Elections

Guardian 2007 Election Center

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Project Censored: The Byrne ultimatum

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amanda@sfbg.com

Sometimes the story behind a story is just as juicy as the story itself. One of Project Censored’s picks for the 2008 list – “Senator Feinstein’s Iraq Conflict” started out as a project funded by the Nation Institute, and was supposed to splash the cover of the Nation magazine prior to the November 2006 election. Instead, it took some interesting peregrinations – involving some charges of partisan political influence — before it was finally printed in the North Bay Bohemian on January 24, 2007.

Petaluma-based freelance journalist Peter Byrne was originally paid $4,500 by the Nation Institute to research connections between lucrative defense contracts granted to Perini and URS companies, in which Richard C. Blum held stock, and the Senate Appropriations Military Construction subcommittee (MILCON) that funds the contracts– and which includes Blum’s wife, Sen. Dianne Feinstein, as a ranking member.

Blum’s companies were involved with more than $1.5 billion in defense contracts between 2001 and 2005. Michael R. Klein, Blum’s business partner and Feinstein’s legal advisor, had been informing the senator about specific federal projects in which Perini had an interest, specifically to avoid conflict of interest issues, but Byrne reported Feinstein was not told about potential URS contracts. So, in the case of Perini, Feinstein would be informed and recuse herself from pertinent decisions, but with URS, she’d remain in the dark, and because the detailed project proposals don’t include the names of the companies bidding, the senator wouldn’t know it was URS.

“In theory, Feinstein would not know the identity of any of the companies that stood to contractually benefit from her approval of specific items in the military budget – until Klein told her,” Byrne wrote.

According to Klein, a Senate Select Committee on Ethics ruled, in a confidential decision, that this was all above board.

But Byrne contends, “That these confidential rulings are contradictory is obvious and calls for explanation.”

Furthermore, Byrne’s research concluded that the senator could potentially look at the lists from Klein, compare them to the nameless funding requests and contracts coming before MILCON, and draw substantial conclusions on her own about where the money would end up.

“Klein declined to produce copies of the Perini project lists that he transmitted to Feinstein. And neither he nor Feinstein would furnish copies of the ethics committee rulings, nor examples of the senator recusing herself from acting on legislation that affected Perini or URS. But the Congressional Record shows that as chairperson and ranking member of MILCON, Feinstein was often involved in supervising the legislative details of military construction projects that directly affected Blum’s defense-contracting firms,” Byrne wrote.

A month after Byrne turned the story in to Bob Moser, who was the Nation‘s editor on the story, the piece was killed. In an email to Byrne, Moser wrote, “The main reason is that with Blum’s sale of

Perini and URS stock last year, this became an issue of what Feinstein did rather than an ongoing conflict. Because of that, and also because Feinstein is not facing a strong challenge for re-election, the feeling here, finally, was that the story would not likely have the kind of impact we want from investigative stories.”

Later in the email, Moser writes the story lacks a “smoking gun,” apparently because Byrne lays the case for a perceived conflict of interest and relies on the testimony of non-partisan ethics and government experts for support.

Still, Byrne told us, “I was shocked. The story was really solid, completely fact-checkable, and even though it was complex I think I boiled it down pretty well.”

The Nation‘s publicity director, Ben Wyskida, told us it’s rare for the magazine not to publish a story in which the Institute has invested significant time and money, but in this case the editors decided to pass. “Ultimately they just didn’t feel like he delivered the story that we’d hoped.”

“At the same time, we do think it’s an important story,” he added.

Undaunted, Byrne took it to Salon.com, which initially agreed to buy it, but then killed it as well. When asked why, news editor Mark Schone told us, “We don’t discuss those kinds of editorial decisions. We have a long history of publishing investigative pieces.”

Byrne thinks it was political. “In my opinion it’s because both the Nation and Salon have an editorial allegiance to the Democratic Party.” It was, he said, too sensitive a time to publish a story critical of a Democrat when the party was positioning to take control of the legislative branch.

The Nation vehemently denied the decision to kill had anything to do with that. “It’s absolutely false that we had any political biases that caused us not to run the piece. It was the reporting and the timeliness,” said Wyskida.

Salon would not comment on Byrne’s political theory.

When pushed for specifics on what the story lacked, Wyskida said, “Generally, we felt like it was possible there were pieces of the story we could not verify or stand behind.”

Byrne went on to pitch the story to Slate, the New Republic, Harper’s, the Los Angeles Times, and – thinking that conservative publications might bite – American Spectator and Weekly Standard. “Most of the editors praised the reporting, but turned down the story,” Byrne writes in an update for Project Censored’s publication. “So I sold the tale to the North Bay Bohemian, which, along with its sister papers in San Jose and Santa Cruz, ran it on the cover – complete with follow-ups. After it appeared, the editors and I received a series of invective-filled emails from war-contractor Klein (who is also an attorney) but, since he could show no errors of fact in the story, he did not get the retraction he apparently wanted.”

Klein, a key figure in the series of stories, is chairman and founding donor of the Washington, DC-based Sunlight Foundation, an organization that promotes more government transparency and grants investigative work undertaken with those goals. The Blum Family Foundation has also given seed money to Sunlight.

The foundation’s Web Site has posted a rebuttal to Byrne’s story, written by senior fellow and veteran investigative journalist, Bill Allison. It includes a spirited exchange between Byrne and Allison on some of the finer points of Byrne’s reporting, and links to the original Congressional hearings that Byrne cites for some of his evidence of Feinstein’s questionable ethics.

Shortly before Byrne’s story was printed in the North Bay Bohemian, Feinstein quit MILCON. Byrne reported this resignation in a March 21, 2007 story, in which he speculates thinks it was because of his questioning her ethics.

Feinstein’s office denies any connection. Press officer Scott Gerber said that at the start of a new Congressional session, “She took the opportunity to become chair of the Interior Appropriations Subcommittee. It’s a better subcommittee for California.” Her office also attempts to blow holes in Byrne’s story with a detailed rebuttal similar to Allison’s – not issued as a press release but provided upon request (and available here in pdf form.)

Despite the rebuttals, which contend that facts have been distorted, Byrne says no evidence exists that merit any retractions.

“Stories get killed all the time for various reasons but what I found interesting is that they paid me almost $5,000,” said Byrne, who expressed admiration for both the Nation and Salon. “The editor worked really hard with me but it was leading up to the elections. I’m not actually accusing them of anything nefarious. They basically told me they weren’t going to print it for political reasons.”

Peter Phillips, director of Project Censored, which rated the Byrne story as #23 out of the top 25 stories the mainstream media missed last year, said it played a part in prompting him to conduct a survey of 10 popular “left”-leaning publications. The survey looked at whether or not liberal news outlets touched stories that weren’t reported by the mainstream media and the results were included as a chapter in Project Censored 2008.

EDITORS NOTE: The above story reports that the piece on Dianne Feinstein’s conflicts of interest was slated to
run on the cover of The Nation. Ben Wyskida of the Nation contacted us after publication say that “we just don’t make promises like that; our covers never get decided until all the edits are in.”

Censored!

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>>Project Censored’s 15 missed-story runners up

>>Big local stories that never made mainstream headlines

>>The story behind a censored story that was killed by The Nation

amanda@sfbg.com

There are a handful of freedoms that have almost always been a part of American democracy. Even when they didn’t exactly apply to everyone or weren’t always protected by the people in charge, a few simple but significant rights have been patently clear in the Constitution: You can’t be nabbed by the cops and tossed behind bars without a reason. If you are imprisoned, you can’t be incarcerated indefinitely; you have the right to a speedy trial with a judge and jury. When that court date rolls around, you’ll be able to see the evidence against you.

The president can’t suspend elections, spy without warrants, or dispatch federal troops to trump local cops or quell protests. Nor can the commander in chief commence a witch hunt, deem individuals "enemy combatants," or shunt them into special tribunals outside the purview of our 218-year-old judicial system.

Until now. This year’s Project Censored presents a chilling portrait of a newly empowered executive branch signing away civil liberties for the sake of an endless and amorphous war on terror. And for the most part, the major news media weren’t paying attention.

"This year it seemed like civil rights just rose to the top," said Peter Phillips, the director of Project Censored, the annual media survey conducted by Sonoma State University researchers and students who spend the year patrolling obscure publications, national and international Web sites, and mainstream news outlets to compile the 25 most significant stories that were inadequately reported or essentially ignored.

While the project usually turns up a range of underreported issues, this year’s stories all fall somewhat neatly into two categories — the increase of privatization and the decrease of human rights. Some of the stories qualify as both.

"I think they indicate a very real concern about where our democracy is heading," writer and veteran judge Michael Parenti said.

For 31 years Project Censored has been compiling a list of the major stories that the nation’s news media have ignored, misreported, or poorly covered.

The Oxford American Dictionary defines censorship as "the practice of officially examining books, movies, etc., and suppressing unacceptable parts," which Phillips said is also a fine description of what happens under a dictatorship. When it comes to democracy, the black marker is a bit more nuanced. "We need to broaden our understanding of censorship," he said. After 11 years at the helm of Project Censored, Phillips thinks the most bowdlerizing force is the fourth estate itself: "The corporate media is complicit. There’s no excuse for the major media giants to be missing major news stories like this."

As the stories cited in this year’s Project Censored selections point out, the federal government continues to provide major news networks with stock footage, which is dutifully broadcast as news. The George W. Bush administration has spent more federal money than any other presidency on public relations. Without a doubt, Parenti said, the government invests in shaping our beliefs. "Every day they’re checking out what we think," he said. "The erosion of civil liberties is not happening in one fell swoop but in increments. Very consciously, this administration has been heading toward a general autocracy."

Carl Jensen, who founded Project Censored in 1976 after witnessing the landslide reelection of Richard Nixon in 1972 in spite of mounting evidence of the Watergate scandal, agreed that this year’s censored stories amount to an accumulated threat to democracy. "I’m waiting for one of our great liberal writers to put together the big picture of what’s going on here," he said.

1. GOOD-BYE, HABEAS CORPUS


The Military Commissions Act, passed in September 2006 as a last gasp of the Republican-controlled Congress and signed into law by Bush that Oct. 17, made significant changes to the nation’s judicial system.

The law allows the president to designate any person an "alien unlawful enemy combatant," shunting that individual into an alternative court system in which the writ of habeas corpus no longer applies, the right to a speedy trial is gone, and justice is meted out by a military tribunal that can admit evidence obtained through coercion and presented without the accused in the courtroom, all under the guise of preserving national security.

Habeas corpus, a constitutional right cribbed from the Magna Carta, protects against arbitrary imprisonment. Alexander Hamilton, writing in the Federalist Papers, called it the greatest defense against "the favorite and most formidable instruments of tyranny."

The Military Commissions Act has been seen mostly as a method for dealing with Guantánamo Bay detainees, and most journalists have reported that it doesn’t have any impact on Americans. On Oct. 19, 2006, editors at the New York Times wrote, in quite definitive language, "this law does not apply to American citizens."

Investigative journalist Robert Parry disagrees. The right of habeas corpus no longer exists for any of us, he wrote in the online journal Consortium. Deep down in the lower sections of the act, the language shifts from the very specific "alien unlawful enemy combatant" to the vague "any person subject to this chapter."

"Why does it contain language referring to ‘any person’ and then adding in an adjacent context a reference to people acting ‘in breach of allegiance or duty to the United States’?" Parry wrote. "Who has ‘an allegiance or duty to the United States’ if not an American citizen?"

Reached by phone, Parry told the Guardian that "this loose phraseology could be interpreted very narrowly or very broadly." He said he’s consulted with lawyers who are experienced in drafting federal security legislation, and they agreed that the "any person" terminology is troubling. "It could be fixed very simply, but the Bush administration put through this very vaguely worded law, and now there are a lot of differences of opinion on how it could be interpreted," Parry said.

Though US Sens. Patrick Leahy (D-Vt.) and Arlen Specter (R-Pa.) moved quickly to remedy the situation with the Habeas Corpus Restoration Act, that legislation has yet to pass Congress, which some suspect is because too many Democrats don’t want to seem soft on terrorism. Until tested by time, exactly how much the language of the Military Commissions Act may be manipulated will remain to be seen.

Sources: "Repeal the Military Commissions Act and Restore the Most American Human Right," Thom Hartmann, Common Dreams Web site, www.commondreams.org/views07/0212-24.htm, Feb. 12, 2007; "Still No Habeas Rights for You," Robert Parry, Consortium (online journal of investigative reporting), consortiumnews.com/2007/020307.html, Feb. 3, 2007; "Who Is ‘Any Person’ in Tribunal Law?" Robert Parry, Consortium, consortiumnews.com/2006/101906.html, Oct. 19, 2006

2. MARTIAL LAW: COMING TO A TOWN NEAR YOU


The Military Commissions Act was part of a one-two punch to civil liberties. While the first blow to habeas corpus received some attention, there was almost no media coverage of a private Oval Office ceremony held the same day the military act was signed at which Bush signed the John Warner Defense Authorization Act, a $532 billion catchall bill for defense spending.

Tucked away in the deeper recesses of that act, section 1076 allows the president to declare a public emergency and dispatch federal troops to take over National Guard units and local police if he determines them unfit for maintaining order. This is essentially a revival of the Insurrection Act, which was repealed by Congress in 1878, when it passed the Posse Comitatus Act in response to Northern troops overstaying their welcome in the reconstructed South. That act wiped out a potentially tyrannical amount of power by reinforcing the idea that the federal government should patrol the nation’s borders and let the states take care of their own territories.

The Warner act defines a public emergency as a "natural disaster, epidemic, or other serious public health emergency, terrorist attack or incident, or other condition in any state or possession of the United States" and extends its provisions to any place where "the president determines that domestic violence has occurred to such an extent that the constituted authorities of the state or possession are incapable of maintaining public order." On top of that, federal troops can be dispatched to "suppress, in a state, any insurrection, domestic violence, unlawful combination, or conspiracy."

So everything from a West Nile virus outbreak to a political protest could fall into the president’s personal definition of mayhem. That’s right — put your picket signs away.

The Warner act passed with 90 percent of the votes in the House and cleared the Senate unanimously. Months after its passage, Leahy was the only elected official to have publicly expressed concern about section 1076, warning his peers Sept. 19, 2006, that "we certainly do not need to make it easier for presidents to declare martial law. Invoking the Insurrection Act and using the military for law enforcement activities goes against some of the central tenets of our democracy. One can easily envision governors and mayors in charge of an emergency having to constantly look over their shoulders while someone who has never visited their communities gives the orders." In February, Leahy introduced Senate Bill 513 to repeal section 1076. It’s currently in the Armed Services Committee.

