Edward Siedle is wondering, in Forbes, whether the State of Rhode Island will ever be able to stop investing in Point Judith Capital, which our Democrat Governor Gina Raimondo founded, even as it loses money:
The pension was scheduled to exit Raimondo’s fund in 2016 but the firm, supposedly exercising its discretion under a secret agreement the state supposedly signed, unilaterally extended the life of the investment in 2017 and again in 2018.
In late 2018, General Treasurer Seth Magaziner surprised pension stakeholders by announcing a new reason for delaying termination of the investment yet another year. Magaziner disclosed, for the first time, the 2006 secret agreement the pension signed with Point Judith allowed Raimondo’s fund to hold onto state money another year if 80 percent of investors agree.
The very fact that an investment, shrouded in secrecy and foisted on the state pension by the now-Governor, has continued to lose money for the pension and pay money to Raimondo for the past thirteen years—with no end in sight—should demand enhanced disclosure and public scrutiny, in my opinion.
Of course, the line from the Eagles’ “Hotel California” echoed in this post’s title comes to mind. But the situation seems more broadly representative of the crony, insider system that Raimondo has brought to full flower during her time in government. A relative handful of people reap rewards while the public loses, and only the people benefiting are able to exit the relationship.