Follow The Money

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Hard Times.

According to yesterday's GLOBE, the announced candidates for the 2014 Mass. governors race are lagging behind previous benchmarks for campaign fundraising. Times are tough as there is a lot of voter fatigue out there. Turns out, however, that State Treasurer, Steven Grossman leads both Charlie Baker and Attorney General, Martha Coakley, by more than a three to one edge. According to the Globe, this lead is largely due to contributions from "companies that do business with the Treasury". And while we realize that not all campaign contributions are made to offer arms-length support to a right-thinking candidate, any real or expected quid-pro-quo, can cover a broad range of expectations ranging from informal access and influence, to something a little more sinister which may well sail very close to the winds of propriety, not to mention legality.

Grossman brings extensive private-sector business experience to the Treasurer's office and prides himself for his heightened sensitivity to any suggestion of impropriety.  He apparently has issued a record number of ethics disclosure statements, most having to do with Grossman Marketing Group, his former company, now run by his two sons, and in which he maintains a nearly half ownership interest. Another recent ARTICLE focused on the significant potential for conflicts between GMG, its clients, and the state agencies under his control.

While the relationships involving GMG may provide some wiggle room, the State Treasurer has more significant direct responsibility for the state employees retirement funds and other financial functions, that offer lucrative contracts to money management firms and other professionals.  Moreover, in addition to awarding these contracts, this responsibility also includes monitoring performance and possibly firing a non-performing firm. The receipt of campaign contributions from such firms raises serious concerns regarding constraints on management's ability to execute with arms-length judgment.

In addition to any actual impropriety by a public official, there is also the concern for the appearance of such. And while the former would require legal proof, the latter only needs to pass the smell test, and, frankly, its not doing too well in this case.