Sources: "Two Acts of Tyranny on the Same Day!" Daneen G. Peterson, Stop the North America Union Web site, www.stopthenorthamericanunion.com/articles/Fear.html, Jan. 20, 2007; "Bush Moves toward Martial Law," Frank Morales, Uruknet.info (Web site that publishes "information from occupied Iraq"), www.uruknet.info/?p=27769, Oct. 26, 2006

3. AFRICOM


President Jimmy Carter was the first to draw a clear line between America’s foreign policy and its concurrent "vital interest" in oil. During his 1980 State of the Union address, he said, "An attempt by any outside force to gain control of the Persian Gulf region will be regarded as an assault on the vital interests of the United States of America, and such an assault will be repelled by any means necessary, including military force."

Under what became the Carter Doctrine, an outpost of the Pentagon, called the United States Central Command, or CENTCOM, was established to ensure the uninterrupted flow of that slick "vital interest."

The United States is now constructing a similar permanent base in Africa, an area traditionally patrolled by more remote commands in Europe and the Pacific. No details have been released about exactly what AFRICOM’s operations and responsibilities will be or where troops will be located, though government spokespeople have vaguely stated that the mission is to establish order and keep peace for volatile governments — that just happen to be in oil-rich areas.

Though the official objective may be peace, some say the real desire is crude. "A new cold war is under way in Africa, and AFRICOM will be at the dark heart of it," Bryan Hunt wrote on the Moon of Alabama blog, which covers politics, economics, and philosophy. Most US oil imports come from African countries — in particular, Nigeria. According to the 2007 Congressional Budget Justification for Foreign Operations, "disruption of supply from Nigeria would represent a major blow to US oil-security strategy."

Though details of the AFRICOM strategy remain secret, Hunt has surveyed past governmental statements and reports by other independent journalists to draw parallels between AFRICOM and CENTCOM, making the case that the United States sees Africa as another "vital interest."

Source: "Understanding AFRICOM," parts 1–3, b real, Moon of Alabama, www.moonofalabama.org/2007/02/understanding_a_1.html, Feb. 21, 2007

4. SECRET TRADE AGREEMENTS


As disappointing as the World Trade Organization has been, it has provided something of an open forum in which smaller countries can work together to demand concessions from larger, developed nations when brokering multilateral agreements.

At least in theory. The 2006 negotiations crumbled when the United States, the European Union, and Australia refused to heed India’s and Brazil’s demands for fair farm tariffs.

In the wake of that disaster, bilateral agreements have become the tactic of choice. These one-on-one negotiations, designed by the US and the EU, are cut like backroom deals, with the larger country bullying the smaller into agreements that couldn’t be reached through the WTO.

Bush administration officials, always quick with a charming moniker, are calling these free-trade agreements "competitive liberalization," and the EU considers them essential to negotiating future multilateral agreements.

But critics see them as fast tracks to increased foreign control of local resources in poor communities. "The overall effect of these changes in the rules is to progressively undermine economic governance, transferring power from governments to largely unaccountable multinational firms, robbing developing countries of the tools they need to develop their economies and gain a favorable foothold in global markets," states a report by Oxfam International, the antipoverty activist group.

Sources: "Free Trade Enslaving Poor Countries" Sanjay Suri, Inter Press Service (global news service), ipsnews.org/news.asp?idnews=37008, March 20, 2007; "Signing Away the Future" Emily Jones, Oxfam Web site, www.oxfam.org/en/policy/briefingpapers/bp101_regional_trade_agreements_0703, March 2007

5. SHANGHAIED SLAVES CONSTRUCT US EMBASSY IN IRAQ


Part of the permanent infrastructure the United States is erecting in Iraq includes the world’s largest embassy, built on Green Zone acreage equal to that of Vatican City. The $592 million job was awarded in 2005 to First Kuwaiti Trading and Contracting. Though much of the project’s management is staffed by Americans, most of the workers are from small or developing countries like the Philippines, India, and Pakistan and, according to David Phinney of CorpWatch — a Bay Area organization that investigates and exposes corporate environmental crimes, fraud, corruption, and violations of human rights — are recruited under false pretenses. At the airport, their boarding passes read Dubai. Their passports are stamped Dubai. But when they get off the plane, they’re in Baghdad.

Once on site, they’re often beaten and paid as little as $10 to $30 a day, CorpWatch concludes. Injured workers are dosed with heavy-duty painkillers and sent back on the job. Lodging is crowded, and food is substandard. One ex-foreman, who’s worked on five other US embassies around the world, said, "I’ve never seen a project more fucked up. Every US labor law was broken."

These workers have often been banned by their home countries from working in Baghdad because of unsafe conditions and flagging support for the war, but once they’re on Iraqi soil, protections are few. First, Kuwaiti managers take their passports, which is a violation of US labor laws. "If you don’t have a passport or an embassy to go to, what do you do to get out of a bad situation?" asked Rory Mayberry, a former medic for one of First Kuwaiti’s subcontractors, who blew the whistle on the squalid living conditions, medical malpractice, and general abuse he witnessed at the site.

The Pentagon has been investigating the slavelike conditions but has not released the names of any vioutf8g contractors or announced penalties. In the meantime, billions of dollars in contracts continue to be awarded to First Kuwaiti and other companies at which little accountability exists. As Phinney reported, "No journalist has ever been allowed access to the sprawling 104-acre site."

Source: "A U.S. Fortress Rises in Baghdad: Asian Workers Trafficked to Build World’s Largest Embassy," David Phinney, CorpWatch Web site, www.corpwatch.org/article.php?id=14173, Oct. 17, 2006

6. FALCON’S TALONS


Operation FALCON, or Federal and Local Cops Organized Nationally, is, in many ways, the manifestation of martial law forewarned by Frank Morales (see story 2). In an unprecedented partnership, more than 960 federal, state, and local police agencies teamed up in 2005 and 2006 to conduct the largest dragnet raids in US history. Armed with fistfuls of arrest warrants, they ran three separate raids around the country that netted 30,110 criminal arrests.

The Justice Department claimed the agents were targeting the "worst of the worst" criminals, and Attorney General Alberto Gonzales said, "Operation FALCON is an excellent example of President Bush’s direction and the Justice Department’s dedication to deal both with the terrorist threat and traditional violent crime."

However, as writer Mike Whitney points out on Uruknet.info, none of the suspects has been charged with anything related to terrorism. Additionally, while 30,110 individuals were arrested, only 586 firearms were found. That doesn’t sound very violent either.

Though the US Marshals Service has been quick to tally the offenses, Whitney says the numbers just don’t add up. For example, FALCON in 2006 captured 462 violent sex-crime suspects, 1,094 registered sex offenders, and 9,037 fugitives.

What about the other 7,481 people? "Who are they, and have they been charged with a crime?" Whitney asked.

The Marshals Service remains silent about these arrests. Whitney suggests those detainees may have been illegal immigrants and may be bound for border prisons currently being constructed by Halliburton (see last year’s Project Censored).

As an added bonus of complicity, the Justice Department supplied local news outlets with stock footage of the raids, which some TV stations ran accompanied by stories sourced from the Department of Justice’s news releases without any critical coverage of who exactly was swept up in the dragnets and where they are now.

Sources: "Operation Falcon and the Looming Police State," Mike Whitney, Uruknet.info, uruknet.info/?p=m30971&s1=h1, Feb. 26, 2007; "Operation Falcon," SourceWatch (project of the Center for Media and Democracy), www.sourcewatch.org/index.php?title=Operation_FALCON, Nov. 18, 2006

7. BLACKWATER


The outsourcing of war has served two purposes for the Bush administration, which has given powerful corporations and private companies lucrative contracts supplying goods and services to American military operations overseas and quietly achieved an escalation of troops beyond what the public has been told or understands. Without actually deploying more military forces, the federal government instead contracts with private security firms like Blackwater to provide heavily armed details for US diplomats in Iraq, Afghanistan, and other countries where the nation is currently engaged in conflicts.

Blackwater is one of the more successful and well connected of the private companies profiting from the business of war. Started in 1996 by an ex–Navy Seal named Erik Prince, the North Carolina company employs 20,000 hired guns, training them on the world’s largest private military base.

"It’s become nothing short of the Praetorian Guard for the Bush administration’s so-called global war on terror," author Jeremy Scahill said on the Jan. 26 broadcast of the TV and radio news program Democracy Now! Scahill’s Blackwater: The Rise of the World’s Most Powerful Mercenary Army was published this year by Nation Books.

Source: "Our Mercenaries in Iraq," Jeremy Scahill, Democracy Now!, www.democracynow.org/article.pl?sid=07/01/26/1559232, Jan. 26, 2007

8. KIA: THE NEOLIBERAL INVASION OF INDIA


A March 2006 pact under which the United States agreed to supply nuclear fuel to India for the production of electric power also included a less-publicized corollary — the Knowledge Initiative on Agriculture. While it’s purportedly a deal to assist Indian farmers and liberalize trade (see story 4), critics say the initiative is destroying India’s local agrarian economy by encouraging the use of genetically modified seeds, which in turn is creating a new market for pesticides and driving up the overall cost of producing crops.

The deal provides a captive customer base for genetically modified seed maker Monsanto and a market for cheap goods to supply Wal-Mart, whose plans for 500 stores in the country could wipe out the livelihoods of 14 million small vendors.

Monsanto’s hybrid Bt cotton has already edged out local strains, and India is currently suffering an infestation of mealy bugs, which have proven immune to the pesticides the chemical companies have made available. Additionally, the sowing of crops has shifted from the traditional to the trade friendly. Farmers accustomed to cultivating mustard, a sacred local crop, are now producing soy, a plant foreign to India.

Though many farmers are seeing the folly of these deals, it’s often too late. Suicide has become a popular final act of opposition to what’s occurring in their country.

Vandana Shiva, who for 10 years has been studying the effects of bad trade deals on India, has published a report titled Seeds of Suicide, which recounts the deaths of more than 28,000 farmers who killed themselves in despair over the debts brought on them by binding agreements ultimately favoring corporations.

Hope comes in the form of a growing cadre of farmers hip to the flawed deals. They’ve organized into local sanghams, 72 of which now exist as small community networks that save and share seeds, skills, and assistance during the good times of harvest and the hard times of crop failure.

Sources: "Vandana Shiva on Farmer Suicides, the U.S.-India Nuclear Deal, Wal-Mart in India," Democracy Now!, www.democracynow.org/article.pl?sid=06/12/13/1451229, Dec. 13, 2006; "Genetically Modified Seeds: Women in India take on Monsanto," Arun Shrivastava, Global Research (Web site of Montreal’s Center for Global Research), www.globalresearch.ca/index.php?context=viewArticle&code=ARU20061009&articleId=3427, Oct. 9, 2006

9. THE PRIVATIZATION OF AMERICA’S INFRASTRUCTURE


In 1956, President Dwight D. Eisenhower ushered through legislation for the greatest public works project in human history — the interstate highway system, 41,000 miles of roads funded almost entirely by the federal government.

Fifty years later many of those roads are in need of repair or replacement, but the federal government has not exactly risen to the challenge. Instead, more than 20 states have set up financial deals leasing the roads to private companies in exchange for repairs. These public-private partnerships are being lauded by politicians as the only credible financial solution to providing the public with improved services.

But opponents of all political stripes are criticizing the deals as theft of public property. They point out that the bulk of benefits is actually going to the private side of the equation — in many cases, to foreign companies with considerable experience building private roads in developing countries. In the United States these companies are entering into long-term leases of infrastructure like roads and bridges, for a low amount. They work out tax breaks to finance the repairs, raise tolls to cover the costs, and start realizing profits for their shareholders in as little as 10 years.

As Daniel Schulman and James Ridgeway reported in Mother Jones, "the Federal Highway Administration estimates that it will cost $50 billion a year above current levels of federal, state, and local highway funding to rehab existing bridges and roads over the next 16 years. Where to get that money, without raising taxes? Privatization promises a quick fix — and a way to outsource difficult decisions, like raising tolls, to entities that don’t have to worry about getting reelected."

The Indiana Toll Road, the Chicago Skyway, Virginia’s Pocahontas Parkway, and many other stretches of the nation’s public pavement have succumbed to these private deals.

Cheerleaders for privatization are deeply embedded in the Bush administration (see story 7), where they’ve been secretly fostering plans for a North American Free Trade Agreement superhighway, a 10-lane route set to run through the heart of the country and connect the Mexican and Canadian borders. It’s specifically designed to plug into the Mexican port of Lázaro Cárdenas, taking advantage of cheap labor by avoiding the International Longshore and Warehouse Union, whose members are traditionally tasked with unloading cargo, and the International Brotherhood of Teamsters, whose members transport that cargo that around the country.

Sources: "The Highwaymen" Daniel Schulman with James Ridgeway, Mother Jones, www.motherjones.com/news/feature/2007/01/highwaymen.html, Feb. 2007; "Bush Administration Quietly Plans NAFTA Super Highway," Jerome R. Corsi, Human Events, www.humanevents.com/article.php?id=15497, June 12, 2006

10. VULTURE FUNDS: DEVOURING THE DESPERATE


Named for a bird that picks offal from a carcass, this financial scheme couldn’t be more aptly described. Well-endowed companies swoop in and purchase the debt owed by a third world country, then turn around and sue the country for the full amount — plus interest. In most courts, they win. Recently, Donegal International spent $3 million for $40 million worth of debt Zambia owed Romania, then sued for $55 million. In February an English court ruled that Zambia had to pay $15 million.

Often these countries are on the brink of having their debt relieved by the lenders in exchange for putting the owed money toward necessary goods and services for their citizens. But the vultures effectively initiate another round of deprivation for the impoverished countries by demanding full payment, and a loophole makes it legal.

Investigative reporter Greg Palast broke the story for the BBC’s Newsnight, saying that "the vultures have already sucked up about $1 billion in aid meant for the poorest nations, according to the World Bank in Washington."

With the exception of the BBC and Democracy Now!, no major news source has touched the story, though it’s incensed several members of Britain’s Parliament as well as the new prime minister, Gordon Brown. US Reps. John Conyers (D-Mich.) and Donald Payne (D-N.J.) lobbied Bush to take action as well, but political will may be elsewhere. Debt Advisory International, an investment consulting firm that’s been involved in several vulture funds that have generated millions in profits, is run by Paul Singer — the largest fundraiser for the Republican Party in the state of New York. He’s donated $1.7 million to Bush’s campaigns.

Source: "Vulture Fund Threat to Third World," Newsnight, www.gregpalast.com/vulture-fund-threat-to-third-world, Feb. 14, 2007

>>More: The story of U.S. Senator Diane Feinstein’s conflict of interest

Editor’s Notes

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› tredmond@sfbg.com

Isn’t it just great that San Francisco was about to enter into a long-term contract to turn part of our municipal infrastructure over to a company that is laying off 40 percent of its employees, floundering around trying to find a business plan, and getting entirely out of the line of work Mayor Gavin Newsom had in mind?

