An Ethics Complaint to Bring Some Transparency to a Deal
<b>Updates below</b> (latest on August 11, 2009)<br>
There's an interesting situation in Colorado Springs. According to <a href="http://www.gazette.com/articles/city-53971-mayor-marshall.html" target="”_blank”">an
article in yesterday's Colorado Springs </a><span><a href="http://www.gazette.com/articles/city-53971-mayor-marshall.html" target="”_blank”">Gazette</a>,</span>
an ethics complaint filed against the city's weak mayor alleged that
the mayor was an investment adviser to a developer involved in a big
deal between the city and the U.S. Olympic Committee for a new USOC
headquarters. The mayor appears to have been the major mover putting
this deal together, and did not declare any relationship with the
developer. For a detailed history of the deal, see <a href="http://www.gazette.com/articles/city-35175-usoc-clinched.html" target="”_blank”">this
<span>Gazette </span>article</a>.<br>
<br>
According to <a href="http://findarticles.com/p/articles/mi_qn4190/is_20090325/ai_n31473018/&…; target="”_blank”">an
article</a> in the Colorado Springs <span>Business
Journal,</span> the county district attorney's office is already investigating
this developer. According to the article, one focus of the
investigation is on funds that were moved into an account at the
investment bank where the mayor works.<br>
<br>
According to <a href="http://www.gazette.com/articles/johnson-53298-smith-marshall.html" target="”_blank”">another
<span>Gazette</span> article</a>, the mayor
says that a lawsuit filed by the developer prevented him from
commenting on his relationship to the developer. In addition, he said,
he can't talk about his clients. It's a requirement of his industry.<br>
<br>
The banker who filed the complaint disagrees, according to the same
article. "I'm in the financial business, and you can't take two steps
without
a disclosure or somehow making sure that you're not afoul of even the
appearance of a conflict," he said.<br>
<br>
In fact, a lack of transparency seems to be at the center of this
entire controversy. The complainant is quoted as saying, "I don't
believe that the original decision [on the development] and I strongly
don't
believe whatever subsequent decision is made to extract themselves from
this mess should be made in private. ... So, if this complaint is in
any way a lever to try and move that
debate into a more public forum, I'm going to push on that lever."<br>
<br>
In addition, the complainant says he twice asked the city attorney to
explain why there wasn't a conflict, and he did not receive a response.<br>
<br>
Generally, I don't think ethics complaints should be filed with
ulterior motives. But transparency is an important part of government
ethics, and if the mayor, council (on which the mayor sits), and city attorney's office refuse to
even acknowledge the possibility of a conflict, not to mention deal
with it responsibly, then an ethics complaint is the next step.<br>
<br>
Unfortunately, the complainant's bank appears to have been on the losing side of the
deal. The complainant denies this as a motivation, but the complaint
certainly gives the appearance of sour grapes. It's too bad someone
else, or an organization, didn't file the complaint instead.<br>
<br>
<i>Update</i> (June 18, 2009): According to <a href="http://www.gazette.com/articles/city-56731-commission-rivera.html" target="”_blank”"> an article in yesterday's <i>Gazette,</a></i> the need for transparency is even greater than it appeared. The mayor has been saying that his relationships are not important because the U.S. Olympic Committee selected the developer for the USOC headquarters, not the city (ignoring, of course, the fact that conflicts apply not only to decisions, but to participation). However, "in a recent interview, the USOC's former chief executive officer, Jim Scherr, said it was the city's decision."<br>
<br>
When two parties to a major transaction can't even agree on whose decision it was to select a developer, more transparency is certainly required.<br>
<br>
<i>Update</i> (August 11, 2009): According to <a href="http://www.gazette.com/articles/panel-59950-ethics-complaint.html" target="”_blank”">an article in yesterday's Colorado Springs <i>Gazette</i></a>, the ethics commission found insufficient evidence of a violation by the mayor.<br>
<br>
Robert Wechsler<br>
Director of Research-Retired, City Ethics<br>
<br>
---</p>