Legislature’s probe of firing of Permanent Fund director leaves questions unanswered

If state legislators wanted to get to the bottom of why Angela Rodell was fired they were disappointed in a hearing held Monday, Jan. 17.

Rodell was abruptly terminated Dec. 9 without explanation as director of the state’s $84 billion Permanent Fund by the Fund’s trustees. Four trustees appointed by Gov. Mike Dunleavy voted for the firing and one trustee not appointed by the governor, Ketchikan banker Bill Moran, disagreed with the action.

In a letter to the Legislative Budget and Audit Committee, which is probing the matter, said her firing was politically-inspired and in connection with her objections to the governor’s proponed extra draw on Permanent Fund earnings to pay a large Permanent Fund Dividend, or PFD.

Dunleavy denied any connection with Rodell’s termination in remarks to reporters. “If there is one shred of evidence to support this, show it to me,” he said.

Sen. Natasha von Imhof, R-Anch, chair of the Budget and Audit Committee, said Monday at the hearing that her committee has the responsibility of oversight of state agencies and institutions that affect state finances.

The Permanent Fund now pays for 70 percent of the state operating budget, so governance of the Fund falls under the committee’s purview.

“We are asking to learn more about your process in making this decision and its special circumstances, that it happened abruptly and without explanation, and without a clear transition plan by the trustees,” von Imhof told Craig Richards, an Anchorage attorney who is chair of the Fund’s Board of Trustees.

“This is not an investigation at this time, and in being done to gather the facts as part of our due diligence responsibility,” the senator said.

Richards told the committee that because the action was a personnel matter details must remain confidential, and also because there is now the possibility of litigation. Rodell is considering filing of a lawsuit.

He also said that because Rodell was an employee of the Permanent Fund hired by its board, she was an “at-will” employer who could be terminated at any time if the trustees became disenchanted.

Clearly the board has legal authority to fire Rodell, Richards told the committee.

Legislators are skeptical of the board’s action given the extraordinary financial gains the Fund has enjoyed and special recognition from the world’s financial community on the Fund’s management, so poor performance did not seem to be involved.

“Just because you can fire her doesn’t mean you should,” particularly do abruptly, said Rep. Chris Tuck, D-Anch., the House Majority Leader and a member of the committee.

Richards said the trustee’s deliberation of Rodell and discussion of termination were in executive sessions, which are closed.

However, there is evidence in public of a rift that had developed between the four Duneavy-appointed trustees and Rodell, and that recordings of the trustees’ recent meeting in Kodiak showed evidence of a strained relationship a“that was getting worse,” Richards said.

Rep. Dan Ortiz, an independent House member from Ketchikan, asked Richards: “You speak of a strained relationship getting worse but you’re unable to explain what caused the strain?”

Richards said he can’t speak to specifics but only the process the trustees went through in making the decision.

Tuck said, “When I hear ‘tensions’ as a cause for dismissal, I’d hate to see this be all about personalities. I’d like to learn more about the tensions.”

Richards said legislators can glean insights by examining the board’s performance evaluations of Rodell and her responses, which prompted Rep. Andy Josephson, D-Anch., to ask why the board gave Rodell a merit increase in pay after one of the evaluations.

While the committee failed to get answers to its question Monday, it’s unlikely that the Legislature will drop the matter.