Governor calls for clarity on Hayes’ work

Published 12:00 am Tuesday, October 14, 2014

In a reversal from a promise made during a debate last week, Gov. John Kitzhaber has asked for clarity on whether his fiancee violated state ethics rules in her work from his office.

Liani Reeves, the governor’s general counsel, sent an email to the Oregon Government Ethics Commission on Monday to determine whether Cylvia Hayes is considered to be a public official.

If she is found to be a public official and therefore governed by ethics rules, Reeves asked the commission whether contracts between Hayes’ Bend-based consulting firm, 3E Strategies, and three companies violated state rules.

Reeves said the state is taking the unusual step “in an abundance of caution.”

“Given the concerns that have arisen, we are requesting the Commission to provide a formal opinion on the First Lady’s role, the private business activity conducted by Cylvia Hayes, and the Governor’s Office activities with respect to keeping the roles separate and transparent,” Reeves wrote.

The inquiry comes two days before the state sends out ballots to registered voters, and the results likely won’t be released until long after the election. The governor is seeking a record fourth term over Republican challenger Rep. Dennis Richardson, of Central Point.

Hayes, the governor’s fiancee, first came under scrutiny last week, when a news report brought Hayes’ environmental and energy consulting work into question, setting off the ethics inquiry.

Kitzhaber said the potential ethics issue was actually about a woman being forced to give up her professional life because she’s engaged to the governor, which he called “ludicrous.”

The issue, he said, “is about the intersection between a modern professional woman and the role of first lady.”

He said the contracts that are now in question were seen by the state attorneys beforehand.

“If circumstances indicate that a violation may have occurred, we would expect you to proceed as you would on any other potential ethics investigation,” Reeves wrote.

Reeves identified three contracts — between 3E Strategies and companies called the Energy Foundation, Demos and Resource Media — as a part of its request.

The issue has added fuel to the Richardson campaign, which polls show has struggled to gain traction in its effort to unseat Kitzhaber.

“It’s odd that Governor Kitzhaber and his staff spent all of last week shielding his administration from an investigation, only to change course this week,” Richardson campaign spokeswoman Meredith Glacken said in a written statement.

Others have said the governor was right to send the question to the ethics commission.

“This is under active consideration by a body that’s appropriate to do it. It was obviously appropriate for the governor’s office to ask for this,” said Dave Frohnmayer, the state’s former attorney general who now works at a law firm that specializes in ethics in government.

The ethics commission now has up to 60 days to release a legal opinion on Hayes, meaning the decision could come after the Nov. 4 election.

The commission can decide on the issue in what’s called the preliminary phase, or it could decide to expand the inquiry into a full investigation. An investigatory phase can take up to six months.

Hayes last week also admitted to a previously undisclosed marriage in 1997 to an Ethiopian man who was seeking citizenship. She admitted Thursday to taking $5,000 for the marriage, which she called a mistake. Kitzhaber didn’t know about the marriage until last week, the two said.

— Reporter: 406-589-4347,

tanderson@bendbulletin.com

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