Iowans for Tax Relief Wants Frew Hiring Reviewed

This greeted me in my in-box this morning.

From Iowans for Tax Relief:

I-JOBS Contract With Frew Nations Group Needs Review

Management contract with Governor Culver's outgoing Chief-of Staff, John Frew, needs review

MUSCATINE, IA-Ed Failor, Jr., President of Iowans for Tax Relief, delivered the letter below today to W. Charles Smithson, Executive Director and Legal Counsel of the Iowa Ethics and Campaign Disclosure Board, to request a review of Governor Culver's Chief-of-Staff Mr. John Frew and his company Frew Nations Group.

“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,” said Ed Failor, Jr., President of Iowans for Tax Relief.

April 29, 2010

Mr. W. Charles Smithson

Executive Director and Legal Counsel

Iowa Ethics and Campaign Disclosure Board

510 East 12th Street, Suite 1A

Des Moines, Iowa 50319

Re: John Frew Contract

Dear Mr. Smithson:

I am writing this letter in response to recent reports in the Des Moines Register and the Cedar Rapids Gazette regarding the contract between Frew Nations Group and the City of Cedar Rapids to manage the downtown convention facility.

John Frew was hired to serve as Chief of Staff to the Governor in July 2009, and began his position in September 2009. As the Governor's Chief of Staff, Mr. Frew was responsible for managing the day to day business within the Governor's office, as well as advising the Governor on various policy matters. A centerpiece of the Governor's legislative package in 2009 was the I-JOBS program. The I-JOBS program was developed by the Governor's office and, presumably, Mr. Frew had an active role in its implementation and oversight.

The City of Cedar Rapids applied for I-JOBS funding in August 2009 and received approval for $15 million dollars to partially fund a convention center. The funds were distributed to the City in March 2010. Shortly after the City of Cedar Rapids received I-JOBS funding, Mr. Frewannounced 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. Mr. Frew is 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. Specifically, the contract awarded to Frew Nations Group may fall within the prohibitions of Iowa Code Section 68B.7, 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 Code chapter 68B.2A.

Again, I want to reiterate that I am 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.

Sincerely,

Ed Failor, Jr.

President

Iowans for Tax Relief

The $15 million I-JOBS grant for the U.S. Cellular Center was announced on Aug. 31, 2009. Here is a list of projects approved by the I-JOBS board and announced that day. The telephone center upgrade posted a 128 in the board's scoring matrix and made the cut.

Frew was hired in July, but didn't become chief of staff until September. The funds were distributed in March, but the funding decision had been made months earlier.  I'm not sure why intervention by a chief of staff would have been necessary.

None of this suggests to me that Frew was involved in determining whether the U.S. Cellular Center project got state funding. Maybe I'm missing something.

Still, any time a well-placed public official such as Frew jumps ship to take a lucrative job running a government-funded project, it doesn't hurt to take a peak

peek under the hood. Certainly the speed and timing of this hiring decision have raised a few eyebrows.There may indeed be more than meets the eye, or nose.