I feel good that the young mayor (who is acting more and more like a little kid every day) was so careful in preparing plans for a citywide wi-fi service that he never acknowledged, up to the very end, that his public-private partnership was poorly conceived and headed for the rocks.

And now it’s just so special that he wants to blame the Board of Supervisors for scrutinizing the contract — which is exactly what any decent legislative body is supposed to do at a time like this.

The EarthLink nosedive happened at the perfect time for San Francisco. If the company had hung on a little longer to its business plan for citywide wi-fi, the mayor might have managed to push enough supervisors to sign on to the deal. Or his November ballot measure might have passed, and the board might have been afraid to defy the voters. This might have been a grand little fiscal, legal, and political nightmare that could have stalled any progress on municipal broadband for years.

Newsom still insists that he was on the right track. "EarthLink would have been legally obligated to fulfill its promises to San Francisco, and we would have had a functioning wi-fi system by now," Newsom told the San Francisco Chronicle.

But the reality is, a company that doesn’t want to do a job that no longer fits into its business strategy — and a company having enough financial problems that it’s had to cut its staff almost in half — isn’t what you would call an excellent partner. And we can all thank the fact that this Board of Supervisors is relatively independent of the Mayor’s Office for our not being stuck in a rotten deal.

San Francisco doesn’t have a terribly good record of negotiating public-private partnerships or development deals. Back in the early 1980s, then-mayor Dianne Feinstein personally took control of the negotiations with Pacific Gas and Electric Co. for a long-term contract to transmit the city’s power. The deal was about as bad as it could get — everything for PG&E, nothing for the city — but the mayor insisted it was an excellent contract, and she and PG&E’s lobbyists rammed it through a compliant Board of Supervisors. It’s wound up costing San Francisco tens of millions of dollars, and the city’s been trying to get out of it for years. PG&E’s franchise fee is the lowest that any city charges a private utility in California — and it was assigned in perpetuity by a compliant Board of Supervisors in the 1930s.

We’re supposed to be a little more sophisticated today. District elections have ended the mayoral rubber stamp at City Hall, and the mayor should understand that any time he works out a deal like this, the supes are going to give it a hard look. If it’s so great for everyone, then making the details public as early as possible, working with the board (instead of refusing even to show up), and sharpening the deal will make things even better.

That’s not how this mayor does business. And you can tell. *

Will the pro-parking Prop. H remain on the ballot?

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Livable City executive director Tom Radulovich has asked the city Elections Department to remove the controversial pro-car measure Prop. H from the fall ballot after discovering a fairly significant misstatement of city law in the ballot summary that its downtown advocates circulated to get on the ballot. The measure, funded by Republican Don Fisher and condo developer WebCor, invalidates most city parking policies and drastically expands people’s rights to build parking spots.
The summary, prepared by the City Attorney’s Office, said current law allows at least one parking spot for every four housing units in the downtown districts and up to one spot for every three units. But as Radulovich’s letter (which follows) indicates, city law actually allows up to one parking spot per unit in downtown residential zones and two spots for every three units in the commercial C-3 zone downtown.
Guardian phone calls to the City Attorney Office, Elections Department, and Prop. H advocate Jim Maxwell have not yet been returned.
Political consultant Jim Stearns, who is running the campaign against Prop. H, told us state law requires the city to remove the measure. He cited the precedent of City Attorney Dennis Herrera last year invalidating a successful referendum drive challenging the creation of the Bayview Hunters Point Redevelopment area because those circulating petition didn’t carry with them the complete plan, only the ordinance that approved it. If the city doesn’t remove the measure, Stearns said opponents will seek a court injunction doing so.

Daly will not run for mayor

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By Tim Redmond

Sup. Chris Daly, who was talking over the past few days about a campaign for mayor, has decided against it. He sent a statement tonight; I’ll post the whole thing:

Progressive Allies and Friends,

For the past 6.5 years, we have enjoyed strong
progressive politics in San Francisco. Progressive
San Francisco has delivered a new era of worker’s
rights with the nation’s highest minimum wage,
universal health coverage, and paid sick days.
Requiring significant amounts of affordable housing
and other public benefits, we’ve made development work
for communities. We’ve set the agenda on workers’
rights, housing, health care, city services,
transportation, and the environment. Our political
opponents, even holding the office of Mayor, have been
on the defensive.

Despite our political strength and its marquis
standing in local political races, it’s clear that
we’ve had difficulty engaging in this year’s Mayor’s
race. Progressives share a principled critique of the
personality-driven politics practiced by our
opponents. We elevate the issues important to
everyday people above our own political advancement
and personal self-interest. We are right to do so.
Unfortunately, this does not always translate well
into the mainstream and corporate-controlled media.

For the better part of a year, I felt a great deal of
responsibility to find a strong progressive candidate
for Mayor, all the while acknowledging that I was not
our best possible candidate. There were discussions,
caucuses, lunches, and even a Progressive Convention
aimed at compelling a progressive entry into the race.
With news last week of the final potential candidate
forgoing the race, I decided to take another look at
making a run.

This past week Progressive San Francisco produced a
flurry of activity about that possibility. I was
heartened and inspired that so many were willing to
step up in the face of significant odds. Dozens of
you dropped what you were doing to spend hours on end
with me this week. Hundreds pledged your support.
The outpouring gave me hope that we do have what it
takes to take back Room 200 and deliver social and
economic justice to San Francisco.

However, I have decided not to file a candidacy for
the Office of Mayor.

Given the negative, million-dollar campaign against me
last year, there was never a question that this
Mayor’s race would be brutal. The incumbent promised
as much in a meeting this week. Our ideas are better,
and I was committed to running a campaign about our
issues. But most of us had reservations about whether
we’d ever be able to achieve resonance on the issues
against the tide of hits, personal attacks, and media
hype of the Newsom vs. Daly personality clash.

Sarah and I arrived at last night’s meeting with the
intention of announcing my entry into the race and
were moved by everyone’s willingness to act on faith.
When I called on progressives for support for a
Mayoral run, progressives responded. But I also
sensed that the reservations in the room were real.
Progressives are certainly ready to vie for the
Mayor’s seat, but, unfortunately, I am not the right
candidate.

There is some good news. Progressives are much
stronger than we were the last time we didn’t field a
challenger for Mayor. Back in ’83, the progressive
movement had not recovered from the Milk/Moscone
assassinations and the subsequent repeal of district
elections. Dianne Feinstein enjoyed great popularity
after soundly squashing a recall effort. She went on
to easily win reelection later that year.

Four years later it appeared as if downtown’s reign
would continue with the front-running candidacy of
John Molinari. His bid, however, was upset when Art
Agnos united San Francisco’s left with a disciplined,
sustained, and effective campaign.

We all know that electoral work is just a part of the
overall effort we need to put forth. There is no
substitute for the basics of organizing and serving
our people so they can live with dignity. I will
always remain committed to the struggle and to
building progressive politics and people power in San
Francisco for the years to come.

Solidarity,

Chris Daly

It would have been a hell of a race, but I respect his decision. Now it’s time to focus on the Board of Supervisors races in 2008.

Who killed Brad Will?

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news@sfbg.com

Oaxaca, Mexico — Those of us who report from the front lines of the social-justice movement in Latin America share an understanding that there’s always a bullet out there with our name on it. Brad Will traveled 2,500 miles, from New York to this violence-torn Mexican town, to find his.

Throughout the summer and fall of 2006, the southern Mexican state of Oaxaca was on fire. Death squads, the pistoleros of a despised governor, rolled through the cobblestoned streets of this colonial capital, peppering with automatic weapon fire the flimsy barricades erected by masked rebels. Hundreds were killed, wounded, or imprisoned.

Will, a New York Indymedia videojournalist, felt he had to be there. Xenophobia was palpable on the ground when Will touched down. Foreign journalists were attacked as terrorists by the governor’s sycophants in the media: "Si ves un gringo con cámara, matanlo!" the radio chattered — if you see a gringo with a camera, kill him!

For much of the afternoon of Oct. 27, Will had been filming armed confrontations on the barricades just outside the city. He was trapped in the middle of a narrow street while gunshots boomed all around him, but he kept filming, looking for the money shot.


And he found it: on his final bits of tape, two clearly identifiable killers are perfectly framed, their guns firing. You hear the fatal shot and experience Brad’s shudder of dismay as the camera finally tumbles from his hands and bounces along the sidewalk.

By all visible evidence, Brad Will filmed his own murder. But this is Mexico, where justice is spelled impunity — and Will’s apparent killers continue to ride the streets of Oaxaca, free and, it seems, untouchable.

Curiously, this egregious murder of a US reporter in Mexico has drawn minimal response from US Ambassador Tony Garza, an old crony of President George W. Bush. Why this lack of interest? Can it be that Washington has another agenda that conflicts with justice for Will — the impending privatization of Mexican oil?

HEADING SOUTH


Will was once a fire-breathing urban legend on Manhattan’s Lower East Side. Whether perched atop the Fifth Street squat where he had lived for years and waving his long arms like Big Bird as the wrecking ball swung in, or being dragged out of City Hall dressed as a sunflower while trying to rescue the neighborhood’s community gardens, this child of privilege from Chicago’s wealthy North Shore was a legitimate street hero in the years before the World Trade Center towers collapsed and the social-change movement in New York City went into deep freeze.

Will hosted an incendiary weekly show on the New York pirate station Steal This Radio and was an early part of Indymedia, the Web publishing experiment born during the "Battle of Seattle," the World Trade Organization protests that rocked that city in 1999.

With his long hair neatly tied back and parted down the middle, with his granny glasses and fringe beard, and with his fierce commitment to building community, Will seemed to have emerged whole from a more utopian time in America.

He was an independent journalist, one of the growing number of people, such as Josh Wolf in San Francisco, who use the Internet and their video cameras to track and report on social moments and injustice. He wore no credential from any major news organization. But using outlets like Indymedia, he — like Wolf, who spent seven months in prison to avoid giving the police a copy of his video outtakes — represented part of the future of journalism.

Will’s journey to the land where he would die began right after Sept. 11, 2001. Dyan Neary, then a neophyte journalist, met Will in a South Street skyscraper elevator coming down from the WBAI studios from which Amy Goodman broadcast soon after the terrorist attacks.

"We walked down the piles. They were still smoking," Neary remembered in a phone call from Humboldt County. "We were both really scared. We thought this was not going to be resolved soon. Maybe never. So we thought we should go to Latin America, where people were still fighting."

Will and Neary spent most of 2002 and 2003 roaming the bubbling social landscape of Latin America. In Fortaleza, Brazil, they confronted the director of the Inter-American Development Bank during riotous street protests. They journeyed to Bolivia too and interviewed Evo Morales, not yet the president. They traveled in the Chapare rainforest province with members of the coca growers’ federation. They hung out in Cochabamba with Oscar Olivera, the hero of the battle to keep Bechtel Corp. from taking over that city’s water system. Everywhere they went, they sought out pirate radio projects and offered their support.

In February 2005, Will was in Brazil, in the thick of social upheaval, filming the resistance of 12,000 squatters at a camp near the city of Goiânia in Pernambuco state, when the military police swept in, killing two and jailing hundreds. On his videos, you can hear the shots zinging all around him as he captured the carnage. Will was savagely beaten and held by the police. Only his US passport saved him.

Undaunted by his close call, Will picked up his camera and soldiered back through Peru and Bolivia, and when the money ran out, he flew back to New York to figure out how to raise enough for the next trip south. He was hooked. In early 2006, drawn like a moth to flame, he was back, tracking Subcomandante Marcos and the Zapatistas’ Other Campaign through the Mayan villages on Mexico’s Yucatán Peninsula.

In the spring of 2006, Will was back in New York as he tracked the Other Campaign and the incipient rebellion in Oaxaca on the Internet from his room in Williamsburg. (The rent gougers had forced him out of the Lower East Side.) He was poised to jump south again, friends say, but was worried that he would just be one more white guy getting in the way.

In the end, the lure of the action in Oaxaca pulled him in. He bought a 30-day ticket, caught the airport shuttle from Brooklyn to John F. Kennedy International Airport, and flew south Sept. 29. His return was set for Oct. 28. He never made that flight.

THE COMMUNE OF OAXACA


A mountainous southern Mexican state traversed by seven serious sierras, Oaxaca is at the top of most of the nation’s poverty indicators — infant mortality, malnutrition, unemployment, and illiteracy. Human rights violations are rife. It’s also Mexico’s most indigenous state, with 17 distinct Indian cultures, each with a rich tradition of resistance to the dominant white and mestizo overclass. Oaxaca vibrates with class and race tensions that cyclically erupt into uprising and repression.

The Party of the Institutional Revolution, or PRI, ruled Mexico from 1928 to 2000, the longest-running political dynasty in the world. The corrupt organization was dethroned by the right-wing National Action Party (PAN) and its picaresque presidential candidate, Vicente Fox, former president of Coca Cola México.

But in Oaxaca, the PRI never lost power. While voters were throwing off the PRI yoke all over the rest of the country, in Oaxaca one PRI governor had followed another for 75 years. The latest, Ulises Ruiz Ortiz, a protégé of party strongman and future presidential candidate Roberto Madrazo, won a fraud-marred election over a right-left coalition in 2004.

In the first 16 months of his regime, Ruiz proved spectacularly unresponsive to the demands of the popular movements for social justice. When, on May 15, 2006, National Teachers Day, a maverick, militant local of the National Education Workers Union known as Section 22 presented its contract demands, Ruiz turned a deaf ear. Then, on May 22, tens of thousands of teachers took the plaza and 52 surrounding blocks and set up a ragtag tent city. Each morning the maestros would march out of their camp and block highways and government buildings, which were soon smeared with anti-Ruiz slogans.

Ruiz retaliated before dawn June 14, sending 1,000 heavily armed police officers into the plaza to evict the teachers. Low-flying helicopters sprayed pepper gas on the throng below. Ruiz’s police took up positions in the colonial hotels that surround the plaza and tossed down concussion grenades from the balconies. Radio Plantón, the maestros’ pirate radio station, was demolished and the tent city set afire. A pall of black smoke hung over the city.

Four hours later a spontaneous outburst by Oaxaca’s very active community, combined with the force of the striking teachers and armed with clubs and Molotov cocktails, overran the plaza and sent Ruiz’s cops packing. No uniformed officers would be seen on the streets of Oaxaca for many months. And on June 16, two days after the monumental battle, 200,000 Oaxacans marched through the city to repudiate the governor’s "hard hand." The megamarch was said to extend 10 kilometers.

