McHale Has Fully Disclosed Business Ties to Northampton County

Last week, Northampton County Council President Ann McHale was unhappy when Exec John Stoffa sought council's approval of five-year property and casualty insurance contract. Stoffa as a little late. He had already signed the contract. In fact, the county has already paid the first year's premium.

From where I was sitting, in the cheap seats, I could not hear some of the things Stoffa said when he finally rose to address council. He's a quiet man. But Stoffa did apparently accuse McHale of sour grapes because the county cancelled an insurance policy or two with T.J. McHale & company, where she is employed.

Here's what an anonymous commenter has added. "McHale and her husband had insurance policies with the county from the Reibman Administration. Apparently two of the policies were cancelled or expired and she was not too happy. Stoffa did not renew them. Maybe this is all that this is about. How can she do business with the county and serve on County Council? Would she exercise this kind of judgement if she were county Executive? Bernie, do you have any information about this?"

I spent some time today gathering that information.

Does McHale Do Business With the County?

T.J. McHale & Co. is a general insurance company, located in Bethlehem since 1973. McHale is currently Treasurer. Her husband, Tom, is President and CEO.

Last year, T.J. McHale & Company was paid $6,346 for two liability policies with Northampton County. This year, the county has only paid $458. It has cancelled at least one policy with a $5,888 premium. Is this why McHale is upset?

Not according to her. As she told me yesterday, most of the commission on those premiums is paid to the agent who first negotiated those insurance contracts. That person is T.J. Rooney, who just happens to chair the Pennsylvania Democratic Party. He wrote those policies before McHale was even a member of council.

I wonder if he's pissed. T.J. does share some of that commission with her company, but considering that a property insurance commission averages 5.5 per cent, we're talking about very little money.

How can McHale Do Business With the County and Serve on County Council?

That's the real question. Is it a conflict of interest for McHale, a sitting council member, to do business with the county at all? The county's Home Rule Charter has a procedure to govern that situation. Elected official like McHale, who does have an interest in T.J. McHale & Company, is required to disclose any business relationship between her company and the county. If it amounts to a conflict, council can bar her from debating or voting on any matter involving her company.

Has McHale disclosed this possible conflict? As a matter of fact, she informs council in a letter once every year. She does more than that. She flatly declares she'll abstain from any vote involving her husband's company.

"Prior to my becoming a member of Northampton County Council, T.J. McHale & Co., Inc. began providing a limited amount of insurance coverage to Northampton County. I do not feel this constitutes a conflict of interest as outlined in the Northampton County Home Rule Charter Section 810 since I do not receive any profits directly from the contract that provides coverage for Northampton County. I have not, nor will I, participate in the debate, or vote on matters relating to the County's acquisition or retention of insurance policies and/or coverage in which I have either a direct or indirect financial interest."

Now if McHale hid the existence of this relationship, or voted on her insurance company, I'd agree she is acting unethically. But her own records with council reveal that she has not only disclosed that connection, but has also pledged to recuse herself from any votes concerning her company. I am often critical of Ann McHale, but she has handled this with integrity.