Shelley Zumwalt told the Governor she could step down if needed

OKLAHOMA CITY (KFOR) — During Governor Kevin Stitt's presser Friday he said that Shelley Zumwalt told him she could step down after an audit came out alleging a misuse of millions of dollars.

"She said, 'Hey governor, you know until this is all sorted out, I will step down from the cabinet and focus on tourism. And so we may do that," said Governor Stitt.

News 4 reported earlier this week the audit revealed two state agencies— where Oklahoma Secretary of Tourism Shelley Zumwalt previously served in leadership roles— awarded an IT company no-bid contracts worth millions of dollars beginning in 2020.

Zumwalt is also the Executive Director of the Department of Tourism for Oklahoma.

The state has paid the company — Oklahoma City-based ‘Phase 2’—more than $21 million from the no-bid contracts.

Zumwalt personally signed off on more than $8 million in contract extensions with Phase 2 during her tenure as director of the Oklahoma Employment Security Commission (OESC).

The audit revealed Zumwalt’s husband is the Vice President of Phase 2 and it alleged that she didn't disclose that at certain points.

The governor Friday claimed that the latest audit from Cindy Byrd was her "playing politics."

"You've got an AG that's already said he's running for governor. You've got an auditor who's running for lieutenant governor and with an hour we got no notice," said Governor Stitt. "So what I'm trying to say is when when you politicize, you try to attack other political opponents. It's just very frustrating for Oklahomans."

He then made a statement that asked why the audit wasn't released sooner. "Why does it come out today talking about 2020 numbers?"

"Firstly, this audit covered federal expenditures for 2022, not 2020 as referenced by the Governor. Secondly, the findings were very similar to those reported last year, but the numbers in question are now larger. Two agencies have previously reported these deficiencies so these findings are no surprise to anyone.

The audit report is accurate and the concerns are real. I am hopeful the Governor will take time to read the report and take measures to correct these deficiencies that have resulted in the abuse of Oklahomans’ tax dollars."

Cindy Byrd, Oklahoma State Auditor & Inspector

It also revealed, when Zumwalt submitted official disclosure forms about the contracts, she indicated she was not “involved in any related-party transactions” and her “spouse or dependents were not involved” either.

That led to Oklahoma Attorney General Gentner Drummond calling for her to resign after the audit was released on Tuesday.

Zumwalt has told reporters she will not be resigning.

"I think she should stay as the director of tourism," said Stitt Friday. "She's already been confirmed by the Senate, I think that was a year ago. And this was all stuff known a year ago by the Senate during her hearings. She's already been confirmed. Shelly is a public servant and she's worked for state government for 12 years."

May 1st is the deadline for the governor to submit his nominations for cabinet positions.

"She's offered, you know until all of this is sorted out. She said I will step down from the cabinet and focus on tourism. So we may do that," said Governor Stitt.

As of this report, Zumwalt remains as the Secretary of Tourism for Oklahoma.