Senate Republicans Seek Answers in the State’s Loss of $20 Million
FOR IMMEDIATE RELEASE
October 16 , 2007
AUGUSTA – Senate Republican Leaders have formally requested the President of the Senate and Speaker of the House investigate the actions of the State Treasury. Following last weeks news that Mr. Lemoine lost nearly $20 million through an investment in Mainsail II Senate Republican Leaders would like Mr. Lemoine to appear before the Legislative Council as soon as possible.
The Republican leaders are looking for answers. The money was frozen in August, yet it was not until November that the loss of this money was disclosed, why? What other questionable investments has the treasurer made? How does Mr. Lemoine presume that the money will be repaid to the State in full? When can we expect that repayment? And finally what is Mr. Lemoine’s explanation for the $28 million shortfall in the proposed gift card unclaimed property fund? Was this amount just to fill a budget gap or was it based on actuarial numbers?
The statute on this matter is clear. Title 5 Section 135 of code states any investment by the treasurer of tax dollars must be agreed too by the State Controller or Commissioner of Administrative and Financial Services and have the approval of Governor Baldacci. It is troubling that the State Treasurer and his deputies are deflecting responsibility to the broker. Their positions and the law exist for this express purpose: ensuring that the tax dollars are managed responsibly.
The citizens of Maine have paid their hard earned tax dollars to the state and they have the right to expect their money be safeguarded and spent wisely. The credibility of Maine state government is at risk and the legislature must take positive action to replace the Treasurer if he can not provide reasonable explanations for his actions and assurances that this will not happen again.
William Thompson 287-1505 (o)
Communications Director, Senate Republican Office