Audio Listen to an interview with Gov. Pawlenty Photos Gov. Pawlenty Your Voice Join the conversation with other MPR listeners in the News Forum.

	E-mail this page			Print this page

DFLers pressure Pawlenty to release tax records
by Michael Khoo, Minnesota Public Radio
July 21, 2003

"I worked for the money," Gov. Pawlenty said, referring to money he was paid by a long-time Republican ally during last year's campaign for governor. (MPR Photo/Michael Khoo)

Gov. Pawlenty has filed a new statement of economic interest with the state Campaign Finance board. He's also registered a now-defunct consulting business with the state's legal practices board. The new filings are an attempt to dispel controversies surrounding his use of a one-man consulting business to accept payments from a pay-phone company. But Democrats say the forms aren't enough. They're asking the governor to release his personal income tax statements.

St. Paul, Minn. — Pawlenty recently revealed that during the 2002 elections, he pocketed $4,500 per month from the pay-phone company Access Anywhere. The payments, however, were routed through the governor's one-man consulting company, BAMCO. BAMCO, in turn, was listed on Pawlenty's campaign finance forms as an investment and not a source of compensation. Access Anywhere wasn't listed at all, making the payments impossible to trace on the original filing. But Pawlenty says there was nothing improper in the original paperwork.

"If I was trying to hide this consulting arrangement, I would have just had the company pay me personally and issue a 1099 and I wouldn't have had to disclose any of this. I mean, not that I'm suggesting that. But if that was motive, it would have been easy to do," Pawlenty said.

Pawlenty says he originally listed BAMCO in the section that seemed most appropriate, and he points out that the form explicity asks candidates not to include payments received as independent contractors under the compensation section. But, to avoid any further confusion, the amended filing now lists BAMCO as both an investment and a source of compensation.

Democrats, however, say that's not good enough.

Rep. John Lesch, DFL-St. Paul, questions whether Pawlenty performed any work in return for the $60,000 in consulting fees he earned through BAMCO over the course of his gubernatorial bid.

"He received this income while he was running for governor, substantial amount of income, more money in a year than most Minnesotans receive in a year for what appears to be no work. That calls into question why he was paid this money, who paid it to him, under what circumstances, and what the expectations were," he said.

To address that point, Pawlenty released a copy of the contract between BAMCO and Access Anywhere. The governor, however, has been unwilling to discuss the details of the work he performed under the contract. And he says he's unable to produce any evidence of the work because of confidentiality reasons.

"There was work," the governor said. "You know, I worked for the money. And this was a consulting agreement, a retainer agreement, per month. And the client has confidentiality agreements, I think, with the engagements that were involved, in terms of the companies that he was... they were looking at for acquisition. And so, you know, I'm not at liberty to talk about the details of it."

Although the contract calls for monthly invoices, a spokeswoman for the governor says a later agreement nullified that requirement, meaning no such invoices are available for inspection. She also declined to discuss any evidence that Pawlenty incurred out-of-pocket expenses while working for Access Anywhere. To help clarify the precise nature of the relationship, DFLers are pressuring Pawlenty to release personal income tax statements.

Sen. Sandy Pappas, DFL-St. Paul, says more information is necessary to cut through the web of political, business, and personal ties surrounding the governor and his campaign.

"We don't know that it's against the law. It's very confusing. And that's why we need sunshine. Because, is the complexity meant to cover up some activities that are not kosher, or is it just complexity?" Pappas said.

DFLers also suggested the governor may have skirted the tax laws, but Pawlenty vigorously denied the charge. Although the governor is refusing to produce his tax records, he says the appropriate self-employment taxes were paid on the BAMCO income.

"Those taxes were, in fact, on my returns and paid. And so they made a very reckless charge and an inaccurate one. And I hope it is viewed and received as such," Pawlenty said.

News Headlines

Related Subjects