Posted on 09/11/2005 5:16:40 AM PDT by syriacus
Let's look at history: one Louisiana governor and his son are both serving time in federal prisons--and another governor and his son have both received substantial fines from the Ethics Commission for violations. And you wonder why Louisiana citizens are cynical and suspicious of politicians and their family members?
Governor Blanco has been around politics a long time and is very aware of our colorful political history and the deals that have gone on. Is she really surprised, then, with all the attention the recent attention from the media surrounding The Shaw Group, Governor Blanco and her husband?
Blanco has heard the criticism of our state from executives outside the state. She has pledged to clean up our image. In raising the bar, and I applaud her for doing so, the governor, her husband and her friends have to go out of their way to avoid even the perception of "politics as usual." They have erred.
Let's examine the recent controversies regarding The Shaw Group. First Shaw got the contract to build a facility for Union Tank Car Co., with some Louisiana companies claiming the bidding was closed. Union Tank Car has denied the decision was a political one. As a private company, they can do business with whomever they choose. But when the state is giving them millions in cash and concessions from taxpayers, it becomes the public's business. One could wonder if Union Tank Car was appreciative and willing to oblige a governor's request to use her preferred contractor. The CEO of Shaw, Jim Bernhard, just so happened to be the co-chairman of the governor's transition team and her pick for head of the state Democratic party. It is not hard for Louisianans to perceive the dots are connected and draw a conclusion it wasn't coincidence. The governor, Shaw and Union Tank Car deny any influence, and no one has provided any evidence to the contrary--only speculation.
Fueling the speculation and rumors, the governor's husband was a guest on The Shaw Group jet to the Capital One Bowl while another guest on the plane was a top executive with Shintech, which is looking to build a plant in the Baton Rouge area. Each said he didn't even know the other was on the plane until introduced. Now what happens if Shintech chooses Shaw to build their plant? Shaw is a very qualified contractor and does work all over the world. But as they say, "perception is reality," and the governor knows that.
For the record, a few of those complaining have played in the political arena for years and, when they've had the connections, used them. They shouldn't talk about "clean government" or fairness when their own hands are dirty and smelly. The fact is, most of the big players in business, locally and nationally, make political contributions and expect "to the victor go the spoils." It is usually the losing side that is screaming for good government.
One young contractor told me he had wanted to bid on the Union Tank Car project but was told by another contractor, "That deal is done." True or not, there's a perception that it is still "business as usual." The governor must fight that--and on the front end, not the back after it's too late. That young contractor told me he is choosing to do more and more business out of Louisiana. While I know with a competitive system he is not guaranteed to get future contracts, he has to believe he has a shot. The governor needs to convince him and others of that--in actions, not words.
As for The Shaw Group, I am glad this homegrown Fortune 500 is headquartered in the capital city. I believe they are a tough competitor and will continue to grow. But when it comes to Louisiana projects with government dollars and incentives, because of the relationship between Blanco and Bernhard, every action will be scrutinized. We are in Louisiana, and history too often shows we have a reason to be skeptical.
Governor Blanco has repeatedly denied steering any business to Shaw. She has said perception is not reality and that the criticism comes from Shaw's competitors. But rather than spend all this time on "damage control," inform the companies recruited how you would like them to bid work in an open process so all Louisiana companies have a chance. And make sure your husband or staff asks with whom they will be traveling. These may be extreme measures, but we have years of history to overcome. An ounce of prevention is worth a pound of cure.
Gov. Blanco is cozy with the Shaw group
Take an intimate look at the candidates
The Blancos ... work the assembled crowd of Democratic financial and political powerhouses, including Shaw Group executives,
There's no need for the local paper to worry about Blanco's connections. At least in regards to the future.
She's done.
On Tax Relief's thread, kcvl points out, at post 24, that Jim Bernhard, CEO of the Shaw Group is chairman of the Louisiana Democratic Party.
See also: Jan 8, 2005: Shaw CEO Jim Bernhard elected chair The Democratic State Central Committee, governing body of the Louisiana Democratic Party, unanimously elected respected business leader Jim Bernhard to its Chairmanship. Bernhard follows US Attorney MIke Skinner who served as chair since 2003.
I certainly hope so.
Putin 2008!!!!
NOLA's Haliburton???
What are you talking about ? She'll be made a saint at the next Donk convention.
The CEO of Haliburton would have to be the head of the RNC to make Haliburton as slimy as Shaw Group.
"NOLA's Haliburton?" My thoughts exactly. The articles all acknowledge Shaw's expertise, they have done extensive work in area, are locally based, thus a natural for post-storm work. Haliburton had the expertise and resources in place for Iraq projects, making them a no-brainer choice for no-bid contracts. These types of undertakings are typically very lucrative, but the pool of companies capable of fulfilling them is small.
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