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UPDATE: Haley Testifies, Lashes Out at Accuser

Gov. Nikki Haley told the House Ethics Committee Thursday that GOP activist John Rainey was a "racist, sexist bigot."

 

After 10 hours of testimony Thursday before the House Ethics Committee, Gov. Nikki Haley took the stand and lashed out against a fellow Republican who has accused her of ethics violations, calling him a "racist, sexist bigot."

Haley denied that she ever blurred the line between her legislative duties and her work as a fundraiser for Lexington Medical Center Foundation or as a consultant for Wilbur Smith and Associates.

During the opening statements, a House lawyer laid out the allegations against Haley, which stemmed from a lawsuit filed by GOP activist John Rainey. Rainey alleged that Haley used her position as a state representative to illegally lobby for two of her employers: the medical center foundation and Wilbur Smith and Associates. He also alleged that Haley used her position to solicit charitable contributions for the foundation.

The ethics committee had previously closed the case, but reopened it after it received additional information about Haley's work for the two organizations.

Haley’s lawyer Butch Bowers told the ethics committee during his opening statement, “allegations are not facts.”

“Just because someone says it with conviction, doesn’t mean it’s true,” Bowers said.

During Haley's testimony, she told the committee that she did nothing wrong. Haley said Rainey is making the allegations out of his personal dislike of her.

"Mr. Rainey is a racist, sexist bigot who has tried everything in his power to destroy my family," Haley said.

At issue during the hearing was Haley’s involvement in two business deals when she was a state representative.

While Haley was working on fundraising for the medical center’s foundation on a $110,000 salary, the medical center wanted to open a new open heart center and needed to obtain a Certificate of Need from the Department of Health and Environmental Control.

Haley and her lawyer said that Haley’s legislative efforts to secure the open heart center were because the hospital was in her district and was part of her constituency, not because she worked for the medical center’s foundation.

"I did not lobby in any way, whatsoever, for anyone at any time," Haley said during her testimony.

Several witnesses told committee members that they were not aware of any wrongdoing by Haley during her time as a representative in the House from 2005 until she was elected governor.

Several Lexington Medical Center employees, including Mike Biediger, chief executive of Lexington Medical Center, also testified Thursday that Haley never lobbied for the hospital and was hired only as a fundraiser for the foundation.

Tony Denny, a lobbyist who donated to the Lexington Medical Center Foundation when Haley was employed there, testified that Haley did not use her position as a legislator to influence him to donate. Denny said he donated between $500 and $1,000 to the foundation on one occasion because he is a resident of Lexington County and thought that it was a good cause.

The other issue centers on Haley’s part-time consulting work for Wilbur Smith and Associates. While Haley was working for the engineering firm, they had a contract with the S.C. Department of Agriculture to build a state farmers market.

Robert Ferrell, vice president of CDM Smith, formerly known as Wilbur Smith, testified that Haley was paid $42,500 during the almost two years she worked to develop business for the company. Haley was asked to look out for private or county opportunities, but was not expected to secure any state contracts for the company.

In fact, Ferrell said none of the leads Haley brought to the firm led to work for the company. Ferrell also said his company didn’t need to lobby state legislators on the state farmers market issue because they already had the contract. However, the contract ended after a dispute between the Department of Agriculture and Wilbur Smith and Associates over the cost of the project.

While Haley was consulting with Wilbur Smith, one bill came up in the House dealing with the state farmers market, but Haley recused herself from voting, noting a conflict of interest, she said.

"I did what I thought was right," Haley said. 

Haley did vote on another bill involving the state farmers market while she was still consulting with Wilbur Smith, but by that time, the firm was no longer handling the farmers market project, Haley said. 

Apart from Haley and people who worked with her at the foundation and the firm, the committee heard from people who donated to the foundation when Haley was there, a former S.C. Ethics Commission chairman and a member of the Department of Health and Environmental Control. 

The committee will re-adjourn at 8:30 a.m. Friday for deliberation.

Related Topics: Haley ethics investigation and Nikki Haley

David H.

