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Tuesday, January 05, 2021

Choose your own impropriety

You can get mad at John Bel for appointing his nephew to the UL Board of Supervisors or not. It's up to you.  It's not technically an ethics violation of any sort. 

The UL System governs nine colleges and universities, including Southeastern Louisiana University, the University of New Orleans and the University of Louisiana at Lafayette.

Stevens, the son of the governor's sister Alice, is a graduate of SLU.

The governor's selection would not run afoul of the state code of government ethics against nepotism -- preference for relatives in hiring.

The ban generally applies to members of a government official's immediate family, including children, the spouses of the children, brothers and sisters, the spouses of the officials' brothers and sisters, his or her parents and his or her spouse.

Anyway, it could have been worse.  A year ago John Bel tried to appoint Jim Bernhard to the LSU Board. Bernhard declined. Which seemed to make some sense at the time simply because we could assume it was a case of overkill.  After all Edwards had already awarded Bernhard's new company a lucrative contract to privatize energy systems at state buildings. Seems like more than enough repayment the Governor could offer Bernhard for the gentlemanly favor of deciding not run against him in 2019. 

Bernhard Energy Solutions partnered with the HVAC company Johnson Controls at the request of the Edwards administration after both firms submitted proposals to the state. Bernhard Energy Solutions is one of several companies controlled by Bernhard Capital Partners, a private equity firm run by former Shaw Group chief executive and Democratic Party official Jim Bernhard, who was floated as a potential candidate for governor before ruling it out last year.

But it turns out Bernhard didn't turn the LSU board position down out of contentedness. He was actually angling to grab another deal for his company

Since then, the competition over the massive contract — which several board members described as having a value of $855 million over decades — has grown increasingly fierce. Five Board of Supervisors members told The Times-Picayune and The Advocate that LSU staffers have tried to steer them toward the Canadian company, Enwave, which offered a less expensive deal but may also lack a necessary license to do the work.

Bernhard, however, wields immense political power and ties to LSU and its football program, and board members said that’s made him a controversial choice for the contract. He seems to want the deal badly: In fact, he turned down an invitation from Gov. John Bel Edwards to serve on the Board of Supervisors that would have prevented him from getting the energy contract. Meanwhile, Bernhard Energy Solutions has partnered with Johnson Controls Inc. for similar projects, creating a new entity called LA Energy Partners. And they also formed a subsidiary called Tiger Energy Partners specifically to vie for the LSU contract.

So which is it worse for John Bel to appoint his law partner/nephew to a higher ed board position? Or is it worse that he and LSU continue doing business with this guy?  

Even without serving on the board, Bernhard has cast a long shadow over LSU. As LSU police investigated allegations two years ago that LSU football wide receiver Drake Davis had abused his girlfriend, several witnesses in the case told police that they feared coming forward because they feared retribution from Davis’ powerful adoptive father — Bernhard. Bernhard has said he did not threaten any retaliation in the case.

Bernhard also touted in a 2015 news release that a cogeneration plant his companies built on LSU’s campus “continues to help reduce LSU’s energy expenses by millions of dollars annually.” But LSU attorneys said the opposite in 2006, when the university and Bernhard Mechanical sued one another over the plant.

LSU claimed the cogeneration system meant to save money actually increased the university’s utility bill by more than $2 million a year. LSU attorneys said then that Bernhard had promised energy savings totaling between $7 million and $44 million over 20 years.

“Since the cogeneration system began operation in late December 2004, the cost of operating the system has exceeded by more than $2 million what the same energy would have cost LSU had the new system not been built,” LSU’s attorneys alleged.

Who knows? The Ethics Board doesn't offer much guidance either way.

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