Did an embezzlement scandal force Sarah Palin to resign? (updated)

[ProSense]

Did an embezzlement scandal force Sarah Palin to resign?

Max Blumental reports on The Daily Beast that Sarah Palin may have quit her job today because she was trying to avert a major, yet-to-be-disclosed corruption scandal. The gist of the rumor is that an Alaska building company called Spenard Building Supplies (SBS) was awarded a contract by Palin to build a hockey arena in Wasilla, AK, and in return, SBS helped construct Palin’s home:

Many political observers in Alaska are fixated on rumors that federal investigators have been seizing paperwork from SBS in recent months, searching for evidence that Palin and her husband Todd steered lucrative contracts to the well-connected company in exchange for gifts like the construction of their home on pristine Lake Lucille in 2002. The home was built just two months before Palin began campaigning for governor, a job which would have provided her enhanced power to grant building contracts in the wide open state.

SBS has close ties to the Palins. The company has not only sponsored Todd Palin’s snowmobile team, according to the Village Voice’s Wayne Barrett, it hired Sarah Palin to do a statewide television commercial in 2004.

Though Todd Palin told Fox News he built his Lake Lucille home with the help of a few “buddies,” according to Barrett’s report, public records revealed that SBS supplied the materials for the house. While serving as mayor of Wasilla, Sarah Palin blocked an initiative that would have required the public filing of building permits—thus momentarily preventing the revelation of such suspicious information.

Just months before Palin left city hall to campaign for governor, she awarded a contract to SBS to help build the $13 million Wasilla Sports Complex. The most expensive building project in Wasilla history, the complex cost the city an addition $1.3 million in legal fees and threw it into severe long-term debt. For SBS, however, the bloated and bungled project was a cash cow.

Alaska bloggers have reported in recent weeks that “a long simmering embezzelment/IRS scandal is still being looked at by the feds.” In her press conference today, Palin asked the public to “trust me with this decision and know that it is no more politics as usual.” But she also bemoaned “political operatives” who have “descended on Alaska” to investigate “all sorts of frivolous ethics violations.” Palin said this “politics of personal destruction” was one of the key motivating factors behind her decision today.

Edited to add more.



Updated to add:

UPDATE 8:02 PM EST

Sarah Palin's speech this morning rocked Alaskans and people around the country. Palin's predictability is her unpredictability. I'm seeing Alaskan flags on cars, in front of houses, some citizens expressing their own Independence Day. Other citizens are angry and playing the blame game; the bloggers, the MSM, Alaskan legislators, her family under attack, etc.

For weeks the rumors of a criminal investigation against the governor have been brewing. They are rumors, but are swirling fresh again with Palin's resignation. I'm holding my breath for the other "Naughty Monkey" to drop. Another theory for the resignation is that the Palins would have to disclose the book deal as well as other financial details as governor.

Sources say, the third in line for the governorship, Corrections Commissioner, Joe Schmidt, has declined to become Lieutenant Governor. There is no official word of who will become take Sean Parnell's position as he ascends to the governorship.

<...>

UPDATE 4:05 PM EST

Rumors of an "iceberg scandal" have been circulating.

Resignation is certainly out of character for Sarah Palin. Senator Mark Begich had a meeting with Sarah Palin two days ago with no mention of her leaving office. Palin's press secretary, David Murrow had posted on his Facebook page Wednesday, "David Murrow is considering life's ironies." He was hired less than a month ago. Yesterday he wrote, "There's gonna be some fireworks this weekend!"

link

Seems really sudden.

[Buzz Clik]

1. Is that embezzlement?

:shrug:

[Aqaba]

2. Sounds more like grifter theft to me...

[ProSense]

5. It's corruption, but I added the rest of the text to the OP for context. n/t

[DrToast]

13. It's emBlagoment.*

[Buzz Clik]

30. Blago and Sarah both have nice hair. Surely, there's a connection to their dirtiness.

[Eric J in MN]

3. I would call that a "kickback scandal" rather than an "embezzlement scandal." NT

NT

[Cha]

4. From all the speculation and reporting

..this looks like it's the closest to being the reason palin quit under the gun.

[Hannah Bell]

6. petty grifting. building materials for a house. i think there's plenty of politicos with the same

kind of kickbacks in their history that don't get take out.

i wonder why her party wants her out?

jeb?

loose cannon developing independent base?

[ProSense]

7. Petty grifting

Are you kidding me?

[Hannah Bell]

11. no. you think some lousy building materials even register on the political grift scale?

don't be naive.

people go into politics as nobodies & come out multimillionaires.

how does that happen?

the party wants to cut her lose - else they'd be defending her.

but they're not.

