Diebold parts ways with consulting firm after donations

Associated Press     01 September 2005

COLUMBUS, Ohio - Diebold Inc. has elected not to renew its contract with a consulting firm after its workers offered campaign funds to county officials while trying to persuade them to use Diebold's voting machines.

Company officials were not aware that members of Celebrezze & Associates offered contributions to elections officials, Mark Radke, Diebold's director of voting industry and business development, told The Columbus Dispatch's editorial board.

Pasquale Gallina gave $10,000 to Franklin County Elections Director Matthew Damschroder. William Chavanne offered $1,000 to Susan Gwinn, chairwoman of the Athens County Board of Elections.

Gwinn refused the contribution. Damschroder accepted the check made out to the county's Republican Party in January 2004. He was suspended for 30 days after admitting he took the money the day after the county opened bids for new voting software.

Diebold barred its executives and elections-division workers from participating in political activities after Chief Executive Walden O'Dell promised in 2003 to deliver Ohio to President Bush in the 2004 election, although he made no reference to voting machines in his statement. No polling place in Ohio had Diebold electronic machines in 2004.

Radke said the Celebrezze consultants' actions became a distraction for the company vying for $116 million in federal funding to Ohio's voting machines.

Gallina said Thursday that he already had been thinking of parting ways with Diebold because he'd finished the bulk of his work with the company.

He said the contributions were personal and not intended to curry favor with elections officials.

"That's part of being in the consulting and lobbying business," Gallina said. "You have to show your support so they support you. It's not a pay-to-play."

Diebold, based in North Canton, has won the votes of 47 of the state's 88 county elections boards. Eighteen have chosen competitor Election Systems & Software to their voting technology.