Arizona Capitol Reports Staff//April 7, 2006//[read_meter]
Arizona Capitol Reports Staff//April 7, 2006//[read_meter]
State Treasurer David Petersen, who has been staying home since an investigation began into his conduct as an elected official, says he takes the probe seriously and admits to being over-exuberant about a character education program he has promoted around the state.
“When there’s an investigation, you have to say there must be something there,” he told Arizona Capitol Times on April 6. “I consider it very serious.”
Mr. Petersen, who has announced he will not seek re-election, is the subject of an investigation that began in late February into alleged theft, fraud and conflict of interest, some of which is in connection with his dealings with the Character First!, an Oklahoma character education organization that he has promoted across Arizona. The investigation is “on going” and not near completion, said Andrea Esquer, press secretary to Attorney General Terry Goddard.
“I’m hoping it’s not something that’s going to be too serious,” Mr. Petersen said. “I feel confident there’s no money been taken from the Treasurer’s Office or anything like that, or any improprieties.”
Health problems
He said the stress of the investigation has made it difficult to manage his diabetes, but he has been in phone contact with his Capitol office and working on several technological projects, including implementation of an on-line banking system for government customers.
“I feel the office is being run well,” Mr. Petersen said, adding he has always relied on Chief Deputy Treasurer Blaine Vance and Chief of Staff Tony Malaj to manage the administrative functions of the office.
Mr. Vance and Mr. Malaj were listed in the attorney general’s affidavit for a search warrant of the Treasurer’s Office as providing information including Mr. Petersen’s activities with Character First!, travel claims and speech honorariums. The treasurer says he has no hard feelings about either employee.
Mr. Petersen’s acceptance of $4,000 in commissions for selling Character First! educational materials is one of the items the attorney general is looking into as an alleged conflict of interest. The treasurer says the actions under investigation were not done intentionally, but he admitted he went overboard with his promotion of the character education program.
“Oh, yes, I think so,” he said. “I would agree to that. It was not something I did intentionally. I was quite open about what I was doing…maybe not everything. The question is — did I cross the lines or not≠ Looking back, I would have handled it differently, no question.”
‘I wish I could be
more forthcoming’
Mr. Petersen was asked if his health problems might cause him to rethink an earlier statement that he has no plans to resign his office. “I really don’t want to answer that at this point,” he said. “ I wish I could be more forthcoming.”
Acting against the advice of his attorney in talking to a reporter, he said, “I don’t want to hide.”
Mr. Petersen said he has not been questioned by the Attorney General’s Office.
Craig Henley, Mr. Petersen’s attorney, said in an interview last month “the scope of the investigation really hasn’t been defined by the Attorney General’s Office, and while everyone is focusing on Dave Petersen, they could be investigating activities of any number of individuals.”
The Treasurer’s Office manages approximately $9 billion in state cash and investments.
Sen. Dean Martin, R-6, Libertarian John Knecht and Democrats Richmond Vincent and Rano Sidhu Singh have filed as candidates for the office. utline
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