SACRAMENTO, Calif. — California lawmakers say they are troubled by state Controller Betty Yee's behind-the-scenes advice to a politically connected company seeking a $600 million no-bid government contract to provide COVID-19 masks, prompting some to call for a second legislative hearing into the failed deal.
Yee's role in California's scuttled state contract with Blue Flame Medical LLC went undisclosed for two years, despite a lengthy legislative inquiry and federal investigation. Documents from a civil lawsuit reviewed by the Los Angeles Times detail how the two-term Democrat — with no formal role in the state contracting process — sought inroads for Blue Flame with the administration of Gov. Gavin Newsom, suggested language on how to ask the state for a large upfront payment and then worked to expedite the agreement.
After California officials were forced to claw back the state's $457 million cash advance to Blue Flame amid fraud concerns, lawmakers demanded transparency and accountability during a hearing in May 2020. But Yee's name was never mentioned.
