August 24, 2009

This website is an effort to allow Alaskans to get the facts about how corrupt and what a bad example Alaska Permanent Fund Board really is. You as an Alaskan are supposed to own Alaska Permanent Fund. Your APF Dividend is not a gift but an entitlement of residency. Alaska Permanent Fund Board (APFB) is appointed by the Governor but not confirmed by Alaska Legislature so that is no system of checks and balances which is essential for any level of accountability. Checks and balances are what make United States and can make our great State of Alaska strong. Who should be the "watch dog" of APFB? Currently, no authority in Alaska is responsible for making certain APFB practices are based on the public interest instead of self-interest. Alaskans might think Alaska Permanent Fund (APF) has made money but that is just propaganda and deal-making among financial institutions. How much would APF be worth if it were cashed out? That is what is important. Alaskans as well as Americans should realize that Alaska Permanent Fund Board of Trustees control such a large amount of money currently as to influence the Stock Market on Wall Street, the Federal Reserve Board, and major business institutions in United States, not to mention every bank in Alaska and Alaska financial management companies. Alaska media which is over 95% owned in many states of the Lower 48 have been asked for many years to investigate APFB and have not.

Alaska Statue 37.13

Please read Alaska Statute 37.13 by way of background. A.S. 37.13.050 "Composition and qualification of board of trustees" must be updated by Alaska Legislature. Currently, it reads "(a) the Board of Trustees of the Alaska Permanent Fund Corporation consists of six members appointed by the governor." Current A.S. 37.13.050 continues:"Two of the members must be heads of principal departments of state government, one of whom shall be the commissioner of revenue." Why is appointed Alaska Attorney General allowed to be a member APFB when it is this office that should be the "watchdog?" Sec, 37.13.060 "Term of office" states "four years, and they may be reappointed." That would be a total of eight years. Mr. Eric Wohlforth was a member and Chair, APFB, 1994-2006 or 12 years. There really are not "terms of office."

Mr. Wohlforth commented on February 25, 1999 at Arco Alaska to a room full of Alaskan economists: "Dr. Obermeyer, I entirely agree that the Board should be appointed by the Governor, confirmed by the Legislature, and serve for 10 year terms. . . Not be subject to firing as will as they currently are so I completely agree with your position and I think it is unfortunate that we have a system where each Administration throws all the old Trustees out and the new Trustees sit there with the notion: 'My God, I am responsible for $25 Billion bucks' and the people of the State suffer for six or eight months while they achieve a learning curve so I agree with you 100 Percent." Governor Frank Murkowski replaced the other five members leaving only Mr. Wohlforth on APFB in 2002. Former Governor Tony Knowles (1994-2002) replaced all six members shortly after he became Governor in December, 1994. Outgoing Governor Frank Murkowski replaced Mr. Wohlforth was replaced on November 15, 2006 by Mr. William G. Moran, Jr. When Sarah Palin was sworn in December 5, 2006, she could have replaced Mr. Moran but he remains a member and probable incoming Chair, APFB.

"Individual Investment Transaction Disclosures (IITDs)"

A.S. 37.13.110 "Conflicts of interest" refers to A.S. 39.50.010 "Findings and purpose. ". . .to discourage public officials from acting upon a private or business interest in performance of a public duty." This website attempts to show that the practices of APFB for many years have been to make private investments in the Stock Market on Wall Street to enrich their private banks accounts based on the most solvent amount of money in the U.S. Stockbrokers are hired by APFB to advise them about the most advantageous stock investments so that APFB can "pick their brains" and make "Individual Investment Transaction Disclosures" that anywhere else in the U.S. would be labeled "Insider Trading." APFB members currently have a right under State of Alaska law to make investments in the Stock Market per A.S. 37.13.110(b). Why are APFB allowed to do this?

We Alaskans have allowed APFB to get away with these corrupt practices. We must establish a system of checks and balances in our Alaska State Government. We live in the only state in U.S. that does not have a law school or any elected attorney. There are only buzzwords like Attorney General, Prosecuting Attorney, District Attorney, Administrative Law Judge, etc. Those in power want to make certain that Alaskans do not figure out that APFB should not have a right to enrich their private bank accounts "off" our Alaska Permanent Fund. If Alaska Legislature enacts legislation to confirm APFB, these issues will be discussed publicly during the confirmation process. Confirmation would create respect for public office for the first time in Alaska. Alaska Legislature should create accountability for A.S. 37.13.050, A.S. 37.13.110(b), and A.S. 37.13.060 all of which are a mockery currently. The issues of terms of office, "Individual Investment Transaction Disclosures," whether APFB should include the currently appointed Alaska Attorney General, etc. will be addressed publicly if confirmation were to take place.

