State Treasurer David Petersen says he will come out OK in the investigation of his conduct as an elected official.
“My conscience is very clear,” he said on a radio talk show Aug. 14.
Mr. Petersen has been under fire this year, not only because of several alleged felonies being investigated by the Attorney General’s Office, but also for internal strife in his office, including high employee turnover and dissention, as well as dissatisfaction among members of the Board of Investment, which oversees a portfolio of at least $9.5 billion.
“When you have an office under investigation, you have different fights inside the office — fighting each other is not a good thing, and I’m not happy about that, but that’s what’s happened, he said on the Charles Goyette Show on KFNX Radio.
Mr. Petersen told Mr. Goyette he was the first reporter to request an interview with him since the investigation was revealed. Arizona Capitol Times, The Associated Press and The Arizona Republic all have interviewed Mr. Petersen about his legal and intra-office problems.
Dating back to February, Arizona Capitol Times has reported low morale and high turnover among employees in the Treasure’s Office, crowned by the hiring of an attorney by two of Mr. Petersen’s top deputies, who were labeled as “insubordinate” and “obstructionists” by a part-time assistant brought in by Mr. Petersen to work on preparing the office for a new treasurer.
“The Treasurer’s Office traditionally… has been way below the radar screen,” Mr. Petersen said on the radio program. “One of the things I wanted to do as state treasurer has been accomplished [but] not in the way I wanted to…”
Mr. Goyette pressed the treasurer about the high turnover rate in his office and performance of the state’s investments.
“Is it because of me — bad administration≠” Mr. Petersen said. “We’re analyzing that now…”
Of the state’s multi-billion investments, “We’re doing average,” he said, “Of course, safety is out main goal.”
Petersen: Probe does not affect state funds
Regarding the investigation, which is looking into whether Mr. Petersen has committed fraud and theft and created conflicts of interest in his various dealings with outside interests, he stopped short of saying he will be exonerated.
“I think things will come out, and I think I’m going to look decent,” he told Mr. Goyette. “I think you will find that they [AG investigators] will not — uh, I really can’t comment on it more than that. I gotta be careful…”
Mr. Petersen said the public should not be concerned that the problems in his office are affecting state funds.
“As long as it doesn’t affect the performance in a way that’s hurting the taxpayer, I feel good about that,” he said.
Mr. Petersen said he spends three days and 20-25 hours a week in the office and is working on transition and strategic plans, sometimes into the evening at home.
“It’s amazing the work that can be done from home,” he said. “I’ve done it more since the investigation, I’ll admit to that.”
Reliable sources say, however, Mr. Petersen is in the office no more than 10-15 hours a week, and Governor Napolitano has twice called on Mr. Petersen to work full-time in the office.
The treasurer, who is not seeking re-election, has vowed in the past he will not resign, but said on the radio show he would, “if I was given a good reason…”