John Gibler, who closely covered the Oaxaca uprising as a human-rights fellow for Global Exchange, wrote that the surge of the rebels June 14 soon transformed itself into a popular assembly. The Oaxaca Peoples Popular Assembly, or APPO, was formally constituted June 21. The APPO had no leaders but many spokespeople, and all decisions had to be made in assemblies.

A CITY PARALYZED


For the next weeks, the actions of the APPO and Section 22 paralyzed Oaxaca — but the rest of Mexico took little notice. Instead, the nation was hypnotized by the fraud-marred July 2 presidential election in which a right-wing PAN-ista, Felipe Calderón, had been awarded a narrow victory over leftist Andrés Manuel López Obrador, the candidate of a coalition headed by the Party of the Democratic Revolution. López Obrador was quick to cry fraud, pulling millions into the streets in the most massive political demonstrations in Mexican history. Oaxaca still seemed like small potatoes.

But Oaxaca is an international tourist destination, and the APPO and Section 22 protests had closed down the tourist infrastructure, blocking the airport and forcing five-star hotels to shutter their doors. On July 17, Ruiz was forced to announce the cancellation of the Guelaguetza, an indigenous dance festival that has become Oaxaca’s premiere tourist attraction, after roaming bands of rebels destroyed the scenery and blockaded access to the city.

Ruiz began to fight back. By the first weeks of August, the governor launched what came to be known as the Caravan of Death — a train of 30 or 40 private and government vehicles rolling nightly, firing on the protesters. Ruiz’s gunmen were drawn from the ranks of the city police and the state ministerial police.

To keep the Caravan of Death from moving freely through Oaxaca, the APPO and the union threw up barricades; 1,000 were built in the working-class colonies throughout the city and its suburbs. The rebels piled up dead trees, old tires, and burned-out cars and buses to create the barricades, which soon took on a life of their own; murals were painted using the ashes of the bonfires that burned all night on the barriers. Indeed, the barricades gave the Oaxaca struggle the romantic aura of the Paris Commune uprising of 1871 and attracted droves of dreadlocked anarchists to the city.

An uneasy lull in the action gripped Oaxaca on Oct. 1, when Will arrived at the bus terminal, then found himself a cheap room for the night. The break wouldn’t last long.

ON THE BARRICADES


Like most non-Mexicans who style themselves as independent reporters, Will had no Mexican media credential and therefore was in the country illegally, working on a tourist visa and susceptible to deportation. To have some credential other than his Indymedia press card to hang around his neck, he got himself accredited with Section 22 and wore the rebel ID assiduously.

On Oct. 14, APPO militant Alejandro García Hernández was cut down at a barricade near Símbolos Patrios, a downtown plaza. Will joined an angry procession to the Red Cross hospital where the dead man had been taken.

In the last dispatch he filed from Oaxaca, on Oct. 16, Will caught this very Mexican whiff of death: "Now [García Hernández lies] waiting for November when he can sit with his loved ones on the day of the dead and share food and drink and a song … one more death — one more martyr in a dirty war — one more time to cry and hurt — one more time to know power and its ugly head — one more bullet cracks the night."

The dynamic in Oaxaca had gotten "sketchy," Will wrote to Neary. Section 22 leader Enrique Rueda Pacheco had cut a deal with the outgoing Fox government and forced a back-to-work vote Oct. 21 that narrowly carried amid charges of sellout and payoffs. If the teachers went back to work, the APPO would be alone on the barricades and even more vulnerable to Ruiz’s gunmen. But backing down was not in the assembly’s dictionary, and the APPO voted to ratchet up the lucha (struggle) and make Oaxaca really ungovernable.

Mobile brigades were formed — young toughs armed with lead pipes and nail-studded boards who hijacked buses still running in the city, forced the passengers off, and rode around looking for action. Later the buses would be set afire. Charred hulks blossomed on the streets of the old colonial city. The barricades were reinforced to shut down the capital beginning Oct. 27.

The escalation proved to be a terrible miscalculation. In Mexico City the postelectoral turmoil had finally subsided, and PAN was ready to deal with the PRI; bailing out the governor of Oaxaca was the PRI’s price of admission.

It wasn’t a good time for inexperienced foreigners. Ruiz’s people were checking the guest lists at the hostels for "inconvenient" internationals. Immigration authorities threatened extranjeros with deportation if they joined the protests. The local US consul, Mark Leyes, warned Americans that he would not be able to help them if they got caught up in the maelstrom.

Adding to this malevolent ambiance, a new pirate station popped up Oct. 26. Radio Ciudadana (Citizens’ radio) announced it was broadcasting "to bring peace to Oaxaca" and to celebrate the honor of "our macho, very macho governor." The announcers seemed to have Mexico City accents. Wherever they had been sent from, they let loose with a torrent of vitriolic shit — stuff like "We have to kill the mugrosos [dirty ones] on the barricades." The extranjeros, the radio said, were stirring up all the trouble: "They pretend to be journalists, but they have come to teach terrorism classes."

More frightening was this admonition: "Si ves un gringo con cámara, matanlo!" — "If you see a gringo with a camera, kill him!"

This poison spewed out of local radios all day Oct. 26 and 27, but whether Will heard the warnings — and if he did, whether knew what they meant — is unclear. He didn’t speak much Spanish.

SHOT IN THE CHEST


On Oct. 27, Will went out to do interviews on the barricade at Santa María Coyotepec, about 20 kilometers from the city. The three barricades at Coyotepec, Cal y Canto, and La Experimental were crucial to closing down Oaxaca the next day. The broad Railroad Avenue where the barricade was stacked was empty. Nothing was moving. Will walked on to the next barricade at La Experimental to check out the action.

Soon after the Indymedia reporter left, all hell broke loose at Cal y Canto. A mob of about 150 Ruiz supporters stormed down Railroad Avenue, led by what witnesses thought was a Chevy Blazer. The vehicle was moving very fast. "We thought it would try and crash through the barricade," Miguel Cruz, an activist and witness, recalled. But the SUV stopped short, and several men jumped out with guns blazing. The APPO people hunkered down behind the makeshift barrier and moved the women and kids who were with them into a nearby house. Then they went on the counterattack with Molotov cocktails, homemade bazookas that fired bottle rockets, and slingshots. Most of the mob had melted away, and with the gunmen retreating, the rebels torched their vehicle.

Will heard about the gunfire and hurried back to Cal y Canto with a handful of other reporters. They arrived a little after 3 p.m.

Will climbed under a parked trailer to film the shooters. He focused on a man in a white shirt. When an APPO activist (who is not seen on the videotape) came running by, Will indicated the shooter — "Camisa blanca." While all this was going on, the camera captured a bicyclist peddling dreamily through the intersection. Soon after, a large dump truck appeared on the scene, and the group on the barricade used it as a mobile shield as they chased the gunmen down the avenue.

Suddenly, the pistoleros veered down a narrow side street, Benito Juárez, and took refuge in a windowless, one-story building on the second block. The only access to the building was through a large metal garage door, and the reporters followed the APPO militants, many of whom were masked, as they tried to force their way in. Will stood to one side of the door for a minute, poised for the money shot. Then the compas tried unsuccessfully to bust down the big door by ramming the dump truck into it.

In the midst of this frenzy, five men in civilian dress — two in red shirts (the governor’s color) and the others in white — appeared at the head of Benito Juárez, about 30 meters away, and began shooting at the rebels.

Two of the gunmen were later identified by Mexican news media as Pedro Carmona, a cop and local PRI political fixer, and police commander Orlando Manuel Aguilar Coello. One of those in the white shirts, crouched behind Carmona, was Abel Santiago Zárate, a.k.a. El Chino. Santiago Zárate and Aguilar Coello were reported to be the personal bodyguards of municipal president Manuel Martínez Feria of the PRI. The other two would later be fingered as Juan Carlos Soriano, a.k.a. El Chapulín (the grasshopper), and Juan Sumano, both Santa Lucía del Camino police officers. All five are eminently identifiable in the film Will shot just moments before the bullets hit him.

When the shooting erupted, Will took cover on the opposite side of the narrow street from the rest of the media. He was crouched against a lime green wall when the first bullet came. On the video soundtrack, you can hear both the shot and Will’s cries of dismay as it tore through his Indymedia T-shirt and smashed into his heart. A second shot caught him in the right side and destroyed his innards. There was little blood spilled, the first slug having stopped his heart.

In footage that witness Gustavo Vilchis and others filmed, the entrance wound of the first shot looks like a deep bruise. The second shot was not recorded on the soundtrack and may have been fired simultaneously with the first.

Others were shot in the pandemonium. Oswaldo Ramírez, filming for the daily Milenio, was grazed. Lucio David Cruz, described as a bystander, was hit in the neck and died four months later.

As Will slid down the wall into a sitting position, Vilchis and activist Leonardo Ortiz ran to him. Will’s Section 22 credential had flown off, and no one there knew his name. With bullets whizzing by, the compas picked Will up and dragged him out of the line of fire and around the corner to Árboles Street, about 35 paces away. Along the way, his pants fell off.

"Ambulance! We need an ambulance! They’ve shot a journalist!" Vilchis, a tall young man with a face like an Italian comic actor’s, shouted desperately. Gualberto Francisco, another activist, had parked his vochito (Volkswagen Bug) on Árboles and pulled up alongside Will, who was laid out on the pavement in his black bikini underwear.

Ortiz and Vilchis loaded the dying Will into the back seat. They thought he was still breathing, and Vilchis applied mouth-to-mouth resuscitation. "You’re going to make it … you’re all right," they kept telling him. But Will’s eyes had already turned up — he was perdido (lost), as they say in Mexico.

The vochito ran out of gas, and while the frantic young men ferrying Will were stuck in the middle of the Cinco Señores crossroad, it began to rain hard. They tried to stop a taxi to take them to the Red Cross, but the driver supported the government and wanted to argue. Finally, they flagged down a pickup truck and laid Will out in the bed. He was dead when he arrived at the hospital, according to the report by the coroner, Dr. Luis Mendoza.

THE OUTRAGE BEGINS


Oct. 27 was the bloodiest day of the Oaxaca uprising. Four people were killed besides Will: Emilio Alonso Fabián, Esteban Ruiz, Esteban López Zurita, and Audacia Olivera Díaz.

Unlike their murders, Will’s death triggered international outrage. Because he was so connected — and because much of the episode was recorded on film —the shot of the mortally wounded Indymedia reporter lying in the middle of a Oaxaca street went worldwide on the Web in a matter of minutes.

There were instant vigils on both coasts of the United States. On Oct. 30, 11 of Will’s friends were busted trying to lock down at the Mexican consulate off Manhattan’s Park Avenue, where graffiti still read "Avenge Brad!" in December. Anarchists splattered the San Francisco consulate with red paint. Subcomandante Marcos sent his condolences and called for international protests. Goodman did an hour-long memorial.

On March 16, 2007, at its midyear meeting in Cartagena de Indias, Colombia, the Inter-American Press Association, an organization devoted to freedom of speech and the press in the Americas, passed a resolution calling for action on the Will case.

"The investigation into the killing has been plagued by irregularities and inconsistencies, and no arrests have been made," the group said in a statement. IAPA called for the federal attorney general to take over the investigation, "in view of the lack of confidence in state authorities and the lack of progress in the case, so that it may apprehend the culprits, who, according to one theory of the investigation, may be indirectly linked to state authorities."

The official reaction to Will’s death was more cautious. "It is unfortunate when peaceful demonstrations get out of hand and result in violence," a US spokesperson told the media, seeming to blame the APPO for Will’s killing. After once again warning Americans that they traveled to Oaxaca "at their own risk," Ambassador Garza commented on the "senseless death of Brad Will" and how it "underscores the need for a return to the rule of law and order."

"For months," he said, "violence and disorder in Oaxaca have worsened. Teachers, students, and other groups have been involved in increasingly violent demonstrations."

Garza’s statement sent Fox the signal he had been waiting for. Now that a gringo had been killed, it was time to act. The next morning, Oct. 28, 4,500 officers from the Federal Preventative Police, an elite force drawn from the military, were sent into Oaxaca — not to return the state to a place where human rights, dignity, and a free media are respected but to break the back of the people’s rebellion and keep Ruiz in power.

On Oct. 29 the troops pushed their way into the plaza despite massive but passive resistance by activists, tore down the barricades, and drove the commune of Oaxaca back into the shadows.

In Mexico the dead are buried quickly. After the obligatory autopsy, Brad’s body was crated up for shipment to his parents, who now live south of Milwaukee. After a private viewing, the family had him cremated.

SHAM ACCOUNTABILITY


Killing a gringo reporter in plain view of the cameras (one of which was his own) requires a little sham accountability. On Oct. 29 the state prosecutor, Lizbeth Caña Cadeza, announced that arrest warrants were being sworn out for Santiago Zárate and Aguilar Coello, two of the five cops caught on film gunning Will down, and they were subsequently taken into custody.

The scam lost currency two weeks later when, on Nov. 15, Caña Cadeza dropped a bombshell at an evening news conference: the cops hadn’t killed Will, she said; he was shot by the rebels.

Will’s death, she insisted, had been "a deceitful confabulation to internationalize the conflict" and was, in fact, "the product of a concerted premeditated action." The mortal shot had been fired from less than two and a half meters away, Caña Cadeza said — although there is nothing in the coroner’s report to indicate this. The real killers, she said, were "the same group [Will] was accompanying."

In the state prosecutor’s scenario, the order of the shots was reversed: first Will had been shot in the side on the street, then rematado (finished off) with a slug to the heart on the way to the hospital in Francisco’s vochito.

The prosecutor’s plot was immediately challenged by the APPO. "The killers are those who are shown in the film," Florentino López, the assembly’s main spokesperson, asserted at a meeting that night.

And in fact our detailed investigation shows that there is very little evidence to support Caña Cadeza’s theory. Photos from the scene, some published in the Mexican media, show Will’s body with a bloody hole in his chest on the street near where he fell — indicating that his fatal heart wound occurred well before he was dragged into the car where he was supposedly shot.

There’s another problem with the prosecutor’s suggestion: nobody on the scene saw any APPO members, or anyone except the authorities, carrying guns. This reporter has talked to numerous eyewitnesses, and all told the same tale: the rebels at the barricade that day had no firearms with which they could have shot Will.

Miguel Cruz, who spent much of Oct. 27 with Will, first at the Council of Indigenous People of Oaxaca, of which he is a member, and then on the barricade at Cal y Canto and on Juárez Street, is a soft-spoken young Zapotec Indian, but he pounded vehemently on the kitchen table when he addressed Caña Cadeza’s allegations.

