The Comptroller of NY State (currently Tom DiNapoli) has always been, bizarrely, the lone proprietor of the massive NY State pension fund (currently worth around $122 billion) with no oversight, no board. Nothing.
And well, we all know what happens to vast unprotected pots of money that are just sitting around. The potential for kickbacks to politically connected middlemen for simply guiding those funds into private investment firms’ hands always seemed, well, huge. Now NY AG Andrew Cuomo is confirming our suspicions and has found that the previous comptroller – Alan Hevesi – (who was run out of office anyway for misusing taxpayer money to ferry his wife around…) was not exactly the most scrupulous of watchdogs.
The Comptroller’s office is now asking Gov. Paterson for some permanent pension fund middleman rules and oversight. It took an investigation by the AG, but hey, a step in the right direction.