a lobbyist and codefendant in former Speaker Salvatore DiMasi’s corruption trial, told a senior aide to Gov. Deval L. Patrick in 2007 that the adoption of a software contract – directed to “the right vendor” – would help improve a rocky relationship between the rookie governor and the veteran speaker.
“He wanted to make sure it went to the right vendor who could actually have experience performing similar work,” said David Morales, Patrick’s former deputy chief of staff who was brought on by the administration as a special adviser in March 2007 after Patrick’s first term got off to a rough start.
The outcome of the contract, Morales said McDonough told him, “would be important from his perspective to improve relationships between the speaker and the governor.”
Morales added that he knew McDonough to be a “close personal friend” of DiMasi’s and believed McDonough was communicating DiMasi’s wishes. Morales also indicated McDonough was lobbying on behalf of Montvale Solutions, a reseller of software from Cognos Corp., the company at the center of allegations that DiMasi, McDonough and accountant Richard Vitale conspired to implement a kickback scheme and defrauded taxpayers of DiMasi’s “honest services.”
DiMasi, McDonough and Vitale are charged wither steering two state contracts – a $4.5 million education software deal in 2006 and a $13 million statewide deal awarded by the Patrick administration in 2007 – to Cognos in exchange for hundreds of thousands of dollars in kickbacks. The speaker is accused of using his authority to insert those contract authorizations in legislation.
The defendants have denied any wrongdoing, calling all financial transactions in question legal and suggesting DiMasi’s interest in the software offered by Cognos was part of his effort to improve state government.
Montvale Solutions, the company Morales said McDonough had been representing, was run at the time by Cognos salesman Joseph Lally. Lally pled guilty in March to conspiring with DiMasi, McDonough and Vitale in the alleged kickback scheme. Morales said he met Lally in the State House briefly during a hallway encounter when Lally was walking around with McDonough.
Morales, who is now a vice president with Steward Health Care, said McDonough would call him occasionally to check up on the status of the pending performance management contract, “just like other lobbyists would.”
Morales joined Gov. Patrick’s staff in early 2007, leaving the office of Senate President Robert Travaglini, who himself was preparing to depart and become a lobbyist. Morales was appointed Patrick’s deputy chief of staff and oversaw policy, legislative strategy and, according to Morales, the political ramifications of policy decisions.
During cross-examination, McDonough’s attorney Thomas Drechsler emphasized that McDonough had also reached out to Morales about another lobbying client, Cambridge Health Alliance, a hospital that cares for a large share of indigent patients.
Drechsler also pointed out that lobbyists frequently point to support from ranking lawmakers when they lobby the Executive Branch.
“It’s not unusual for a lobbyist to come to someone in your various positions in the State House and cite the support of a committee chairman or the majority leader or the speaker,” Drechsler posited.
Morales agreed. Under questioning from Drechsler, Morales also recalled a discussion with McDonough about setting up a golf game between DiMasi and Patrick’s chief of staff at the time, Doug Rubin.
Morales, who would later go on to become Patrick’s commissioner of health care finance and policy, departed in March to join Steward Health Care, a subsidiary of Cerberus Capital Management that recently purchased Massachusetts's Caritas Christi hospital chain.
Under questioning from DiMasi’s lawyer, William Cintolo, Morales said he was long aware of DiMasi’s interest in performance management but had never heard DiMasi specifically mention Cognos.
Also under questioning from Cintolo, Morales noted the Legislature has no role in procuring state contracts, once they are authorized in legislation, and the Patrick administration had the final say on any proposed contracts.
Morales also noted that McDonough, despite a close relationship with the speaker, was not always successful in his lobbying requests.
“There were times when he advocated things that just didn’t happen?” Cintolo said. Morales answered in the affirmative.
More details coming on MassLive and in The Republican.