Oakland County ZaydLogix Contract Canceled After Ethics Breach

Oakland County, Michigan, has pulled the plug on a controversial $450,000 IT staffing contract awarded to ZaydLogix LLC, a company owned by one of its own employees. The decision comes after a detailed independent investigation found serious violations of county policy and state law. What shocked residents isn’t just that the contract was awarded at all but that the person behind the company worked inside the very department that approved the deal.

How the Contract Came to Light

The controversy began earlier this year when a whistleblower sent an anonymous email to Oakland County leadership. According to the message, ZaydLogix, owned by a current county IT staffer, received preferential treatment in bidding. That raised immediate red flags because state law generally prohibits public contracts with firms owned by active county employees.

County executives responded by immediately halting the agreement. They also hired Miller Canfield, a well-known law firm, to dig into the issue. The background: the contract was tied to the county’s CLEMIS system, the Courts and Law Enforcement Management Information System, which handles critical data used daily by law enforcement and courts. 

What the Investigation Found

The Miller Canfield report, though not released in full, was summarized by county officials. Its key conclusions were alarming:

• Awarding the contract to ZaydLogix broke both county policy and state law.
  
• Investigators found an “ends-over-means” mindset: employees focused on quickly filling needs, but ignored procurement rules and conflict-of-interest policies.
  
• Crucially, the report did not find evidence of fraud or financial kickbacks.
  
• No invoices were ever paid: the contract was terminated before any funds were disbursed.
  

Oakland County paid about $17,836 for this outside investigation. 

Disciplinary Actions Taken

Following the investigation’s report, Oakland County disciplined four IT department employees responsible for approving or managing the ZaydLogix deal.Here’s what happened:

• The ZaydLogix owner (who worked for the county) was suspended for four weeks without pay and will resign. 
• A CLEMIS manager involved in the contract evaluation is also resigning after a four-week suspension.
  
• The IT department director was suspended for three days.
  
• The evaluator who approved ZaydLogix’s bid received a two-day unpaid suspension.
  

County leadership also made changes to prevent similar problems in the future. These reforms include shifting bid evaluations under the Purchasing Division rather than IT, requiring annual sign-offs on ethical standards, and training on procurement rules.

Calls for a Criminal Investigation

Not everyone is satisfied with internal discipline. Some county leaders are pushing for a criminal probe. Commissioner Michael Spisz filed a police report with the Oakland County Sheriff’s Office, insisting that law enforcement should weigh in. 

Spisz argues that the investigation findings point to clear violations of state law and that criminal investigation is not only justified but necessary.
But county administration, including Chief Deputy Executive Walt Herzig, has defended their handling. They say that although the contract was improperly awarded, there was no fraudulent intent, and no county money was lost. 

Transparency Concerns and Fallout

The way the county has handled the report has fueled tension. While a summary of the Miller Canfield investigation was released, the full report has not been made public. Local officials, including Commissioner Kristen Nelson, have publicly questioned why the complete report is being withheld, citing taxpayer trust and accountability. 

Complicating the matter further are broader ethics concerns in Oakland County. As officials debate the best way to prevent abuse of power, some are calling for long-term reforms including a formal ethics code, better financial disclosures, and even the creation of an ombudsman to oversee conflicts of interest. 

Why the Contract Cancellation Matters

This scandal is more than just about one company or one contract. At its heart lies a concern about public trust in local government and how taxpayer funds are allocated. When contracts go to companies owned by government employees, it raises serious ethical questions especially when regular procurement rules are bypassed.

For residents, this case highlights the risk that power and opportunity within government might be harnessed for personal gain. For the county itself, the episode is an urgent reminder that good intentions don’t excuse lapses in procedure.

A Path Forward Or A Warning Sign?

Oakland County does seem to be trying to do the right thing now. With suspensions, firings, policy reforms, and new training in place, leaders are promising to tighten oversight and change how contracts are awarded. Still, the refusal to release the full investigation report has left many public officials and community members uneasy.

Commissioner Spisz’s call for law enforcement involvement, combined with the public pressure, could force a deeper reckoning. Even if a criminal case doesn’t materialize, the scandal may serve as a turning point. It could lead to lasting changes in how the county governs IT staffing contracts, how it vets potential contractors, and how it enforces ethical standards.

Bottom Line

The Oakland County ZaydLogix contract cancellation controversy is a stark example of why conflict-of-interest policies are vital in local government. While the county claims no money was lost, the breach of trust and procedural safeguards is real and the fallout could reshape how public contracts are awarded in the future.

What started as a whistleblower tip has sparked a chain reaction: policy reforms, internal discipline, and demands for transparency. Whether this results in a criminal investigation or becomes a catalyst for long-term ethics reform, it’s clear that residents and officials alike will be watching closely. The county’s next steps will determine whether this scandal turns into meaningful change or merely another public relations challenge.

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