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Mag. My Hue McGowran
Phone: +43-1-81140-308
E-Mail: mcgowran@newsfox.com
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Los Angeles (pte032/18.07.2005/15:16) - Arnold Schwarzenegger's 'Executive Editor' contract with Muscle & Fitness magazine http://www.muscleandfitness.com/ and Flex magazine has elicited criticism from the public and official associations for being a 'conflict of interest' because the state regulates the industry that provides the publication's main source of revenue.
The Foundation for Taxpayer and Consumer Rights (FTCR) requested that a committee with subpoena power be appointed to investigate the contract after Schwarzenegger failed to fully reveal his financial interests.
"The details of the governor's magazine contract should not have been hidden from public view," said Doug Heller, FTCR's executive director. "Only a legislative investigation can ensure other contracts and possible conflicts of interest are revealed," he added.
"It is even more egregious than some we've seen from politicians that have been properly chastised for having contracts," Heller said.
In the arrangement with Weider Magazines, Schwarzenegger is to receive $2.15m (about 1.7m euros) a year from Weider in 2006-08, and $1.7m in 2009, a total of $8.15m (6.7m euros) for four years of the five-year contract. The contract was signed two days before the former body-builder and film star was sworn in as governor.
FTCR says that Schwarzenegger's multi-million-dollar contract was hidden amongst 20 other contracts under his own company, Oak Productions.
Although California law allows governors and other elected officials to have additional jobs, critics question whether Schwarzenegger's decisions are self-serving and not in the interest of the public. "Californians don't know if they can trust that the governor's decisions are based on the public interest and not on his own personal business deals," Heller said.
It is not yet known if the governor will become the subject of an investigation. "To get politicians to investigate other politicians is not always the easiest path, but I do believe that the legislature is seriously concerned about this," Heller commented.
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