Conflict of Interest at Empire State Development Corp.
By Jim Willis on Jun 6, 2008 in Business, Gov David Paterson, Government & Politics, Taxes & Spending | Printable Version
The fox is not only guarding, but is now in complete control of the henhouse. Gov. David Paterson has appointed chairman of M&T Bank, Robert G. Wilmers, as the statewide chairman of Empire State Development Corp. (ESDC). Mr. Wilmers will not step down as chairman of M&T while he oversees the ESDC.
I’ve written about Economic Development Zones previously (Empire Economic Development Zones Hurt Broome Taxpayers). The organization that administers EDZs and is in charge of handing out big tax breaks to businesses that do nothing more than put on a good show is the ESDC–that Mr. Wilmers now runs.
Let me connect the dots for you: ESDC hands out big tax breaks to businesses. Those tax breaks benefit a business’ bottom line–helps make that business more profitable. M&T Bank makes loans to businesses. Do you think that maybe, if I’m the CEO of a business looking for a loan, I might consider getting my loan from the bank whose chairman could influence whether or not I get a big huge tax break from the state?
If Mr. Wilmers wants to magnanimously help the state and shower us with his brilliant leadership (and the ESDC can use good leadership for sure), he should step down from the board of M&T immediately and sever all ties–divest himself from their stock–and become a truly independent leader of the ESDC. While he remains chairman of the board at M&T there is a bigtime conflict of interest.
Something about this whole thing just stinks to high heaven. The real solution is to dissolve the ESDC and stop favoring some businesses over others with tax breaks. Lower the tax rate for EVERYONE in New York, businesses and individuals alike.
For more information, see:
M&T chairman tapped for state economic post (Press & Sun-Bulletin, June 6)
Technorati Tags: Empire State Development Corp, Empire Zones, Empire Development Zones, David Paterson, Robert Wilmers, M&T Bank