EDITORIAL: Conflict of Interest
CAPE CHARLES WAVE
September 4, 2013
This editorial should not have to be written, because the issue should be obvious. Sadly, that is not the case in Northampton County – or especially Cape Charles, where conflicts of interest are more common than September hurricanes. (Click here for an egregious example five years ago.)
Resident in Cape Charles is a remarkable individual known to all as Bob Panek. Once the acting town manager, he now prefers to be the assistant. He was the chief consultant for construction of the Town’s wastewater treatment plant. He is president of Citizens for Central Park. At candidate debates before the last three elections, Mr. Panek decided which questions were asked and to whom, despite his unconcealed partisanship. And finally, which is the point of this editorial, he is chairman of the Eastern Shore of Virginia Public Service Authority, whose purpose is to study, implement, and operate water and sewer systems.
Mr. Panek was appointed by Cape Charles Town Council to represent the Town on the PSA. This was wrong, because it violates the principle of separation between a paid public employee and an elected or appointed official. One might have hoped that Town Council understood that principle, after two town employees ceased to serve on Town Council. A paid town employee should not be appointed or elected to a town board or commission and should not be the town’s representative on a county board or commission.
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Wiser perhaps than his masters, in July Mr. Panek requested an opinion from Commonwealth’s Attorney Bruce Jones as to whether, as both PSA chairman and assistant town manager, his participation in negotiations with the town over a wastewater service rate for the county was a conflict of interest.
The Commonwealth’s Attorney’s opinion was that “your participation in the negotiations and discussions between the PSA and the Town does not violate the Conflict of Interests Act.” And indeed it does not, because the Act deals only with cases where a public official has a PERSONAL interest in a matter. No one has claimed that Mr. Panek’s intertwined responsibilities to the town and the PSA benefit him personally or financially. But by raising this non-issue with the Commonwealth’s Attorney and receiving a favorable opinion, he has cleverly sidestepped the real issue.
If readers disagree with this logic, they need merely to consider the present circumstance: The PSA wishes to contract with the town to treat county wastewater. An agreed price for this service must be negotiated. The PSA’s negotiator is Bob Panek. The town’s negotiator is — ?
Something sure stinks in Cape Charles, and it’s not just the expensive new waste water plant. I’m amazed that the residents (the INFORMED ones, that is, which I suppose cuts the number of potential rebels down considerably) have not risen up and thrown all the mini-tyrants out on their self-important rear ends. I love to eat and shop in Cape Charles, but I am sure glad I don’t live there. Hopefully the citizens (if there are still any that aren’t completely mired in apathy) will take some kind of effective action about their shady town administration before Cape Charles turns back into the ghost town it was not too many years ago.
Mary — We are trying to stop the tyrants that are running this town but it isn’t easy. Sure wish we had more feisty ladies like you in town! You are so right about our new wastewater plant. That thing always stinks to high heaven. If the town had put it back in the woods at least the trees might have cut down on the smell, but they put it right in the line of viewers. They also put it right next to the historic Rosenwald school — a slap in the face to all African-Americans. Sure hope all of the voters remember who did this to them when election time comes in May.
Caesar’s wife should be above reproach.
Panek is clearly motivated and willing to work. He, and the town, have to make sure his willingness to take on new challenges does not lead to a conflict, which it sure looks is the case now. He is served least of all when the appearance of a conflict arises.
The term “conflict of interest” is hurled around loosely, but should be viewed in the context of the Virginia statute which defines and controls such issues. The writer fails to do that. Slamming a man because you think it to be conflict is just that — “slamming.”
Steven Fox: So you are saying this isn’t conflict of interest? Is Mr. Panek going to negotiate with himself? This is clearly conflict of interest! You might be a lawyer but I can read.
To Stephen Fox: As a homeowner who lives in another state, I would appreciate it if you could provide the language of the Virginia Statute (the relevant sections) of the conflict of interest.