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Interestingly, this news did not come from Cunningham or LVEDC. He was perfectly content to keep us in the dark. We only know because of a required disclosure from the Chinese company.
It's sad that disclosures from private foreign companies provide more transparency than a publicly funded agency.
Cunningham and LVED' lawyer deny there's any conflict of interest
I disagree. I like Don and believe he has done an excellent job at LVEDC. But quite obviously, his role there gives him all kinds of inside information about the community that is invaluable in the private sector. He can clue them in on major infrastructure projects, grant opportunities and taxing trends. It's totally improper for him to use his inside knowledge to benefit a Chinese company. But that's what he is being tempted to do.
That's the way things happen in China. It's not supposed to be the way they happen here, except for Allentown. The LVEDC Board should stop this.
Updated 11/23/16, 10:25 am: When I published this story, I included a link to The Morning Call story in which it first appeared. As another blogger who pays undue attention to who gets credit for what has observed, I did not break this story. I published this story because this is not a grey area of the law, as the article suggests. You either break the Ethics Act or you don't. What Cunningham did is completely legal. It's also completely wrong.
44 comments:
Doesn`t surprise me about Don. He can be slimy. It is absolutely a conflict and he should know better. The fact that he hid it is even worse.I wonder where his war chest went?
Thank you Bernie for this entry. You show your commitment to getting information out there the local media would never touch. Sadly, Mr. Cunningham is about the money. between his job and his connections to Chamber funds he has done quit well for himself. He has used the public sector for both enrichment an connections to the semi-private world. In political office some folks have said that those around him did well as campaign funds moved from one place to another for his benefit.
A while back during the campaigns you had a reader comment, it is not about political parties but insiders and the rest. Don Cunningham is the ultimate insider.
The problem with many insiders is they are often undone by greed. This guy has done very well for himself by moving around and following the money and opportunities of the right connections. This China thing is just flat out wrong.
You will see your Chamber pals and other insiders circle the wagons on this one. I applaud your courage on this topic. Frankly you have only scrapped the surface. Prepare to be charmed out of your pants.
By the way isn't luring the company here part of his six figure job he is already paid for? The extra side deal is totally inappropriate and the LVEDC Board should act accordingly. As should Northampton and Lehigh Counties.
I am just wondering how much those 75 Full Time manufacturing jobs will pay? Hopefully, it is a lot more than a $30k annually.
No wonder LVEDC highly publicized this company. Couldn't figure out what the big deal was. And I believe LVEDC gave them an award. Wonder if staff spent more time assisting them with financing or grant applications than others.
He has a major say in the availability of state funded loan programs and 30K---22% of his lvedc salary--- will buy his prioritization. If he wants to be a consultant, he can start his own company. Ask Tom Shaughnessey if he every took fees from companies seeking public sector funds.. Survey association of economic dev organization and they would say this is highly unethical, unusual and a sign he needs his own company.
Three questions:
1) Is Cunningham the first LVEDC CEO to have this type of arrangement?
2) Are there any employees of LVEDC who have a similar arrangement?
3) Would either of the counties, which fund LVEDC, allow their own employees to have such an arrangement?
no morals, but then what do you expect from an inbred dem
This is a very disappointing turn of events at LVEDC. This mitigates some of the good work this entity has done in the Lehigh Valley. Cunningham's grab of the money makes you think what else has he done with other money and other gifts bestowed upon him. The board at LVEDC should investigate this and take appropriate action to prevent this from happening once again and deal with the "little Donald" with the harshest actions it could take.
Very poor judgement on his and LVEDC's part. LVEDC should have never allowed this to occur.
They aren't going to pay him $30,000 to sit there especially as the only non-Chinese board member.
In this political climate, it is an especially tone deaf move.
Cunningham is a phoney. Always has been.
While this may not be illegal, I, as a taxpayer who helps fund LVEDC (via Lehigh and Northampton counties, The WIB, etc.), find this unethical.
Is this a kick back for bringing the company to our region? Did LVEDC assist in underwriting any financing for this company to open here? any grant assistance?
7:09, I do not know the answer to Qs 1 or 2, but know the answer to 3 is NO. In fact, it would be criminal.
Bernie,
In the first place hasn't the cunnilingwist that speaketh with forked tongue made this appointment to this entity for himself? Boy the conflicts of interests and political pandering covers both public and private sectors in this sell off of every public asset within the little cesspool!
