Tuesday, January 12, 2010

Reduce Gov's SIC Presence, Consultants Say

The State Investment Council needs to decrease the influence of the Governor's Office, train its members better, provide more documentation, tighten ethical standards and become more engaged in the investment process.

Those are among the recommendations of a Chicago-based consulting firm hired to review state investment practices and policies.

Representatives of Ennis, Krupp & Associates presented their recommendations to the SIC on Monday. My story on that is HERE

The Ennis Krupp consultants stressed that their report was not a forensic audit or an "investigation" of the SIC, which in the past year has been the subject of a federal investigation of its use of third-party placement agents. One consultant also said at the SIC meeting Monday that nobody found any "smoking gun" during the review.

So far the study isn't online. If and when it does, I'll post a link.

Little argument about the findings were expressed at the SIC meeting. But the question remains: Will these recommendations be implemented? Gov. Bill Richardson already vetoed (technically he "pocket vetoed") one bill that would have reduced the governor's influence on the SIC. Another such bill is in the works (CLICK HERE) but I wouldn't bet against it receiving the same fate.