August 16, 2018

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Iowa, Latest News

Disclosure Scandal: Reynolds Caught Hiding Secret Personal Payments from Company that Got $500,000 State Contract

The Des Moines Register reported today that Iowa Governor Kim Reynolds failed to disclose that she received payments that almost doubled her income from a tech company that landed a $500,000 annual state contract.

This newest revelation is just the latest in a line of transparency issues for Reynolds who has come underfire for no longer holding regular press conferences.

See below for excerpts from the Des Moines Register’s reporting, or read the story online HERE.

Des Moines Register: Kim Reynolds didn’t disclose tech payment while a senator, highlighting flaws in Iowa’s vague reporting form

As an Iowa state senator in 2010, Gov. Kim Reynolds failed to report that she had been paid by a West Des Moines company that landed a nearly $500,000 annual government contract, newly disclosed tax records show.  

… Like multiple lawmakers from both parties, Reynolds identified her role in broad terms but — in a subsequent line — did not acknowledge she had received payment of $1,000 or more for that role. 

…Reynolds, a four-term Clarke County treasurer, was the leader of a group known as the Iowa County Treasurers E-Government Alliance when in 2007 the alliance hired at her recommendation ABC Virtual Communications to facilitate a statewide records website. 

Reynolds — who won election as a senator in late 2008 — then went to work for ABC in 2009 as a business development manager.

Iowa legislative rules require legislators to complete personal financial disclosures.

Reynolds in 2010 listed her business occupation as “business development,” but she did not report she had earned more than $1,000 as expected by disclosure requirements.

Tax statements the governor released last week show ABC paid her $38,333 in 2009.  (She was paid another $25,000 in 2010 but had become lieutenant governor and did not file a legislative disclosure form in 2011 that would have included that payment.)

The payments roughly doubled Reynolds’ 2009 and 2010 salaries, the tax returns show.

Reynolds acknowledged her association with ABC, specifically addressing criticism from Democratic Gov. Chet Culver’s unsuccessful re-election campaign in 2010 when she denied any link between the company landing the treasurers alliance contract and her later role as its employee. 

Reynolds was not required to identify ABC by name on the financial disclosure forms she filed as a senator in 2009, but she was required to identify payments of $1,000 or more.

Remi Yamamoto, a spokesman for Reynolds’ Democratic challenger Fred Hubbell, described the oversight as “unsettling,” considering Reynolds’ ties as an elected official and company employee.

“The fact that Gov. Reynolds helped secure a government contract for a company then received a job from that company that almost doubled her income and then failed to disclose her relationship is simply unacceptable,” Yamamoto said.