NBC 4i: Ohio Rebate Program Created Jobs in Texas, Central America

NBC 4i exposes how Strickland is sending stimulus dollars to jobs in Texas and Central America:

COLUMBUS, Ohio -- A state program designed to stimulate Ohio's economy created jobs in Texas and Central America instead.

The Ohio Energy Efficient Appliance Rebate Program rewards consumers with rebates for purchasing energy efficient refrigerators, dishwashers, clothing washers, and water heaters.

Ohio has handed out $7 million out of more than $10 million allocated for the federally funded program.

Ohio's Department of Development contracted with Texas-based Parago to run the appliance rebate program for roughly $500,000.

"Why is a Texas company running this program instead of an Ohio company?," NBC4's Patrick Preston asked of Nadeane Howard, Director of ODOD's Energy Resources Division.

"Ohio has one of the largest energy star rebate programs in the country." Howard responded. "We could not trust it to someone who had not done this kind of work before... We wish too that we could have had an Ohio firm do this work. Unfortunately, there was not an Ohio firm who proposed a project to us who could manage this."

Howard said as many as two Ohio companies inquired about the job, but in ODOD's view did not have sufficient experience.

Howard said ODOD stands by its choice of Parago, but it turns out Parago did not hire Americans to operate its rebate call center program.

Instead, the company outsourced the call center jobs to Central America. In that sense, an American stimulus program helped to stimulate Central America's economy.

"Did you know the Texas-based company would outsource its call center duties to another country?," Preston asked Howard.

"We did not know that initially," Howard responded. "The moment we found out, the director of this agency issued a request to Parago to please on-shore their call center."

"Have they complied with that request?," Preston asked.

"They don't have an on-shore call center that they can utilize, so with the program winding down it still resides offshore," Howard replied.

Howard said ODOD's contract with Parago did not require the call center jobs to stay in America. She said ODOD would learn from the situation and make that request in future contracts with rebate management companies.

(Source: NBC4i, 7/27/10)