[ProSense]

17. "don't be naive." What? Clue:

Ted Stevens, who would be in jail now were it not for the prosecution's errors.

You have nerve to talk being naive.

This stuff ruins politicians all the times.

It's not just housing materials, it's the $13 million dollar contract.

[Hannah Bell]

22. The 13 million contract is just a "bad decision" - except for the supposed exchange

for some lousy building materials.


"were it not for the prosecution's errors."

of course he would. lol.

[ProSense]

26. Yeah, corruption is alway a "bad decision." n/t

[Hannah Bell]

36. you missed the point. unsurprisingly.

[HughMoran]

8. This has been going on for a long time - was this about to break?

We heard about this during the election, why force her out now?

[Perky]

9. I agree. It's old news and a waste of Oppo Research dollars if true.

[ProSense]

10. You sure have a soft spot for Palin. n/t

[Perky]

28. Not at all.

but I have listened to the speech three times (my ears are still bleeding...ha) I have listend to multiple pudits, I think it was increibly stupid for here to resign. I don't think there is a scandal after listening to what she was saying. I think she want t run for President. and I hope to God she does, because I think she could win the nomination even after this Fiasco. But I want her to win the nomination so that the GOP become a 35% party and Obam gete a landslide like we have not seen sinve Reagan Mondale,


Was this a badday for Sarah? Oh hell yeah.. a terrible speech and an incoherant cesspool of rambling statements, Optics were terrible as well. Bad theatre by any definitiion, I am no fan, I just want her to piss off enough borderline Repukes that they voite for Obama. I want her to be the face of the GOP for the next 10 years.

That does not mean I don't understand the political realities she ws facing in looking at 2012. The logistics of trying to run an exploratory campaign from AK are just tough. SO I undertand her motivations,,, but think she took about three steps back today.

[northernlights]

41. it's not "oppo research"

There supposedly are criminal indictments about to come down. I think either she's afraid of them, or the GOP said enough.

She looked and sounded scared out of her mind in that speech. Almost breaks down crying just ahead of the sports analogy. And she was lying through her teeth.

There was a rambling logic to it. Reminder to the people of her achievements. Hint at coming legal challenges. Attempted explanation at why she's resigning. Hint that she's "taking one for the team" by passing ball to lt. gov. to deflect attention away from her. Play for sympathy re: Trig. Hint that Trig needs her. Hint that her family made the decision. Hint that "life is short" so reprioritizing.

No hint whatsoever at a '12 run. Totally unplanned and last minute.

[ProSense]

12. Investigations don't go on forever.

If this was about to break, don't you think there is a strong chance that she would resign ahead of such news?

[HughMoran]

14. If...

Yes.

But I just don't feel this is the case - she didn't act like someone under suspicion :shrug:

[ProSense]

18. "she didn't act like someone under suspicion "

Good grief. LOL!

[HughMoran]

20. That rambling speech was a lot to observe

Why can't you make judgments about someone you've been observing for nearly a year?

I didn't see it - I may be wrong, but that's my opinion.

Did you see anything that made you think she was about to be indicted or charged with something?

[ProSense]

21. Sarah Palin reeks of corruption. n/t

[HughMoran]

25. Well, yeah - that and utter stupidity

[tblue37]

40. The manic--almost panicky--nature of her delivery

suggests otherwise, I think.

[DrToast]

16. We heard about the house during the election

But I don't remember rumors of feds snooping in SBS's records. It sounds like her recent notoriety has put her under a brighter spotlight.

[ProSense]

19. Exactly.

I'm curious about all the Palin apologists here. WTF?

[HughMoran]

23. Not Palin appologists - people who disagree with your theory

Why are you so defensive about it? Several people have posted this - why are you acting like you own it?

[ProSense]

24. Why are you so defensive? n/t

[HughMoran]

27. I don't know - why?

Why are you projecting - it's a poor technique and makes you seem even more defensive.

[ProSense]

33. What? First of all,

the news that she may be charged with wrongdoing isn't my "theory."

Second: You are the one who assumed a defensive posture toward the news that Palin could be charged, and then you said she didn't "act" like a crook.

You wan't to give her the benefit of the doubt go ahead, but don't try to come off like I'm being unreasonable by claiming that she is corrupt.

[HughMoran]

34. I just have a different opinion on why she resigned - I could be wrong

...as I've already stated. You haven't once said that you could be wrong (or at least the article you've posted).

