As I mentioned here in two previous diaries, the story of Veco's corruption left one, large dangling question that demands an answer.
What, exactly, was in all of this for Veco?
It's incredible that Bill Allen, former CEO, simply found it in his ethos to try to buy legislators to lower an oil tax. Veco, after all, never pays an oil tax. They don't produce oil. They are service contractors.
The only entities to benefit from a lower tax are The Producers: BP Exploration, ConocoPhillips (formerly Arco), and ExxonMobil.
As mentioned today in the Anchorage Daily News website, two Alaskan legislators, Rep. Les Gara (D) and Sen. Hollis French (D), have finally asked that bold question -- and they've asked it of The Producers themselves.
The letter, in part, says:
As former Assistant Attorneys General for the State of Alaska on oil company and criminal matters, we have great concerns about the improper influence exerted by some in the industry who were seeking to, in our view, shortchange Alaskans on oil tax policy matters in 2006. The evidence makes clear the main industry players in this regard were VECO executives. However, according to evidence in the current corruption trials, there was at least some coordination between those VECO officials under indictment and some who work with the major oil companies operating in Alaska. There is evidence that VECO acted to hide oil company official "fingerprints" from VECO's efforts (see below). This act strongly suggests some VECO-oil company coordination, and rases concers we'd like addressed before the October Special Session on oil taxes begins.
After laying the evidentiary groundwork from the recent investigation and trials, the letter continues with questions:
- Did any lobbyists, representatives or employees from your companies coordinate with VECO representatives to attempt to influence the 2006 oil tax debate and outcome, or strategize on these issues with any VECO representatives at the Baranof Hotel in Juneau? If so, how? Please answer in detail.
- VECO has contributed close to $750,000 to state candidates in the past decade, and over $100,000 to the Republican Party. Direct oil company contributions have been much lower.... We have some concern that there was some arrangement between the major oil companies and VECO for VECO to attempt to exert legislative influence on behalf of your companies. Please explain whether any representative of your companies ever discussed whether VECO would seek to influence legislators with campaign donations or other payments.
The Special Session to which they refer was called by newly-elected Gov. Palin, a Republican who ran as an outsider to her party on an anti-corruption campaign, in order to review the tax law that was tainted by Veco's actions.
As we speak, The Producers are spending truckloads of money on advertisements to tell Alaskans their jobs and way of life are threatened by adjusting the tax. But as the letter points out:
Alaska is one of the safest places in the world for oil companies to invest, and your profit margins at Prudhoe Bay, Alpine, and Kuparuk are higher than they are in most places in the world. (ConocoPhillips' Alaska profit margins were a staggering 35% in 2006....)
To any Outsiders, keep this in mind -- Gara and French are not against oil production in Alaska, and this has nothing to do with the constant stereotype that says we all just roll over because "we get paid." That oil belongs to Alaskans, and has been produced and transported by the hard work of Alaskans. You'll be hard-pressed to find anyone who is "against oil."
Gara, French, and I share this: We long for the days when The Producers were our trusted business partners in this venture.
In Alaska, these are very bold questions for a politician to ask. I doubt The Producers will be forthcoming, but we shall see.
Again, for the history/prophecy, you can see the two diaries linked above the fold.
Enjoy.