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Allegations that local PennDOT employees violated state law by accepting gifts from consultants have triggered a stern warning from PennDOT Secretary Allen Biehler and could lead to a legislative investigation.

"It has come to my attention that certain consultants and contractors who perform services under contract with the department have been providing gifts and gratuities to department employees," Biehler wrote in a June 17 e-mail to 49 consulting companies. "This has included tickets to sporting events and golf outings, as well as meals and other entertainment. This practice is unacceptable and must end."

Biehler, of Crafton, told consultants to stop the practice. He also instructed top PennDOT administrators across the state to tell employees to refuse gifts, PennDOT spokesman Rich Kirkpatrick said Friday.

Pennsylvania law forbids PennDOT and other state employees from soliciting or accepting gifts or items of value from contractors. Food and refreshments of nominal value are acceptable "on infrequent occasions." Those who violate the law might lose their jobs.

The allegations spring from pretrial testimony in a federal whistle-blower lawsuit in Pittsburgh. Witnesses testified that consultants under contract to PennDOT routinely gave gifts to the agency's District 11 employees. Collier-based District 11 is made up of Allegheny, Beaver and Lawrence counties.

Bill Arnold, a 35-year District 11 assistant construction engineer who retired in 2004, filed the lawsuit in January 2003.

Arnold, of Washington County, says in his lawsuit that he was demoted and retaliated against for reporting that private construction inspection firms hired by PennDOT were padding their employees' resumes to charge higher fees. Arnold's lawsuit says he uncovered more than $800,000 in overpayments to consulting firms working for PennDOT's District 11 office between March 2000 and June 2001.

Arnold and his attorney, James Ashton, declined to comment yesterday on Biehler's e-mail. In his lawsuit, Arnold seeks reinstatement to his former position and more than $50,000 in damages.

The allegations interest state Sen. Roger Madigan, a Williamsport Republican who chairs the Senate Transportation Committee. Madigan said he intends to question Biehler.

"I think it needs to be looked into more," Madigan said. "It's something I certainly would stand ready to have the Senate Transportation Committee look into, determine the extent of it and how we can preclude it from happening again.

"If we have some clear evidence, then I think it's time for the committee to take a look at it."

The allegations against PennDOT employees include one consulting firm taking a van filled with District 11 employees who oversee construction contracts to a PNC Park corporate box for a Pirates game.

Other allegations include consulting firms paying for PennDOT employees to attend golf outings at premiere courses.

None of the allegations in the lawsuit has been proven, and no PennDOT employees have been reprimanded. No contractors have been penalized, PennDOT's Kirkpatrick said. Court motions have been filed seeking more evidence.

Biehler declined to comment on his e-mail, but Kirkpatrick said PennDOT is "in a position where we're using taxpayer dollars ... and for that reason, you can't have the appearance of having favors."

"I expect consultants and contractors to immediately cease offering or providing gifts and gratuities to department employees," Biehler wrote. "Any consultant or contractor who hereafter fails to heed this admonition will be subject to appropriate sanctions, including, but not limited to, termination of the contract" and disqualification for future PennDOT work.

Madigan commended Biehler for sending the e-mail.

The head of one consulting firm receiving the e-mail, MS Consultants, said he had not seen the message, but was surprised to hear of the allegations.

"In our dealings with PennDOT, we know their employees won't even accept lunch," said Tom Mosure, president of MS Consultants, which is based in Columbus, Ohio, and has a Moon office. "We find the PennDOT people are very, very ethical."

Several companies on Biehler's e-mail list declined to comment, and calls left with several more were not returned yesterday.

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