Oxendine Still Georgia GOP Favorite Despite Insurance Donations Probe

By and | June 28, 2010

A state probe into insurance industry contributions funneled to Republican John Oxendine is turning into a drawn-out saga, which opponents are trying to use to cast an ethical cloud over his campaign for governor.

With less than a month left until Georgia’s primary, it remains unclear whether political jockeying over the stalled state ethics commission investigation will sway voters heading into a July 20 ballot. Some think it will do little to slow the campaign of Oxendine, the state’s insurance commissioner and the presumed front-runner for the GOP nomination.

At issue are $120,000 in donations to Oxendine’s campaign from State Mutual Insurance Co. and the Admiral Life Insurance Co. using 10 Alabama-based political action committees.

The state ethics committee launched what seemed like a straightforward investigation into whether the donations violated contribution limits and a ban on candidates accepting money from companies they regulate. The probe came after the Atlanta Journal-Constitition reported the contributions last year.

But with the primary loooming, it has turned into a political brawl.

Soon after the ethics commission began subpoenaing documents in the case, the insurance companies at the center of the fray filed a lawsuit accusing the panel of political bias. A Fulton County Superior Court judge effectively blocked a state ethics commission hearing on the matter that had been scheduled for Thursday. It’s now unclear when the matter will be heard.

Oxendine has denied any wrongdoing and returned the contributions. His campaign manager noted the insurance companies were behind the legal action.

“It doesn’t have anything to do with John,” campaign manager Stephen Puetz said.

That hasn’t stopped foes from using it to try to score political points.

“He’s the Rod Blagojevich of Georgia politics, everything he touches has the whiff of corruption,” Dan McLagan, spokesman for Republican candidate Karen Handel, charged.

A spokesman for Republican Nathan Deal also questioned Oxendine’s argument that he was in the dark about the cash, despite the fact that Delos Yancey II, head of State Mutual, is Oxendine’s friend and occasional hunting partner.

“One of John Oxendine’s best friends illegally funnels $120,000 to his campaign, and he claims he knew nothing about it. Really?” asked Deal spokesman Brian Robinson.

“Let me ask the average Georgian: Has anyone ever given you $120,000 without your knowledge?”

Ben Fry, a spokesman for Eric Johnson, called the allegations “troubling.”

“Georgia voters are smart. They will consider this when they make a choice about who should be their next governor,” Fry said.

Puetz fired back at McLagan saying Georgia voters “reject the negativity and the lies put forth by a campaign with no message.”

“Georgia’s voters can tell when they see a desperate losing campaign throw anything against the wall hoping that something sticks,” Puetz said.

Some outside observers say that the ethics dustup appears to be doing little to dent Oxendine’s support.

“He is still the acknowledged (Republican) front-runner by everyone in the race,” said Steve Anthony, a Georgia State University political science professor. “For all the fuss, it’s not changing voters minds, at least not yet.”

In their lawsuit claiming political bias, the insurance company claims State Ethics Commission Chairman James Gatewood and Commission member Patrick Millsaps have given prior campaign contributions to Gov. Sonny Perdue.

State Mutual alleges that Perdue is “the leader of the faction within the Georgia Republican Party that supports the nomination of candidate Karen Handel and opposes the nomination of rival candidate John Oxendine.”

It isn’t the first time Oxendine has been dogged by ethics allegations.

In 2001, state Attorney General Thurbert Baker issued a blistering report saying Oxendine abused state-issued blue lights and sirens after he struck another driver while using the emergency lights.

Oxendine said he was on his way to a hazardous materials call at the state Capitol. The attorney general’s office concluded that Oxendine had left home late for a ribbon-cutting ceremony and was using his lights and siren to try to beat traffic.

Oxendine gave up his lights and siren in 2001 but also argued the investigation by Baker, a Democrat now running for governor, was politically motivated.

In 2004, the state Inspector General blasted Oxendine for using $25,689 in state funds in December 2002 to purchase a 2003 Ford Crown Victoria with leather seats and six-disc CD player, disregarding a state ban on automobile purchases.

“Commissioner Oxendine’s actions were in blatant disregard for established authority,” the report said. “When informed that he would not be allowed to purchase his automobile, his response was, in general, ‘Try and stop me.”‘

Oxendine was first elected Georgia’s insurance and fire safety commissioner in 1994.

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