Ethics controversy over Macon-Bibb pension consultants

There is ethics controversy between Macon-Bibb commissioners over how the consultants who handle county retirement money were chosen.
Several officials complained during an open meeting Tuesday night that the bid process that led to selecting the company was "unethical" and designed to favor Independent Portfolio Consultants, a Florida-based consultant group.
Macon-Bibb commissioners voted 7 to 2 last fall to hire IPC as the pension fund managers, after a bid process and after county manager Dale Walker recommended the company for the job.
Commissioner Larry Schlesinger told 13WMAZ Tuesday that Walker should have disclosed that he previously worked with IPC's senior consultant, Cheryl Underwood.
Dale Walker previously served as Chairman of the Board of Directors for the Municipal Employees' Retirement System of Michigan at the same time Underwood previously worked as a consultant there.
"Our county manager, Dale Walker, very consciously designed and orchestrated a selection process that had the sole aim of engaging Independent Portfolio Consultants (IPC) to manage these funds going forward," Schlesinger told fellow officials and the public Tuesday night. "His indecorous action goes well beyond the crony capitalism that it so flagrantly is."
Two weeks ago, Mayor Robert Reichert vetoed a resolution that would have started another bid process for investment consultants for the county's pension funds. He said he felt that would create a negative impression to retirees and to the finance market. He also said he believes the company is doing "exceptional" work.
County spokesman Chris Floore says IPC added more than $10.5 million to the county's three pension funds in the past three months.
So far, the county has paid more than $570,000 for IPC's services.
At Tuesday's meeting, Commissioner Larry Schlesinger, along with Commissioners Gary Bechtel, Bert Bivins, and Virgil Watkins, voted to override the Mayor's veto. That ultimately failed, as the five other commissioners voted to sustain the Mayor's veto.
"I was misled by the county manager to think this was an objective, fair search to find a worthy successor to Merrill Lynch," Schlesinger said. "It's not really IPC that we have a problem with. It's the process that led up to the selection of IPC, which was orchestrated by our county manager, Dale Walker."
Commissioner Elaine Lucas told the Mayor although she was "tempted" to override his veto, she would listen to retirees who said they did not want the change.
Commissioner Mallory Jones argues it was the commission's decision and that it's not unethical for Walker to recommend a company he has a strong professional relationship with.
"We deal with people we know and trust. We recommend a movie, a restaurant, because we've had a good experience there. So Mr. Walker had a good professional experience with people who he knew were proven professionals," Jones said. "[Walker] recommended them but the commission voted 7-2 to hire them. So if you're saying it was unethical, we'd be talking about ourselves!"
Jones said he asked his brother, a longtime Wall Street executive, for an independent analysis of IPC's work. He says his brother is not familiar with the company.
"He was very impressed," Jones said. "He said we'd be foolish to not continue with [IPC]. It all ought to be about what's best for the retirees, and that's what's best for the retirees."

see more at: http://www.13wmaz.com/story/news/local/macon/2015/05/05/ethics-controversy-macon-bibb-pension/26957925/