Governor’s use of AT&T’s Campaign Contribution Raises Suspicions

In disclosures filed with the state this week, AT&T reported donating $25,000 to Governor Schwarzenegger’s campaign on Nov. 14 of last year. Four days later, on Nov. 18, Susan Kennedy, then a Public Utility Commission PUC member, voted to approve AT&T’s merger with SBC Communications. Twenty one days later, on December 5th, Governor Schwarzenegger paid that exact amount- $25,000- to Susan Kennedy claiming she was a “campaign consultant”. At the time, he had already announced that Kennedy would become his chief of staff, although she stayed on the PUC for the final month of 2005.

Consumer activists have rebuked the Governor and Kennedy because of the strongly suspected “quid pro quo” nature of this decision that was made in AT&T’s favor. Bob Finkelstein, executive director of the Utility Reform Network of San Francisco, said: “The timeline is pretty damning.” TURN, a group that advocates on behalf of consumers, also opposed the way the PUC approved SBC’s purchase of AT&T, and says the decision will cost consumers more than $330 million. Doug Heller, of the Foundation for Taxpayer and Consumer Rights in Santa Monica, called on Kennedy to return the $25,000 she took from Schwarzenegger: “The PUC ought to throw out any votes that involved her on this telecommunications rule,” Heller said. “It is an absolute conflict that goes to the heart of what’s wrong with use of public officials in campaign functions”. A spokesman for the Governor denied any connection between the donations and Kennedy’s actions in her final days as a Public Utility commissioner.