Richardson dodges questions on jury probe
Santa Fe & Northern New Mexico - News ^ | 12/16/2008 | Steve Terrell
Posted on Wednesday, December 17, 2008 8:59:35 AM by pwatson
Richardson dodges questions on jury probe By Steve Terrell | The New Mexican
12/16/2008
Gov. Bill Richardson cut short a news conference Tuesday, abruptly leaving the room and ignoring reporters' questions about a federal grand jury investigation.
A grand jury in Albuquerque reportedly is looking into a possible "pay-to-play" connection between a Beverly Hills financial company's large contributions to Richardson political action committees and nearly $1.5 million the company received for work on a state road-building program.
Richardson at news conferences normally fields inquiries on virtually any subject a reporter wants to ask about. And he frequently lingers in the room to take even more questions after the conference is over.
On Tuesday, however, following a few questions about a new solar-energy production plant to be built in Belen, Richardson quickly departed, ignoring questions about the grand jury shouted by reporters.
Richardson, who is President-elect Barack Obama's nominee for U.S. commerce secretary, could eventually have to answer questions about the investigation in a public forum. A U.S. Senate committee is expected to conduct a confirmation hearing on his appointment to the commerce post.
The New Mexico Finance Authority in 2004 awarded a contract to CDR Financial Products Inc., making it part of a team of financial consultants that would put together a bond-financing deal for GRIP (Governor Richardson's Investment Partnership).
The Associated Press reported in August that CDR and its chief executive officer, David Rubin, contributed at least $110,000 to three political action committees formed by Richardson.
News about the grand jury investigation broke earlier this week in national news media. On Monday, Richardson's office released a statement saying: "The Governor's Office is aware of questions surrounding some financial transactions at the New Mexico Finance Authority. We expect any state agency that is approached with questions to cooperate with federal officials."
A person familiar with the proceedings told The Associated Press on Tuesday that the panel is looking into dealings between CDR Financial Products and someone in a position to push the contract through with the state of New Mexico. The person asked not to be named because the proceedings are secret.
The proceedings follow an FBI probe in which investigators sought documents from the New Mexico Finance Authority. Investigators also interviewed former and current authority officials about New Mexico's 2004 contract with CDR for the $1.6 billion transportation program.
Allan Ripp, a spokesman for CDR, said Tuesday that the company was selected for the transportation financing contract through a "rigorous and thoroughly vetted" competitive bidding process.
As for suggestions of favoritism from New Mexico officials in return for political contributions, Ripp said, "The firm would assert that it's ridiculous and offensive to suggest that."
Ripp said Rubin is politically liberal and has given millions of dollars to political and Jewish causes over the years. Rubin also was born in Mexico, and Richardson is a prominent Hispanic politician who grew up in Mexico and whose mother is Mexican.
"Mr. Rubin makes his own contributions based on his own political sympathies, which are not secret." Ripp said. "He's very vocal about the causes he supports."
Ironically, Tuesday's news conference was held to announce a new solar-energy facility in Belen on property that was the center of another Richardson "pay-to-play" controversy. Signet Solar, a California-based company, plans to build its first North American solar panel production facility at Rancho Cielo, which is being developed by a company called Coast Range Investment. That company lobbied for the state to build a new $4 million interchange on Interstate 25 by the 6,000-acre development.
Under its former name, RS Investments, Coast Range contributed $75,000 to Richardson's 2006 re-election campaign.
In addition, Jim Foster, an executive with Coast Range, twice loaned Richardson his corporate jet for trips to California during his 2006 re-election campaign, records show. Foster also contributed $10,000 to the governor's campaign last year.
Both Richardson's staff and Coast Range officials have denied any connection between the contribution and state approval for the interchange.
Even after the interchange and the campaign contribution made news in New Mexico, Foster and other Coast Range officials contributed a total of $9,200 to Richardson's presidential campaign in 2007, according to The Center for Responsive Politics.
The Signet facility will produce silicon photovoltaic modules for commercial rooftop and ground-mounted solar power systems. The first phase of the plant will produce enough to power approximately 20,000 homes, Signet officials said Tuesday.
Richardson will ask the state Legislature to spend $8 million on unspecified infrastructure for the project. Signet also will get an estimated $7.7 million in state job-training funds over the next four years. Economic Development Secretary Fred Mondragón said the company over the next four to six years will take advantage of $15 million in tax breaks that the state allows for companies that provide high-wage jobs, plus another tax incentive for creating jobs in rural areas.
Richardson said the company will bring 200 new jobs to Belen when it opens in 2008 and eventually 600 new jobs.
The Associated Press contributed to this report.
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Congratulations to the morons who thought they were getting HOPE & CHANGE!