[ProSense]

35. "You haven't once said that you could be wrong."

Why should I say that when I believe Palin is corrupt?

[tblue37]

39. Maybe because the FBI has enough solid evidence now? nt

[FrenchieCat]

15. She preempts something coming up the pike at the beginning of her resignation speech today.....

"Over the past nine months I've been accused of all sorts of frivolous ethics violations - such as holding a fish in a photograph, wearing a jacket with a logo on it, and answering reporters' questions.

Every one - all 15 of the ethics complaints have been dismissed. We've won! But it hasn't been cheap - the State has wasted THOUSANDS of hours of YOUR time and shelled out some two million of YOUR dollars to respond to "opposition research" - that's money NOT going to fund teachers or troopers - or safer roads. And this political absurdity, the "politics of personal destruction" ... Todd and I are looking at more than half a million dollars in legal bills in order to set the record straight. And what about the people who offer up these silly accusations? It doesn't cost them a dime so they're not going to stop draining public resources - spending other peoples' money in their game."
http://www.talkingpointsmemo.com/livewire/2009/07/full-text-of-palins-resignation-speech.php


So yeah... this is very possible.

[firedupdem]

29. Who knows what's going on with this woman. I wouldn't doubt

that she needs to study full time in order to have the ability to answer simple questions. She's probably going to travel, and milk her book for all it's worth. She mentioned her recent trips out of the country and the stimulus plan. I think she's running for President.

[Po_d Mainiac]

31. Hmmmmm

Not ready for Curic yet......It was the Johnson Administration that purchased Alaska...I'd say dumber than a box of rocks, but that ain't fair to rocks!

[SpartanDem]

32. Please let this be true

[ProSense]

37. NYT: Palin to Resign as Governor of Alaska

July 3, 2009, 5:30 pm

Palin to Resign as Governor of Alaska

By Mitchell L. Blumenthal AND Kate Phillips

Update | 7:00 p.m. Gov. Sarah Palin of Alaska announced Friday that she would step down by the end of the month and not seek a second term as governor, fueling speculation that she is trying to position herself as a candidate for the Republican presidential nomination in 2012.

Her decision follows a week of extraordinarily bad publicity, from within her own state over ethics inquiries and across the national landscape as top aides on her vice-presidential campaign and supporters have been engaged in a highly public feud that has spilled out in vociferous tones online on blogs and on television. Bloggers in Alaska, critics of the governor as well as former Palin supporters, suggest also that pending releases of e-mails among the Palins were about to expose her to further questions about her finances and governance issues.

In fact, Governor Palin signaled in her nearly breathless news conference that more trouble may lie ahead, as she cited battles that could cost her millions of dollars, a pile-up adding on to her burdens.

Ms. Palin, who was Senator John McCain’s vice presidential running mate last year and solidified the support of the party’s conservative base, explained her decision at a news conference at her home in Wasilla, Alaska, accompanied by her husband, Todd, and other family members.

more

[ProSense]

38. Palin aide: ‘People are focused on bringing her down’

Palin aide: ‘People are focused on bringing her down’

Posted: 08:37 PM ET

From CNN Political Producer Rebecca Sinderbrand

WASHINGTON (CNN) – A spokeswoman for Sarah Palin blamed the swarm of ethics complaints that have dogged the Alaska governor for Friday's surprise announcement that she would be leaving office by the end of the month.

When the former Republican vice presidential candidate returned to Alaska after the campaign and pressed her agenda, "she found…resistance, and she found as she looked up more and more that state time and resources were being just wasted with just frivolous ethics complaints coming in, and FOIA (Freedom of Information Act) requests and lawsuits — but to an extraordinary extent, and from literally those doing opposition research," spokeswoman Meghan Stapleton told CNN's Suzanne Malveaux on The Situation Room Friday. "And so she said really, is this good for Alaska? Is this what a governor is supposed to do, sit and watch money going down the drain?"

Palin's return to her home state has been a rocky one. Beyond a flood of ethics complaints — most of which have been dismissed — the governor was forced to backtrack on her decision to reject federal stimulus funds, her pick for attorney general was rejected by an increasingly hostile legislature, and her personal life has continued to grab headlines.

Stapleton denied that Palin was leaving office because she'd decided her lightning rod status was a liability to the state — but conceded that the governor felt personally targeted. "I know you want to put that sort of negative word in there, but it's not a 'liability' — it's that she has a vision for the state…the best way and the best place to effect change at this point is outside her role as governor, because as governor people are just focused on bringing her down rather than building up the state, and that's not who she is."

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