1:21 am on Friday, June 29, 2012

I watched these hearings for a lot of the day, and even though they didn't seem to prove the allegations with the documents and witnesses present, they did show how a junior insignificant State Representative was able to turn her elected office into an instant financial reward while giving lack luster results in return. She was unqualified to be hired at Lexington Medical at such a high salary (which might have been given to a trained professional fund raiser which she wasn't). Does anybody even remotely believe that she would have received any of these salaries if she weren't a State House Representative? And now as Governor she's already written a book (interesting to see who buys them, and how many copies), plus it seems she's willing to do anything to build towards her re-election funding. She definitely has learned how to make being an elected politician pay!

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Stephen Koivisto

7:31 am on Friday, June 29, 2012

One of the most agregious things a politician of any party can do is to use their office for personel gain at the expense of the constituants they are supposed to serve...I believe the word that best expresses this is corrupt. If she put half of the time trying to improve the state as she does trying to inprove her personel financial situation we would all be in better shape.

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Laura

10:41 am on Friday, June 29, 2012

I agree! She has a tongue of a snake. Knows how to twist words and balances the edge of the fence. She may not be found guilty of the charges. But watch out, the truth does come out. All the allegations of her sleeping around, using her position of power to gain financially. Spending all her time writing a book and endorsing canidates that would put her name out there nationally. What is she trying to do for South Carolina? Why hasn't she been seen on the White House steps pleading for the help this state and it's people need to get through this recession? Help for our seniors, schools, and the working poor. She needs to stop looking out for herself , large groups, politicians, and any one else she thinks will help her become rich and famous. But to do the job she promised the residents of South Carolina that she will do, to her best and the fullest capabilities. If she follows those guidelines, she will be a success in life, finances and will have a good name.

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Dr. John

9:40 pm on Tuesday, July 3, 2012

Laura,
Since she has been in office she has lowered the unemployment rate as much as 1.5% (from 10.4% when elected to 8.9% this past April) and has had decreases in state unemployment for 10 of the last 11 months. Why don't we give her credit for that?

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JoSCh

8:22 am on Wednesday, July 4, 2012

John, doesn't that really mirror the unemployment of the whole nation? Or are you saying that Nikki Haley is responsible for that too?

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Dr. John

9:19 am on Wednesday, July 4, 2012

josh,

I am saying that she is doing enough to improve the economy here in SC and, that is helping the overall national economy. Whereas states like California, Nevada and New York have higher unemployment rates now than when the depression started and are hurting the overall national economy. This is from the BLS

http://www.bls.gov/lau/

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JoSCh

10:15 am on Wednesday, July 4, 2012

California, NY, and Nevada have set a pretty high bar regarding their economies.

According to your link, which I agree is a factual and reliable link, New Yorks rate is less than SCs. California and Nevadas rates are falling much faster than SCs this year, and Californias unemployment slide started later than SC so it stands to reason that their recovery would start later.

What does any of it prove? Not much, states descend and recover at different rates, the country as a whole is recovering.

I will agree that she has brought jobs to SC, and those jobs are better than nothing. But at what cost to SC and South Carolinians? Median wage and education are still near the bottom of the nation. Are we waiting for the magnaimous corporations she brought here to bestow better wages on us?

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JoSCh

10:20 am on Wednesday, July 4, 2012

Yikes, I went right off the rails on that one. I was really just trying to get you to agree that the federal policies have SOMETHING to do with the countries recovery.

And to be clear this is because I have seen you elsewhere blame the president and his party and policies for the "depression" and the slow recovery.

JoSCh

11:23 am on Friday, June 29, 2012

Typical left winger, pulling the race and sex card.

What's that? She is? Huh.

Publicly funded elections and lobby reform NOW!

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Michael Kuhne

12:14 pm on Friday, June 29, 2012

Left wingers will pll any dirty trick they can think of. Her accuser claims to be a republican, but he is just another leftie, probably a plant. If you ask him if he is a republican, he will answer "yes" but I suggest he be given a lie detector test.

