Bergen Freeholders Subvert the Constitution

Freeholders Many people have questioned the altruistic motives of a man who would spend $30 million of his private fortune to win the state’s top office, as Governor Corzine did. But why would he and his friends and former colleagues devote millions of dollars to influence local elections in Bergen County? An optometrist will tell you, “Hindsight is 20/20”, but in this case you have to see it to believe it, so let’s take a look

Two of the top contributors to Bergen County’s elected Democrat officials are Jon Corzine, the Governor, and Orin Kramer, the State Investment Council Chairman. Both are in a position to decide how the state’s substantial funds are invested or diverted. While people may donate to local and county Republicans, nothing is on the scale of this. Both Corzine and Kramer are generous with Bergen County Democrat candidates. Combined they dwarfed the closest Republicans’ contributors by multiples. The millions thrown into the Bergen County Democratic party have done their work. There are just a few lone voices representing Republicans and not one on the Freeholder board. Democrats control the board 7-0 all of the county’s lawyers have been appointed by this board. But you don’t really need a lawyer to understand this. The Constitution of New Jersey Article 8 SECTION III is very specific

“No county, city, borough, town, township or village shall hereafter give any money or property, or loan its money or credit, to or in aid of any individual, association or corporation…..

Everyone knew that, except perhaps the Freeholders. Maybe it was one of dozens of highly billed counsels who suggested perhaps that the Bergen County Improvement Authority wasn't specifically mentioned in the Constitution. The reader is free to decide what level of confusion article 8 implies. The language seems clear.

J.P. Morgan once said “I don’t need lawyers to tell me what I can’t do. I need lawyers to tell me how to do what I can’t do. So with the explicit blessing of the lawyers and the instruction of the Bergen County Freeholders, The Bergen County Improvement authority was used to subvert the Constitution and allow hundreds of millions in tax-exempt bond funds to be diverted to a privately held corporation.

The Nigerian Bank account scam has nothing on this one. Politically connected acquaintances come to your small company and suggest that they have a check from a rich fund of un- appropriated state capital, but they cannot cash it. Would you please deposit it into your bank account and give them the cash. Naturally, you would get a fee for doing so. Would a prudent person do it? No, it wouldn’t be ethical, the whole purpose of the exercise is to circumvent or hide. It certainly wouldn’t be prudent. What if the check bounces? You would be caught in the middle. Even though your buddies say that will never happen. They even write in the memo. "Your are not responsible". Sounds fishy right? Don’t do it! Ultimately you are responsible.

That is exactly what the Bergen County Freeholders have done. They allowed the Bergen County Improvement authority to cash a check for Encap. The entire Encap project could have been halted if the freeholders said no to this maneuver. It is said that everyone has their price, perhaps the fee clouded their vision. The BCIA itself received nearly a million dollars in fees to act as a “conduit”. Dennis Oury, their counsel, was paid $50,000 as a fee. The BCIA says taxpayers are not at risk, but they are. They cashed the check so now we the people are on the hook . Encap paid out over $13 million to Bergen County Democratic law firms and lobbyists, a portion of which made it back into the candidates coffers for slick TV and radio ads to influence elections. While it may be elegant it is unethical.

The participants in a game of horseplay continue until someone gets hurt. As this affair was making its way through the sausage grinder of politics there were no checks or balances. The Freeholders voted exactly as they were expected to, 7-0, no dissent. Jon Corzine’s State treasurer Bradley Abelow said "Excessive concentration produces excessive risk." The taxpayers of Bergen County are going to know that risk, now that someone, namely Encap, got hurt. Encap is in default. $224 million has been spent on the project, with all the fees and such there is no money left. Collateral is insufficient to cover debts. Bergen County Improvement Authority sponsored this affair with the explicit instruction of the Freeholders. They subverted the Constitution. They should be hel accountable With all the scrutiny of public contacts and donations by those doing business with the public, this might be the new way things get done. Pay-to-play does not apply to private firms.