County auditor arrested for breaking bidding rules

County Auditor Mark Yates was charged Monday with violating the competitive bidding process by renewing an insurance contract without approval from Commissioners Court.

Sheriff’s deputies arrested Yates at his office shortly before 4 p.m., leading him out of the Dancy Building in handcuffs.

The longtime county auditor “is the last person on Earth that I would hear that is happening to,” a surprised Commissioner Edna Tamayo said.

The Precinct 4 commissioner recalled thinking: “It’s not April Fools Day. What’s going on?”

Her only complaint about Yates, she said, is that, “he gives you a dissertation when you ask him a question.”

Yates didn’t speak Monday when brought before Justice of the Peace Linda Salazar. Dressed in a county-issued orange jumpsuit and sandals, he was quietly arraigned and given a $2,500 personal recognizance bond.

Yate’s attorney Israel Cano declined to comment for this article. At press time Monday, Yates’ employment status with the county had not changed.

The charge against him pertains to a $1 million contract with United of Omaha Life Insurance, which he renewed without seeking bids as required by law.

Only contracts worth $25,000 or less can be renewed without soliciting bids. All others must go through the competitive bidding process, District Attorney Armando Villalobos said.

“The allegations are that he (Yates) was told by Commissioners Court several times” to seek bids, but that “he just renewed it on his own,” Villalobos explained.

The unauthorized renewal of the Omaha Life contract in December is costing county taxpayers an extra $600,000 this fiscal year.

“It is quite a bit of money that we are alleging that is costing the county more by this renewal,” Villalobos said.

The contract came to light in December after county commissioners questioned why the annual insurance premium contract was signed without being approved by Commissioners Court, according to Brownsville Herald archives.

Carey S. Malek, with United of Omaha Life Insurance, said he e-mailed Yates and County Personnel Director Manuel Villarreal about the impending increase. Yates acknowledged receiving the e-mail. Villarreal said he never received it.

Yates signed the acknowledgement form in October to indicate the county was aware of the increase and said the county’s policy with United of Omaha Life Insurance renews automatically every fiscal year.

He said the insurance policy and increase had been effect for 90 days by the time he received the renewal form.

“We had to act accordingly to keep our policy in place,” he said in a Dec. 20, 2006 article. “If we failed to pay then we are subject to cancellation.”

Malek reiterated Yate’s statement, saying the county has an “evergreen clause,” which means the policy is automatically renewed unless it is notified otherwise.

Villalobos said the County’s Civil Legal Division requested the District Attorney’s Office review the contract renewal. His office will investigate the case and those connected to it, including insurance brokers involved. Yates is not suspected of personally benefiting from the unauthorized renewal.

The offense is a Class B Misdemeanor with punishment of up to 180 days in jail and a fine of up to $2,000. If convicted, Yates would be ineligible to work for any government agency for the next 10 years, Villalobos said.

Yates has served as the county auditor since September 1993, according to the county’s personnel department. He was appointed the position by the county’s state district judges.

Those same judges will determine whether he remains employed by the county. A visiting judge will be assigned to hear the case.

County officials were surprised to learn of the arrest Monday.

“I saw him being taken away and he was handcuffed,” Pct. 1 Commissioner Sofia Benavides said.

Benavides is concerned about the budgetary process, which begins soon for the county. The court is preparing for the next fiscal year that starts Oct. 1.

“Who is going to carry on the duties (of the county auditor) and we’re right on budget time,” she said, worried that Yates won’t be available for consultation when the process begins.

Pct. 2 Commissioner John Wood watched as deputies drove away with Yates in the back seat of a county cruiser.

Commissioner David Garza said Yates’ arrest is, “unbelievable.”

“Of all county employees, he would be the least I would think would be arrested,” the Precinct 3 commissioner said. “But as I’ve told you before Â… nothing surprises me in county government anymore.”

emma perez-trevino@brownsvilleherald.com

Reporter José Borjón contributed to this report.