Office of State Treasurer paid candidate's firm $180,000 over past eight years
Dan Blue III says his family's law firm will no longer work for the Office of State Treasurer if he is elected to the post.
Posted — UpdatedBlue Stephens & Fellers served as bond counsel on four separate occasions since 2009, according to figures obtained under a public records request from the office.
Blue's campaign manager, Brad Kennedy, said Tuesday that the candidate would not use his family's law firm for any sort of work should he be elected.
"No, he will not use his family’s law firm as bond counsel. That would be off-limits," Kennedy said. "Likewise, he would not use his family’s law firm for securities litigation."
Along with posts such as governor, attorney general and agriculture commissioner, state treasurer is one of 10 independently elected statewide officials. The office oversees the state's pension fund and health insurance plan for teachers, state workers and retirees. It is also responsible for issuing and refinancing bonds, the state's primary method of borrowing money.
The current state treasurer is Janet Cowell, a Democrat who opted not to seek re-election.
Blue mentions the work for the state in his campaign biography, and both he and his father disclosed the payments on required state ethics forms.
North Carolina spent $3.06 million on bond counsel over the past eight years, according to the Office of State Treasurer. Bond lawyers certify that bonds have been properly issued and meet requirements for tax-exempt status.
"My moral compass dictates that all transactions at (Office of State Treasurer) be based solely on who is qualified, not who is connected," Folwell said in an email Tuesday. "The only profit or savings of managing the $100 billion operation of OST goes to the people of NC."
Folwell did not take direct aim at Blue in his comments, but he did suggest that political connections might sometimes play a role in who lands work from the state.
"As the next State Treasurer, any deals by past or present employees that were to the benefit of them and not the people of NC will be pursued," Folwell said.
Asked how he would decide on bond attorneys if elected, Kennedy said Blue "will maintain a pool of qualified law firms to serve as bond counsel for the state. He would select firms through a competitive and transparent (Request for Proposal) process."
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