Bundy: Renkes didn't violate ethics code

BOB MARTINSON/Frontiersman reporter

An independent investigator released a 64-page report Tuesday that essentially cleared Alaska Attorney General Gregg Renkes of infractions of the state's executive branch code of ethics stemming from his connection with a Denver coal-processing company.

Former U.S. Attorney Robert Bundy's report received mixed reviews, with Renkes claiming the report exonerated him, and many Democrats and some Republicans still calling for some sort of disciplinary action.

Bundy was asked to determine whether Renkes engaged in improper and unethical activities when he took part in negotiations with Taiwanese officials about purchases of coal processed in a method patented by KFx, a company in which Renkes owned stock.

Renkes, at one point, owned $126,125 worth of KFx stock - an amount Bundy deemed "insignificant," in light of the fact that guidelines in the state of Alaska provide no specifics about when a public official's investment in a company rises to the level of being considered a conflict of interest. Bundy's report called for Gov. Frank Murkowski to take steps to establish tighter ethics standards.

Bundy found no direct infractions of the state's ethics code, but did say Renkes had stepped close to the line. Bundy made the following findings in his report:

€ Renkes's actions in the Alaska-Taiwan trade discussions were not motivated by an intent to benefit his own financial interests.

€ Renkes was aware that his ownership of KFx stock gave him a personal financial interest in the trade discussions because KFx could possibly benefit financially because of them.

€ Renkes's use of state time and facilities had the effect of potentially benefiting his interest in KFx stock.

€ Renkes took official action that affected the course of the trade discussions on the subject of Taiwan's purchases of Alaska coal.

€ "Although a close question, Mr. Renkes' financial interest in the matter - the discussion and negotiation of a trade agreement with [Taiwan] - was insignificant under applicable legal standards."

€ Renkes did not disclose or use for his own benefit any confidential information he learned in the course of his duties as a public officer.

€ Applicable law required Renkes to have sought ethical guidance from a "disinterested person" before participating actively in the matter.

€ Renkes's actions did not cause the state any financial loss.

€ Renkes and all state agencies cooperated in Bundy's investigation.

"We believe [Renkes] did engage in official action within the meaning of the Ethics Act on several occasions in his activities related to the State-[Taiwan] coal discussions," Bundy stated in his report. "However, after careful analysis, and with the benefit of hindsight, we also conclude, although a very close question, that Mr. Renkes' interest in KFx was insignificant in relation to the matter of the State-[Taiwan] coal trade talks such that his official action did not amount to a violation of the Code of Ethics."

In a statement responding to the Bundy report, Renkes described his involvement.

"My personal financial interests did not present a conflict under our ethics laws," Renkes said in the statement. "Mr. Bundy has concluded I did not use my office to benefit myself and my involvement in the Taiwan trade efforts were at the request and direction of the Governor. I simply did my job."

Renkes went on to state that "Mr. Bundy's investigation found that even though there was no conflict present, I should have sought an advisory opinion when the Governor asked me to help him."

Former Wasilla Mayor Sarah Palin, a Republican who has previously criticized what she believes are ethical lapses in the party and with Gov. Frank Murkowski's Administration, wrote a letter to the governor last year. In that letter, she and Democratic Rep. Eric Croft said Alaska statute explains that if there are ethical code issues in question, a person in the administration is to take those issues to the personnel board.

Contacted at home earlier this week, Palin reiterated her concerns.

"I do feel once again, unfortunately, that if the Murkowski Administration just sits back and ignores their responsibilty of doing something to change the appearance that state government doesn't care, or doesn't have to go by the rules, it just gives the appearance that there is no responsibility or respect, and you reach a point where someone's got to say something," she said.

"We've never gotten a straight answer why Renkes and his supervisor, who would be Governor Murkowski, why they didn't take it to the personnel board in the first place," Palin continued. "But finally it is in their hands. I'm getting a lot of e-mails, and not one person has said that it's all OK."

Palin brought up Bundy's finding that the value of Renkes's stock holdings was "insignificant."

"Some of the points that include Bundy's information findings are things like, $126,000 doesn't appear to be a significant amount of money," she said. "I had a job that I quit recently [on the Alaska Oil and Gas Conservation Commission] that pays almost exactly that amount and let me tell you that it is a lot of money, I can really feel it, and I'll bet a lot of other Alaskans think that it is a lot of money."