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State probe, federal prosecution will shine light on Harrisburg

Since former state Rep. Michael Veon made the customary transition from defeated state lawmaker to Harrisburg lobbyist, his name has mostly been out of the news. That changed last week with word that state investigators had executed a search warrant on the Democratic Office of Legislative Research as part of a probe into Veon, who served as House Democratic whip before his defeat in 2006.

His defeat was seen by many as at least partially linked to his role as a chief architect of the ill-fated, middle-of-the-night pay-raise vote of 2005. Veon, who was unapologetic about his role in pushing for the pay raise, also was the only House member to vote against the measure to repeal the raise.

A state grand jury is looking at the actions of Veon and a handful of Democratic activists regarding $1.9 million in bonuses paid to top legislative staffers. The state attorney general also is looking into a nonprofit agency created by Veon and state Sen. Gerald LaValle, D-Rochester.

The nonprofit, known as BIG (Beaver Initiative for Growth), was created in 1992 by Veon and LaValle to encourage economic growth in the Beaver area, according to statements in various news reports. Despite a very modest beginning, the organization rose to become the recipient of $10.6 million in state grants from 1999 to 2006.

Over the past year or so, questions have been raised about what BIG was doing with all of that taxpayer money. BIGofficials have said that most money goes to salaries, office expenses and consultants.

As part of the attorney general's investigation, voters and taxpayers deserve to know exactly how the money was spent. It also will be important to understand if BIG was awarded grants well above those received by other, similar community organizations.

What concerned many observers was that Veon and LaValle not only created the agency, but for years served as the sole board members. And as powerful state lawmakers, they had major influence in directing state taxpayer dollars to BIG, where they then would decide how it was spent.

The issue of a nonprofit agency with close ties to a powerful lawmaker is the subject of another probe on the other side of the state, where federal prosecutors have accused powerful state Sen. Vincent Fumo, D-Philadelphia, of misusing more than $1 million in state funds and another $1 million from a nonprofit agency he allegedly controlled. In Fumo's case, the South Philadelphia-based Citizens Alliance for Better Neighborhoods received millions of dollars in state taxpayer funds and was run by a former Fumo staffer.

Federal investigators have charged Fumo with using state taxpayer money for his personal and political benefit.

The state investigation that triggered last week's removal of boxes believed to contain House Democratic campaign records is looking at a possible link between campaign work and a huge spike in bonuses paid to staffers during an election year. The $1.9 million paid to House Democratic staffers at the end of 2006 was four times the amount paid out in 2005, which was a non-election year. It is against the law for legislative employees to be used for campaign work.

It is noteworthy that House Majority Leader H. William DeWeese, D-Greene, urged bonus recipients in a letter to not talk about the bonuses to anyone.

A Pittsburgh newspaper's investigation revealed that 80 of the biggest 100 bonuses went to people who either donated money to or volunteered for campaign work for Veon or DeWeese.

The state probe into the controversial legislative bonuses and the operations of Veon's favored nonprofit organization should provide voters with an education about how things have worked — and might still be working — with certain powerful lawmakers in Harrisburg. And the federal prosecution of Fumo also could reveal much about how a powerful state lawmaker conducts business with various state officials, staffers and a nonprofit to which he has directed millions of dollars.

The information available in both cases already suggests self-serving lawmakers who have abused their power and betrayed the public trust.

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