A key government witness testified Wednesday that $500,000 dollars in donations arranged by then-HealthSouth CEO Richard Scrushy to a state lottery campaign were not reported at the time as required by Alabama election law.
Nick Bailey, testifying in the federal bribery trial of Scrushy, former Governor Don Siegelman and two others, was asked why Siegelman did not report the donations to the Alabama secretary of state's office.
Bailey said he was told that Scrushy did not want his wife to know he was supporting the Alabama Education Lottery. Bailey, a former Siegelman aide, contend Scrushy made the campaign donations in exchange for a seat on the Certificate of Need board, which regulates hospital expansions.
It was brought out in earlier testimony this week that Scrushy had served on the board under the three previous governors and that neither he nor Siegelman pressured the board to approve two HealthSouth projects.
Bailey has pleaded guilty in the government probe and awaits sentencing.
Outside the courtroom, both Scrushy and his wife, Leslie, said Bailey was lying. Siegelman also told reporters Bailey lied about his allegedly doing favors in exchange for campaign contributions and other considerations.