"The compañeros had no guns. What gun is she talking about? They had slingshots and Molotovs but no guns. The PRI-istas and the cops had their .38s, and they were shooting at us," he said. "We were trying to save Brad Will’s life, not to kill him."

And if Caña Cadeza had any proof of her allegations, she likely would have filed charges. But none of the protesters or Will’s companions has been formally charged with the killing. Prosecutors have never publicly presented the alleged murder weapon.

But by the time Caña Cadeza told her story, of course, the only way to determine for sure the order of the bullets and the distance from which they had been fired would have been to exhume Will’s body. And there was no body; he had been cremated the week before.

On Nov. 28, Santiago Zárate and Aguilar Coello were released from custody by Judge Victoriano Barroso because of "insufficient evidence," with the stipulation that they could not be rearrested without the presentation of new evidence.

Caña Cadeza, who is now running as a PRI candidate for the state legislature, collaborated closely on the case with Oaxaca secretary of citizen protection Lino Celaya. Both reported to Ruiz’s secretary of government, Heliodoro Díaz, who in turn reported directly to the governor. There seems little doubt that the prosecutor’s accusations of murder against Will’s comrades — and the determination of innocence for the apparent killers — came straight from the top.

ON THE EVIDENCE TRAIL


Dr. Mendoza was occupied when I stopped by the Oaxaca city morgue to ask for a copy of the autopsy report on which the state has based its allegations.

"Will died eight months ago," Mendoza complained testily. "Do you know how many others have died since? How many autopsies I’ve performed?" He gestured to a morgue room where cadavers were piled up.

The coroner was scrunched over his desk, filling out the paperwork for one of the dead. He didn’t have any time to look for the autopsy report. I was not the first reporter to ask him about the document. "What paper are you from anyway?" he asked suspiciously, and when I showed him my media card, he told me that it didn’t sound like a real newspaper to him. "I know what I’m doing. I worked as a coroner in your country," he snapped defensively and waved me out of the office.

But Mendoza might not be quite as cocksure as he sounded. A senior agent for the US government in Oaxaca, who asked not to be named in this article, told me later that Mendoza confided to him that he was no ballistics expert, nor could he determine from how far away the bullets were fired.

I walked into the police commissary under the first-floor stairs of the Santa Lucía del Camino Municipal Palace. The small room was crowded with cops and cigarette smoke. Three of the officers were in full battle gear, and the rest were plainclothes. I had been warned not to ask for Carmona, the most prominent red shirt on Will’s film. Carmona is described as a prepotente — i.e., a thug with an attitude who is always packing.

Instead, I asked the desk clerk if I could get a few minutes with Santiago Zárate and Aguilar Coello. For all I knew, the two were sitting in the room behind me. The desk clerk studied my card. "Qué lástima!" he exclaimed — what a shame. Santiago Zárate had just left and wouldn’t be back until after six. Aguilar Coello was off that day. When I called back after six, Santiago Zárate was still not available. Nor were he and Aguilar Coello ever available the dozen or so times I called back.

This sort of stonewalling is not terribly unusual for Mexico, where killer cops often sell their services to local caciques (political bosses) and go back to work as if nothing had happened. Those who direct this sort of mayhem from their desks in the statehouses and municipal palaces — the "intellectual assassins," as they are called — are never held accountable for their crimes.

A VISIT FROM HOME


In March, Brad’s parents, Kathy and Howard Will, and his older brother and sister paid a sad, inconclusive visit to Oaxaca. They had hired Miguel Ángel de los Santos Cruz, a crackerjack human rights lawyer who has often defended Zapatista communities in Chiapas. Gibler, the Global Exchange human-rights fellow, was the translator.

The Wills, upper-middle-class Americans, had little experience with the kind of evil that lurks inside the Mexican justice system; the trip was a traumatic, eye-opening experience.

The federal Attorney General’s Office had taken over the case from the state in December, but rather than investigating police complicity and culpability, it was pursuing Caña Cadeza’s dubious allegation blaming Will’s companions for his killing.

Gustavo Vilchis, Gualberto Francisco, Leonardo Ortiz, and Miguel Cruz were summoned to give testimony, with the Wills in attendance. Testifying was a risky venture, as the witnesses could have been charged with the murder at any moment, but out of respect for the family, the compas agreed to tell their story to the federal investigators. During the hearing they were repeatedly questioned about and asked to identify not the cops who appear on Will’s film but their own compañeros, some masked, who appeared on tape shot by Televisa, the Mexican TV giant. They refused.

When Los Santos accompanied the Wills to a meeting with Caña Cadeza, she touted her investigation and promised them a copy of its results. But she refused to allow the family to view Will’s Indymedia T-shirt and the two bullets taken from his body. They were, she explained, under the control of Barroso — the judge who had cut loose the cops.

THE POLITICS OF OIL


There are larger geopolitics at work here.

The US Department of State has a certain conflict of interest in trying to push first-year Mexican president Calderón to collar Will’s killers. The crackdown in Oaxaca was all about a political deal between Calderón’s PAN and Ruiz’s PRI: if PAN saved the governor’s ass, the PRI would support the president’s legislative package.

Indeed, the PRI’s 100 votes in the lower house of the Mexican Congress guarantee Calderón the two-thirds majority he needs to alter the constitution and effect the change that’s at the top of his legislative agenda — opening up Petróleos Mexicanos, or PEMEX, the nationalized petroleum corporation and a symbol of Mexico’s national revolution, to private investment, a gambit that requires a constitutional amendment.

Since then-president Lázaro Cárdenas expropriated Mexico’s petroleum industry from Anglo and American owners and nationalized it in 1938, the United States has been trying to take it back. "Transnational pressure to reprivatize PEMEX has been brutal," observed John Saxe Fernandez, a professor of strategic resource studies at Mexico’s autonomous university, Universidad Nacional Autónoma de México.

During the run-up to the hotly contested 2006 presidential elections, candidates Calderón and López Obrador debated the privatization of Mexico’s national oil corporation before the American Chamber of Commerce in Mexico City; former US ambassador Jeffrey Davidow moderated the debate. When the leftist López Obrador insisted that he would never privatize what belonged to all Mexicans, the business leaders stared in stony silence. The conservative Calderón’s pledge to open PEMEX to private investment drew wild applause. Calderón was, of course, Washington’s horse in the fraud-marred election.

In order to accommodate Washington, Calderón needs a two-thirds majority in the congress — and the PRI’s votes in the lower house are crucial to guaranteeing passage of a constitutional amendment. "Without the PRI’s votes, PEMEX will not be privatized. That is why Calderón has granted Ruiz impunity," Saxe Fernandez concluded.

Washington is eager to see PEMEX privatized, which would create an opportunity for Exxon Mobil Corp. and Halliburton (now PEMEX’s largest subcontractor) to walk off with a big chunk of the world’s eighth-largest oil company. Pushing Calderón too hard to do justice for Will could disaffect the PRI and put a kibosh on the deal.

It is not easy to imagine Brad Will as a pawn in anyone’s power game, but as the months tick by and his killing and killers sink into the morass of memory, that is exactly what he is becoming. 2

John Ross is the Guardian‘s Mexico City correspondent. This story was comissioned by the Association of Alternative Newsweeklies and is running in about 20 alternative papers this week.

You can’t trust the voting machines

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OPINION California’s secretary of state, Debra Bowen, has released a landmark report showing what all honest brokers admitted long ago: electronic voting systems are completely vulnerable to hackers. "The independent teams of analysts [hired by the state] were able to bypass both physical and software security measures in every system tested," her report states.

A report on accessibility for disabled voters found that none of the direct recording electronic (usually touch screen) voting systems met federal disability standards.

And yet US House Democrats and People for the America Way are busy hammering out a deal in Congress to institutionalize in federal law the continued use of such disastrous voting systems.

Out of touch much? Which part of a transparent, counted, paper ballot (not a "trail" or a "record") for every vote cast in America do these guys not understand?

Late Friday, as Bowen’s report was being released, US House Majority Leader Steny Hoyer (D-Md.) and Rep. Rush Holt (D-N.J.) finally came to terms, reportedly, on a deal for a revision of Holt’s House Resolution 811, dubbed the Federal Election Reform Bill, which allows for the use of DREs — as preferred, almost exclusively, by People for the American Way, elections officials, and voting-machine companies. Saturday’s New York Times confirmed that it was "Ralph G. Neas, president of People for the American Way, [who] helped broker the deal" between Holt and the House leadership.

And though Christopher Drew’s reporting at the New York Times is getting slightly better with each new story, it would be nice if the "paper of record" could learn enough about our voting systems to accurately report and help Americans understand what’s really at stake here and how the technology actually works.

Drew reported — misleadingly — that "the House bill would require every state to use paper records that would let voters verify that their ballots had been correctly cast and that would be available for recounts."

That’s just plain wrong. The fact is that adding "cash-register-style printers to … touch-screen machines," as Drew describes it, does not allow a voter to verify that his or her "ballots had been correctly cast." It allows voters only to verify that the paper record of their invisibly cast electronic ballot accurately matches their intentions, if they bother to check it (studies show most don’t) and if they’re able to notice errors on the printout (studies also show that most do not). The fact is, there is no way to verify that a person’s vote is correctly cast on a DRE touch-screen voting machine. Period.

Unless, of course, it’s me who is out of touch in presuming that if a ballot is cast, it means it will actually be counted by someone or something. Paper trails added to DRE systems are not counted; instead, only the internal, invisible, unverifiable ballots are. A "cash-register-style" printout prior to the ballot being cast and counted internally does nothing to change that. *

Brad Friedman

Brad Friedman writes on elections and political integrity for the Brad Blog at www.bradblog.com. A version of this piece first appeared as a post there.

Ethics equity

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› news@sfbg.com

In the 2003 mayor’s race, Gavin Newsom’s campaign outspent Matt Gonzalez’s nearly six to one, shattering all previous city spending records and leaving the campaign committee with a $600,000 debt that wasn’t cleared for three years.

An apparent plan to pay down that debt illegally with money raised by a separate unregulated inaugural committee was the subject of several Guardian stories at the time (see “Newsom’s Funny Money,” 2/11/04) and corrective actions by Newsom treasurer Jim Sutton, although top San Francisco Ethics Commission officials tried to cover it up rather than investigate it.

It was one of several Newsom-campaign irregularities that raised red flags, including the return of dozens of checks by contributors who had exceeded the $500 limit, the failure to notify regulators in a timely fashion that the campaign had broken a voluntary spending cap, and issues related to whether the heavy campaign debt should have been considered a loan and regulated as such.

So guess whose campaign has recently been investigated and fined? And guess whose has never been scrutinized by Ethics Commission officials, who claim they don’t have enough resources to do a “global canvas” of all the campaigns from 2003, as they’ve traditionally done each year?

Gonzalez campaign treasurers Randy Knox and Enrique Pearce this month agreed to pay $3,300 in penalties to the Ethics Commission over 234 names of contributors that were filed with missing or incomplete donor information, 8 percent of the total. The agency began its review three years after it received an anonymous complaint in the days leading up to the runoff election, exactly when the Newsom camp dished the same allegations to reporters.

“It’s my fault, but it was inadvertent and not deliberate misfeasance,” Knox told the Guardian recently. The Ethics Commission concluded that no evidence proved a willful attempt to defraud the public and that most of the donors had failed to cite their street addresses or to provide complete employer information.

But to Knox and Ethics reformers we’ve interviewed for a recent series on the commission, there’s an important issue of fairness involved in this matter. Gonzalez, who did not return our calls seeking comment, was contemputf8g another run for mayor last year when he was contacted by Ethics officials and threatened with a $30,000 fine for violations that were more than three years old. “It was clearly politically motivated, to clear the field for the mayor’s race,” Knox said.

Yet even if that wasn’t the case, why didn’t Ethics Commission staffers review the Newsom campaign after they decided to pursue Gonzalez? And why did Executive Director John St. Croix order staffers not to do the normal global canvas of campaign documents for 2003 — and only 2003 — claiming the agency didn’t have enough resources and needed to “triage” its work?

“It seems odd that we would allow an anonymous complaint, which is informal, to create an exception to our triage order for 2003, especially since the [percentage] of Gonzalez contributions with info errors was apparently less than the state standard for filing officers to require mandatory amendments,” Ethics officer Oliver Luby noted to agency bosses earlier this month, according to internal memos the Guardian obtained through a Sunshine Ordinance request.

St. Croix, for his part, didn’t take over the agency until a year after the 2003 election. He told the Guardian that dozens of other complaints needed to be investigated too, but his office, with only one investigator, couldn’t do so until years after the fact.

“There was a point in 2006 where I said we’re not going to go back and begin anything new for election years prior to 2004,” St. Croix acknowledged. “We had so many backlogs. We were just hopelessly mired, and we kind of needed a fresh start.”

Sutton did not return our calls for comment, but Newsom’s campaign manager then and now, Eric Jaye, told us, “I’m empathetic to [the Gonzalez campaign]. I’m sure they weren’t intentional errors.”

He added that just because the Ethics Commission didn’t investigate the Newsom campaign after the election doesn’t mean the mayor got a free ride. “I feel like everything we do is audited and scrutinized,” Jaye said, noting that the campaign was fined $2,500 by the California Fair Political Practices Commission during the race for an illegal mailer.

Still, even if the commission won’t disclose ongoing investigations, as far as the public knows right now, the Ethics Commission has repeatedly ignored problems with the 2003 Newsom campaign and others managed by Sutton. Consider:

Several entities affiliated with a real estate outfit called Olympic View Realty made a total of $14,000 in contributions to the Newsom campaign, but filings didn’t reflect the otherwise clear association. “Newsom’s failure to report correct cumulative-to-date amounts is an ongoing violation of state law,” Luby wrote in the aforementioned memo.

The Newsom campaign’s $600,000 in postelection debt wasn’t paid off completely until late last year, much of it being carried by Jaye’s consulting firm and Sutton. Former Ethics staffer and commissioner Joe Lynn believes that could amount to an unreported loan to the campaign. “If Ethics was doing its job, it would investigate Newsom’s use of accrued debt,” Lynn told us.

The Building Owners and Managers Association of San Francisco — a key Newsom supporter — urged members in December 2003 to make unlimited donations to Newsom’s inaugural committee that would also be used, it said, to help cover “transition activities,” which should legally be subject to contribution limits. But Ethics, as far as we can tell, never probed whether inaugural committee funds were used inappropriately for the new mayor’s transition to room 200.

Newsom may have collected contributions exceeding the legal limit. During runoff elections, candidates are allowed to accept additional contributions from individual donors who have otherwise reached the maximum of $500. The total then permitted would be $750, which can be used to cover debt from the general election. As soon as general-election debt is retired, however, the candidate can no longer take advantage of the increased limit. But as far as the public can tell, there was no analysis conducted by Ethics to determine if Newsom’s campaign continued to collect $750 checks after having paid down its general-election debt.

