New audit says State owes Swadley's $1.1 million in unpaid invoices

OKLAHOMA CITY (KOKH) — An independent audit was filed last week in the Swadley's Foggy Bottom scandal.

The audit shows the state allegedly owes Swadley's more than one million dollars in unpaid invoices.

This 16 page audit was filled on Wednesday of last week with the Attorney General's office, and it details the state stopped paying Swadley's in September of 2021, but work was still continuing on the restaurants.

This report details the state was billed $17 million for remodel work on seven restaurants at state parks, and shows the state only paid a little less than $16 million.

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Swadley's saying they're still owed $1.1 million.

This all stems from a contract between the Oklahoma Tourism Department and Swadley's from March of 2020 to April of 2022.

Jana Walker, a certified public accountant, performed the audit.

During a debate two weeks ago, Governor Kevin Stitt said Oklahomans did not lose $17 million.

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"It's like if you build a home and you hire a contractor to build that home and then you say that the contractor over-charged you for this sheet rock or this piece of equipment, that's what we're talking about here," Stitt said. "If the vendor over-charged us, then there's lawsuit against that vendor. But to say that the tax payer lost $17 million is untrue."

The overcharging of services that the governor is expressing here is separate from what this audit is detailing. The audit is simply saying work that was done was not paid for.

The audit also states:

• Swadley's issued 8 credit memos to tourism in the amount of more than $906,634.
• Swadley's cumulatively underbilled tourism $96,390 for capitol cost, management fees and net operating losses.
• Swadley's incurred a net operating loss of $3,342,379 and has not invoiced tourism for net operating loss.

The entire audit can be viewed below:

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