Network TV Online
Network News Latest
Network News Video
Network Top Stories
Alaska News Videos
Alaska SuperViewer
ABC Alaska Obituaries
Email the ABC Alaska Newsroom
The CW in Alaska
ABC Alaska SuperWorks

Even More Search Warrants Served In FBI Raid

Tools

Even More Search Warrants Served In FBI Raid

Chad news

There is more information Friday night on the federal investigation into alleged ties between several Alaska lawmakers and the oil field services corporation Veco.

An FBI spokesperson said Friday a total of 20 warrants are being carried out across the state.

Several of those warrants were served Thursday and the FBI says there were more Friday.

The Associated Press obtained a copy of one of those search warrants. It called for the seizure of documents relating any payments Veco executives Bill Allen and Richard Smith may have made to lawmakers.

The warrant also links the investigation to the petroleum production tax and the natural gas pipeline contract negotiated between Governor Murkowski and the big three oil companies.

The department of justice would not comment Friday but it did release a statement acknowledging the investigation.

It says because this is on ongoing investigation, it cannot provide more details.

Former Alaska legislator Ray Metcalfe has been very critical of possible corruption in the senate for years and he says this investigation is no surprise.

“I think a majority of the legislature is on Veco's payroll. I think a majority is corrupt,” Metcalfe.

“He was sitting there on the payroll taking $50,000 a year, for what? Consulting he can't talk about, consulting he show anyone. He's carrying their water in the legislature. State statute defines that as bribery, so here we are,” said Metcalfe.

Also Friday night, the warrant indicates federal agents are looking for hats, shirts or other clothing that say CBC, which stands for Corrupt Bastards Club or Corrupt Bastards Caucus.

Speaker of the House John Harris says that is a nickname given to several lawmakers and it stems from a newspaper editorial piece published in March.

That piece was written by Lori Backes the executive director of the All Alaska Alliance a group that supports building an all-Alaska pipeline.

Backes suggested that financial ties between lawmakers and Veco may have created quote "undue influence" on the state's political process.

Friday Backes says she does not think the nickname should be of great concern, that lawmakers were probably just poking fun at themselves.

She does however say that lawmakers will probably not come back for a third special session and that this investigation could have major implications for the gas pipeline contract and the already passed PPT bill.

“Some legislators changed their vote....after a note was passed....should concern everybody greatly,” said Backes.

As for the nickname, she says the lawmakers probably just picked up on it.

“I wouldn't chalk that up to anything more than lawmakers poking fun at themselves…think they were just having fun,” said Backes.

The federal investigation is forcing 'ethics' to become an issue in this gubernatorial election. Three of the top candidates agree. This investigation will lead to ethics reform in both the state house and senate.

Governor Murkowski's administration was very leery with putting out a comment Friday.
Representatives for the governor tell us the investigation doesn't have anything to do with anything because everything is purely rumor and speculation at this point.
Right now the administration says the only thing it is focused on is the possible third special session. The governor's office says this incident should not affect whether a third session will be approved.

However, the administration says the house majority so far does not appear to have enough interest in warranting a special session. Adding this piece of legislation is too important to be delayed.

"We're kind of observing and waiting and seeing. And quite frankly, my main concern is the impact this will have on the legislature's willingness to go into a special session,” said Jim Clark, the Governor's Chief of Staff.

"At this point, because of the uncertainty created by this FBI investigation, there's not the… there isn't right now the environment to come to Juneau for a special session,” said Clark.

Meanwhile, just a day later, the Anchorage legislative offices were almost completely empty Friday afternoon.

For the most part, lawmakers were unavailable for comment on the FBI raid or the allegations of bribery within the legislature. Still, the news was obviously top of mind for Alaska’s legislators.

We caught up with two minority members Friday afternoon who say it's really just a surprising incident.

“Regardless of......nationally as well,” said Representative Ethan Berkowitz, (D) Anchorage.

“It may be that.......and see attitude,” said Senator Hollis French, (D) Anchorage.

Following the FBI search, several lawmakers also say the third special session is most likely out of the question now. Even though nothing has been proven against the lawmakers under investigation, the raid is definitely impacting the race for governor.

The candidates all say the incident casts a shadow over the current practices of all lawmakers.

Independent Andrew Halcro is the only candidate to say he isn't surprised at all by the investigation or the lawmakers who were targeted. He says his experience in the legislature showed him that those targeted were too “cushy” with lobbyists in general.

Democrat Tony Knowles says to even have an ethics issue of this type is truly unacceptable behavior for any public servant. He adds he feels strict penalties should be imposed on any lawmaker who is found to be involved in unethical behavior.

Republican candidate Sarah Palin agrees. She says this issue is by no means partisan, and it is time for a close examination of what is happening in Juneau.

All three candidates say they all have a clean record and this investigation shouldn't hurt any of their chances.

All three of them feel they already have a lot of focus on ethics and ethical reform.

Tony Knowles says he has a long history of honesty, even with background of working on the oil pipeline. He doesn't feel that this can be damaging to him.

Palin says she has made ethics a center-stage in her campaign and her record is clean, and Halcro says when he was in the legislature he did his best to stand up against any measure that was not in the best interest of the people.

Once again, all three say they are good to go.

Icon
Anchorage 48 °F
Icon
Fairbanks 33 °F
Icon
Juneau 46 °F
More Weather

weather2

Viewer Poll

Who won the second Presidential debate?

  • John McCain
  • Barack Obama
  • No Clear Winner

Tonight on ABC

Vacation Rentals 411
Digital TV Transition Information
Desperate Housewives
Ugly Betty
Brothers and Sisters