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Audit: "Lack Of Ethics" Led To $110 Million No-Bid Contract In Texas

A state audit into a $110 million contracting scandal at the Texas Health and Human Services Commission says a lack of ethics and accountability cleared the way for a no-bid deal that remains under criminal investigation.

The report Thursday heaps more criticism on state health Commissioner Kyle Janek's embattled mega-agency. Janek signaled no intention of resigning in a letter this week to Lt. Gov. Dan Patrick.

Two top state executives have resigned in the wake of the now-canceled contract with Austin-based tech consultants 21CT. The company was hired to help uncover Medicaid fraud.

Auditors say the deal with 21CT was "predetermined" from the start and skirted competitive bidding. 21CT executives have denied that the contract was improper.

Public corruption prosecutors in Austin are also investigating the deal.

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