APFB currently does not practice American law. It is impossible to get a transcript of the minutes of APFB Meetings. Minutes create a record of accountability. When the meetings are held, packets are mailed to anyone who would like to get one but they are not paginated and are clamped together as separate pages like "gobbly-gook." At most APFB Meetings Outside experts are represented and local citizens are not hired by the Board. The primary example is Mr. Michael O'Leary, Executive Vice-President, Callan Associates, Denver, Colorado who comes to Alaska several times a month to advise municipalities, Anchorage Police & Fire Retirement Board, and other groups which all "feed off" Alaska Permanent Fund. What a joke! Unless APFB investments in Stock Market can be connected to the same investment the staff of Alaska Permanent Fund are making, wrongdoing cannot be proven. Why does APFB not hire local Alaskans for investment advice? The answer is Alaskans would quickly figure out how corrupt and un-American the practices of APFB are.

Alaska Public Offices Commission

Currently, about half of the pages of this website are Alaska Public Offices Commission (APOC) yearly every March 15 Financial Disclosure Statements of APFB, Mr. Burns, Mr. Valer, Mr. Scott, and other Permanent Fund employees. Landmark "Ethics Legislation 2007" SCS CSHB 109 (FIN) am S "Relating to bribery, receiving unlawful gratuities, and campaign contributions. . ." http://www.legis.state.ak.us/basis/get_bill.asp?session=25&bill=HB109 requires per Page 28 of 43 in the middle of the page:

"Section 45. AS 24.60.2120 is amended by adding a new subsection to read:

(c) The Alaska Public Offices Commission shall require that the reports required under this section be submitted electronically. . ." The Ethics Law has been codified. The respective statutes which apply are: AS 39.50.050(a) (Public Official Financial Disclosure); AS 15.13.040(m) (Campaign Disclosure); AS 24.60.210(c) (Legislative Financial Disclosure); and AS 24.45.061(c) (Lobbyist reporting). In all cases filers are to submit reports electronically, unless an exception is warranted. Some filers are filing electronically now via a pdf format.

Alaska Public Offices Commission continues to work with a programming contractor to develop an online filing program called "Insight," which will allow for data entry over the Internet, much like applicants for the Permanent Fund Dividend do now. Why is it that Alaska Permanent Fund Dividend Office can provide "Insight" to the public but APOC cannot get the same work completed?

A presentation was made to APOC on February 6, 2008. To date, three years after the Landmark "Ethics Legislation 2007" the yearly APOC Financial Disclosure Statements, a decision by APOC has not been made to post online APFB yearly Financial Disclosure Statements even though this is not a cost. We as volunteers have continued each March 15 to post APOC Financial Disclosure Statements of APFB, Mr. Burns, Mr. Valer, Mr. Scott, and other Permanent Fund employees. We understand that "eventually" APOC Financial Disclosures Statements of APFB will be posted on State of Alaska/APOC site. APOC must vote by a majority for APFB's yearly Financial Disclosure Statements to be posted on APOC website. This should be decided as once.

History of Alaska Permanent Fund

Alaska Permanent Fund was created by voter referendum in November, 1976 in order that the substantial money from oil development in Alaska be saved for future generations of Alaskans. The intent of the voter that year was to avoid squandering money and to create a legacy when Alaska natural resources would not produce the kind of astronomical wealth unknown in Alaska previously. Alaska Permanent Fund has been labeled Alaska's "rainy day account" or an endowment, neither of which are true based on current practices. The money from the very solvent Alaska Permanent Fund is the result of litigation in the 1970s for the oil flowing down Trans-Alaska Pipeline System (TAPS). TAPS current ownership is British Petroleum 46.93%, Conoco-Phillips 28.29%, Exxon Mobil 20.34%, Unocal 1.36%, and Koch Alaska 3.08%. Alaska has given too much to the multi-national oil companies. It is time for Alaskans to put our state back in Alaskans hands. It is appropriate that Alaska Legislature, our elected officials, be given that responsibility.

Investment Companies and Banks Feeding Off Alaska Permanent Fund

Some of the documents posted here on this site include a smattering of the investment companies that are in business based on Alaska Permanent Fund just like all the local banks are. There was a paid advertisement in Anchorage Daily News of February 24, 2002 as regards $1,774,117,000.00 Alaska Permanent Capital Company currently owned by Evan Rose. Alaska Permanent Capital Company today has assets of "almost $2 Billion." The company was founded by Mr. Dave Rose after he had been Executive Director, APFB, 1982-1990. Mr. Rose was never on APFB so how was he allowed to control that kind of money when he left his paid position as employee to APFB?

There is a letter written by Mr. Bob Gillam, McKinley Capital Management Company, on February 27, 2002 after the advertisement of Alaska Permanent Capital Company appeared in Anchorage Daily News stating that McKinley Capital Management Company "has assets under management that are approximately double that reported (by) Alaska Permanent Capital Management Company. This meant McKinley Capital had asset of about $4 Billion in 2002. Mr. Gillam ran advertisements in Anchorage Daily News in June, 2006 that stated:"McKinley Capital manages over $10 Billion in assets for clients worldwide (and) employs over 70 staff members." Mr. David Gottstein, Co-Chair with Governor Walter Hickel of Backbone to create accountability regarding Alaska Natural Gas Pipeline owns Dynamic Capital Management Company which in 2002 had assets of about $40,000,000. The assets have probably risen like those of the other companies. How have these companies been able to exist off APFB which is not confirmed by Alaska Legislature?

