Journal examines Foley’s role in state contract

A weekend article in the Albuquerque Journal examines a state-government insurance contract that has paid thousands of dollars to outgoing House Minority Whip Dan Foley.

Chaves County Commissioner Harold Hobson — a Foley critic — has asked the attorney general to look into the situation in which Foley, an Allstate insurance agent, helped his company win a state contract last year that pays him a 10-percent commission on all policies sold, according to the Journal. Some 500 government employees in New Mexico have signed up for the supplemental cancer, accident and universal life-insurance policy.

The AG’s office told the newspaper that Hobson’s request has been forwarded to the appropriate section.

Foley, R-Roswell, told the newspaper he has done nothing wrong. He said the contract was awarded through a competitive process and called Hobson’s request “a political ploy.”

The lawmaker told the Journal he has had no contact with state officials about the contract, which the state General Services Department confirmed. Foley said Allstate pays him a commission because he alerted his company to the state’s soliciting of proposals for the contract. And he said Allstate won the contract because he got the company “pointed in the right direction” and because of “my two cents that I gave them.”

Hobson, in his request to the AG, noted that the law prohibits state agencies from “entering into a sole source contract in which a public officer or employee of the state has a ‘substantial interest.’” Hobson also mentioned the special session of the Legislature convening Aug. 15 in part to consider health-care reform. He said Foley has a direct conflict of interest because proposed legislation could affect his contract with the state.

“As part of the elected Republican leadership in our legislature, Rep. Foley will be involved in negotiations on proposed legislation for universal health care or expanded health care coverage that Governor Richardson is promoting,” Hobson wrote in the letter, according to the Journal.

In the Journal article, Foley was quoted as saying that state law defines sole-source contracts as those awarded without competition, so he said Hobson’s argument doesn’t apply. The Journal reported that Allstate was the only insurance provider to bid for the contract.

Foley also told the Journal he hasn’t sold the insurance to any state employee or tried to do so.

“I felt like it was probably not right for me as Rep. Foley with my red (legislative) license plate to pull into the Department of Transportation (or any other state agency) and say ‘I’m here to sell you something,’” the Journal quoted Foley as saying.

Foley has been a lawmaker since 1999 but lost the June primary and will leave office on Jan. 1.