Wednesday, 28 November 2007
Surreal
I was reading the Lexington Herald today when I came across the headline "Beshear staff choice raises ethics issue". He hasn't even taken office and he already has an "ethics issue". I can't help but laugh.
It appears that Beshear's newly appointed communications director, Phil Osborne, has a wee little conflict of interest problem. While he plans to step down as CEO of Preston-Osborne, he wants to continue on as an owner and retake the helm of his company when he leaves state government. The only problem is that he works with 36 companies who do business with the state.
Whether incoming Gov. Steve Beshear gets his first choice as communications director could hinge on the Executive Branch Ethics Commission, which will be asked to decide whether appointee Phil Osborne has a conflict of interest.
Osborne agreed to step down temporarily as CEO of the Lexington-based marketing and research firm Preston-Osborne to take the post with Beshear -- a job that entails crafting messages and coordinating communications strategies across state government.
But Osborne said in an interview Tuesday that, even though he will give up his salary from Preston-Osborne, he will retain his ownership of the firm and intends to return to his CEO position after at least six months in state government.
Preston-Osborne works for at least 36 clients, some of which are regulated by, receive funding from or seek contracts with state government. One of the firms most high-profile clients is the Kentucky Equine Education Project, a coalition of horse owners and breeders that, among other causes, supports casino gambling -- an issue poised to be the most hot-button political debate in 2008.
I don't see how the ethics commission can let this go forward. Here is a guy who can proffit from his influence in state government. He will be in position to help make decisions that could put money directly into his pocket. There have been too many instances where this has occurred to believe he is going to be different. Especially after reading Osborne's comments on the issue.
"My first loyalty is to the company," Osborne said. "As much as I like Steve and I want to help him, I need to do what's best for the company."
What I want to know is why he wasn't better vetted by the Beshear team? He was one of Beshear's first appointments and yet he has an obvious conflict of interest. They were either arrogant enough to believe that no one would question the good ole boy system or they were too incompetent to realize the problem. Either way, they look ridiculous. They should withdraw the appointment immediately and begin looking for a new communications director rather than wait to see what the ethics board says. If not then they will have already broken their campaign promise of to bring "ethical hiring practices" back to Frankfort.