Bonded Indebtedness

Please analyze the issue of bonded indebtedness which is only to make a few Alaska Bond Counsels especially Mr. Eric Wohlforth and Company wealthy. The chart of Wohlforth Johnson Brecht Cartledge & Brookings which shows how many State of Alaska agencies have this law firm as their Counsels. On the site are a few articles published in Anchorage Daily News which regard bonded indebtedness. Alaska is a monopoly of interest without fair Alaska law licensing. Why do we need school bonds, road bonds, park bonds, municipal government projects bonds, private-public partnerships bonds, etc. when there is Alaska Permanent Fund Alaska is still the state that receives the highest per capita federal funding which was $12,885 per person in 2004. It has been reported that Alaska will receive the highest per capita amount of Stimulus funding by the Obama Administration. Bonded indebtedness is a scam.

We read all the time in our local media which is about 95% owned in many states of Lower 48 that Alaska bond ratings are A+ or excellent. Why? The answer is the Outside interests control everything that goes on in Alaska. All we have as Alaskans are bonds to pay beck instead of owning our own public buildings, roads, public works projects, etc.

Alaska Permanent Fund Dividend

The latest mockery is that there is a five year average of profits/losses in order to receive Alaska Permanent Fund Dividend. Additionally, Ted Stevens announced on August 21, 1002 in front of a room full of Alaska Realtors at Marriott in Anchorage that if Alaska Natural Gas Pipeline is built Alaskans "will have to forego at least Permanent Fund Dividends for about 10 to 12 years." "The producers have the right to produce that gas under State and federal law" per transcript and audiotape. Alaskans are not even considered in the decision-making about Alaska Permanent Fund issues especially the Dividend. We must rise up and become responsible for our own resources.

Under Governor Murkowski, Alaska Permanent Fund Dividend was cut in half or one-third even though Alaska Permanent Fund value increased each year he was Governor 2002-2006. The ruse is that a very large Alaska Permanent Fund Dividend bureaucracy has been established to monitor check distribution and there are extensive State of Alaska court cases about qualifications to obtain the Dividend at the same time, APFB has been allowed to make astronomical "Individual Investment Transaction Disclosures." Long time Alaska residents explain that they have been investigated if they leave State of Alaska because it is required that they only be out of state for 90 days throughout the year in order to receive the Dividend. Can we Alaskans figure out how much APF Dividend office is spending on investigating average Alaskans as we do not even notice how corrupt APFB has become?

Alaska Permanent Fund and the Dividend became such a joke in the rest of U.S. that the Dividend was the subject of "The Simpsons Movie" in the Summer, 2007.

Today, Alaska Permanent Fund is presumably worth about $32,000,000,000.00. Per Ms. Debbie Bitney , there are about 653,140 applicants in 2009. If each Alaskan receives a $10,000 Dividend this year, the cost would be $6,531,400,000. Alaska Permanent Fund Board and Mr. Mike Burns, Executive Director, would still have $25,468,600,000 with which to enrich their private bank accounts after the $10,000 Dividend was paid. It has been reported that Alaskans will only received about $1,400 which is only $914,396,000. In this case, APFB will still have $31,085,604,000.

Other Avenues

Ethics complaints are supposed to be investigated as a result of "Ethics Legislation 2006." The Select Committee on Legislative Ethics of Alaska Legislature only referred us to the State of Alaska Attorney General's Office of Opinions, Appeals, and Ethics. A formal complaint was filed "Alleging a Violation of the Alaska Legislative Ethics Law A.S. 24.60" on September 22, 2007. Alaska Attorney General's Office did nothing.

Additionally, there was an effort to get grant funding from Law Related Education (LRE) Committee of Alaska Bar Association in 2007 but the application was rejected. For the next two years after that, LRE application was not invited. We wrote a grant proposal in 2007 to Alaska Community Foundation for funding which was also rejected.

There have been a few advertisements in the Alaska Bar Association Bar Rag, UAA Northern Light, and ongoing advertisements in the Catholic Anchor since September, 2007.

Conclusion

Are the standard practices of APFB of "IITDs" based on the public interest or self-interest? Do Alaskans really think these Board members care about our "rainy day account?" Alaska Permanent Fund is not an endowment currently but simply a front to allow a handful of wealthy people to amass more wealth. Currently, "Insider Trading" of APFB is legal. If the current practices of Alaska Permanent Fund Board continue, the Corporation must be taxed.

If there were fair Alaska law licensure, the corrupt and un-American practices of APFB would change.