Government reformers see the job switch as one more example why state officials should be barred from jumping straight from a position of public trust to a lucrative lobbying gig. But Oveson, his new employer and state officials defend his career move as ethical and aboveboard.

Sandy Peck, of the Utah League of Women Voters, says Oveson's position as vice president of government relations for Virginia-based CGI-AMS highlights the need for the Legislature to pass a law preventing former state officials from becoming lobbyists for at least a year after leaving government service.

"If we had that law it would protect these people from any [conflict-of-interest] accusations," Peck says. "It illustrates the need for this kind of law. Even without going into the question about buying things that didn't turn out too well."

One bill to create a "cooling-off" period for former government officials never got a hearing in the Utah House this year and another died before it was written.

Oveson says there is no conflict of interest in his moving from the state to CGI-AMS.

"No, I don't see a problem whatsoever," Oveson said this week. "I had no intent of working for the company" before officials approached him in January of this year.

But Oveson had a previous tie to the company.

Connections: In 1998, after the state made its computer deal with the firm then known as AMS, Oveson was hired away from his position as chairman of the Utah Tax Commission to work under former AMS chairman Charles O. Rossotti at the Internal Revenue Service. Rossotti stepped down as head of the company after the Utah contract was sealed to become IRS Commissioner. But he continued to hold millions of dollars in company stock for years.

That connection, previously reported by The Tribune, was also downplayed by state officials, who noted that a committee selected AMS for the state contract based on the merits of its proposal.

While Oveson didn't personally select AMS, he acknowledges that he was the No. 1 cheerleader of modernizing the tax agency's computer system - a pricey upgrade that later faced multiple problems, according to a state audit that found, among other things, that the state paid $3.8 million for a component never delivered.

When AMS was picked to provide the new computer system, it was supposed to boost tax collections and improve operations. But legislative auditors later blasted the purchase, citing problems and delays and criticizing the commission for not fining the company or seeking legal counsel.

Oveson, who served as Utah lieutenant governor from 1985-1992, was rehired by the state in 2003 to be then-Gov. Mike Leavitt's chief information officer. He served in that position until late last year, when Gov. Jon Huntsman Jr.'s administration was moving into office. Less than two months later, he took his present job with the newly merged company of CGI-AMS as vice president of government relations - usually a weighty title given to a lobbyist.

Problematic purchase: Tax Commission Executive Director Rod Morrelli disputes that the computer upgrade went as badly as auditors made it out to be and he points to a subsequent audit of the motor vehicle system that showed a successful operation.

Morrelli, who served with Oveson and still runs the day-to-day activities at the tax agency, oversaw the AMS purchase. He says Oveson's role in choosing AMS was overstated. But auditors' notes said that the staffer overseeing the contract, Kevin Van Ausdal, viewed Oveson as deeply involved.

"Rod [Morrelli] was not pleased [with the contract problems] but [Van Ausdal] believes that Rod was directed by Val Oveson. Val wanted the project to go through so Rod was directed to do so," the audit notes said.

Morrelli says Oveson was only interested in making sure the modernization worked and wasn't trying to arrange anything to benefit AMS. He adds that Oveson was only one vote out of four to approve the contract, which emerged out of a competitive bidding process between AMS and one other company, Andersen Consulting.

"It doesn't appear to be to me that he was using his influence to bring AMS here," Morrelli says.

And Morrelli says he doesn't see any conflict with Oveson accepting this new position. "I don't think it's odd at all, given this industry," Morrelli said. "That's where they get a lot of their people is from state government."

Indeed, AMS does hire many former officials. Company spokeswoman Diane Fusco says Oveson is "nationally respected" for his integrity and experience and that he was a great hire because of his expertise.

"We are confident that we and Val complied with all regulations with regard to government employees who come to work for us," Fusco said.

The right thing: Assistant Utah Attorney General Mark Burns also defends Oveson, saying that the former tech chief was always above reproach. "During the time that I advised the CIO, the questions that I got from him about what was proper and was allowed, or wasn't allowed, I felt he was always trying to do the right thing," Burns said.

At the same time, Burns stands behind the Tax Commission's computer systems purchase and its decision not to take any legal action against AMS. In 2003, he penned a memo about the AMS system and whether the state should sue, but the memo was classified as private under attorney-client-privilege and Burns has declined to release it.

Oveson had left the commission by the time many of the computer problems popped up, beginning in late 1998. He said he is still upset that the upgrade never worked as well as expected and that it isn't completely modernized.

"I just wanted it done and I still want it done," Oveson says. "I'm absolutely sick that it wasn't finished."

For now, Oveson's job entails pushing his company's products to governments across the country and internationally and working to develop new software. He has made contacts with Utah's state government, he says, and is currently working with the U.S. Health and Human Services Department, headed by his old boss, now-Secretary Leavitt. Oveson says CGI-AMS does $50 million in business with HHS.

Since Oveson has not been employed by the federal government for several years, he is free of restraints on doing business with his other old employer, the IRS.

Morrelli and Burns say that - so far - Oveson has not contacted the state Tax Commission to discuss any business relationship.

tburr@sltrib.com