St. Croix said most pending enforcement cases, more than ever before, were initiated by staff rather than complainants and the ideal scenario would be to emphasize aggressive earlier sweeps of all the campaigns. But unfortunately, he said, “we’re far away from that.”*

 

The Chris Daly show

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By Tim Redmond

Oh, it’s so easy to make fun of Chris Daly. You can even make fun of his beard.

Or you can watch his much-derided speech at the Board of Supervisors, and recognize that: 1. He’s not a crazed nut; his points are cogent, well argued and entirely credible, and; 2. He’s right.

Daly is right: We should spend more money on affordable housing than on new roads. We should delay hiring more cops so we can save public health nurses. (Actually, we should raise taxes hire both cops and nurses, but that’s not in the cards right now.) The fact it, the mayor’s budget priorities are all screwed up.

Yes, budgets are always a compromise, and this district-elected board has done better, consistently, than any at-large board at keeping the mayor’s budgets relatively humane. I agree that Daly does himself no favors — and more than that, I fear that he does some harm to the cause of district elections. He says he cares nothing about his own political career, that he’s not a politician (which is one of the most charming and wonderful things about him), but he’s also part of a movement, and district elections is absolutely, utterly critical to the future of progressive politics in this city, and his fits of temper make the whole board look bad, and that helps the mayor’s candidates for supervisor and the people who would like to get rid of district elections altogether.

I think Daly needs to stop giving his enemies so much ammunition. There’s a lot more at stake here than one budget or one person’s future.

Still, I keep watching that speech, and I keep saying:

Shit, on the issues, the guy is right.

At the crossroads

1

Part three in a Guardian series

› gwschulz@sfbg.com

San Francisco Ethics Commission executive director John St. Croix has admitted that his office knew in 2005 about the alleged laundering of public money into a San Francisco City College bond election campaign — well before the story broke in newspapers in April — but did nothing to investigate.

That startling revelation knits together two concurrent series that the Guardian has been running for the past two weeks: one on City College’s deceptive and unaccountable use of bond money and another on the uneasiness local watchdogs feel about the Ethics Commission’s ability and willingness to mete out balanced punishment to elections-law violators.

When news reports surfaced in April that City College allegedly had diverted up to $30,000 in public money to a bond election campaign committee, Chancellor Phil Day moved quickly to limit the fallout. So did independently elected trustee Rodel Rodis, who along with six other board members is responsible for controlling and managing the San Francisco Community College District.

During meetings organized that month to address the matter, Day came clean and blamed everything on a "relatively new" assistant vice chancellor. At least two trustees, one of whom had been recently elected, still wanted to know more about why it was allowed to happen. Rodis, on the other hand, complained that hiring an independent investigator at a cost of $75,000 to look into the matter was too expensive and framed the stories — written by San Francisco Chronicle investigate reporter Lance Williams — as an unfair attack on the college.

"Let’s be mindful that we’re still in a budget crisis and we still need to watch taxpayer money," Rodis said at one of the meetings.

Unlike Rodis, District Attorney Kamala Harris didn’t treat the allegations as insignificant and is now reportedly probing possible criminal violations in connection with the scandal. The investigation, Williams wrote recently, includes contributions made to the committee by contractors that did recent business with the school.

But where was the Ethics Commission during all of this? The controversy raises serious questions about why the agency never took any action against City College when, as its mission statement declares, its responsibility is to "actively enforce all ethics laws and rules, including campaign finance and open government laws."

Late in the commission’s July 9 meeting, St. Croix made the stunning admission that although his office knew about the allegations surrounding City College’s dubious handling of public funds all the way back in 2005, for some inexplicable reason it did nothing.

Staff shortages and poor financing have plagued the Ethics Commission since voters created it in 1993. Although the number of staffers has doubled during his three-year tenure, St. Croix nonetheless told the Guardian recently that his agency remains dependent on the public to help expose political candidates and campaign committees that break the law.

"We still rely on people and the city being watchdogs," St. Croix told us. "We’re supposed to be the eyes and ears for a lot of things, but we’re still extremely limited."

In this case, however, St. Croix’s office was well aware of allegations that City College bureaucrats had misappropriated public funds. The school’s Board of Trustees, along with Day’s office, created the Committee to Support Our City College in 2005 to convince voters to give the school $246.3 million in bond money to continue with a slate of capital works projects that began in 1997 and now are costing hundreds of millions of dollars more than anticipated.

The owner of a motorcycle training school claimed in a December 2005 letter to the Ethics Commission that he was told by the college to make a rent check for the regular use of school property payable to the committee instead of the school itself. Amazingly, the Ethics Commission pondered contacting the state’s Fair Political Practices Commission to disclose the allegations, which is the least it should have done, but never actually did so, as St. Croix has acknowledged only now.

"I take responsibility for that," St. Croix told us. "I don’t know who actually dropped the ball. But at the time we had less staff and there were a lot of things we were supposed to do and we weren’t doing."

Nor did the Ethics Commission contact the college to demand that it amend its campaign filings from that year to reflect the true source of that $10,000 payment and acknowledge itself rather than the motorcycle training school as a major contributor to the bond committee. St. Croix figured that could happen at the conclusion of the FPPC’s inquiry. Of course, the FPPC didn’t know about the allegations, at least not until the Ethics Commission finally contacted it in May, following the Chronicle‘s front-page stories.

The Ethics Commission’s lax approach to City College oversight also extends to trustees like Rodis, who has his own apparent campaign finance violations from his 2004 reelection campaign. That year, records show, his campaign failed to turn in three key election filings required to ensure that before heading to the ballot box, voters have a chance to see where candidates are getting their campaign money from. The commission sent his campaign several warning letters; just one of the filings finally arrived nine months later.

The trustee pointed to a campaign staffer when we contacted him regarding the tardy campaign statements. "We had someone working on the campaign who was supposed to do that," Rodis told us. "He indicated to us that everything was in order. We relied on him. We paid him. And then we found out later that he didn’t do what he was supposed to do…. It was one of those things that happen when you trust people."

The filing Rodis did manage to turn in shows that of the more than $44,000 he raised for his reelection effort that year, at least $1,700 had no identified donors, and other donations were marred by confusing data entry errors. An internal Ethics memo obtained by the Guardian that discusses the Rodis reelection campaign committee concludes that its poor reporting "appears to be a matter of willfulness and disregard for the law" and what belated filings do exist "present significant data problems." According to the memo, "Based on the record, significant questions remain regarding the true facts of the committee’s financing."

Rodis in 2004 won reelection to the board for the fourth time since he first became a trustee in 1991. According to our conservative estimates based only on the late filings, he could be liable for thousands of dollars in fines. *

Whose Ethics?

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Part two in a Guardian series The read part one, click here.

› news@sfbg.com

The San Francisco Ethics Commission is at an important crossroads, facing decisions that could have a profound impact on the city’s political culture: should every violation be treated equally or should this agency focus on the most flagrant efforts to corrupt the political system?

The traditionally anemic agency that regulates campaign spending is just now starting to get the staff and resources it needs to fulfill its mandate. But its aggressive investigation of grassroots treasurer Carolyn Knee (see “The Ethics of Ethics,” 7/4/07) — which concluded July 9 with her being fined just $267 — is raising questions about its focus and mission.

“For the first time in our history, we’re having growing pains,” Ethics Commission executive director John St. Croix told the Guardian, noting that the agency’s 16 staffers (slated to increase to 19 next year) are double what he started with three years ago.

Reformers like Joe Lynn — a former Ethics staffer and later a commissioner — say the commission should do more to help small, all-volunteer campaigns negotiate the Byzantine campaign finance rules, be more forgiving when such campaigns make mistakes, and focus on more significant violations by campaigns that seek to deceive voters and swing elections.

“The traditional thinking is there’s no exception to the law, and that’s been my traditional thinking too,” Lynn said. “But it doesn’t cut the mustard when you see a Carolyn Knee say, ‘I’m not going to do that again.'<\!s>”

At Knee’s June 11 hearing, Doug Comstock — who often does political consulting for small organizations — urged commissioners to reevaluate their mission. “Why are you here?” he asked them. “You’re not here to pick on the little guys.”

Yet St. Croix told us, “That’s not really the way the law is written. Everybody is supposed to be treated the same…. The notion that the Ethics Commission was only created to nail the big guns is not correct.”

That said, St. Croix agrees that regulators should be tougher on willful violators and those who have lots of experience and familiarity with the rules they’re breaking. And he said they do that. But it’s the grassroots campaigns that tend to have the most violations.

“It’s frustrating because the people who make the most mistakes are the ones with the least experience,” St. Croix said, noting that the commission can’t simply ignore violations.

 

A MATTER OF PRIORITIES

But critics of the commission say the problem is one of priorities. Even if there were problems with Knee’s campaign, there was no reason the commission should have launched such an in-depth and expensive investigation four years after the fact. That decision was recently criticized in a resolution approved by the San Francisco Democratic County Central Committee, which argued that the approach discourages citizens from getting politically involved.

“[The] San Francisco Ethics Commission spends an inordinate amount of its meager resources in pursuing petty violations allegedly committed by grassroots campaigns; this disproportionate enforcement against grassroots campaigns is directly contrary to the goal of the Campaign Finance Reform Ordinance,” one “whereas” from the resolution read.

The resolution’s principal sponsor, Robert Haaland, is intimately familiar with the problem. When he ran for supervisor in District 5 two years ago, his treasurer had a doctorate from Stanford and still struggled to understand and comply with the law. But they made a good-faith effort, he said, and shouldn’t be targeted by Ethics.

“It’s sort of like the IRS going after the little guy,” Haaland told us. “The commissioners need to set the direction of the commission for where they’re spending their time and resources.”

Eileen Hansen is perhaps the only member of the five-person commission to really embrace the idea that its mission is to help citizen activists comply with the law and to go after well-funded professionals who seek to skirt it. To do otherwise is to harm San Francisco’s unique grassroots political system.

“It’s true, the law is the law,” Hansen told us. “But I do think the Ethics Commission needs to grapple with how to apply the law in a fair manner.”

Is it fair to apply the same standard to Knee and to the treasurer of the campaign on the other side of the public power measure she was pushing, veteran campaign attorney Jim Sutton, whose failure to report late contributions from Pacific Gas and Electric Co. later triggered a $240,000 fine by Ethics and the California Fair Political Practices Commission, while those contributions might have tipped the outcome of the election?

Sutton gets hired by most of the big-money campaigns in town, such as Mayor Gavin Newsom’s, and has a history of skirting the law, including a recent case of allegedly laundered public funds at City College; coordination of deceptive independent expenditures against Supervisors Chris Daly, Gerardo Sandoval, and Jake McGoldrick; District Attorney Kamala Harris’s violation of her spending-cap pledge in 2003; and an apparent attempt to launder inaugural-committee funds to pay Newsom’s outstanding campaign debts (see “Newsom’s Funny Money,” 2/11/04). Yet the practice of the commission is to ignore that history and treat Sutton, who did not return calls seeking comment, the same as everyone else.

“We all admire and want grassroots organizations to do what they need to do,” Commissioner Emi Gusukuma said. But, she said, “the laws are there for a reason…. We’re supposed to enforce and interpret the law. The law should only apply to big money? The law has to apply to everybody. We can’t pick or choose.”

David Looman, a campaign consultant and treasurer involved in dozens of past elections, put it wryly. “Some people talk as though the grassroots campaigns shouldn’t have to obey the law,” he said of some activists he’s worked for who consider themselves the good guys. He said he reminds them, “This is the act that you helped pass, and now you gotta abide by it.”

“But there ought to be some kind of business sense here. Most regulatory agencies have offenses which they regard as de minimis,” Looman said, meaning “you get a nasty letter that says, ‘Don’t make a habit of it,’ and when you do make a habit of it, stricter penalties come into play.”

His experience with the commission has led him to believe there’s no sense of priorities when it comes to what Ethics pursues. Many of the small campaign committees Looman represents have been audited to what he feels is a ridiculous extent.

In one case, he told us, he took over the management of the Bernal Heights Democratic Club and discovered that it hadn’t been filing certain documents for years. He ended up paying $10,000 out of his own pocket to cover Ethics fines just because his name was now on the dotted line.

“Yes, the Bernal Heights Democratic Club was in complete violation of the law. They deserved to pay a penalty, but it was so far out of proportion. It was two times our yearly income. I think that’s inappropriate,” Looman told us.

 

THE GRASSROOTS CULTURE

Some say the whole idea of local campaign reform is to nurture an important and unique aspect of San Francisco: its vibrant and diverse grassroots political culture. “For every two committees in LA, there are three in San Francisco,” Lynn said, adding that it used to be a more extreme, two-to-one ratio. Larger cities often have more professionals involved, he said. “San Francisco has a unique political culture, very heavy on the grass roots.”

Yet the Ethics Commission doesn’t see protection of the little person as part of its mission.

“The fundamental problem with Ethics is it is not staffed by people who have been advocates for good government reforms,” Lynn said. “The Ethics Commission needs to come to grips with the fact that they’re tampering with the grassroots political culture of San Francisco.”

Lynn would like the commission to direct some resources toward hiring assistants to staff the office during the two or three weeks prior to Election Day, a crew that would help prevent violations and inoculate campaigns against being fined for errors that do occur.

“If you looked at the money that the Ethics Commission is spending going after citizen filers and reallocated it toward a staff of clerks, the cost to the city would be minimal,” Lynn said, estimating it at about $100,000.

Calling it the “H&R Block Unit,” Lynn thinks a staff of 10 to 15 clerks could be trained to assist small campaigns, individuals, and first-time filers who would come in and be walked through the complex paperwork.

St. Croix said such services are available now to inexperienced treasurers and those who ask for help — although not nearly as extensive as Lynn envisions — and he’d like to expand them in the future. But he said there are legal and practical complications to giving campaigns formal advice in letters that they might later use in their defense.

“I think it’s a lofty goal to educate people,” commission chair Susan Harriman told us. “We have staff with the sole job to keep people educated.” She said she’s attended meetings at which outreach occurred between the commission and community, but only as an observer. She thinks it’s the job of the staff to take an active community role, although St. Croix said that’s a resource issue.

Commissioner Emi Gusukuma thinks the appointed commissioners should be more involved. “I would be happy to be part of that team,” she said of joining any Ethics community outreach. “Going to clubs — I would definitely be willing to do that.” She noted that she and her fellow commissioners are all very busy, but she still thinks the educational aspect of their role is important.

Hansen also noted that a commission filled with relatively new appointees needs to hear more about the real-world impacts of its policies. “The public can educate the commissioners, and right now the commissioners are not educated on these issues,” Hansen said.

