[L]t. Gov. Phil Scott said Thursday he would temporarily distance himself from his construction business, should he become governor.
Scott, who is seen as the Republican Party’s top candidate to replace retiring Gov. Peter Shumlin, says he expects to announce a decision after Labor Day.
Factoring heavily into that decision is how Scott would manage his relationship with the construction company he has co-owned for 30 years. DuBois Construction Inc. has received $1.45 million in state Agency of Transportation contracts in the past three fiscal years, records show. DuBois, an excavation company based in Middlesex, also holds many municipal contracts.
“I’d have to disassociate myself with the business if I ran for governor and was successful,” he said Thursday. “It’s not something I necessarily want to sell, because I don’t plan to be in politics my whole life, and I want a business to come back to.”
Scott said he has worked assiduously throughout his 16 years in public life to avoid conflicts of interest between his business and his role as an elected official. Scott served five terms as a Washington County state senator where he served on the Senate Transportation and Institution committees, and he is in his third term as lieutenant governor.
He said he does not know whether DuBois has more government contracts than before he entered politics. Scott says his political career might have actually hurt the business, because he won’t bid on contracts that could create a real or perceived conflict of interest. When a project he has supported as an elected official goes out to bid, Scott said he makes sure his company does not seek the contract.
Scott said he did not know what percentage of DuBois’ business is state contracts, because the ratio of public to private projects ebbs and flows year-to-year, but he estimated that “it’s not the major part of our business.”
Still, he understands that his role with the company would need to change if he decides to seek the governorship, Scott said.
It’s a significant issue for him as he weighs a run for the state’s highest office. Scott said he’s poured three decades of his life into the business and would need to find someone he’s confident could manage the company well in his stead. DuBois has many longtime employees, and he feels responsible for ensuring the company is stable were he to leave it. Scott is consulting with his uncle and partner, Don DuBois, as he works toward a decision.
“There’s a lot going through my mind,” he said.
Retired Middlebury Political Science Professor Eric Davis said that Scott would be well advised to use the word “firewall” when addressing this topic. The lieutenant governor would also need to adopt an ownership structure removing him from any decision making role, but that would still allow him to accrue a profit.
“At the presidential level you see candidates create blind trusts, so that other people are responsible for making decisions,” Davis said. As for what the precise legal structure would be, Davis said that’s a question for an attorney.
Scott said he’s spoken with attorneys, and he’s not aware of a constitutional requirement to separate from his business, but he said for appearances he believes that something along the lines of a blind trust would be a good idea.
Politically, Davis doesn’t see the company as a liability for a potential Phil Scott for Governor campaign. Scott is well-regarded, Davis said, and he’s not aware of a perception that Scott uses DuBois to make money off taxpayers. All Scott needs before announcing is a “credible explanation” for the media and the public about how he’ll create that distance, Davis said.
The vast majority of Scott’s state contracts are with the Agency of Transportation and the Department of Buildings and General Services. Agency of Transportation Secretary Sue Minter was not available Thursday, and former Secretary Brian Searles could not be reached for comment.
Michael Obuchowski, commissioner of BGS, said that to his knowledge Scott “has not put any pressure or even communicated with our (procurement) unit.”
Contracts are typically put out to competitive bid through a process that strives to be “blind and dumb” to who is applying, Obuchowski added. Scott has received sole-source contracts from BGS, he said. Such contracts are typically for work where DuBois has needed expertise or the job needs to to be done immediately, Obuchowski said.
Scott said DuBois also receives sole-source contracts from the Agency of Transportation and municipalities, but they’re typically small dollar projects that are given to the first person who answers the phone, according to Scott. Those are usually jobs such as installing small culverts or calling in an excavator to help fix a leaking water line.
“Whether it’s municipal or state, they just pick up the phone and start dialing,” Scott said.
