Pa. treasurer: No allegations that public funds were mismanaged

HARRISBURG, Pa. (WHTM) – Pennsylvania Treasurer Timothy Reese has issued a statement following federal indictments involving former state treasurers Barbara Hafer and Rob McCord.

Hafer, who served two terms as state treasurer from 1997 to 2005, was indicted by a federal grand jury for concealing more than $500,000 in consulting fees from federal investigators. A second indictment announced Thursday by the U.S. Attorney’s Office accuses a Valley Forge business owner of making more than $500,000 in secret campaign contributions to McCord between 2009 and 2014.

Reese said the indictments do not allege any improper use or mismanagement of public funds.

The full-text of his statement is below:

“In light of the federal indictments implicating two former state Treasurers, I want to reassure the public of the prudent management and safekeeping of all funds within Treasury’s custodial care. While I will not comment on the ongoing legal proceedings, it is important to note that these indictments do not allege any improper use or mismanagement of public funds entrusted to Treasury.

“As Treasurer, I believe it is critical to preserve the public’s trust and confidence while meeting my obligation to protect and safeguard the state’s finances. Since assuming this office, I have insisted on maintaining the highest ethical standards throughout the Department, which is staffed by dedicated professionals who take their responsibilities as fiduciaries very seriously.

“To ensure equal access and eliminate any perception of favoritism, Treasury maintains an ‘open-door’ policy that allows any potential investment manager to submit a proposal for the Department’s consideration. All proposals are subjected to an independent analysis and due diligence review with investment decisions made solely on their merits with no regard to political considerations.”

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