She and other reformers would like to see St. Croix facilitate a discussion of what the commission’s enforcement history has been and where the focus should be going forward.

“The perception is all we ever do is go after the small guys, but I don’t know if that’s really true,” Gusukuma said. She’s pushing staff to do more research into past enforcement actions “so we can tell the staff … not who to prosecute but what kinds of cases are important. We haven’t been able to get that analysis yet.”

Lynn said another key component in the education campaign would be to televise Ethics Commission hearings, which would help people become more engaged with the agency’s work. Commissioners Hansen and Gusukuma agreed, endorsing the proposal in this year’s budget cycle and winning the support of Sup. Chris Daly before he was ousted as chair of the Budget and Finance Committee, after which the expenditure (estimated at about $30,000 per year) was removed from the budget.

Harriman is opposed to televising hearings and thinks the money should be spent elsewhere. “I don’t think it’s a good idea. I think interested people who are interested in items on the agenda will appear. I think it’s a waste of city funds to televise something.”

Lynn said that attitude is the problem.

“The Ethics Commission doesn’t want to be televised, which is the reason to televise them,” he said. “They don’t want it because they’re trained that they are quasi-judicial and you don’t have cameras in courtrooms. Right now Ethics is invisible. The only way it can build a constituency is if it’s visible.”

Bob Planthold, another former commissioner, agreed. “Ethics doesn’t make friends,” he said. “It doesn’t have a constituency of positive advocates, and you need that at City Hall to get money and resources.”<\!s>*

 

Who’s following the money?

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Part two in a Guardian series
Click here for part one

› gwschulz@sfbg.com

David Duer is proud of the volunteer work he’s done with the West Contra Costa Unified School District. He graduated from the area’s school system, as did his kids.

So despite what was sure to be a burdensome responsibility with no pay, Duer, a development director for the UC Berkeley Library, accepted the chance to serve on a committee formed under a state mandate to monitor how the district spent $850 million in bond money authorized by voters in three elections since 2000.

"There are schools all over the district that have been renovated," Duer beams today.

The committee initially proposed meeting every quarter but soon realized that wouldn’t be nearly enough to do the job right and chose to meet monthly instead. Since 2003 it has received full-blown management audits of the school system’s performance every year, with biannual updates from independent professionals not beholden to district bureaucrats.

The story of San Francisco’s Community College District could not be more different.

The oversight committee that’s charged with monitoring $560 million in bond spending has never seen an expansive performance audit, just basic financial reports that show community college officials here seem to be obeying their most fundamental fiduciary duties. The panel meets three times a year for more than an hour and a half each time, and for three years it didn’t even report to the public on City College’s handling of the money, which it’s required to do annually by the state’s Education Code.

The community college committee is hardly made of Rotary volunteers and bored retirees: the list includes San Francisco treasurer José Cisneros and former San Francisco Chronicle publisher Steve Falk, now head of the local Chamber of Commerce.

But even members say the panel has fallen down on the job — and that City College officials are freely shifting around the taxpayers’ cash with little or no accountability.

The mostly decipherable performance reports that West Contra Costa citizens receive, though lengthy, track all of that district’s bond expenditures and give the area’s oversight committee of taxpayers a vivid portrait of how well the school system and its administrators are managing hundreds of millions of dollars in building improvements. Any wonkish jargon in the reports that might mystify the committee is translated in "frank" terms by the outside inspectors, Duer says, without interference from school officials.

If a contractor were to double-bill the district or demand too much in change orders after promising completion within a set price range, Duer and his colleagues would know about it, and they could make suggestions on how to fix it. If the district was doing a stellar job, that would be clear too.

"I don’t see these performance audits as punitive," Duer said. "I see them as a confirmation that the process and systems in place are working."

MORE MONEY PROBLEMS


The Guardian reported last week ("The City College Shell Game," 7/4/07) that City College’s bond projects are running an astounding $225 million over budget. As a result, school officials have returned to the Board of Trustees five times in recent years to request that a total of $130 million be reallocated from one project to another to cover the overruns, leaving some projects promised to voters with little or no funding at all. We reported on a number of examples last week, but there are plenty more:

<\!s> The construction of a new Mission campus was supposed to begin in 2002 but didn’t get under way until well into 2005. The project is now $30 million over budget, an increase of 50 percent, and the school recently requested another $6 million diversion from other bond projects. City College originally planned to build the campus where a shuttered theater currently stands on Mission Street but later moved the site to avoid a showdown with preservationists.

<\!s> Since 1997, City College has asked voters for a total of $61 million to renovate and remodel existing buildings and meet Americans with Disabilities Act requirements. In November 2005 it asked voters for $35 million to perform such work, but just weeks after the election, $20 million of the money was reallocated to a planned Chinatown–<\d>North Beach campus that’s now running $50 million over budget, an increase of 60 percent. That project’s ever-changing design has been heatedly challenged by everyone from the Chronicle‘s editorial board to Sup. Aaron Peskin to state senator Leland Yee.

<\!s> Two projects for which voters authorized a combined $71 million won’t see the light of day unless the college returns to the ballot a fourth time, which school officials have discussed. The projects — a biotech learning center and a one-stop administrative shop for new students — have been drained of $42 million to save the Mission campus and an overdue Performing Arts Center, which will cost $75 million more than expected, an increase of 152 percent.

HUNTING AND PECKING


All of this irks Mara Kopp, who was appointed to City College’s oversight committee in late 2005 as a representative of the San Francisco Taxpayers Association. She’s complained openly that the school long ago should have hired auditors for the kind of far-reaching work West Contra Costa gets.

"If we received ongoing management reports, then we’d have something of substance," Kopp said. "We wouldn’t have to hunt and peck in a kind of naive, elementary way."

She is all but alone in her criticism, however, save for a small group of allies including former committee member John Rizzo and Milton Marks, one of the few voices on the independently elected Board of Trustees willing to apply tough scrutiny to Chancellor Phil Day’s office at board meetings. Green Party pol Rizzo recently became a trustee after closely beating longtime incumbent Johnnie Carter in the November 2006 board race.

Day has long argued that the school’s attorneys don’t believe such audits are required under Proposition 39, a 2000 state ballot measure that lowered the threshold for passing local school bonds. Prop. 39 required the formation of local citizens’ bond oversight committees.

Marks has questioned the strength of City College’s oversight committee and the lack of performance audits since at least 2005, but not until earlier this year were he and Rizzo able to force a resolution demanding the inspections, and now Day claims to welcome a management review. The school will bid out its first audit soon.

"The bottom line is, a performance audit as opposed to a financial audit would determine whether or not funds are being expended in the most efficient, effective, and economical manner instead of just adding up these funds and saying, ‘Here’s how much we expended and for what,’<\!s>" said Harvey Rose, a respected local auditor who’s reviewed city agencies and analyzed San Francisco’s annual budget for 35 years.

West Contra Costa concluded that Prop. 39 does require extensive managements audits. The committee even decided to include a $150 million bond election in 2000 in the scope of its work, although that wasn’t required, to ensure all the money was still being spent efficiently.

Duer said it doesn’t matter to him what the letter of the law requires. "It was always assumed with our work that this is something we had to have," he said.

The Los Angeles Community College District made the same assumption. Other districts statewide, however, appear to have interpreted Prop. 39 the same way City College has. And the Attorney General’s Office has never issued an opinion clarifying the matter.

Meanwhile, City College officials blame the millions of dollars in outsize project costs on inflation, a globally increased demand for steel and concrete, and slow-moving state regulators who must approve architectural designs.

"I understand both the college as well as the community would like to see us complete every single project we’ve proposed," Vice Chancellor Peter Goldstein told us recently. "We absolutely share that desire. The reality of cost increases has forced us to go back and look at our resources and reallocate in order to keep major projects going forward."

But Kopp and company argue that much earlier performance inspections would have revealed to the oversight committee and trustees where the increase in expenses came from with absolute certainty. That way, no one would have to rely exclusively on the glitzy project presentations made by Day and Goldstein that are often little more than slide shows with quotes from prominent business journals decrying the rising cost of construction materials. Trustee Marks has moaned repeatedly at board meetings that he doesn’t feel informed enough to vote on major reallocations, and his constant questions haven’t always made him popular.

"I think there’s this feeling that the board should not be adversarial," Marks said. "But I think by the nature of how things are set up, we have to be…. We have to look out for the best interests of the public at large."

Not everything’s rosy in West Contra Costa, of course. Anton Jungherr, a former San Francisco Unified School District official, sat on the West Contra Costa oversight committee for four years and fumed in an interview that the district didn’t take seriously the committee’s regular recommendations. He wants to form a statewide association of oversight committees to arm citizens with the information they need to track bond expenditures.

"There are legitimate reasons for change orders, but you have to analyze them and understand what the reasons are and then take the appropriate oversight action," Jungherr said.

But cost overruns in West Contra Costa still pale when compared with those at City College. Jungherr said that district has experienced about $100 million in unexpected costs on $850 million in projects undertaken since 2000, substantially less than what City College faces despite hundreds of millions of dollars more in bond projects.

Kopp still hopes City College’s oversight committee will build more muscle.

"If they were to show us documents they used themselves in monitoring all these things, that could substitute as long as the information was relevant and honest," Kopp said. "But it’s really been quite shallow all along."<\!s>*

The City College shell game

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Part one in a Guardian series

› gwschulz@sfbg.com

The motto of San Francisco’s community college is "The truth will set you free."

For taxpayers, that’s a painful irony. Since 1997, the district has moved around $130 million in bond money in a fiscal shell game, taking funds that the voters were told would go to one set of projects and spending the money on others.

The half-billion-dollar bond program is now at least $225 million over budget, in part because of what the school admits was shoddy planning, and City College is considering asking voters to approve yet another set of bonds to catch up.

And all of this happened without a detailed performance audit.

Among the transfers and overruns we’ve discovered in a review of the bond program:

<\!s>City College made up for a planned gym’s mammoth budget shortfalls by transferring more than $53 million from other projects, like the new Performing Arts Center, improvements to the Balboa Reservoir (that massive, sunken eyesore of a parking lot west of the Ocean Avenue Campus), and an academic partnership with San Francisco State University.

<\!s>Construction on the Performing Arts Center was supposed to begin in 2004, but it’s gone nowhere. According to the school’s most recent estimates, the center now will cost $125.8 million, an increase of 152 percent from the original $50 million.

<\!s>Two new campuses planned for the Mission and Chinatown neighborhoods are now running a combined $78 million over budget. School administrators this May requested an additional $6 million to complete the Mission campus. Plans for the Chinatown facilities were originally unveiled in 1997 to voters, who were later told construction would begin in 2006. Today the designs are mired in a political battle with neighborhood residents, and City College hasn’t broken ground on the project.

In at least one case, the school has acknowledged that a $1.3 million reallocation took place without prior authorization from its independently elected overseers, the Board of Trustees. Administrators later asked the board to consent to the transfer retroactively.

"We’re always asked to take this money and move it from here to here," complained trustee Milton Marks III, one of the few consistent critics on the board who in the past voted against such reallocations. "It may be justified…. But when I ask if there are programmatic changes, nobody can answer me."

The school calls the transfers "reallocations," and as of May the administration and the board had agreed to shift the bond money five times.

In one case, administrators asked for $70 million in transfers mere weeks after the 2005 election in which voters authorized the school to sell $246.3 million in bonds.

That January 2006 reallocation strongly suggests the office of Chancellor Phil Day knew the school wouldn’t be able to complete the projects described to voters but never corrected the ballot handbook or told the media and the public the truth.

Day agreed to a Guardian interview, then canceled it, citing a schedule conflict. But in board meetings he and his staff have insisted that the transfers were perfectly legal.

The school’s lawyers say reallocations are acceptable under Proposition 39, a state ballot measure passed by voters in 2000 that lowered the threshold in California for passing school and community college bonds.

Other districts have also relied on reallocations as the cost of construction materials has increased globally in recent years due to Hurricane Katrina and the ongoing expansion of China’s economy.

But the San Francisco school has argued the logical extreme — that it can transform voter-approved projects in virtually any way it deems necessary.

"What obligation do we have in our reallocation considerations about making sure that those things get delivered — all of those projects we listed in both [the 2001 and 2005] bond measures?" former trustee Johnnie Carter asked during a meeting Jan. 12, 2006.

"You have no obligation to complete any of those projects," Mona Patel, a bond advisor for the school, responded. "You can complete one of those projects. You can complete all of those projects or anything in between…. It’s solely within the board’s discretion."

Despite that explanation, City College’s woefully short budget projections mean the school might have to return to voters a fourth time to secure funding for two projects already promised the last time City College went to the ballot, in November 2005.

One of those planned facilities was supposed to house a stem-cell-technology training program lauded by Mayor Gavin Newsom in 2005 as a way to help locals compete for jobs in the Bay Area’s growing biotech and life-sciences research industries. The school stripped $25 million authorized by voters from that project and directed it mostly to two other projects running a combined $105 million over budget.

Marks and new board member John Rizzo have urged an expansive performance audit of the bond money, which they say is required under Prop. 39 but had never been completed.

Rizzo and Marks both told us that if unforeseen construction costs, a low number of project bidders, and the lethargy of state regulators are all problems contributing to unpredicted costs, school administrators need to come up with a plan to fix the situation. But the performance audit proposed by Rizzo and Marks would first identify which problems are most severe. Not having it, Rizzo said, "is like flying blindly. We’re just writing checks."

Peter Goldstein, vice chancellor for finance and administration, insisted to us that state law, as interpreted by the school, doesn’t require the type of audit called for by Rizzo and Marks. It simply requires that the school prove it isn’t spending money on projects not presented first to voters. He added that the reallocations weren’t simple but said he couldn’t answer from memory specific questions about the 2005 bond election, including why the school chose to pursue tens of millions of dollars in reallocations so soon afterward, in January 2006.

"They’ve been very difficult decisions for both the administration and the board," Goldstein said. "[This has] not been some kind of snap judgment. We’ve really had to search and try to make sure there wasn’t some way to contain costs otherwise."

The trustees often seem just as confused as the voters may be about the cost overruns. The trail is laid out in thousands of pages of bond proposals and ever-changing explanatory documents, all complete with glossy schematics and computer-generated students looking gleeful as they head off to class at one or another of the new facilities.

The section of City College’s Web site dedicated to its bond projects is difficult to follow. A brief summary of the projects appears in voter guides, but the full bond proposals are filed with the San Francisco Department of Elections, and you’d have to go there to copy or read the tomes, which contain a lot of qualifying paragraphs that look like this one, which refers to an academic building planned in conjunction with San Francisco State University:

"The college will aggressively pursue state and federal funding to support the ‘joint-use’ concept with San Francisco State University. If funds are not forthcoming, the ‘local’ funds will be utilized to support the construction of the new Child Care Center and the new Student Health Service Center."

