Nov 01, 2024
PROVIDENCE, R.I. (WPRI) -- Gov. Dan McKee retained a powerful State House lobbyist to help him navigate the ILO investigation earlier this year but has yet to pay him for his services, sparking new questions about potential conflicts of interest. McKee said Thursday he reached out to Dome Consultants lobbyist William Murphy, who previously served as Rhode Island's House speaker, for advice on handling the three-year probe that ended this week with no criminal charges filed against McKee. "Late in the [legislative] session, I did talk to Bill about some advice on this issue," McKee told reporters during a news conference as he lambasted Attorney General Peter Neronha over his handling of the ILO investigation. A Neronha spokesperson confirmed Murphy reached out on behalf of the governor on March 19 to say McKee wouldn't be interviewed as part of the probe, but said they had no written communication. McKee said Thursday he didn't trust Neronha enough to cooperate. Asked Thursday who paid for Murphy's services, McKee said, "I'll be paying for it." "It was advice -- it wasn't like weeks and weeks and weeks," he said. "I reached out to him, I know him." He added, "If I'm billed for the few hours [Murphy] puts in, I'll be paying it." Murphy did not immediately respond to a request for comment Friday afternoon. Murphy is now one of the most well-connected lobbyists at the State House, and has among the most clients of anyone on Smith Hill. His local clients include Rhode Island Energy, Care New England, Amica Insurance, and Bally's, which operates the state's two casinos. His national clients included Apple, Walmart, Anheuser-Busch Companies and Deloitte Consulting LLP. Citizens Bank also brought on Murphy in May as the bank was aggressively pursuing a legislative tax change it argued would make Rhode Island competitive with Massachusetts. Without the change, Citizens officials warned the bank could relocate its headquarters north. Lobbying records show Citizens agreed to pay Murphy a $25,000 annual retainer, and he lobbied for the bank through June. On May 10, McKee filed a budget amendment on behalf of Citizens formally asking lawmakers to make the tax change. Speaker Joe Shekarchi and House Democrats initially nixed it from their version of the state budget, but after protests from Citizens, McKee and Shekarchi announced they would pass the change after all as standalone legislation. During a radio interview Thursday morning on WPRO, McKee boasted that he helped get the Citizens deal across the finish line, comparing it to his current effort to try and keep Hasbro from relocating its headquarters out of Rhode Island. "Citizens wasn't a done deal," he said. "I stepped in and made sure Citizens is here." The connections have not been lost on political observers, including Common Cause Rhode Island executive director John Marion, who fired back Thursday after McKee shrugged off the possibility he may have violated the state's Code of Ethics in his dealings with the ILO scandal. "We need to look at how Governor McKee hired, but seemingly has not yet paid, the state's most powerful lobbyist, who is also the former speaker of the House, to be his personal attorney," Marion said. "Everyday Rhode Islanders don't get legal representation based on a promise to pay." Steve Frias, a lawyer and Rhode Island's former Republican national committeeman, likewise suggested McKee should have recused himself from any matters involving Murphy's clients, arguing that such separation is required under the state's Code of Ethics. "An attorney and his client are business associates under Ethics Code," Frias wrote on social media. "Business association exists until all legal fees are paid. Gov and lobbyist are business associates." The governor's office never sought an advisory opinion from the R.I. Ethics Commission about how to manage potential conflicts between Murphy's dual roles, according to Jason Gramitt, the commission's executive director. This isn't the first time the governor has faced scrutiny over his personal interactions with lobbyists. The Ethics Commission last year investigated whether McKee violated the ethics code when lobbyist Jeff Britt treated him to a meal at a high-end restaurant during a fundraising lunch. After news broke about the lunch, McKee paid back the more than $200 meal price, saying he didn't know who had paid. The ethics panel tossed the complaint earlier this year, saying there was no probable cause to suggest the governor knowingly or willfully violated the law. Eli Sherman ([email protected]) is a Target 12 investigative reporter for 12 News. Connect with him on Twitter and on Facebook. Ted Nesi ([email protected]) is a Target 12 investigative reporter and 12 News politics/business editor. He co-hosts Newsmakers and writes Nesi's Notes on Saturdays. Connect with him on Twitter, Threads and Facebook. Tim White ([email protected]) is Target 12 managing editor and chief investigative reporter and host of Newsmakers for 12 News. Connect with him on Twitter and Facebook.
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