Democrats once had a stranglehold on the state of
North Carolina. Their tenure was replete
with corruption. Many of them went to
jail. Others have ignominiously sleeked
off into the shadows, feeding off the government teat through specious programs,
and all this happening just on the peripheral vision of the public eye.
The Democratic Party’s good ole boy network is still
going on to this day.
RALEIGH, N.C. -- Top
officials at North Carolina's Department of Commerce have for years been
accepting cash sponsorships from some of the state's biggest businesses,
including regulated utilities and firms that lobby the agency for corporate
incentives.
Since 2009, more than $1.5 million - about $400,000
a year - has been donated to the Friends of North Carolina, a nonprofit
corporation controlled by state Commerce Secretary Keith Crisco and his staff,
according to financial documents and emails obtained by The Associated Press
through a public records request.
The program has paid for cocktail parties in
Hollywood and Manhattan, rounds of golf at Pinehurst, and expenses on overseas
trips to Shanghai and Bangalore, all intended to help woo new employers to the
state.
State
law generally bars public officials from personally benefiting from gifts from
lobbyists or other private interests, but the Friends payments appear to fall
under a broad exemption. Still, ethics experts questioned whether the use of
corporate sponsorships could fuel a perception that the government's friendship
is for sale.
Let’s take a look at some of these “Friends.” Practically the whole utility industry is a
sponsor. And of course, the Governor appoints the utility commissioners with confirmation from the General Assembly. Does that not sound like a conflict of
interest? How about the law firm Womble
Carlyle? Is there any conflict here?
Some
of the state's largest law firms - Womble Carlyle, Smith Moore Leatherwood,
Nexsen Pruet and Smith Anderson - also are Friends sponsors.
Womble
Carlyle is known for representing corporations seeking government incentives
deals in North Carolina, which require approval from Perdue and Crisco.
Until
his retirement this week, four-term former Democratic Gov. Jim Hunt helped lead
the firm's economic development team in Raleigh. Womble also employs lawyer
Garrett Perdue, the son of outgoing Gov. Beverly Perdue, to help recruit
economic development prospects as clients.
Don
Donadio, one of Womble's principal lawyers for economic incentives, said he
sees no ethical issue with the firm's voluntary donations to Friends. The firm
is a silver-level sponsor, giving $5,000 a year.
"We're
actively involved in representing clients that are either looking to expand or
locate a site in the state," Donadio said. "It would be probably not
in our best interests not to be supportive of state organizations that are
actively involved in the same process."
Wow,
a former democratic governor and the son of outgoing democratic Governor Bev.
Perdue works at Womble? No conflict of
interest there! Here is Jim Hunt’s bio
at Womble Carlyle:
James
B. Hunt, Jr., Partner Emeritus
Raleigh
Governor
Jim Hunt has been a Member of the law firm of Womble Carlyle Sandridge &
Rice, PLLC since 2001 after completing the last of his four historic terms as
Governor of North Carolina (1977-1985, 1993-2001). Nationally recognized for
leading his state through two decades of dramatic economic change and educational
reform, Governor Hunt spearheaded the transformation of its economy from
traditional industry to knowledge-driven industries – biotechnology,
pharmaceuticals and IT.
Of course,
the State Ethics Commission doesn’t see any improprieties.
Perry
Newson, the executive director of the State Ethics Commission, said he could
not comment on whether the agency had ever received a complaint or been asked
to provide an informal opinion on the Friends. Those are confidential, and the
commission - whose members are appointed by the governor and legislature - has
never issued a formal opinion on the issue.
But
the exemption that Friends appears to fall under cites travel or meals
occurring during "the public business of industry recruitment, promotion
of international trade, or the promotion of travel and tourism."
Assistant
Commerce Secretary Tim Crowley said his department has not sought an ethics review
of the Friends program.
And neither does the State Commerce Department.
Crisco,
who has made 16 overseas trips as commerce secretary, brushed off concerns the
sponsorships may have influenced his decisions on economic recruitment or
incentives. He said he has intentionally never asked how much the corporations
give.
"I
know Duke Energy and Womble Carlyle are Friends," he said. "I choose
not to know what they pay. I have no idea. It could be $300,000. It could be
$2,000. I don't know."
Citing
a recent event at the Biltmore resort in Asheville that included a whitewater
rafting outing, Crisco said what's important is that those who attend have a
good time. That creates buzz about the state as a great place to live and do
business, he said.
"I
hope it is fun. I hope it's enjoyable," he said. "I hope they go back
and tell 25 others, 'You should have been there. It was a blast.'
It
was a blast? I’m sure it was…I’m sure it
was.
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