“The committee’s goal is to ensure the fund stays politically independent,” said Sen. Natasha von Imhof, as the Legislative Budget and Audit Committee voted unanimously to issue subpoenas to the entire board of the Alaska Permanent Fund Corporation.
Over the objection of the Department of Law, which said the committee was acting improperly and politically, the legislators also voted to subpoena four employees of the state-owned corporation and one person from the Department of Revenue.
Angela Rodell, hired to run the Permanent Fund Corporation in 2015, was fired by the board of the Permanent Fund Corporation on Dec. 9. Those close to the matter say her relationship with the board had deteriorated over the past few years. The corporation, which runs Alaska’s sovereign wealth fund, is an independently run agency whose board of trustees is appointed by governors on a staggered basis. On Dec. 9, the board voted nearly unanimously to fire Rodell immediately. Just one of the board members voted against her firing.
The Department of Law, in a letter to the committee, advised against the action the committee is taking, reminding the politicians that “Although the Trustees acted in conformance with law and based on their best judgment when they made the decision to dismiss Angela Rodell, sometimes personnel decisions are not popular either with the employee or with others who are not responsible for managing an organization. This has been the case with the dismissal of Ms. Rodell.”
The Department of Law stated that the Permanent Fund Board believes that the committee’s investigation exceeds its statutory and constitutional authority – and the manner in which the investigation has begun raises serious concerns about its fairness and impartiality. The trustees believe a third party is a more appropriate way to investigate its actions, rather than the political body of the Legislature.
The letter also pointed out that von Imhof is a personal friend of Rodell. “This delegation of subpoena power to one individual and its current use as a threat to APFC Trustees and employees has been made even more problematic because of a clear conflict of interest at the center of the Committee’s investigation,” the State’s letter continued.
“Given the circumstances, the Trustees want to provide a path forward that will permit APFC to continue operating without becoming embroiled in political and legal squabbles, while respecting the public interest in this employment decision. The Board proposes that an independent party, such as a retired judge, be retained to review the issues related to the Board’s decision, and to issue a report. We hope that the Committee will give this proposal serious consideration as the best approach in these circumstances,” the letter said.
