Merkt: Corzine's Xanadu Connection Undermines Public's Trust in Government

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Assemblyman Richard Merkt warned today that Governor Jon Corzine’s disclosure, following signing legislation authorizing construction of a new aquarium at the Xanadu site, that one of his closest friends and former business associates at Goldman Sachs is an investor in the troubled project, is exactly the type of problematic behavior that shakes the public’s trust in government.

“Whether or not there is a conflict of interest is not the issue,” stated Merkt, R-Morris, adding, “It’s the obvious appearance of a conflict that the governor should have considered. How will the people of New Jersey view this connection? Does his signing the bill promote or weaken the public’s confidence in the integrity of state government? In a state dogged by corrupt elected officials, one has to conclude Governor Corzine’s belated disclosure of a personal connection can only increase the public’s skepticism about how business gets done in Trenton.”

As reported in an article in today’s Record, Corzine disclosed that one of his closest friends and former Goldman Sachs colleagues is a partner in the investment consortium that bailed out the beleaguered Meadowland’s Xanadu project to the tune of $1.5 billion in 2006. The admission followed the signing of legislation by Corzine that enables the construction of an aquarium at the mega-mall.

According to the article, the Governor’s Advisory Ethics Panel found that Corzine “is not compromised in supporting a project that benefits his friend.” In addition, the panel said that since there has been full disclosure by the governor, a conflict doesn’t exist.

Merkt noted that it is distressing that the governor thinks a last-minute disclosure resolves his ethical problem in approving legislation that benefits a close personal friend and former business colleague.

“The governor is, once again, completely missing the ethical point,” explained Merkt. “The prevailing public view is that Trenton is an insider’s game, where personal connections decide everything; who gets what and what laws get enacted. The governor’s signing this bill only feeds the public’s perception of personal favoritism. It’s troubling that this Administration has again and again proven itself blind to such ethical concerns since day one.

“ ‘Trust me’ is no longer an acceptable disclaimer by high state officials in New Jersey who engage in deals that arouses public suspicion,” he continued. “This Administration should understand by now that a higher standard of conduct is called for. The governor of New Jersey must be like Caesar’s wife -- above suspicion. Exhibiting a continuing blindness to ethical appearances debases that standard. At his inauguration, Governor Corzine challenged all of us to, ‘Hold me accountable!’ Well, governor, you’re on!”