News & Observer | newsobserver.com | Crane rejected order to lie in 2003

Published: Mar 06, 2008 12:30 AM
Modified: Mar 06, 2008 05:54 AM

Crane rejected order to lie in 2003

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I was so surprised when Gary Fuquay did not tell me the truth, because I thought he was a good man. I had talked with him several times when he was the controller of the state Department of Health and Human Services and he had always been truthful.

Not this time. This time he was following orders. The story came back to me Tuesday when Debbie Crane was fired.

It was a Friday afternoon in the summer of 2003 and I had gone to see Fuquay about another embarrassing mistake at the Department of Health and Human Services. For years the department had sent Medicaid payments to hospitals that weren't eligible and the state might have to repay $200 million. Fuquay had just been named director of the Division of Medical Assistance. It was his job to deal with it.

A source had tipped me to the story. But without on-the-record confirmation, The News & Observer wouldn't publish it.

So I went to see Fuquay to ask about this mistake. And when he couldn't duck or dodge my questions, he said he didn't have the information I sought.

Crane, the department's top public information officer, left the room. A few minutes later she returned and asked me to step into the hall. Crane was upset. She told me that the governor's office had ordered Fuquay to lie. She said, "I just called the governor's office and I told them we weren't going to do it."

Crane and I then went back into the room and she told Fuquay to give me the numbers and answer my questions. Fuquay tilted his head back and rolled his eyes. And then he looked directly at me and said, "I'm so sorry."

And then he answered my questions. He had a file with him containing the numbers I asked about.

Crane's admission about the governor's office was off the record then. But she was fired Tuesday by Gov. Mike Easley, who, she said, sent word to DHHS Secretary Dempsey Benton that he had "lost confidence" in her. I now have Crane's permission to tell the story.

Fuquay, who retired from the state, said Wednesday whatever directions he had been given came from Crane.

"I do remember Debbie coming in after she talked to you and telling me to tell the whole story," he said.

pat.stith@newsobserver.com or (919) 829-4537
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