AUGUSTA – Three political consultants with close ties to Gov. John Baldacci, and another who served as former Gov. Angus King’s top aide, were paid representatives of three liquor firms that bid recently for the exclusive rights to wholesale liquor in Maine.
Although no one is alleging that anything improper or illegal was done, political experts say the close relationships and friendships between the governor and the former political aides could give the public the wrong impression of inside deal making.
The principals involved include Larry Benoit, Baldacci’s longtime chief of staff when he was in Congress; political consultant Dennis Bailey, who helped Baldacci get elected in November 2000 and King in 1994 and 1998; renowned lobbyist and attorney Severin Beliveau, one of Baldacci’s biggest supporters and the governor’s most effective fund-raiser; and Kay Rand, who worked for King from 1995 to 2002, first as a top adviser and then as chief of staff.
The former staffers reached Monday said they were not doing anything unusual by taking part in the bid process. Because of Maine’s relatively small population, it’s impossible to be a lobbyist without getting involved with someone you know, Rand and Bailey said Monday.
“If it’s a question of whether we had undue influence over the governor, then I think everyone involved with the bids could make that claim,” said Rand, who has teamed up with Benoit to run a new lobbying firm in Augusta.
Benoit and Rand represent Martignetti Co. of Norwood, Mass., who won the bid on Friday to operate the state’s wholesale liquor business for $125 million upfront and $25 million to $40 million in profit-sharing over the next 10 years.
The state will give up some $100 million in profits on the liquor deal in order to fill an immediate budget deficit.
The plan to sell the monopoly rights to Maine’s wholesale liquor operation was a prime initiative of Baldacci, who was faced with a mounting budget deficit when he took office last January.
“These firms look for people with special access, so you get what is often referred to as ‘the revolving door,'” said Douglas Hodgkin of Lewiston, who taught politics at Bates College for 34 years before retiring in 2000.
Hodgkin is a Republican well-known in Maine political circles for commentary on both sides of the political aisle.
“If there are no restrictions on these kinds of relationships, it does present problems of appearances. There might not be corruption, there might not be special favors, but to the public there is an appearance of corruption and special favors,” he said Monday.
Jim Melcher, a political science professor at the University of Maine, agreed that “some people might be suspicious” of former aides returning as paid consultants to do business with their friends and former employers.
But unless something improper has been done, “it’s too complicated,” he said. “It’s insider baseball.”
Melcher, a Democrat, added, “Some people are going to be bothered by it, but I think those are people who are upset with the governor anyway.”
Baldacci declined to be interviewed Monday.
“I don’t think he’s interested in talking to you about this,” said Lee Umprhey, the governor’s spokesman.
Benoit did not return phone messages on Monday. According to his Web site, he most recently headed Baldacci’s transition team and helped select the cabinet and developed the current state budget.
Beliveau could not be reached for comment.
Rand and Bailey defended their work and their right to use their professional skills to make a living after leaving public service.
“I was hired to do press and public relations,” Bailey, a former journalist and spokesman for the recently successful CasinosNo! Campaign, said Monday. “This is what I do.”
Rand, who has worked as a lobbyist for the Maine Municipal Association and as a deputy commissioner in the McKernan administration, said she was “well aware” of a state law prohibiting gubernatorial staff from lobbying the state for one year after leaving office.
Under the law, Rand is not allowed to lobby on an issue in which she was involved in the 12 months before she left office. Although the liquor issue was debated from time to time by King and his staff, those discussions were held years ago.
“That is really the test,” she said.
Umphrey said the governor represents all Maine people and was not involved in the bid process.
“The best deal for Maine was chosen,” Umprhey said of the Martignetti bid. “At no point during this process did the governor talk to any of the principals that represented the bidders.”
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