Charles Baker (R. MA) with his good pal, Chris Christie (R. NJ) back in 2010
Gubernatorial candidate Charles Baker's (R. MA) old friend, RGA Chairman Chris Christie (R. NJ), keeps on being a headache for his campaign:
http://www.bostonglobe.com/...
The state of New Jersey has launched an audit of a $15 million pension contract given to General Catalyst amid allegations that the Cambridge firm and one of its partners, Massachusetts gubernatorial candidate Charlie Baker, violated pay-to-play rules.
The New Jersey treasurer’s chief auditor is conducting the review, which is expected to take a few weeks. General Catalyst won the pension contract in December 2011. At the time, the firm reported that none of its employees had made political contributions to a New Jersey political party or committee.
It has since come out that Baker, a Republican, made a $10,000 donation to the New Jersey Republican State Committee in April 2011. Such a donation could violate the state’s pay-to-play rules. Baker made the donation to thank New Jersey Governor Chris Christie for campaigning on his behalf during his unsuccessful 2010 campaign against Governor Deval Patrick. - Boston Globe, 5/28/14
More below the fold.
And of course Massachusetts Democrats are hitting Baker on his involvement:
http://www.masslive.com/...
It is against New Jersey law for the state to hire investment firms with managers who have made political donations over the prior two years.
State Treasury Department officials disclosed the review at Wednesday's meeting of the State Investment Council.
On Thursday, the Massachusetts Democratic Party released a web ad targeting Baker over the situation.
"The video highlights the many questions that remain unanswered," said Matt Fenlon, executive director of the Massachusetts Democratic Party. "No amount of saying everything is 'A-OK' will make those questions go away. Voters still need to know: Was Republican Charlie Baker a partner or not?" - AP, 5/29/14
And Baker still won't walk away from General Catalyst:
http://www.bostonglobe.com/...
For weeks, Charlie Baker and his Cambridge venture capital firm have been caught up in a brouhaha over a $10,000 political donation he made in 2011 to New Jersey Republicans in a nod to Governor Chris Christie. About six months later, the state of New Jersey pledged to invest $25 million of its pension money in a fund managed by General Catalyst.
What’s got tongues wagging is whether Baker and General Catalyst violated federal and New Jersey pay-to-play rules that prohibit such campaign contributions so outside money doesn’t influence the awarding of pension contracts.
General Catalyst and Baker maintain he is not an employee of the firm, therefore no rules were broken. Yes, he’s listed on the website as an “XIR/partner” (translation: executive in residence), has an office, and shares an executive assistant, but he doesn’t get a paycheck.
To prove his case, Baker hired Anthony Herman , the former general counsel of the Federal Election Commission. I got a first look at Herman’s 14-page legal opinion, which concludes Baker’s contribution to the New Jersey Republican State Committee “violated neither the spirit nor the letter of the ‘pay-to-play’ rules.” Hardly a shocking conclusion, since Baker is footing the legal bill.
Still, the New Jersey State Investment Council wants to clarify the situation, says chairman Bob Grady. Last week, he sent a memo to that state’s Division of Investment asking the office to look into the matter.
The argument could be made that Baker and the firm broke the council’s pay-to-play rule prohibiting contributions to a state party committee by “any investment management professional associated with such investment management firm” within 18 months of negotiating or receiving a New Jersey contract worth more than $17,500.
But the policy is so broad it could apply to non-employees like Baker, and that’s the central question the council wants to address.
“It is an appropriate and natural reaction to review whether Charlie Baker is an investment management professional,” said Grady, a Garden State native who is a childhood friend and adviser to Christie, and managing director of a Wyoming private equity firm.
If it turns out there is a violation, Grady said, the state would terminate the General Catalyst contract.
If New Jersey is sniffing around, could the Securities and Exchange Commission be far behind? Already, gubernatorial frontrunner Martha Coakley has asked the agency to check out the pay-to-play allegations, which were first reported earlier this month by the tech site PandoDaily. - Boston Globe, 5/27/14
I don't think this is going to play out well for Baker in the end. Meanwhile, frontrunner Martha Coakley (D. MA) has been picking up more endorsements. First from the New England Regional Council of Carpenters:
http://www.masslive.com/...
In backing Coakley, the union which represents more than 20,000 people throughout New England, cited her "commitment to protecting working families and creating a more fair economy."
"As Attorney General, Martha Coakley has been an advocate for working families and consumers," said Mark Erlich, executive secretary-treasurer of the NERCC in a statement. "Her Fair Labor Division sought to limit the impact of the underground economy - protecting workers and leveling the playing field for employers that play by the rules. As a candidate for Governor, she recognizes that growing income inequality is one of the major problems facing our society. Coakley knows that advocating for workers and supporting unions is the best method to rebuild the middle class."
Coakley said the labor union's endorsement was an "honor," and added, "Together, we can create a fair economy on our terms, by leveling the playing field, protecting our workers and creating good jobs at fair wages with quality, affordable health care." - The Republican, 5/27/14
And several Springfield officials are backing Coakley:
http://www.masslive.com/...
During a campaign event at Riverfront Park in Springfield Saturday afternoon, Coakley will be joined by state Representatives Sean Curran and Benjamin Swan, Springfield City Councilors Bud Williams and Zaida Luna and Vice-Chair of the Massachusetts Democratic Party, Ray Jordan. In backing Coakley over her competitors, the Democratic lawmakers offered up various points which they say contributed to their decision to endorse.
"Martha Coakley will be a great Governor for Western Massachusetts. She grew up here and she understands the challenges facing our region," said a statement from Curran, who previously announced he was not seeking re-election in 2014. "With Martha Coakley as Governor, Massachusetts will have a strong voice on Beacon Hill. I look forward to working with her over the next couple of months, as she outlines her vision for job creation, investment in education and infrastructure improvements in the western part of the state."
Williams, an at-large councilor in the city, said that as attorney general, Coakley has "proven that she can effectively fight for the people of Massachusetts to make sure every one of our residents gets a fair shot. I am proud to endorse Martha today because I know that as governor she will continue standing up for our children, families, and workers, in Springfield, and across Massachusetts."
Luna, who represents Ward 1 on the City Council, said "I am endorsing Martha Coakley for Governor because of her extraordinary humbleness and our shared belief of the importance of listening to, and caring about, the needs of the people of Springfield."
Swan said he has "witnessed Martha Coakley’s intellect and commitment to the citizens of Massachusetts as Attorney General," and is "convinced that she will bring the same attributes to the governor’s office."
Coakley said she was "grateful to receive the endorsements of so many highly-respected leaders of the Springfield community. I look forwarded to working with them so that, together, we can move Massachusetts forward and create an economy that is prosperous and fair and supports Springfield’s unique strengths."
After the event at Riverfront Park, Coakley was to meet with voters in Holyoke and Chicopee before attending the Monson Democratic Town Committee Candidate's Dinner at the Polish American Citizens Club. - The Republican, 5/31/14
If you want to get involved or donate to Coakley's campaign, you can do so here:
http://www.marthacoakley.com/