Editor’s note: This commentary is by Steve May, who is an LICSW practicing in Burlington. He is a Progressive/Democratic candidate for the Vermont House of Representatives for the Chittenden-1 district (Richmond).
[T]he current circumstances at Q Burke and Jay Peak are a blow for the entire state of Vermont. Economic development in communities which have been historically neglected is absolutely essential to the financial vitality of our state. The fact that the EB-5 funding scandal is the product of, in this case, a handful of angel funders who have little connection to Vermont speaks loudly to the desperation of public officials who wanted to believe that the primary developers of these projects, Ariel Quiros and Bill Stenger, were white knights. They weren’t.
Many will point to the fact that the alleged fraud in this case was eventually uncovered and point to the hard-working forensic accounting specialists who largely go unheralded as evidence that our system of oversight worked. To the extent that these alleged white collar crooks dipped into the public till and enriched themselves at the expense of all Vermonters that is in fact true. But, we should have never, EVER gotten to this point.
Campaign contributions showered the state Democratic party and its leaders, most notably Gov. Peter Shumlin and Sen. Patrick Leahy. Quiros and Stenger did not make those contributions out of the goodness of their hearts. They expected something in return for those campaign monies. While unseemly, under our system that kind of relationship between elected officials and supporters looking to gain or sustain influence is not illegal.
Nobody wanted this crisis. Certainly, nobody went looking for it. However, in this crisis lays the seeds of renewal.
Many questions still remain, and over time they will become clearer but one that is especially troubling has to do with the Legislature’s oversight of these business dealings. Or, in this case, its inability to provide meaningful oversight on behalf of Vermont taxpayers. While it is true that the alleged embezzlement of funds here largely relied on the misappropriation of foreign capital to fund a lavish existence for Quiros, lots of Vermont taxpayer funds were used to promote these EB-5 projects. It would appear that the Commerce and Appropriations committees in both chambers largely “kicked the can” when it came to oversight here.
It is fair to wonder whether in a chamber controlled by legislative Democrats, when presented with a potential problem with donors sympathetic to the most establishment of establishment Democrats, whether the establishment through relative inaction provided ascent and ignored this coming storm. I am not saying that they did, and I am not certain that they didn’t — the truth is that I simply don’t know. But, given the unique nature of this crisis, I think it’s prudent that we get to the bottom of this. This is no time for a crisis of confidence. Leadership on this concern demands that an independent investigator be appointed separate from the political process to follow the money wherever it may take them. Vermonters deserve to be absolutely certain about the elected officials who represent them. We have been blessed to have been granted political titans who have demonstrated service in extraordinary ways through their words and deeds (Aiken, Hoff, Kunin, Sanders, etc.), all of them who have served Vermont in the public interest, and done so, extraordinarily well. There is no reason to think that tradition will not continue. But good governance requires a critical eye applied occasionally, and this is one of those moments.
This crisis places our most valued institutions under stress and a level of scrutiny that few of us can remember. Vermonters are about to see not only the challenges of governance, but also celebrate the resiliency of our processes. By any objective measure this is not a good moment for Vermont or Vermonters. Crisis creates opportunity. Nobody wanted this crisis. Certainly, nobody went looking for it. However, in this crisis lays the seeds of renewal. Renewal in this case I believe starts with a thorough review and prompt investigation into these EB-5 projects, and as such appointing a special investigator insulated from the political caldron in which this concern came to churn would immeasurably serve the public good.
