Oregon Public Broadcasting

Three managers at the Oregon Department of Energy are under criminal investigation for possible contracting "irregularities" that may involve federal stimulus dollars. Few details have emerged but, as Colin Fogarty reports, the probe could have implications for one candidate for governor.

Oregon Department of Justice spokesman Tony Green would only confirm the agency is looking into quote "potential contracting irregularities at the Oregon Department of Energy."

Governor Ted Kulongoski's spokeswoman Anna Richter Taylor says the inquiry was prompted by findings of an ongoing audit. At this point, three Department of Energy managers are on indefinite leave.

One is the agency's deputy director. The other two were responsible for managing federal stimulus money, according to the Energy department's website.

The Oregonian and the Willamette Week quote anonymous sources linking the investigation to Bend-based energy consultant, Cylvia Hayes. She's the girlfriend of Democratic gubernatorial candidate John Kitzhaber.

Hayes did not return calls. Her Facebook page says to the best of her knowledge neither she nor her company are under investigation.