[California] State pension fund investments linked to campaign gifts

San Diego Union Tribune ^ | May 25, 2002 | Martha Mendoza, Associated Press

[snopercod]

Millions involved; no laws broken

SACRAMENTO - Newly released documents from the nation's largest pension fund show board members voted to invest $760 million with a company after its founder gave several of them more than $25,000 each in campaign contributions.

Ronald Burkle, who worked his way up from a grocery bagger at 13 to run the nation's largest supermarket company, has given more than $2 million in political contributions - mostly to Democrats - in recent years.

During that time, he's traveled on national trade missions with Cabinet members, hosted heads of state at his historic Beverly Hills mansion, and developed friendships with former President Clinton, Gov. Gray Davis and others.

Those connections are raising questions as Burkle has been given the go-ahead to invest California's pensioners' money into two funds he manages through the Yucaipa Co., Burkle's investment firm that holds stakes in food suppliers, food distributors, e-commerce and entertainment companies.

It seems like a good deal for California Public Employees Retirement System members: Yucaipa has made 45 percent over the past 16 years on $14.6 billion investments, said CalPERS spokeswoman Pat Macht. And Clinton himself has been hired by Burkle to work as an adviser on the fund.

However, documents released under the California Public Records Act yesterday show CalPERS board members who approved the investments are closely tied to Burkle and his wife Janet.

• Phil Angelides, who has a seat on the board because he is state treasurer, has received $50,000 from Yucaipa in campaign contributions in recent years.

• Kathleen Connell, who has a seat on the board because she's state controller, has received $25,000 from Janet Burkle in campaign contributions.

• Sidney Abrams, appointed by Davis to represent the insurance industry, had done $300,000 of consulting work for Yucaipa between 1999 and 2001.

• Burkle is friends with several board members, including San Francisco Mayor Willie Brown, with whom he acknowledges he discussed the Yucaipa investments before the votes were cast.

At no point did any CalPERS board member recuse themselves from voting on Yucaipa investments.

Conflict-of-interest experts say no laws were broken. State law doesn't ban board members from voting to invest with campaign contributors.

[snopercod]

I see the media have:

1. Released this information on a holiday weekend when nobody will read it, and
2. Already pronounced these folks non-guilty before news is even out.

[snopercod]

I still wonder how much Calpine stock CALPERS bought last year.

[Walkingfeather]

"Conflict-of-interest experts say no laws were broken". Oh I see .... the ol' Conflict of interest expert trick" geez... how do you become a " conflict of interest expert? Is it a trade school run through Little Rock Arkansas? Now why do you think they do not NAME these so called conflict of interest experts in the article? Maybe because they do not exsist! This is one right out of the Clinton play book.

[capt. norm]

Gray Davis has become a political vending machine.

[gaspar]

This is the worst sort of hack journalism. To claim that experts in conflict-of-interest have found nothing wrong (which in effect cloaks the activities of these worms in a coat of respectibility), and then refusing to name the experts, is the acme of deviousness.

[Mad_Tom_Rackham]

I see the media have:

Released this information on a holiday weekend when nobody will read it, and Already pronounced these folks non-guilty before news is even out.

SOP when the perp is a member of the party of the anointed (i.e. a dim).

Good point about how news is always editorialised so as to protect the dims and impune the 'pubs whenever possible. Sneaky b*st*rds.

[Ernest_at_the_Beach]

calgov2002:

calgov2002: for old calgov2002 articles. 

calgov2002: for new calgov2002 articles. 

Other Bump Lists at: Free Republic Bump List Register

[Ernest_at_the_Beach]

It appears very likely that may have happened!

I think I will put a link in here for a little backgound info :The Davis Connection

[fuzzthatwuz]

"Yucaipa"?

Was not willie boy involved with this group? Seems as though I recently read about his appointment.

[snopercod]

Was not willie boy involved with this group?

Right you are. See this thread:

CalPERS invested $700 million with Davis donor

[NormsRevenge]

This is getting more interesting every day... Davi$ has his own agenda which mainly involves his buddies and Him... not necessarily in that order.. The smell is overwhelming . A Skunk IS in the Governor's Mansion.. Somebody call Pest ConTrol
DUMP DAVI$



GO SIMON