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State Treasury Cleanup
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Business New Haven
10/18/1999
By: BNH
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HARTFORD - State Treasurer Denise L. Nappier is notifying all investment-service providers currently doing business with the treasurer's office that they must disclose the names of all individuals receiving finders fees paid in conjunction with state pension funds within the past five years, as well as details about the fee payment arrangements. Letters were mailed to 230 providers, including fund money managers, investment brokers and law firms, and Nappier imposed an October 15 deadline for return of the comprehensive disclosure of information.
"This is a far-reaching disclosure request, which I believe is necessary to restore public confidence in this office following the schemes and scandals of former Treasurer [Paul] Silvester," Nappier said. In the letter, Nappier notes that, "The federal investigation has raised a myriad of legal and ethical issues, including possible and probable conflicts of interest and appearances of impropriety." Nappier adds that the information is being requested "In our effort to comply with the spirit and letter of all Connecticut and federal laws."
Along with the actions designed to ensure the integrity of the state pension investment process, the administration is looking into the state's college savings program. Nappier's actions come in the wake of the guilty plea entered by former Treasurer Paul to federal charges of racketeering and money-laundering. Information outlining those activities being released by the U.S. Attorney as part of a continuing investigation into corruption during the Silvester regime.
Actions taken by Nappier include:
o Efforts to identify and seek reparations from the investment funds involved in the schemes outlined by the U.S. Attorney General, coupled with a full legal review of the state pension fund's participation in investment funds involved in the Silvester schemes to be coordinated with the Office of the Attorney General;
o Action to remove Collegiate Capital as administrator of the state's higher education trust within 45 days, and removal of the firm's president, Christopher Stack, from any and all responsibilities in the oversight of the trust effective immediately;
o Calling on the Elections Enforcement Commission to review campaign contributions during the 1998 election cycle, especially as they pertain to businesses or individuals that conduct business with the treasurer's office, in light of admissions of money laundering by Silvester to benefit his campaign.
Nappier says she will also be informing the State Ethics Commission and the State's Attorney's Office so that they may monitor the issues under their jurisdiction and consider whether and to what extent their involvement is warranted.
The Germans Are Coming
HARTFORD - A 95-member delegation from the German state of Baden-Wurttemburg will visit Connecticut on October 28 to celebrate and strengthen the ties that currently exist between the two states. Led by Prime Minister Erwin Teufel, the delegation will include high-ranking officials from the business community and academia, including representatives from the GermanGWZ (Gemeinschaft fur Wirtschaftliche Zusammenarbeit, the Association for International Economic Cooperation). The state's Department of Economic & Community Development and the Department of Higher Education will jointly sponsor the event. The Germans' schedule for the day will include a tour of the State Capitol and an official welcome, two concurrent work sessions to address research, teaching and learning in a global society, an overview of Connecticut business, a meeting with Gov. John G. Rowland, and a reception and lunch at Trinity College.
Tax Credits Available
HARTFORD - Private-sector businesses may apply for corporate income-tax credits when they lend financial support to community projects approved under the Connecticut Neighborhood Assistance Act (NAA). The General Assembly has made available tax credits totalling $4 million to distribute annually. The credits may be applied against the Connecticut corporate income tax for the 1999 income year.
Said state Department of Revenue Services (DRS) Commissioner Gene Gavin: "The private sector plays a key role in enriching lives in their communities through their support of programs. The NAA program was approved by the General Assembly to provide greater incentives to businesses to enhance their contributions."
Eligibility of projects for NAA tax credits is determined by individual municipalities and the DRS. The towns receive and approve applications for funding from non-profit organizations within their respective jurisdictions.
To qualify for a tax credit, a company must make a minimum cash contribution of $250. There are two levels of tax credits available. Programs serving low-income persons, child-care services, properties occupied by charitable organizations or employment and training programs directed at older unemployed persons or the disabled are eligible for credits of up to 60 percent of the dollar amount of the contribution.
Community-based alcoholism prevention and treatment programs and all other neighborhood programs are eligible for up to 40 percent of the dollar amount of the contribution.
News From the AG
HARTFORD - Attorney General Richard Blumenthal has announced that Mazda Motor of America Inc. has agreed to change its national advertisements for auto lease vehicles and pay $50,000 to Connecticut as part of a settlement under which Mazda will pay a total of $5.25 million for alleged violations of a Federal Trade Commission order and state orders related to lease advertising for its cars and trucks. Mazda will pay $4.05 million in civil penalties and $1.2 million in fines and costs to 24 states, including Connecticut. Blumenthal says Mazda violated a 1996 court judgment which required the auto-maker to clearly and conspicuously disclose key leasing terms, such as total up-front cost, and the number, amount, and timing of scheduled payments, in its advertising. The orders settled false advertising lawsuits filed earlier by Connecticut and several other states. It was found, however, that Mazda's television leasing ads continued making disclosures that were in small and unreadable print, offset by distracting images or sounds, or which appeared on the screen for too brief a time.
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