Riley: A Corrupt Providence Approaches Default
Tuesday, June 23, 2015
Providence will default on an illegal loan in just 8 days. Why does the fact that Providence is cheating and stealing from the Pension fund matter? I could say “well, first it’s obviously against the law," but is it? Now before Rhode Island readers go “all 38 studios” on me, be assured that Providence behavior is against the law. We just have to figure out what laws. Can we just start by saying stealing pension beneficiary’s money has no excuse? Can we say this behavior is unwelcome even in Rhode Island’s corrupt sense of ethics? Isn’t it obvious that a town council or Mayor can’t just take money from the pension plan and spend it on other things, or use it like a rainy day fund? That is exactly what Providence has done for at least a decade.
Checks and balances? Or just checks
Where are the checks and balances and Government oversight? Why has no accountant, either internal or externally hired, caught this rip-off of pension beneficiaries and taxpayers? Where are the auditors? The answer is the decay of Rhode Island leadership has led to total lack of accountability. The entire state has succumbed to “know a guy” politics and government ethics. The State of Rhode Island has lost its moral compass. It is corrupt to the core and seemingly constantly “moving on” or “moving forward” and away from a dizzying array of total public corruption and cover-ups. Our state should be totally embarrassed with not only the lying and obfuscation that led us to the 38 studios loan but even more horrified by the total cover-up and organized white washing of the general assembly’s involvement. There is not only no investigation or accountability for 38 studios taking place, there is a stultifying air of “don’t you dare talk about it!” emanating from Gordon Fox’s right hand man and new William Murphy appointee Nicholas Mattiello. No amount of talking commerce and pro-growth to conservatives like me can erase the stench of 38 studios. I don’t want to “move on” from the corruption of 38 studios I want to learn from that debacle and punish those responsible. Yes, that’s right I want to make people accountable.
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The smutty ugly greasy pall that hangs over this state is palpable to any business unfortunate enough to meet with Government Insiders. They must come to Rhode Island knowing if they talk to the right people and grease a few palms they are “in”. But then they’ll have to be part of the team. Some businesses or people just can get past that ethical void, like me, but some just call it the way of the world. Well, I don’t accept that should be the way Rhode Island does business and it frustrates me and people like me who want to compete on a level playing field with little or no government involvement. Rhode Island Government officials learn quickly the rules of the game. They learn they can outright lie without harm to their careers. They can use insiders to write reports and push agendas like RhodeMap RI. They can promise a forensic investigation and then act stupefied when they are called out on the lie and then run for president. They can promise full investigations into the Sports Institute of Rhode Island and then wait 5 years for any action and not even discuss the millions spent by our general assembly on the fraudulent institute. They know that 38 studios insiders shredded the carcass of Curt Schilling and his ill-fated video game dream. Yet all those who connived and schemed for his millions, now stand in the shadows silent and uncharged. Perhaps even “protected”.
In Providence there are at least 50 municipal officers, accountants and elected officials who have misled municipal bond holders. This has been going on for a long time with various cover-ups. There may be other as yet to be discovered issues such as accounting fraud or lying to government officials. But one thing is for certain, we will get to the bottom of this. We will correct the lies and give investors, pension beneficiaries and the public a true financial picture of Providence. Only then can Providence honestly take a real shot at recovery. True leaders take charge and confront problems. The Rhode Island mentality of “moving on” because it’s just too horrible to fix has caused us 50 years of bad Government. Can we please at least have some leadership and accountability or should we just settle in for another 50 years of corruption?
Michael G. Riley is vice chair at Rhode Island Center for Freedom and Prosperity, and is managing member and founder of Coastal Management Group, LLC. Riley has 35 years of experience in the financial industry, having managed divisions of PaineWebber, LETCO, and TD Securities (TD Bank). He has been quoted in Barron’s, Wall Street Transcript, NY Post, and various other print media and also appeared on NBC News, Yahoo TV, and CNBC.
Related Slideshow: Rhode Island’s History of Political Corruption
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