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Thursday, January 08, 2009

Lexington Herald Leader: Ethics Omission Hard To Excuse.

Ethics omission hard to excuse

What happens when a top lobbyist fails to disclose a business partnership with the governor's chief of staff?

Nothing.

Kentucky law sets stiff penalties for knowingly filing a false disclosure report. But the Executive Branch Ethics Commission plans no action against lobbyist Bob Babbage, who says he inadvertently omitted his business relationship with Adam Edelen when filing his report last year.

The omission came to light through reporting by the Herald-Leader's John Cheves. After Cheves started asking questions, Babbage was allowed by the ethics commission staff to file a corrected report.

That Babbage simply forgot is hard to believe, especially since he says he informed people within the administration of the partnership when Edelen became chief of staff last year.

The unavoidable conclusion is that Babbage was OK with administration insiders knowing about his high connection but didn't want the general public to know.

And why not risk not reporting a sensitive connection when ethics enforcement is complaint-driven and so casual? Is it any wonder when government officials also regard ethics codes as mere words on paper?

Also disappointing is Gov. Steve Beshear's response.

Edelen, Babbage and another political appointee in the Beshear administration, Ralph Coldiron, were partners in a real-estate development company that built an expensive house on a Bourbon County golf course, which they recently sold at a loss. Babbage and Edelen also own a condo together in downtown Lexington.

Beshear said he didn't think there was even an appearance of anything out of line. "If the only people who can work for state government are folks who don't know anybody, don't do any business with anybody, (and) don't make any money in any other way, before they turn to state government, then we wouldn't have many people working for state government."

The governor, earlier criticized for paying Coldiron $20,000 above the advertised salary for a homeland security job, misses the point.

No one's suggesting that Edelen should not have been in business with a lobbyist before joining the government. But it does look bad when someone who's in a position to dispense administration favors shares a financial interest with someone whose profession is obtaining such favors for paying clients.

Edelen broke no laws. He listed the development company, Chartwell Land Co., on his financial disclosure report, which is all he was required to do. Edelen and Babbage ended the land development partnership Monday but have no plans to dissolve their co-ownership of the condo. Edelen was smart to end the one partnership but he could have avoided any perception of favoritism by dissolving partnerships with Babbage when he became chief of staff.

That's not too much to ask of someone working at the governor's side, especially when the governor ran on a promise to strengthen ethics in state government.

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