State Computer Center Chief Quits

SACRAMENTO — The chief of the state’s computer center has resigned after an audit revealed he awarded $5.2 million in contracts to several firms that helped pay his way on pricey golf junkets, including trips to Pebble Beach and the Masters tournament in Georgia.

Chong Ha, director of the state’s Teale Data Center, stepped down Wednesday night, hours before release of a state audit Thursday alleging he violated conflict-of-interest laws by improperly accepting and failing to disclose more than $3,000 in trip costs paid by the firms.

Ha, who was appointed computer center director by Gov. Pete Wilson in 1991, also was accused of improperly claiming reimbursement for more than $2,000 in educational expenses incurred while seeking a doctorate in business administration.

As a state official, Ha is limited to accepting no more than $280 in gifts in a year and must disclose them on annual statements of economic interests. His case is under review by the state Fair Political Practices Commission, which could levy fines.

The audit also found that a Ha subordinate at the computer center, which handles data processing for most state agencies, had improperly accepted trips totaling about $1,000 from two computer firms.

After the resignation, Wilson administration officials applauded Ha’s efforts to reduce costs during his tenure at the computer center, where he commanded a $79-million annual budget and 386 employees. But they expressed dismay over the ethical problems revealed by the audit.

“We are disappointed by the lack of judgment he demonstrated,” said Dean Dunphy, a Wilson Cabinet secretary who oversees the center. “Although it was never his intention to violate the law, given the situation, Mr. Ha submitted his resignation with the belief that his ability to continue serving the governor and the people of California would be greatly impaired.”

Ha, 58, is a former associate director of the MCA/Universal Studios Data Center. Before that he was vice president for corporate information systems at Ticor Title Insurance Co. of Los Angeles. In his post with the state, he received a salary of $89,664.

Charles Bell, Ha’s attorney, said Friday that the computer center director was guilty only of misunderstanding the intricacies of the state’s expense reporting rules.

“I think he was unfamiliar with the details,” Bell said. “In terms of the golf and the recreational events, he just didn’t understand that some of those things might require him to pay.”

Bell said Ha made arrangements for the state to reimburse the companies for his expenses at the time of the trips. But in some cases, he said, the computer firms failed to submit requested invoices for the trips.

The attorney also argued that state Auditor Kurt R. Sjoberg was “dead wrong” to conclude that Ha had violated California’s conflict-of-interest law. Most of the contracts in question were awarded by competitive bid, Bell said, with Ha simply signing off as a formality.

A spokeswoman for the agency that oversees the computer center said there are no plans to review the contracts spotlighted in the audit.

“We have no basis to suspect the contracts are improper,” said Julie Steward, an agency spokeswoman. “Mr. Ha was not the deciding factor in those contracts, and we have no reason to believe he exerted improper influence.”

The audit found that from 1993 to 1996, Ha accepted trips sponsored by the computer firms to Palm Springs, Pebble Beach and Napa, as well as an outing to Greensboro, Ga. The excursions often featured luxury lodging, the audit found.

Ha’s three-day visit to Georgia in 1995 involved only 2 1/2 hours of business presentations each day, the audit said. The rest of the time was spent at the links, watching the nearby Masters golf tournament or on meals and refreshments.

The state paid for Ha’s air fare. But the Gartner Group, which contracts its services to the state data center, picked up the rest of Ha’s tab, estimated at $662, the audit said. In the following months, Ha approved contracts totaling more than $500,000 for the Gartner Group.

In June 1996, Ha and a subordinate attended a conference at Pebble Beach sponsored by Amdahl, another computer firm. The audit said they played golf in a tournament sponsored by the firm, which picked up all expenses except lodging. Five months later, Ha signed a $4.1-million contract for Amdahl.

Ha also submitted a claim to the state for more than $2,000 in expenses for a business management degree, which he said would help him do his job. The audit concluded that the college instruction did not qualify for reimbursement from the state because it was not required for the performance of his duties.