Changes at BWC designed to restore public confidence

One can't help but feel sorry for William E. Mabe, the administrator and chief executive officer of the Ohio Bureau of Workers' Compensation. He just can't seem to get out from under the black cloud called "coingate" which was created before he took over the giant state insurance provider.
This month marks the half-way point of the yearlong initiative Mabe launched to regain public trust and improve the efficiency and effectiveness of the agency's operation. But in the midst of his issuing a progress report on Agenda '06, coingate reared its ugly head and pushed him off the front pages.
First, Tom Noe, the rare-coin dealer from Toledo who masterminded an investment scheme involving money from BWC, pleaded guilty to federal charges that he illegally funneled about $45,000 to President Bush's re-election campaign. Noe was a major fund-raiser and contributor to Republican officeholders and candidates in Ohio and nationally.
Then, Terrence Gasper, former chief financial officer at the workers' compensation bureau, pleaded guilty to state and federal charges that he received $25,000 from Noe as a bribe in return for doling out investment business from the agency to Noe.
Mabe, the new administrator/CEO of the BWC, just couldn't compete with such juicy, headline grabbing news.
But he deserves an attentive ear because real progress is being made to implement changes that will not only provide long-term financial stability and growth, but ensure there won't be another coingate.
In his meeting with members of The Vindicator's editorial board recently, Mabe explained that the agency's investment policy is being fine-tuned to generate greater returns on investment, expenses are being reduced and revenues are on the rise.
Indeed, in the last six month, BWC's revenues have grown by $148 million, which bodes well for the agency's reaching the target of $424 million by year's end.
Transparency
New internal controls are now in place, the roles of internal auditors have been strengthened and the investment department has been bolstered. In addition, Mabe has made sure that transparency in all transactions is the rule rather than the exception.
"We have to be totally open and honest and tell people like it is," the administrator/CEO told Vindicator writers.
When he was appointed by Gov. Bob Taft to take control of the troubled agency -- the long-time head James Conrad resigned in the midst of the investment scandal -- Mabe realized that tough decisions had to be made. To his credit, he has confronted the weaknesses in the system head-on. For instance, he cleaned out of the investment shop, getting rid of 69 managers. All but one individual involved in the investment side of the agency's operation was retained.
The next six months will be crucial for Mabe because there will still be the distraction of coingate while he works to restore the public's trust in the huge agency and strives to meet the targets he has set. But given his record of the past six months, we are confident that by year's end the BWC administrator/CEO will be able to claim success.