JOHNSON SURPRISED AT RILEY'S CLAIMS ON JEFFERSON COUNTY NEGOTIATIONS
MONTGOMERY, Ala., OCT 5, 2009 – In a Sept 30, 2009 Montgomery Advertiser article, Gov. Riley’s press secretary stated that "this guy (referring to gubernatorial candidate Bill Johnson) has no idea what he’s talking about." Johnson, a GOP 2010 candidate, was as surprised as many others to read that the Governor "hasn’t been involved in the sewer negotiations in almost a year…" Last week, Johnson asked Gov. Riley to recuse himself from Jefferson County negotiations due to the appearance of a conflict of interest by having the law firms of both his son and son-in-law on the Jefferson County payroll.
In a Birmingham News reported on March 25, 2009 that, "Gov. Bob Riley has formally asked the Obama Administration to guarantee Jefferson County's bonds as part of a debt-restructuring plan to solve the $3.9 billion sewer debt crisis." Wright’s article continues, "Riley, who is serving as the county's lead negotiator, met in Washington last month with Treasury Secretary Tim Geithner and Federal Reserve Chairman Ben Bernanke to discuss federal help for the county."
(http://www.al.com/news/birminghamnews/metro.ssf?/base/news/1237969058248260.xml&coll=2)
"If the Gov. is no longer serving as Jefferson County’s lead negotiator, that would be news to the citizens of Jefferson County and the bond holders of the debt," said Johnson. "In addition to the aforementioned references to his work on the County’s sewer debt, Gov. Riley sent a letter to the Honorable Barney Frank, Chair of the US House Committee on Financial Services and Congressman Spencer Bachus, Ranking Member of the Committee. In said letter, dated just 4 ½ months ago, the Gov. stated that he had ‘been working with the County on state legislation that, if enacted, would provide enough revenue for the County to pay its sewer debt in full, over time.’
In an article just last week regarding Johnson’s concerns of Riley’s involvement, The Bond Buyer reported on Oct 1, 2009 that, "Riley has never issued a statement or paper to all the media about the status of negotiations or the agreed-upon concessions from Jefferson County’s creditors."
Despite press secretary Stacy’s claim that the Gov. hasn’t been involved in said negotiations in almost a year, it is apparent from the above mentioned articles and letter signed by Gov. Riley that he has, in fact, been in discussions more recently than Stacy’s claimed ‘almost a year’ ago."
"The issue in question, however, is not the Gov’s continued discussions on behalf of Jefferson County," continued Johnson. "The Gov, as chief executive officer of the state, is an appropriate figure to negotiate crises such as those surrounding Jefferson County, as long as the involvement does not present the appearance of a conflict of interest or unjust enrichment to the negotiator or his family. It is for that reason and that reason alone that I believe the Gov. should step away from involvement in the Jefferson County sewer crisis, occupational taxes and other negotiations."
"Few would disagree that a corporation facing insurmountable debts should file bankruptcy, restructure the organization, identify new leadership and start afresh. The feared "toxic cloud" that the Gov. referred to that would hover over Jefferson County unfortunately has already formed, is expanding and is releasing toxic fumes upon the County and the State’s bond ratings and reputation. A number of national articles, including one dated August 2009 by Governing Magazine, reported that "Jefferson County’s problems stem from a noxious mix of incompetence, political paralysis, corruption and bad luck." (http://www.governing.com/article/drained)
"As a former resident of Jefferson County and member of the Birmingham City Council, I know first-hand the region is blessed with solid large and small businesses and hard-working men and women who dedicate themselves every day to contributing to their communities and rearing their families. It’s a disgrace that some of the County’s leadership have abused the system and plummeted the area into municipal poverty," concluded Johnson. "But the sad fact is, it happened. The best we can do now is ensure that our leadership restores public trust in city, county and state government by removing any and all perception of conflicts of interest. I again am asking that the honor and trust of the Office of Governor be preserved by removing any shadow of a doubt that negotiations on behalf of our State’s largest county are conducted with the utmost integrity and in the best interest of Jefferson County and the great state of Alabama."
# # #
Bill Johnson, former director of the Alabama Department of Economic and Community Affairs (ADECA) and Birmingham City Councilor is a Republican Candidate for Alabama Governor in 2010. Johnson has been a member of Governor Riley’s cabinet since 2005 and led Riley’s grassroots efforts for his successful races for Congress in 1998 and Governor in both 2002 and 2006. Johnson has worked with state and local-level economic and workforce development efforts; was instrumental in launching the Black Belt Action Commission, of which he was director during the program’s initial two-years; was active in launching the Rural Action Commission; and was the impetus for development of the Community Prison Re-entry (CPR) Network. He also served as the state’s delegate for regional efforts, such as the Appalachia Regional Commission and Delta Regional Authority. Johnson, the son of a career military and civil servant, is a native of Birmingham. He and his wife, Kathy, live in Prattville and are the parents of three children.