Taxpayer group questions Frew contract

DES MOINES – Gov. Chet Culver's campaign manager and former chief of staff said today a Republican-leaning watchdog group was barking up the wrong tree in a thinly veiled ploy to score political points in the 2010 governor's race.

Ed Failor, Jr., president of the Muscatine-based Iowans for Tax Relief, asked a state panel to review the role of former Culver chief of staff John Frew and his company Frew Nations Group in an I-JOBS contract that was awarded as part of a proposed downtown convention facility in Cedar Rapids.

Frew stepped down from his government post earlier this month to accept a new position involving the management of the proposed Events Center. Failor delivered a letter on today to Charles Smithson, executive director and legal counsel of the Iowa Ethics and Campaign Disclosure Board, requesting that the state panel look into the matter.

 “Deals like this do not pass the smell test. The Iowans who foot the bill for government do not like even the appearance of cronyism. Actions like this cause Iowans to not trust their government. Today I sent this letter to W. Charles Smithson to stand up for taxpayers who need answers,” Failor said.

Frew responded with his own letter to Smithson, saying he was pleased that Failor indicated he did not believe Frew had done anything wrong. “That leaves the governor's race as his motive” for sending the letter, Frew added.

Frew said he played no role in the state's decision to award I-JOBS funding to the city of Cedar Rapids for the project that his company has been hired to manage, noting the grant was awarded to the city a month before he joined Culver's staff. He also told Smithson in his letter that he discussed his potential involvement with Cedar Rapids officials on days he was on vacation or off without pay, and that he used his personal cell phone and computer for those communications.

Frew said he was submitting the information because he had “no interest in becoming an issue in the governor's race,” and added that “with that said, the 2010 campaign for governor will move on to the next round.”

Meanwhile, Donn Stanley, manager of the Culver/Judge re-election campaign, called Failor's charge a “baseless campaign-year attack” on the governor's office.

“For Iowa voters, this attack does not pass the smell test,” Stanley said in a statement. “Failor employs a family member of GOP candidate for Governor Terry Branstad, and is an active and vocal proponent of Republican Party ideas and candidates.”

Stanley noted the grant for the Events Center Project was awarded by an independent I-JOBS citizen oversight board a month before Frew joined Culver's staff.

“Failor's attack is illogical and groundless,” Stanley added.

In his letter, Failor said he was “not suggesting any wrongdoing on the part of Mr. Frew or Frew Nations Group. However, Mr. Frew's position as chief of staff, combined with the unusual timing of the contract with Frew Nations Group, warrants further review to ensure that not only the letter of the law was followed, but the spirit and intent as well.”

Failor pointed out in his letter that Frew worked in the governor's office since last September, where he was responsible for managing the day- to-day operations of the governor's office and advising Culver on various policy matters – which included the development, implementation and oversight of the I-JOBS program, a $875 million bonding package that funded a variety of infrastructure projects around the state.

Failor noted that the City of Cedar Rapids applied for I-JOBS funding in August 2009 and received approval for $15 million to partially fund a convention center. The funds were distributed to the city last month.

Not long after, Failor said Frew announced his resignation from state government, citing a desire to “return to the private sector.” Days later, the City signed a contract with Frew Nations Group for the management of the downtown facility -- with Frew being a principal and owner of Frew Nations Group.

“While I will not suggest to know the specific details of the transaction or how it was negotiated, I believe this situation warrants further investigation to ensure various ethical rules and statutes were not violated,” Failor wrote in his letter. “Specifically, the contract awarded to Frew Nations Group may fall within the prohibitions of (the Iowa Code), as Mr. Frew is now receiving compensation for activities for which he had a direct responsibility, namely the I-JOBS program.

“Additionally, given the unusual timeline of the transaction, the taxpayers should be assured that this contract was not negotiated during Mr. Frew's working hours or using other state resources” in violation of Iowa law, he added.

Smithson said Thursday he had not had time to “digest” the information, but he expected the board would conduct an investigation to find out what Frew's role was in securing any funds and whether he is working on a project that he was part of while he worked in state government. He said Failor was alleging violation of a post-employment restriction that falls under the board's jurisdiction.

“It's a very fact-specific issue,” he said. “It's just a matter of flushing that out.”

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