Transparency limited in NC public pension plan
Published July 11, 2014
by Benjamin Briscoe, WFMY, July 10, 2014.
Part of the North Carolina public pension is invested in a company working with Credit Suisse. Credit Suisse just plead guilty to helping defraud the federal government. The State Employees Association of North Carolina wanted to make sure similar wrong doings weren't happening here, so SEANC leaders asked for copies of the contracts. What they got was blacked out page - after blacked out page.
"The treasurer won't let us have them," SEANC's Ardis Watkins said. "To accept this from companies who've admitted they stole from the government is absolutely unacceptable."
Right now State Treasurer Janet Cowell says she can withhold anything she deems a trade secret. What are trade secrets? We're talking everything for investment contracts to e-mails with money managers. Withholding is just her standard practice. There's no law allowing or preventing it.
But two proposed state bills would put her practice into law. Trade secrets would be confidential until at least five years after the contracts expire. And with some contracts lasting for 15 years, realistically, you won't see these documents for about 20 years.
"In all likelihood if that's the case, you're going to get ripped off because the same people aren't going to be around to be accountable 20 years from now," Watkins said.
The Treasurer's office declined an on-camera interview, but wrote: "This bill increases transparency ... currently that information is permanently not available as public record."
"Secret forever or secret for 20 years, it doesn't matter. It's like being a little bit pregnant. You are or you aren't," Watkins said.
The Treasurer's office also says all confidential information will still be open to the state auditor and the General Assembly. But during a recent committee meeting Wilkes County Senator Shirley Randleman says requested investment information in 2009 and
"As of today, I have never received any information," Randleman said.
Meaning even some lawmakers are kept in the dark about $87 billion dollars of public money.
