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Friday, August 20, 2021

[UPDATED] Strib's editorial board opines over the Carnahan exit from MN GOP leadership, noting also finances being in order as important.

 Carnahan detail re Lazzaro and MN GOP staff discord has been well reported. Picking up Strib's "needed fresh start" editorial mid-item --

We applaud the elected officials and party members courageous enough to demand action. That happens too little in politics these days, and was made more complicated by the fact that Carnahan is married to First District U.S. Rep. Jim Hagedorn.

But it's clear the party has far more work to do than ousting Carnahan, who reportedly pushed hard for an extravagant severance package. The executive committee deadlocked on that aspect, with some opting for no severance. In the end, Carnahan herself was allowed to cast the tiebreaking vote on a package of about $38,000. What ethical organization would allow a person to vote on their own severance, let alone cast the deciding vote?

This party has long needed stronger financial controls and better means of ensuring independent review of expenditures. Mismanagement of finances in the state GOP now stretches back well over a decade, to when Tony Sutton ran the operation into the ground, spending so heavily that the party was later served an eviction notice in 2012 for nonpayment of rent. The party has struggled with finances ever since.

The party's board was right to include further review of finances in its actions, along with its human resource protocols. The multiple accusations of sexual harassment by young women in the party must be addressed.

For the sake of the party, we hope the review includes an overhaul of financial rules and the creation of some much-needed guardrails. So much power is concentrated in the party chair right now that an unethical individual could take advantage. In an era when parties are more dependent than ever on small donors, it is incumbent on them to earn the trust of those donors by spending their money prudently.

 In short, personalities aside, money matters. But we all know that. Powers of the MN GOP chair? We don't all know that. Having that audit, results public, should be a Party goal; else who do you trust? "You" being a small donor.

______UPDATE______

A single point, whose money?

Strib published an Aug 20 report, "Minnesota Republican Party seeks new chair, investigations to repair party image - The party is in shambles in the wake of a scandal that pushed out its chair." By  , who has handled much of this month's reporting about MN GOP events and stories. A single focus, Strib stating mid-item:

Whoever takes over has a big job ahead. The Minnesota Republican Party reported $8,466 in the bank in its last state campaign finance report in December. The party has $177,361 in its federal account, according to campaign records, which also show more than $64,000 in unpaid debts.

The DFL Party, in contrast, has more than $2.2 million between its state and federal accounts heading into the 2022 election.

The scandal will take a bite out of the party's limited budget, with leaders agreeing to give the more than $42,000 in contributions it received from Lazzaro to charity following his arrest. As part of Carnahan's exit package, the party's executive board voted 8-7 to pay her three months severance, or roughly $38,000. Carnahan was the deciding vote in favor of her own severance.

If the small Republican donor individuals managed household budgets the way these "professionals" handle finances, they'd be getting credit agency harassment phone calls night and day.

Put yourself in the position of such a donor. Would you kick in fifty bucks to pay Carnahan a part of her grudge money extraction, the thirty-eight thousand she and Hagedorn finagled on her way out the door? Where a Board 7-7 deadlock on the severance money/amount was broken by Carnahan voting for herself and Hagedorn? Would you consider that a wise use of money that could buy school supplies for the kids? Would you be smart or stupid?

How did seven of those Board clowns cause the deadlock, given circumstances? They seem to have little respect for other people's money. They will have one hell of a hard time this coming election touting themselves as fiscally conservative, or even as fiscally competent. The press needs to name the seven who voted with Carnahan to give her free money on exit. It was an irresponsible move. The dynamics of Hagedorn's power in things also needs complete transparency, after the fact of his and his spouse holding up his Party for thirty-eight grand.

Yeah, it's none of my business. But for those who gave that Party money with the intent it be used on candidacies, this is a sharp-stick poke in the eye.

And from the financial ruins of the Party treasury, they have to fund an audit.

Good luck, and God bless. Picking a new boss: Find competency, or suffer.

________FURTHER UPDATE________

Comments to Berg's latest post include this:

Members Jennifer Larson, Gary Stuart, Dave Pascoe resigned from the board.

Mark Blaxill, treasurer, says he will resign but will assist in transition first.

A few staffers also resigned.

Ouch. A real legacy Chair. Tony Sutton must be smiling.

The Strib item which was focused on in the prior update said, "The party has 45 days to call a meeting of the more than 300 delegates, who will vote for their next party chair. No one had jumped into the race by Friday afternoon." That likely will be a somber session, 300 strong. Hopefully not degenerating into name-calling, finger-pointing or a circular firing squad. 

SPECULATION: Whatever happens among the 300, it will gain media attention. Mike LIndell for party chair? Or his surrogate, Doug Wardlow? Cementing the Trump faction into control?

Perhaps someone from the Anoka County Board of Commissioners would like to take a shot at statewide party leadership? Make that County Board present or past. Residing in the County or otherwise.

Jim Abeler has been a party stalwart for years. Draft Abeler? Fun and games. Really it is hard for many to conceive, but Abeler has been viewed by some Anoka County Republicans as "too liberal," or "disloyal" in some silly context, to the extent he was primaried. That suggests the party is truly in grave circumstances with little hope. Abeler now is a party centrist? Shifts have been that severe.

Could there be again a spouse of a politician gaining the Chair?

Possibilities seem endless. That vote for party chair will be of interest to all in the State. Urban, suburban and rural. Republicans, Democrats and independents. Lawyers, lobbyists and business interests. Creditors of MN GOP will show interest.

______FURTHER UPDATE______

A quote seen earlier, with the intention to post, found again, saying -

“Through his relationship with Chair Carnahan he (Lazzaro) was involved at every level of the MNGOP,” party Secretary Dave Pascoe, a member of the executive committee, said in a statement Thursday. “He was a donor who helped make payroll when times were tight, he was a campaign consultant, he had a PAC (political action committee), he was on the board of the fundraising committee known as the Elephant Club, he hosted a podcast with the Chair, and he donated to Republican candidates far and wide.”

[italics added] Making payroll, that situation had to be within the knowledge of the party treasurer, else there was gross negligence on that front. Did rank and file and Board members know of this, and if so, when? If payroll at any time was not met, there would have been employee knowledge (those strung out on being paid) which appears to have not been widely shared.

Reporting was Lazzaro's condo was searched last December with phones, computers and thumb drives seized. Who in MN GOP had knowledge of that before the indictments this month? Who should have had notice? Board members, senior staff? Carnahan has claimed not knowing until the indictment was issued. Is that credible?

With regard to making payroll, was Carnahan (and spousal community) always paid on time, or not? First at trough, or the rest of payroll first, boss last, as with a proprietorship business? 

How exactly was Carnahan/Hagedorn money, party money, and Lazzaro money commingled? Again, that seems a ripe question for the Party's treasurer. He did keep books, yes/no?

Big question - who kept quiet about what, when? When would there have been a duty to speak? NDAs as a defense could cut several ways. Duty to inform the Board vs. contract NDA duty to the Chair (while paid with Party money), that kind of messy question.

Donors deserve to know. The 300 voting inner party honchos at the soon-to-be confab would at the least need to know whether any candidate for Chair has any skeletons rattling in the closet; Lazzaro related, silence in light of a duty to speak related, or otherwise. That is a wide public where such info could be expected to be leaked to media. But that is the Party's problem, not mine.