Saturday, January 14, 2012

MedHab: Mayor New's Substantial Conflict of Interest

San Angelo Mayor Alvin New filed this affidavit in May 2011 indicating his substantial conflict of interest regarding MedHab LLC. At the time of this filing the Mayor was prohibited from any ownership position in a company doing business with the city.

Affidavit Mayor New; Medhab May 2011

Mayor New filed a second affidavit regarding MedHab LLC in November 2011 as the city neared a final deal with MedHab. City leaders presented that deal on January 3, 2012.

Affidavit Mayor New; MEDHAB, LLC 12-159

City Council changed their local conflict of interest policy to keep Mayor New in compliance. Leaders did not reveal the contents of New's affidavits or his board position and board compensation arrangements, which often involve equity awards.

Council approved a $3.6 million incentive package for MedHab LLC, which the company will accept, at least that was staff's promise.  That's a nice $2.95 million nondebt, nonequity cash injection.

There are many if's to solve for MedHab to become a viable enterprise.  Should that come to pass, my guess is Alvin New won't be Mayor when MedHab's founders and early investors cash in. How much will taxpayer cash aid MedHab investors, including San Angelo's Mayor New?  It remains to be seen.

Update 1-19-12:  Scripps Howard papers in West Texas stated "New and Brooks do not have substantial interest in the company."  Yet New filed two affidavits declaring his substantial conflict of interest in MedHab.  One reporter got taken.

Update 4-17-12:  Did Alvin New invest once MedHab's Steprite patent was approved?  

1 comment:

Anonymous said...

I've only lived here a few years, but this seems to be how the Powers That Be operate here in San Angelo and in West Texas in general.
I did see a KSAN story on this last week, but they didn't stress the mayor-has-a-conflict-of-interest portion of the story. Instead they focused on the will-it-bring-jobs question. In my opinion, the answer is "not enough for what it's going to cost the city."