Ethics investigation to continue as commission rejects Kitzhaber settlement
The Oregon Government Ethics Commission rejected a settlement with former Oregon Gov. John Kitzhaber on Friday that would have closed the book on a scandal that forced him to resign and has dragged on for years.
The commission voted 7-1 with one abstention to discard the agreement Kitzhaber signed earlier this month because they wanted more information on some aspects of the investigation. They also had concerns that the agreed-upon $1,000 penalty was too small.
"They were not convinced that all the elements of the settlement were present in this document," said Dan Golden, chairman of the commission. "However, there was, I think, considerable will for continued negotiation to produce a final settlement."
Staff of the commission has until early 2018 to produce a report on its investigation, unless a settlement is reached.
As part of the rejected agreement, Kitzhaber admitted ethics violations.
His spokesman, John McIsaac, said Kitzhaber was blindsided by the settlement's rejection. The former governor had posted to his Facebook page when the agreement became public Wednesday: "I am I (sic) glad to say this episode in my life is finally over."
"Aside from a couple very small tweaks, he was fine with (the settlement) and this caught him completely by surprise," McIsaac said Friday.
Previous:Former Oregon Gov. John Kitzhaber admits ethics violations, settles with state
The commission’s investigation showed there was enough evidence to find Kitzhaber guilty of four violations, which could carry penalties of up to $20,000.
Three of the violations were for conflicts of interest involving an overlap between Kitzhaber’s role as governor and his interest in a business owned by First Lady Cylvia Hayes.
The business, 3E Strategies, received payments from organizations advocating on state environmental issues.
Those violations occurred during 2011, 2012 and 2013, according to the settlement order.
The fourth violation was for accepting frequent flier miles earned while representing state government.
More on Kitzhaber:Kitzhaber says national health care debate needs to refocus on cost
Oregon’s government ethics rules prohibit public officials from using their positions for financial gain and require public officials to declare potential or actual conflicts of interest.
Commissioners wanted clarification and details on these violations, which was one of the main reasons for its rejection. These instances included times when Kitzhaber requested legal advice, contradictions between Kitzhaber's statements and some evidence, and how exactly the settlement was reached.
The stipulated settlement is just an agreement between the parties and is far less detailed than the final investigation report would be, said Ronald Bersin, executive director of the commission.
“It’s my job to go back and finish the investigation,” Bersin said. “Hopefully that finished investigation will answer the questions they have or might have.”
The commissioners' other primary complaint was that the $1,000 fee was insufficient in this case.
“This is the governor, with years of experience, and who was a high-level official,” Golden said of the commissioners’ perspectives. “There ought to be a level of fine … to his level of experience.”
The amount of the fine is arrived at through a formula; $1,000 is common for first-time offenders.
However, Golden, who was the lone "no" vote, believed that even a larger amount won't be sufficient in addressing the violations.
“There really isn’t a number that completely addresses the gravity of offenses,” he said. “No matter what figure we come to, it’s going to be a symbolic number.”
The commission launched a preliminary review in fall 2014 after then-state Rep. Vicki Berger, R-Salem, and the Oregon Republican Party filed complaints alleging Kitzhaber and Hayes used their positions for financial gain.
Kitzhaber resigned in 2015 just weeks into his fourth term when state and federal criminal investigations were launched.
The commission suspended its preliminary review while the criminal investigations were under way.
On June 16 federal prosecutors announced they would close their case without filing any charges. On June 20, the ethics commission resumed its review.
Contact the reporter at cradnovich@statesmanjournal.com or