The centerpiece of this
scandal is the loss of over $220 million of public funds from the quasi-public
CRRA (Governor Rowland’s former Chief of Staff Peter Ellef
was Chair of the CRRA Board) through what the Attorney General has determined
was an illegal loan. Rowland’s longtime Political Director (Michael Martone) was Enron’s lobbyist and his law firm represented
both CRRA and Enron in the deal. Enron gave $100,000 to the Republican
Governor’s Association, which Rowland was serving as Chair, around the time of
the deal. It is reported that there are both Federal and State grand juries
looking into this mess. The legislature has not issued a single subpoena to
help the public understand.
Additional
irregularities associated with CRRA, ENRON, and the Rowland administration include:
The misuse of CRRA funds to pay for meals,
entertainment, and political travel for Rowland’s staff.
A trip to China for Rowland’s former Chief of
Staff, Peter Ellef, which he was accompanied by
another figure in the no-bid contract and backdoor income scandals.
An attempted $125 million dollar raid on the
Energy Conservation and Load Management fund through a joint CCRA/ENRON
project. While rejected by the DPUC the project did get at least one
million dollars in economic develop funds from the Rowland administration.
Reports of questionable deals with trash haulers
and particularly with one firm that appears to have gotten a sweetheart
deal on soil disposal.