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JoSCh

12:23 pm on Friday, June 29, 2012

Aren't you worried that his clearly reptilian (Illuminati) status means that lie detectors won't work on him?

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reg

12:25 pm on Friday, June 29, 2012

Apparently, Michael, you haven't paid any attention to politics in this state for the past decade. In the state legislature, there is deep division within the GOP elected officials. And there's deep division in the Republican Parties of this tri-county area, too.

Barbara McGowin

7:14 pm on Friday, June 29, 2012

Rather than looking at what Gov. Haley did or didn't do when in the House, let's look at what she's done for our state as governor. Sunday's Post&Courier states "Haley Sells South Carolina." They are absolutely right. She, the SC Department of Commerce, and the SC House & Senate have sold SC out. Over a $$billion of SC state income tax was withheld from worker's paychecks and kept by corporations. All these jobs corporations are creating do not benefit, and in fact, place a burden on our state infrastructure, schools and public health & safety. No wonder all these corporations are moving to SC. We pay them to relocate and state income tax does not go to the state, it goes to the corporation. SC is number #1 in corporate welfare. We will not survive much longer with corporate welfare out of control, and our governor selling us out to corporations, and our state house and senate in a comfy relationship with corporations. Why do you think there is so much effort in keeping incumbents in and challengers off the ballot? Follow the money. Governor Haley may not be technically violating ethics, but she and the GOP are certainly selling us out and stealing our future. Why would we want jobs that don't add to our tax base & place a burden on our infrastructure, schools, and public health & safety? $233 million education bond in Berkeley County to build schools for kids who's parents' state income tax goes to corporations. How will bond be paid for? Property tax increase.

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Dr. John

9:30 pm on Tuesday, July 3, 2012

At least in South Carolina we get real jobs for our "corporate welfare" system. Unlike the non-existant "renewable energy" businesses that our current president invests in or in the Billions given to banks and GM and other companies that received almost a trillion dollars in stimulus money. Would that be considered "corporate welfare" or is that a title only given to Republican job creation programs? The truth of the matter is, our state had a chance to generate "real" jobs for unemployed people in lieu of taking state income tax payments. Would these workers agree that the state should never do with less tax money, even if it meant not having work? Your arguement is too static and does not take into account the 10's of thousands now receiving a pay check vs an unemployment check. Barbara, why is it that it is perfectly OK to expect citizens of this country and state to do with less, to have to live off unemployment checks or part time work in a bad economy but the precious government should never be cut or denied what it needs?

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JoSCh

8:29 am on Wednesday, July 4, 2012

The stimulus was signed by Bush.

Renewable energy not only exists but is a rapidly growing sector of the economy both here and worldwide.

The truth is the rulers of this state is would fire up the plantations again if they didn't think the US would stop them.

And you literally didn't answer ANY of Barbaras questions or respond to any of her comments. Well played Dr. John, way to stay the course. All experience hath shown that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed.

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Dr. John

9:09 am on Wednesday, July 4, 2012

Josh,
Bush signed Tarp with a democratic house and senate providing him the legislature, not stimulus. And you did answer my question. When republicans give tax breaks to companies it is "corporate welfare", but when liberal democrats just give money to corporations it is not corporate welfare but a way to grow the economy. And you are right, I did not answer her question, because I did not accept her premise. Instead I challenged her line of questioning on why government can never do with less while citizens are expected to. It would be the same as me asking you "How long have you been a racist?" If you do not accept the premise, then there is no need to answer the question.

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JoSCh

9:32 am on Wednesday, July 4, 2012

The problem is that while you do see the difference between funding a start up industry, for instance loans to renewable energy or private sector space programs, and corporate welfare in the form of subsidies to financially strong oil companies, you think that the latter is necessary for the economy and the former should be borne by the "free market".

You claim she said that government can't do with less while people must, but she never said that. So you're "not accepting her premise" based on a premise that you made up for her. Again, way to go.

You're right, Bush signed Tarp, Obama signed the stimulus. I get them confused because they're both called bailouts.

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