The people at Stone Cold Chemicals Inc. had a way with words and a friendly manner of doing business.

They presented their customers with gifts, which they called "premiums."

A blunter label would be "kickbacks."

Stone Cold, a telemarketing firm with offices in Florida and Georgia, is shut down now. Among its embarrassed customers are more than 40 state and local agencies in North Carolina.

Those agencies purchased industrial chemical and cleaning products for much more than they were worth, with the employees responsible receiving premiums -- make that kickbacks -- in return, according to N.C. Auditor Les Merritt.

In most cases, the amounts of money involved were small. Seven Department of Transportation workers paid $7,900 for supplies and were given gifts worth about $460. The purchasing agent for Appalachian State University's physical plant authorized payments of $5,066 and accepted $325 in presents from Stone Cold. Local government agencies bought nearly $150,000 in products, with gifts worth $14,650 flowing back.

None of those agencies was in Guilford County. The transactions took place from 1998 to 2003.

In the big scheme of things, this was small corruption. But it was corrupt in two ways.

First, government employees are not allowed to accept premiums, gratuities, gifts, favors, rewards, bounties or bribes from businesses selling goods or services to the agency.

That should be obvious. The prospect of receiving gifts, even small ones, influences purchasing decisions. The goal of getting the best product at the best price is set aside for personal gain. That's a betrayal of the public's trust and a violation of law.

Second, the agencies definitely were not getting a bargain. "Allegedly, Stone Cold charged its customers four to 10 times fair market value for janitorial and maintenance products," Merritt wrote to ASU Chancellor Kenneth Peacock. That compounded the crime.

Merritt recommended disciplinary measures against the employees involved and closer attention to purchasing practices by the agencies.

"We believe the discovery of this activity presents local government authorities with an excellent opportunity to review, evaluate and strengthen management controls associated with the procurement of goods and services," Merritt wrote to Richard Moore, state treasurer and chairman of the Local Government Commission.

Spoken like an auditor who's doing his job.

A rougher translation might put it this way: "Knock it into your employees' heads that they're required to give taxpayers an honest deal for every dollar without stuffing their own pockets." That's a way with words that everyone should be able to understand.

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