REpublican redd
no party affiliation in the none human nation unto itself
Those who have seen behind the curtain and really know the Don of the Valley know he is neither good nor evil. He is a sly operator who will do what ever he must to come out ahead. He is an opportunist and has played the system in a way to do quite well for himself.
This news is not surprising to those who have been around. What is surprising is that Bernie who has fawned on him in the past brought this out. So in that sense Kudos to Bernie and his ability to put things out there regardless of the individual.
One day you may get the inside scoop on his pal Tony 'big T' Iannelli.
Courageous reporting Bernie.
Speaking of Tony Iannelli, since the election he has had two pieces in the Morning Call praising the election of Donald Trump.If Mr. Iannelli thinks that Trump's policies are so great then perhaps Mr.Iannelli should start wearing a brown uniform with Republican arm bands. Ill bet his meetings at the Chamber of Commerce look like a Nazi party rally.
While off topic, the slur on Tony Ianelli and brown shirts is really offensive and utterly inappropriate. I supported HRC in 08 and recently, but writing in hope that Trump's economic policies may help the American economy is not evidence of crypto-nazism. U should be ashamed of yourself. And no Chamber meetings come close to such blasphemy. You --7:41pm--are why conservatives think liberals and progressives are ignorant. Tony is a good man.
Interesting to review Cunningham`s expense reports; he has spent thousands on so called campaign credit cards, campaign cell phones,a campaign car battery,a car registration, donated $500 to Dan McNeal,$1000 to Pat Browne and other questionable expenses. And all during his tenure at LVEDC. Amazing he has gotten away with such unethical behavior.
This is completely immoral. Because our laws are written so poorly, he will get away with this. I have to look into this. Can't believe Don would do this.
"You --7:41pm--are why conservatives think liberals and progressives are ignorant. Tony is a good man."
He does not have a mean bone in his body. But 7:41 obviously does.
The Morning Call story took great pains to say the LVEDC was a 'private' organization. Really? It is funded by the taxpayers of Lehigh and Northampton Counties. Demo Don is taking a page from Hillary's pay-to-play mode of governing. Give away the store for some reward down the road. He should resign this board seat.
And yes, Tony I. is a good guy, but his right-hand-gal in Bethlehem is a recipient of this Communist Chinese largess.
If memory serves me correctly, LVEDC had a written policy of not allowing employees to accept gifts of any kind. They also had a policy that stated if you sat on a board, you must turn over your stipend to LVEDC unless you met during off hours.
I am so glad to be "beneath the paygrade" of this immoral leeches who enrich themselves on the public dime (the taxes they greedily take in the name of fair share).
Thank you Bernie for continuing to expose these people. It is you (and not those elected claiming to pull for the little guy) who provides hope.
I await your further expose on the band of thieves, sexual predators, and inept actors who play the role of elected officials.
The silly "Nazi" comment regarding Iannelli was probably some Chamber type just gaslighting. Fact is Iannelli is just a spokesman for the Chamber. Since the Chamber is really just an arm of the Republican Party it is no surprise he would write glowing accounts of Trump. Like the unions push Dems', the Chambers push Republicans, it s in their blood.
Tony is a good spokesman and preaches the brand any way he can as well as serving as the highest paid court jester for the local business elite.
His pal Donnie is what he is. If you really want some fun poke into his old campaign funds. The fascinating connections with folks like McNeil and some others will illuminate the way money moves around these politico types.
There is nothing wrong with "donnie" exercsing his first ammendment right and financially supporting candidates he supports. Only LVEDC's board can curtail his rights by creating a no-contribute policy. However, the issue BO raises is far more serious--should the decider in chief of public funded loan programs and grants be paid a "consulting fee" for doing his job?He clearly should not accept a 22% raise--30,000! He should resign and start a consulting business. Then charge a way and contribute to whomever he wants. Of course he wont. He picks most of the executive committee of LVEDC
Bernie, I know you like Don so I appreciate your honest reporting here. I know you will face some pressure as a result. This really is wrong and is the height of hubris and greed. Don really has come to see himself as better than and above the law.
Don has been excellent at LVEDC. I consider the morally wrong, but not illegal.
