Simon Criticizes Davis’ Ethics

Republican gubernatorial nominee Bill Simon Jr. on Thursday accused Gov. Gray Davis of being held captive by special interests and promised that he would set a new ethical standard if elected.

The wealthy investment manager, who has struggled to contain charges about his business practices this summer, said Californians have become jaded by stories linking the governor’s fund-raising to state policies and contracts.

“Public confidence is shaken in many of our institutions, and nowhere is that more the case than in our government,” Simon said in a speech to more than 700 Rotary Club members in Sacramento. “As governor, I will take clear and unambiguous steps to restore accountability and trust in our government.”

Among other measures, Simon proposed independent audits of all state spending by an external organization, an end to sole-source contracting, and a December budget review that would trigger automatic spending cuts if expenditures had exceeded revenues.

The GOP candidate also said that, to avoid the appearance of impropriety, he would refrain from raising campaign money during the final month of the legislative session and the month of bill signing that follows.

The Davis reelection campaign fired back by calling Simon ill-suited to set an ethical standard.

Simon’s family investment firm was hit with a multimillion-dollar fraud verdict this summer. Earlier this year, his family’s municipal bond firm was fined $10,000 by the National Assn. of Securities Dealers in a pay-to-play scandal, and Simon himself was named by the Internal Revenue Service as a beneficiary of a possibly illegal offshore tax shelter.

“When Bill Simon wants to give lectures on ethics, he’d be better off standing in front of a mirror and addressing himself,” said Davis campaign spokesman Roger Salazar.

Salazar added that most of the proposals Simon made Thursday already are in place. Audits are conducted by the legislative analyst and controller’s office, and the state budget is reviewed in May to ensure that spending is in line with revenue. Taking a hiatus from fund-raising during end-of-session bill signing would give wealthy candidates who do not need to raise as much money an advantage, Salazar said.

In recent weeks, Simon has tried to divert the focus on his business problems to Davis’ fund-raising practices.

But Simon’s baggage may constrain his ability to criticize the governor’s behavior.

A poll released this week by the nonpartisan Public Policy Institute of California found that 43% of likely voters believed that Davis would do a better job of maintaining high ethical standards in government, while only 28% said Simon would.

Barbara O’Connor, director of the Institute for Politics and Media at Cal State Sacramento, said Simon hurt his credibility on ethics when he said he was not involved in decisions that led to his various business problems.