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Redsfaithful
07-15-2005, 08:14 PM
This is one of the dumber things I think I've ever seen a politician do. You can't really have a clearer conflict of interest than this:

http://www.cnn.com/2005/POLITICS/07/15/schwarzenegger.ap/index.html


SACRAMENTO, California (AP) -- Gov. Arnold Schwarzenegger said Friday that he will end his multimillion-dollar consulting deal with two fitness magazines that rely heavily on advertising for nutritional supplements.

The governor, who came under fire when critics said the deal represented a conflict of interest, said he will relinquish his title as executive editor of Muscle & Fitness and Flex magazines and forego any compensation.

"I don't want to be paid," Schwarzenegger said in a telephone interview with The Associated Press.

The governor was forced to defend his contract with the magazines after a securities disclosure filed this week showed he would be paid at least $1 million a year for five years to act as a consultant.

Under the contract, he would receive 1 percent of the magazines' ad revenue each year for five years, a sum that could total $5 million.

"The decision is to discontinue the relationship we have now," he said. "I will continue promoting body building and fighting obesity."

Last year, Schwarzenegger vetoed a bill that would have regulated the use of performance-enhancing substances in high school sports.

That led some lawmakers to accuse the governor of having a conflict of interest: acting on legislation that could hurt the nutritional supplements industry while at the same taking millions of dollars from magazines that rely on the industry for most of their profits.

Bill sponsor Sen. Jackie Speier, a Democrat, called on Schwarzenegger to cut off all ties with the magazines. "Whether it is an actual conflict or not, it certainly gives the appearance of being a conflict," Speier said.

Independent political observers agreed, saying the contract showed a lapse in judgment by the Republican governor.

"This is one of the most egregious apparent conflicts of interest that I have seen. This calls into question his judgment as to who he is working for, and it calls into question what he thinks he owes the public," said Larry Noble, executive director for the Center for Responsive Politics in Washington, D.C.

State law allows elected officials to keep outside jobs.

The payments, revealed Wednesday in filings with the U.S. Securities and Exchange Commission, are from American Media Operations, a subsidiary of the company that publishes magazines including Flex and Muscle & Fitness.

Margita Thompson, the governor's spokeswoman, said earlier that Schwarzenegger had disclosed all his financial holdings and added that the deal with the fitness magazines does not represent a conflict of interest.

"The governor did not direct sales or marketing activities of American Media and did not have personal contact with any advertisers to generate the advertising revenue," she said.

pedro
07-15-2005, 08:34 PM
I read about this. I don't think politicians should have endorsement contracts.

GAC
07-15-2005, 08:39 PM
I'd like to know why they needed a law to regulate nutrional supplements in high school. We aren't talking steroids here. There are alot of nutrional supplements that are very beneficial. Arnold has been doing it for decades since he was a body builder and fitness guru. He tours the country promoting/setting up fitness clinics for youth. So I think he knows more about it then some politician.

As far as the conflict of interest thing - I think it's a stretch and simply partisan politics due to Arnold's struggles with Dems in California. Like there aren't any politicians currently doing the same with causes they support? Alot of hypocrisy there.

But I'm glad Arnold decided to end the deal. What will they find next to complain about on him? ;)

Redsfaithful
07-15-2005, 08:41 PM
Like there aren't any politicians currently doing the same with causes they support?

Name one that takes millions of dollars to endorse the cause when they have bills up for vote on the same issue. There must be tons since you think the hypocricy is so common.

GAC
07-15-2005, 08:49 PM
He has been taking endorsements for nutrional products for decades RF. Why? Because as a fitness expert he believes in them. Like he really needs the money from this deal? I doubt it.

And it doesn't have to be "endorsement" monies for a politician to be showing hyposcrisy. Special interest, lobbyists, PAC money, campaign contributions, serve the same purpose. Politicans find ways/loop holes to get around the law, and they are doing it all the time.

But Arnold ended the deal, so what will be next?

Redsfaithful
07-15-2005, 09:00 PM
He has been taking endorsements for nutrional products for decades RF. Why? Because as a fitness expert he believes in them.

And you don't think he should have stopped when he became governor?

pedro
07-15-2005, 09:04 PM
As far as the conflict of interest thing - I think it's a stretch and simply partisan politics due to Arnold's struggles with Dems in California. Like there aren't any politicians currently doing the same with causes they support? Alot of hypocrisy there.



Oh please. That's a joke.

He's governor now. He shouldn't be taking endorsement money. It's too easy for it to be construed as a conflict of interest.

I don't think Arnold is guilty of anything but bad judgement, but to presume 1) that he should be able to take endorsement money while in office and 2) that anyone who thinks he shouldn't is doing so out of partisan rancor is beyond comical.

Really GAC, you should listen to yourself sometimes, it's absolutely hysterical.

traderumor
07-15-2005, 09:17 PM
"This is one of the most egregious apparent conflicts of interest that I have seen. This calls into question his judgment as to who he is working for, and it calls into question what he thinks he owes the public," said Larry Noble, executive director for the Center for Responsive Politics in Washington, D.C.

But you won't catch anyone jumping to conclusions, here, no siree. :rolleyes:

Dom Heffner
07-15-2005, 10:10 PM
As far as the conflict of interest thing - I think it's a stretch and simply partisan politics due to Arnold's struggles with Dems in California.

In other news, the sky is blue and the grass is green.:)

GAC
07-16-2005, 09:29 AM
Your intent RF is to imply that this endorsement may have somehow influenced his veto of that bill. If Arnold had recently changed his position since governor as to the regulation of nutritional supplements then I would be inclined to say that there was a conflict of interest. But he has always consistently been against such regulation. His position hasn't changed. He didn't alter it because of the endorsement.

Schwarzenegger said he would relinquish his title as executive editor of Muscle & Fitness and Flex magazines and forgo any compensation- "I don't want there to be any question or doubt that the people have my full devotion," he said.

But I'm sure the Dems in CA will try to find something else to be critical of him for. :lol: