Chevron Accuses State Comptroller DiNapoli of Ethics Violations
(November 20, 2012) — One of the world’s biggest oil companies is accusing New York State Comptroller Thomas DiNapoli of using his political position to urge donations in connection with a massive international lawsuit. Yet DiNapoli has countered by denying the allegation, calling it an attempt of intimidation.
The complaint, filed by Chevron Corp. before the New York State Joint Commission on Public Ethics, accuses DiNapoli, who oversees the roughly $150 billion New York State Common Retirement Fund, of trading official actions for campaign donations in connection with a large international lawsuit. It seeks an investigation of DiNapoli as well as current and past members of his staff for multiple violations of New York Public Officers Law.
Chevron’s complaint relates to ongoing litigation in Ecuador and demonstrates how DiNapoli, while overseeing the New York State Common Retirement Fund that owns more than $800 million of Chevron stock according to SEC filings, allegedly breached his ethical and fiduciary duties. Under New York Public Officers Law, public officials are prohibited from having “any interest, financial or otherwise…which is in substantial conflict with the proper discharge of his duties in the public interest.” A statement by Chevron explains that Comptroller DiNapoli used his office to support the Ecuadorian plaintiffs’ lawyers’ scheme to pressure the oil giant into settling the lawsuit in exchange for benefits received from the plaintiffs’ representatives.
“The Comptroller’s continued advocacy has come despite repeated findings by US federal courts that the Ecuador litigation is tainted by fraud,” said Hewitt Pate, Chevron vice president and general counsel, in a statement. “Mr. DiNapoli’s actions serve only his political patrons, not the citizens of the State of New York or the beneficiaries of the Common Retirement Fund. This type of quid pro quo behavior is an apparent breach of ethical and legal responsibilities that warrants investigation.”
DiNapoli has denied wrongdoing. “This is a baseless attempt by big oil to intimidate me and it won’t work. The allegations are without merit,” he said in a statement.
According to the comptroller, since 2004, the New York State Common Retirement Fund, along with dozens of leading investors worldwide, has called on Chevron to settle its nearly two-decade-long legal battle for polluting the Amazon. “This effort is about protecting shareholder value and fulfilling my fiduciary responsibility to the New York State Common Retirement Fund,” DiNapoli said. He added: “Instead of owning up to its corporate responsibility, time and again Chevron has denied its responsibility, distorted the facts and ignored the ruling of a court of law.”
Comptroller DiNapoli took office in 2007 after his predecessor, Alan Hevesi, departed under allegations of misconduct, including a pay-for-play scandal that resulted in a prison sentence.