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The Keith Hall Scandal Still Lives On

July 1st, 2009 · No Comments

Who wants to bet Keith Hall and a couple other State House members are sweating buckets?

Last week we shared a story about Keith Hall being in ethical hot water over a scandalous piece of legislation helping two non-resident members of an eastern Kentucky water board.

Hall and House Leadership staff then issued a statement of non-denial denial that dug a hole even further. Like we said at the time, Hall is clearly up the unethical taint creek if he couldn’t come clean about who sponsored the legislation and 100% disavow. Of course, he’s unable to do any such thing.

Later in the week, House Speaker Greg Stumbo indicated that Hall was responsible for the legislation. And all the facts seem to back Stumbo up.

Today the Appalachian News-Express’ Russ Cassady has another story on this corrupt instance of legislative secrecy. Unfortunately for Hall, he can’t shake the taint. Take a look at some excerpts:

W. Keith Hall’s continued denial that he sponsored the legislation, signed into law last week, came just a day after a report published in the Saturday edition of the Louisville Courier-Journal, in which House Speaker Greg Stumbo was quoted as saying Hall was, “the guy that talked to me about it.”

-SNIP-

While saying he did not sponsor the language, which would allow Mountain Water District Chairperson Toni Akers and board member Mike Litafik to continue serving because they are customers of Mountain Water District, Hall said Stumbo’s statement does not indicate Hall sponsored the change.

-SNIP-

“I can tell you unequivocally, 100 percent, that I did not put it in there. I did not request it. It was not my language,” Hall said. “But I was for it. I am for that legislation.”

-SNIP-

Hall said he takes issue with what we calls an insinuation, and denied that contract work with his company B.M.M. Inc., his son Jordan’s employment by UMG and business connections he has with Litafik represent a conflict of interest.

According to documents maintained in the Kentucky Secretary of State’s office, Hall is listed as a president of Lucky Leaf Partners, which also has Litafik’s wife, Patricia, listed as a president.

Hall is also listed as one of several presidents of Harvest Flame Partners, Goose Mill Partners and Calhoun Partners, companies which list Mike Litafik as a president.

All the companies also share an Upper Johns Creek Road address which Mike Litafik lists as his business address.

-SNIP-

Hall said he is a partner, not a president of the companies.

“I’m not,” he said. “That’s a misstatement.”

And Hall thinks what he’s doing – or merely voting for it – is a-okay.

But get a load of the rest of this Hall mess. He totally raises new questions and potentially opens himself up to some serious speculation.

Trust us when we say that you will not want to miss the rest of this juicy, hot mess after the jump…

“You’ve really got to insinuate, strain at a gnat and swallow a camel, to try to put a connection there that there’s been a monetary pay-off or there’s insider information,” he said.

-SNIP-

Despite the legislation, Andrew Melnykovych, spokesman for the Kentucky Public Service Commission, which was instituted proceedings which could remove Litafick and Akers from the Mountain Water board, said this week the proceedings will continue as planned, on July 9 in Frankfort.

Yeah. He said it.

So. If Hall isn’t responsible but knows who is, why isn’t he naming them? If this really is an instance of Greg Stumbo (as Hall is allegedly telling other legislators) getting back at Keith for voting against the gambling bill, why isn’t he saying so? It’s pretty clear that he can’t name anyone else and that he can’t place the blame on Stumbo. Because the facts all point to Keith Hall.

Unfortunately for Hall, his constituents see right through what he’s doing. The editorial board at the Appalachian News-Express issued an editorial all about the legislative secrecy this past weekend. Here’s a portion of it:

Stop us if this sounds absurd.

It is now possible for a resident of, say, Florida, who owns a home in Pike County and receives a water bill, to be a member of the Mountain Water District’s board of directors.

What’s even more absurd is that this possibility, though extreme, is now viable under state law, and those responsible for that law refuse to take responsibility.

-SNIP-

We want all water board members from around the state drinking the water they are responsible for producing and paying the same bills every other customer pays. Then they will truly be representing their fellow customers.

Aside from the absurd nature of the law, the mystery of how it came into being is even more offensive.

-SNIP-

The News-Express and other newspapers asked members of “House leadership” who it was that requested the provision be added to the budget bill, but all refused to identify the person behind it.

“Apparently it’s an issue in other areas of the state,” [Brian] Wilkerson said.

And apparently our state lawmakers think their constituents are stupid.

How else could they believe such a ridiculous statement will suffice as an answer to a legitimate question?

Andrew Melnykovych, public information officer for the Public Service Commission, said the agency has dealt with residency issues before, but it’s not a problem faced frequently.

He went on to say that the question of service eligibility of water district customers versus residents is not an issue the board has ever faced or discussed.

So not only are our state legislators hiding the person who pushed for this measure, they are lying about the reasons for the change.

-SNIP-

And since all our local legislators have denied an responsibility in the matter, it follows that one or more of them are also lying.

What’s more, if the measure was placed in the legislation for the good of the people, why would the parties behind it be afraid to take responsibility?

-SNIP-

The fact that the source of this amendment refuses to come forward and is hiding behind the legislative process makes us believe this measure wasn’t introduced for the good of many, but for the good of a few.

That’s reprehensible, unethical and shameful.

We couldn’t agree more. And we think it’s time for an Ethics investigation. So, who wants to call for it? Anyone? Time for someone to grow a pair and step up.

But no worries here, ladies. Even if Ethics does nothing and Hall refuses to come clean with names of those truly responsible, legislators and LRC staff will eventually tell us the truth. So it’s either now or later.

Happy Wednesday, corrupt Kentucky!

Tags: Corruption · Eastern Kentucky · Gambling · Greg Stumbo · Investigation · Kentucky Business

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