New Haven Register (New Haven, CT)
Pressuring rival, Bysiewicz says she supports divesting from Saudi Arabia
HARTFORD — While ratcheting up their criticism of Republican Bob Stefanowski’s recently revealed financial ties to Saudi Arabia, Gov. Ned Lamont and his second-in-command, Lt. Gov. Susan Bysiewicz, were made to confront the state’s own considerable resources from the autocratic kingdom.
It was Bysiewicz who opened the campaign up to questions about the appropriateness of the state treasury’s $22 million in investments in Saudi Arabia — almost all of it in government bonds and oil companies — during a press conference in which she accused Stefanowski of “doing business with a group of petro-dictators who are working to actively raise the price of gas.”
When asked Wednesday whether the administration would like to see the state’s public investments moved elsewhere, Bysiewicz responded “absolutely.”
Later, a spokesman for the Lamont campaign said the governor was open to looking into the possibility of divestment, but stopped short of endorsing the policy outright.
“While the state’s investments are overseen by the Treasurer, and we support efforts to align our investments with our values,” said the spokesman, Jake Lewis, in a statement. “This is not a question of investment, this is about a candidate for governor being on the payroll of a foreign government and seeking to hide that relationship from the people of Connecticut.”
In response to the latest campaign volley, Stefanowski accused his Democratic opponents of hypocrisy given the size of the state’s investments in Saudi Arabia, which is facing mounting scrutiny from members of both parties over its human rights record and tightening alliance with Russia.
Stefanowski has worked for the last three years as a consultant for a greenenergy development largely funded by the kingdom’s sovereign wealth fund. He has defended his work as typical of many larger consulting firms, and said he had no direct ties to the Saudi government.
“They should focus on their own state’s finances instead of nit-picking the information provided by our generation’s most transparent gubernatorial candidate,” Stefanowski’s campaign said in a statement.
When pressed further on the issue of the state’s investments, Bysiewicz said that she had spoken with her party’s nominee for the Office of the Treasurer, Erick Russell, and that he too supports divesting from Saudi Arabia.
However when asked about the lieutenant governor’s comments, Russell — who will face Republican Harry Aurora in the November general election — denied having reached any decision when it comes to divesting from Saudi Arabia.
“Divesting any assets, whether from Saudi Arabia or other countries or industries, is not something the Treasurer decides alone — it is a lengthy process, guided by state and federal law, and it requires thorough analysis to ensure that divestment is in the best interests of those we serve,” Russell said in a statement to CT Insider.
The candidate added, “For now, my focus is on communicating my financial experience and expertise supporting projects across Connecticut and earning the trust of all voters regardless of party, because now more than ever, we can and must work together to continue to improve our state’s fiscal outlook.
Both Lamont and Bysiewicz noted that the control over Connecticut’s roughly $43 billion worth of retirement and trust funds ultimately lies with the independently-elected Office of the Treasurer. The current office holder, Democrat Shawn Wooden, has also been skeptical of pulling the state’s money out of Saudi Arabia. Wooden announced earlier this year that he would not run for re-election.
In a statement released by his office Wednesday, Wooden echoed concerns about Saudi Arabia’s “repressive regime,” but said that his office’s decisions were based on guidance from the federal government, which has not taken any steps to restrict investments in Saudi Arabia.
“The responsible and transparent stewardship of the State’s pension plans is my top priority and will not be influenced by political winds,” Wooden said in a statement.
Bysiewicz’s claims that the administration and Russell were aligned on the issue of divestment were not the only comments from Democrats on Wednesday that appeared to lack supporting evidence. While joining the lieutenant governor for her press conference, state Sen. Sen. Matt Lesser, D-Middletown, questioned — without evidence — whether Stefanowski may have violated federal laws related to the disclosure of work on behalf of foreign governments.
“Is Mr. Stefanowski in compliance with [the Foreign Agents Registration Act], has he disclosed his relationships with the government of Saudi Arabia?” Lessor said.
The Foreign Agents Registration Act, largely applies to Americans who lobby U.S. officials, lead public relations campaigns or seek monetary contributions within the U.S. on behalf of foreign governments. In its reporting on Stefanowski’s financial dealings, CT Insider did not uncover any evidence that the Republican candidate’s consulting work requires him to register as a foreign agent under that law.
Lamont, who did not attend Wednesday’s press conference, had previously avoided the subject of Stefanowski’s Saudi ties last week, telling News12 reporter John Craven, “I think we should talk about it another time. It’s not a consulting contract I would have taken.”
The governor’s absence forced Bysiewicz to field questions about whether Lamont — a multimillionaire from Greenwich — derived any of his income through his wife’s investment portfolio from sources with ties to Saudi Arabia.
“I don’t know the answer to that, but Annie Lamont’s not running for governor, Bob Stefanowski is running for governor,” Bysiewicz said. “You can ask her that question.”
Lamont’s campaign referred requests for comment about Annie Lamont’s investment portfolio to her venture capital firm, Oak Investment Partners. The company’s website lists investments in roughly 100 companies and several foreign countries, but none in Saudi Arabia.
Lamont has disclosed his family’s sources of incomes through public ethics filings and the voluntary release of his tax returns, though the latter have not included his wife’s earnings. A campaign spokesman said Wednesday that Lamont will make his latest round of tax disclosures to reporters on Friday.