So if he politely and privately suggests (because no company is looking to spend more than is necessary to achieve its goal so it would be Don's initiative-- he or his wife gets a board seat or consulting gig for a fee and that would enhance the company's application, that would simply be immoral? because it is a quasi private organization?
You are creating a hypothetical that does not exist. Let's stick to what we know.
Illegal or Immoral, it is wrong and should not happen. Don is paid a very good salary from this quasi public organization {I understand this year around $180,000} so it is not like he is not fairly compensated. Is his role at LVEDC part time now? I saw part of Don's justification was that there were no other companies in Lehigh Valley doing this type of work.
Not really a good answer, is part of his job as chief business recruiter for the Valley but now also private board member now to ensure that we keep it that way?
If Don has free time outside of doing the job which he is paid so well for and wants to serve on a board there are plenty of not for profit boards that could use his help and not present any ethical issues or conflicts. Also he could serve on an association board of ED Corps. I think when you take these types of jobs there is an assumption that you can not serve two masters and close off these other opportunities. Can't have it both ways.
I think the way this got out really stinks. Don got his hand caught in the cookie jar and now he is trying to explain it. No transparency. This is the type of thing the old LVEDC used to do back in the day. Watch them circle the wagons! Greed and Hubris, two traits Don knows all to well.
3:55, in fairness, Don does serve on a few non-profits.
No one in the old LVEDC--whatever that is---took outside fees while being employed full-time. Ask John Kingsley probably there longer than anyone. Ask Tom Shaughnessey. Ask Phil Mitman. They would have been fired on the spot.
Follow the money. Its always about the money. At the end of the day, the hubris of feeling entailed to the money is most of these guys undoing.
A few days ago someone made a comment that it is not about the politics of anyone but the insider outsider dynamic of the Lehigh Valley. This is s prime example. A flow of money form LVEDC, the Chamber and private sources.
This has nothing to do with insider/outsider. It has everything to do with Don Cunnighman's judgement. Insiders like Kingsley, Shaughnessey and Mitman didnt take outside private fees while taking a quasi-public funded private/public partnership salary. Cunningham should resign. And start a company so he can collect as many fees and paid boards seats as he wants to. Otherwise he should have contributed to Josh Shapiro. Because he becomes an ez target for an investigation by the Attorney General.
Cunningham still has (a very limited amount of) time to correct this and do the right thing.
If not, the LVEDC board has to step in and remove him. It's that wrong, and hopefully with reflection he'll see that before it gets to that point.
Beyond this instance, the LVEDC board needs to step in and make sure that this situation could never happen again with any LVEDC employee. It should include family members of employees as well.
Thinking about it, could some of the silence of the LVEDC board be because some of them have been similarly rewarded with paid positions on the boards of companies that LVEDC has represented?
Having a hard time telling if this is an isolated incident or the tip of an iceberg. When something like this comes up at the top of an organization with little or no resistance from board members, it makes you wonder.
In the article Lesavoy says "we thought" which to me implies the board knew about this and gave the ok. Question is were there any of the county representatives present for that discussion?
If both counties are ok with this paid board position, would it be ok for Charles Everett to take a paid position with an airline that serves LVIA? Becky Bradley taking a paid position with a big developer? Tony Ianelli taking a paid position with a health plan? When is it enough of a conflict of interest?
This again highlights the need for the counties to require that any organization that receives county funding is required to post all of their minutes, their budgets, audits and their disclosure statements of their directors and board members who make decisions on their website. Nobody seems to know what 75% of these organizations and their boards are doing.
9:11 - I don't think it's wise to put all of the regional organizations in the same pot, some are much more "public" about their inner workings, what they actually do, etc. than others. What Don says pretty much goes in regard to his board, which is concerning, regardless of how good a job he is or isn't doing.
Don picks the executive board except for the elected officials. If one of them wants to uphold tradition that more-than-50%-publicly funded organizations should prohibit partially tax payer funded employees from taking fees from their customers----they can do it. Or ask him to resign. Lesavoy and others will not as he picked them.
This "Board" is not much different then a board fro CACLV. The Executive Directors all end up doing the outreach and the Board takes on the personality of the Director. You think anyone who opposes these Director's stays on the Boards? Not likely.
Don the eternal opportunist should quick move to Allentown run for Mayor and hold up there until he can re-invent himself.
Pigs get fat. Hogs get slaugtered.
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