PROVIDENCE, R.I. (WPRI) -- Gov. Dan McKee on Thursday lambasted Attorney General Peter Neronha for revealing that the governor interfered in the awarding of a $5 million state contract, accusing the state's top prosecutor of a political hit job to drive McKee from office. "Millions of dollars were paid to destroy my reputation and my family’s reputation," McKee said, adding, "Today the cloud is gone." McKee called an afternoon news conference at the State House two days after Neronha and R.I. State Police Col. Darnell Weaver released the results of a three-year criminal investigation into McKee's 2021 decision to award the lucrative contract to ILO, a brand-new consulting firm with ties to McKee allies that was incorporated the week he took office. The investigation began after Target 12 revealed the unusual circumstances surrounding the contract. The report cleared the governor of any criminal charges, but the state's top law enforcement officials outlined how the governor "personally and directly intervened" to steer the contract to ILO over another firm, WestEd, during what was supposed to be a competitive bidding process. Other officials told detectives they felt pressured to give the contract to ILO. AG’s final report shows McKee steered contract to ILO; no criminal charges "They could open this case up for another three years -- they've already closed it -- they could open it until hell freezes over, until hell freezes over, and they will not find any level of fraud or any level of bribe," McKee told reporters as the state's first lady, Susan McKee, looked on. "I said they were going to come up empty," he said. "They did come up empty." (Story continues below video.) McKee's staff rolled a television into the State Room so McKee could display two quotes: one a brief statement from Rhode Island U.S. Attorney Zachary Cunha's office declining to discuss their role in the investigation, and another from a Rhode Island Monthly story by a WPRI 12 reporter in which Neronha acknowledged his support for McKee rival Helena Foulkes. The governor said Neronha's backing for Foulkes was why he declined to be interviewed by detectives, suggesting the attorney general had been laying at trap for him and that the state police were following his lead. "He runs the investigations," McKee said. "This is incredibly insulting to the state police," Neronha shot back on social media, adding, "And if Gov is going trick or treating tonight he should wear Pinocchio’s nose." Timothy Rondeau, a spokesperson for Neronha, dismissed McKee's suggestion that the attorney general should have recused himself from the investigation due to the hostility between the two men, both Democrats. "We stand by our report, the Rhode Island State Police’s report, and the attorney general’s approach," he said. "The governor has not and cannot dispute any fact set forth in either report. The rest is deflection and the people of Rhode Island can make their own determination from the facts our office and the state police laid out." ‘The public has a right to know’: AG, state police explain outcome of ILO investigation McKee went out of his way to praise Cunha and the FBI for remaining mum about what they discovered during their own extended investigation of the ILO deal, which is standard policy for the U.S. Department of Justice. For the first time, McKee confirmed that he hired former House Speaker Bill Murphy, now a powerful State House lobbyist for clients including Citizens Bank, as his defense attorney in the ILO case. The governor said he would be paying Murphy for his representation. His office hadn't previously responded to questions about whether McKee hired Murphy. Asked about the possibility that he could face an ethics complaint over his handling of the ILO contract, McKee shot back, "John Marion can do whatever he wants" -- referring to the head of the influential good-government group Common Cause Rhode Island. "Common Cause Rhode Island doesn’t need anyone’s permission to hold power accountable," Marion said in response. "We continue to review the material produced by the State Police and the attorney general and will decide in the coming days whether to file a complaint with the Rhode Island Ethics Commission." Marion went on to say that lawmakers need to enact "legislation that prevents political interference with the bidding process," and said his group is already at work on a proposed bill "that will give those bidding on business from the state confidence that they are competing on a level playing field." He also called for further tightening of campaign-finance regulations. As for McKee's newly disclosed relationship with Murphy, Marion said: "We need to look at how Governor McKee hired, but seemingly has not yet paid, the state’s most powerful lobbyist, who is also the former speaker of the House, to be his personal attorney. Everyday Rhode Islanders don’t get legal representation based on a promise to pay." While McKee acknowledged that it was possible he could have handled the original process better, he repeatedly returned to the fact that he had just taken office after the departure of Gina Raimondo and was dealing with a complex crisis as the pandemic reached its second year. He said he needed ILO to help deal with school reopening and related issues. "Rhode Island was in the middle of a battle with COVID and we were losing," he said. But McKee refused to give ground to reporters on a host of questions about whether his actions were problematic, even if they weren't criminal. He downplayed a side deal involving ILO figures and SKDK, a political consulting firm, to advise him; insisted he'd been telling the truth when he told reporters he hadn't interfered in the bidding process; and denied that he'd violated state procurement rules by his "aggressive" efforts to get a contract for ILO. "I can tell you that the motivation behind my actions was to get support to our schools, teachers and students who needed it urgently," McKee said. "Every decision I made during the time in my entire time as your governor has been in the best interest of the people in the state of Rhode Island." "I was proactive, I was doing my job, but I did not go over the line," he said. McKee said he hadn't been aware of an email -- newly made public by investigators this week -- that was sent by Julia Rafal-Baer, ILO's managing partner, in which she said the bidding process for the contract was "fixed" -- adding a wink emoji. The governor said Rafal-Baer was wrong and it "was not a fixed contract," though emails show she and longtime McKee adviser Michael Magee Jr. were helping him come up with the parameters for the contract. Ashley Kalus, who assailed McKee over ILO as the Republican nominee against him in 2022, took to social media following the news conference. She offered a different take on the final ILO report from other Republicans, who have criticized Neronha for failing to charge McKee. "I commend the attorney general and state police for their thorough investigation, which confirms the stance I took in my last campaign: Governor McKee misled the people of Rhode Island and leaders in the General Assembly," Kalus wrote. She added, "Until today, I had no interest in considering another run for governor. However, in light of these findings, I’m keeping all options open for 2026. Rhode Island deserves better." Ted Nesi ([email protected]) is a Target 12 investigative reporter and 12 News politics/business editor. He co-hosts Newsmakers and writes Nesi's Notes on Saturdays. Connect with him on Twitter, Threads and Facebook. Eli Sherman ([email protected]) is a Target 12 investigative reporter for 12 News. Connect with him on Twitter and on Facebook. Tim White ([email protected]) is Target 12 managing editor and chief investigative reporter and host of Newsmakers for 12 News. Connect with him on Twitter and Facebook. Alexandra Leslie ([email protected]) is a Target 12 investigative reporter covering Providence and more for 12 News. Connect with her on Twitter and on Facebook. Close Thanks for signing up! Watch for us in your inbox. Subscribe Now Nesi's Notes SIGN UP NOW