Such fine-print disclaimers enabled Chancellor Day and Vice Chancellor Goldstein to later depict multimillion-dollar transfers away from academic construction as entirely legal, even though the Child Care Center and health clinic never appeared as official stand-alone projects in bond proposals presented to voters.

Between 2001 and 2005 the school asked for a total of $40 million to construct in tandem with SFSU the joint-use facility, which was slated to include new classrooms and laboratories where students could work toward bachelor’s degrees in education, health care, and child development. The project is now $26 million over budget and remains in the design phase. Since 2003 about $20 million that voters were told was going to the project has been reallocated to other projects facing increased costs.

A facilities manager at San Jose–Evergreen Community College District, Robert Dias, was incredulous when we presented our findings to him. He said he’d heard of cost overruns statewide but "not to this extent."

"We have experienced rising costs, but we planned for it," Dias said. "Construction costs were going through the roof, but we did creative things to manage it."

On the other hand, Fred Harris, vice chancellor of the California Community College System, based in Sacramento, said the figures didn’t necessarily surprise him and that the state as a result has adjusted its guidelines for what individual school districts can claim as costs.*

The Chronicle’s looney

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By Tim Redmond

The San Francisco Chronicle apparently thinks a retired Wall Street Journal reporter who now lives in Berkeley and who wrote a remarkably homophobic piece on San Francisco politics way back in 1995 is the perfect persion to comment on the current Board of Supervisors. His piece, on SFGate, has the headline “Clown Show: The Board of Supervisors SF deserves? His point, it appears, is that the large queer community in San Francisco and the looney liberals here have elected a bunch of crazies to the board.

I would ignore this shit, except that it comes in the wake of all the Chris Daly bashing (much of which is factually inaccurate — Daly never accused the mayor of doing cocaine) and will, no doubt, fuel a new attack on district elections.

So let’s be real here: This district-elected board is hardly a crew of wackos. The board has done exceptional work over the past few years, passing landmark legislation that has put San Francisco in the forefront of American cities on progressive policy.

Jailhouse justice

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› gwschulz@sfbg.com

San Francisco’s popular Mike Hennessey — the longest-serving sheriff in the state after winning seven elections — likely won’t be facing a major challenger during his reelection bid this year. But a group of his deputies are being targeted for allegedly employing abusive tactics.

Six former jail inmates are charging in a civil lawsuit that they were beaten severely, left without medical attention, and forced to remain in administrative segregation for days, weeks, and even months. They originally filed suit in 2005, alleging that while in pretrial custody at various jail facilities in the city, including the Hall of Justice on Bryant Street, they were punched, kicked, or slammed by deputies from the Sheriff’s Department, which oversees the jails.

A judge, after dismissing an attempt by the deputies to have the suits tossed, ruled in December that at least four of the former inmates could take their allegations of excessive force to a jury trial. Some of the plaintiffs claim they were denied proper medical treatment for the resulting injuries, while others say they’ve endured chronic pain or injuries since the alleged attacks took place.

"The only reason these cases have come to light is because two of the inmates ended up in San Francisco General Hospital," Scot Candell, an attorney for the inmates, told the Guardian. "They were knocked unconscious."

Candell has been a criminal defense attorney in the city for 10 years, working most recently out of an aging Victorian with mismatched carpets on Webster Street. He’d never handled a civil suit before but said he took the cases, along with cocounsel Mark Marin, an attorney based in Sacramento, because the allegations represented a disturbing pattern of inmate mistreatment by the accused deputies.

He was aware of such complaints made by inmates in the past but says they were often unfounded or he chose not to take them seriously. Candell says he still believes most of the department’s deputies handle inmates appropriately. But he argues that these cases went too far and the inmates had no legitimate venue for complaining about them afterward.

"In general with people in custody, there are a lot of problems representing them both criminally and civilly," Candell told us. "They don’t have a lot of credibility. But when I saw Mr. Henderson, there was no denying that there was a problem. You don’t just get a broken back from falling out of your bed."

Earnest Henderson claims that in December 2003, following a verbal dispute with deputies involving an extension cord, three of them trapped him in a utility room, slammed him to the ground, and punched him repeatedly in the head until he slipped in and out of consciousness and was left naked in a padded cell.

He later fell to the floor twice in his cell because of a pain in his back, jail medical records show, and finally had to be transported to San Francisco General Hospital after the second fall knocked him out. There, doctors discovered a broken lower vertebra, which attorneys for the city later characterized as "minor." The city attorneys insist Henderson was inciting inmates by yelling and kicking his cell door and the deputies were merely working to contain him using only constitutionally permitted "nonlethal force."

Inmates in county custody have basically one avenue outside civil litigation for pursuing grievances against deputies alleged to have used excessive force. But the inmates complain that the Internal Affairs Division of the Sheriff’s Department didn’t thoroughly investigate their grievances, while the deputies continued working in the jail.

Voters created the Office of Citizen Complaints in 1983 to serve as an independent watchdog over the San Francisco Police Department and a place where civilians can go to protest law-enforcement misconduct. But no such equivalent exists for the Sheriff’s Department, which, in addition to managing jails, also provides security for City Hall and San Francisco’s criminal and civil courts.

Candell argues that something similar should be created for the Sheriff’s Department. Even though allegations of institutional shortcomings (such as flawed training and oversight) have been removed from the case, Candell hopes a large monetary award paid by the city’s taxpayers would prompt local lawmakers to demand greater oversight.

The suit originally charged the city and Hennessey with medical negligence and wider-ranging inmate abuse resulting from a lack of proper training for deputies. But those allegations were dismissed by Judge Vaughn Walker, who held in part that the city and Hennessey were not deliberately indifferent toward inmate grievances.

"We already know there are a bunch of allegations in this case that did not rise to a legal standing," Hennessey told the Guardian. "I believe that’s how the case will resolve itself ultimately as well."

Nonetheless, allegations by four of the six original plaintiffs, all targeting a deputy named Miguel Prado, appear likely to go to trial after brief settlement negotiations between the City Attorney’s Office and Candell deteriorated. Two other deputies, Glenn Young and Larry Napata, are also defendants in excessive-force claims made by Henderson.

Mack Woodfox alleges that in October 2005, he had an argument with Prado over a breakfast tray he was trying to give to another inmate. The two exchanged words, and Woodfox alleges the deputy removed him from the cell, took him down the hall to a different area, and punched his head and banged it into the floor.

Two days later Woodfox lost consciousness and was taken to the hospital, where doctors found he had a broken nose and broken blood vessels in his eye. Candell said the District Attorney’s Office is investigating the alleged attack on Woodfox and could bring assault charges against Prado, but a representative in the office contacted by the Guardian would neither confirm nor deny that such an investigation was taking place.

Several inmates filed declarations stating they had either seen or heard Prado attack other inmates, and two claimed Prado and other deputies beat them last year. One testified he was told by Prado to clean the cell in which Henderson’s alleged attack occurred. "There were pools of blood on the floor and a smeared bloody handprint on the wall," the inmate stated.

Michael Perez claims that in July 2004, Prado punched and kicked him after they argued over whether Perez could stay behind in a gym at the end of an exercise period to look for a screw missing from his eyeglasses. Arturo Pleitez alleges that in November 2004, Prado punched him several times, stripped off his clothes, and dunked his head in a toilet. In both instances, the city argues that the inmates assaulted Prado first, and Perez was even charged with battery and resisting arrest, but those allegations were eventually dismissed.

Messages left for deputies Napata, Young, and Prado seeking comment were not returned.

Hennessey told the Guardian that force is sometimes needed to subdue defiant inmates who threaten or attack other inmates and deputies. He told the court in a declaration that "rare" instances of excessive force do occur at the jails, and when they happen, he doesn’t hesitate to discipline or fire the deputies involved if necessary.

"It’s a difficult environment to work in…. Two-thirds or more of the people in that jail have been to state prison before," Hennessey said, referring to San Francisco’s Bryant Street jail. "Most of them are going to state prison when their time in San Francisco is done. It’s a very tense environment with very sophisticated prisoners, and the deputies have to be very sophisticated as well."

Hennessey has a reputation as a progressive who shows more compassion toward inmates than most sheriffs, but he arguably can’t oversee all of the 850 sworn employees under his supervision. Hennessey told the Guardian that he’d directed investigations into complaints about Prado’s conduct in the past, but he insisted they had not resulted in discipline, and he remains confident of all three deputies.

"Mike Hennessey is probably as good a sheriff as you’re ever going to get," said Dan Macallair, a criminal-justice expert at San Francisco State University who specializes in corrections policy. "But Mike Hennessey is one person. The Sheriff’s Department is a big bureaucracy. Law-enforcement bureaucracies tend to be very closed, and there’s a code of silence…. They don’t do well at policing themselves."

In response to the allegations, the City Attorney’s Office was sure to remind Judge Walker exactly what the court was dealing with: hardened criminals. Perez, a purported member of the Norteños gang, is now in San Quentin doing 25 years to life for murder. Henderson was awaiting trial on charges of attempted murder and eventually pled guilty to robbery.

But not everyone in jail is prison bound. All of Candell’s clients were in pretrial custody at the time of their alleged abuses and simply too poor to afford bail before they had their day in court. Woodfox was eventually released after attempted murder and carjacking charges against him were dismissed.

"The bad guards are the ones that control the culture within the institution typically," Macallair told us, noting that he supports the establishment of outside oversight bodies. "The good people don’t speak up…. There’s always going to be problems in correctional institutions. It’s just their nature. But you can at least help promote a humane, better-managed environment when there’s accountability and monitoring."<\!s>

Reform the recall

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EDITORIAL The Board of Supervisors — and the very notion of representative democracy — is under attack in San Francisco.

As city editor Steven T. Jones reported in last week’s paper ("Hazy Recall") and on our Politics blog ("Connect the Recall Dots"), a recall campaign has targeted Sup. Jake McGoldrick, citing his advocacy of car-free spaces in Golden Gate Park and a bus rapid-transit initiative that recall advocates believe district residents oppose.

Behind its claims of being a grassroots effort with legitimate concerns about McGoldrick’s leadership are some troubling indicators that there’s a lot more to this than potential petition signers might realize. The campaign’s biggest financial contributions come from the Residential Builders Association (which has long battled McGoldrick over conditions and restrictions he’s tried to place on developers) and the conservative property rights group Small Property Owners of San Francisco.

The lion’s share of the $24,000 raised so far has gone to Johnny K. Wang’s JKW Political Consulting. Among JKW’s other clients are the reelection campaign of Mayor Gavin Newsom (who would get to appoint McGoldrick’s successor, and whom the supervisor publicly criticized over Newsom’s sex scandal), Google and Earthlink (which Newsom wants to build a wireless Internet system for the city, a deal McGoldrick has taken the lead in scrutinizing), and malevolent downtown player Citizens for Reform Leadership (an attack group created by Newsom treasurer Jim Sutton).

It’s no surprise that Newsom and his downtown allies would want to knock off McGoldrick or any of the progressive supervisors who have been effectively setting the city’s agenda for at least the past two years. In fact, critics of the board have now launched another recall campaign, against board president Aaron Peskin, as well as a lower-level effort against Sup. Chris Daly. And this follows an unsuccessful 2004 effort to recall Sup. Sophie Maxwell, which had some behind-the-scenes support from downtown attack dog Wade Randlett.

None of these four supervisors have committed the acts of corruption, incompetence, or gross malfeasance for which the tool of the recall was created. Instead, people are trying to recall McGoldrick, Peskin, and Daly simply for being effective legislators with whom some of their more conservative constituents disagree.

This is an outrageous and dishonest abuse of the recall. Newsom should immediately and publicly express his opposition to the recall campaigns, and citizens of the district should refuse to sign the petitions. But that’s not enough. It’s time for the Board of Supervisors to consider placing a charter amendment on the ballot that would reform the way recalls are handled in the city, which is far more lenient than under state law.

The San Francisco signature threshold of 10 percent of registered voters is ridiculously low, particularly for district-elected supervisors, for whom only about 3,500 signatures are needed. Statewide, the standard is 20 percent of registered voters, and that should be our standard as well.

Raising the signature threshold is particularly important given the advantage that downtown interests have in recalling supervisors. The City Charter treats recall campaigns like ballot measures, allowing for huge political contributions rather than the $500 limits applied to candidates. This is grossly unfair to truly grassroots groups and should also be changed to cap contributions at $500.

Finally, we should remove the temptation for allies of the mayor to use the recall as a way of undoing popular elections and giving more power to the mayor. Most recall elections in California entail the replacement of a successfully recalled official by a vote of the people (as we saw when Gov. Gray Davis was recalled), but in San Francisco, the mayor chooses the successor. That needs to change.

Too often these days, the recall is a weapon wielded recklessly by wealthy special interests to subvert the true will of the people. By setting reasonable financial contribution limits, creating a high but still attainable signature threshold, and making the recall more democratic, San Francisco can once again make the recall an honorable — and seldom used — tool of the people. *

Beyond the Progressive Convention

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EDITORIAL The Progressive Convention didn’t produce a candidate for mayor, which wasn’t really a surprise: by the time the show opened, it was pretty clear that none of the leading contenders was ready to enter the race that day. And that, of course, will give the mainstream news media plenty of opportunity to say that the San Francisco left is disorganized, discouraged, and unable to mount a challenge to Mayor Gavin Newsom.

But Sup. Chris Daly actually did a very positive thing in pulling this event together. It wasn’t a nominating convention and never should have been, but it did serve as a reminder of the large and growing number of ideas, activists, and elected officials that make up that amorphous bloc known as the San Francisco progressives.

Daly, in a closing speech, noted that he’s heard over and over again how weak the movement is, but reminded the 400 or so attendees that "the state of the progressive movement is strong." Progressives control the Board of Supervisors and the school board. More than half the elected officials in the city generally fit under the progressive banner. And of the successful policy initiatives that have come out of this city in the past two years, almost none were from the Mayor’s Office.

Ten years ago, this event couldn’t and wouldn’t have happened. The city was stuck under the tight rule of a political machine, and only a handful of elected officials dared defy the kingpin, Willie Brown. Although the progressives have come a long, long way, winning a citywide race for mayor when the incumbent has soaring approval ratings and an essentially endless supply of money still isn’t an easy task. So it’s no surprise that there aren’t many takers.

In fact, there are some on the left who argue that it’s best to just give Newsom a pass and focus on the next round of supervisorial elections, in 2008. But that would be a mistake.

For starters, we’re still not convinced of Newsom’s invulnerability. The mayor may have great PR, but he has a lousy record. The city’s facing a long list of serious problems, from the murder rate to the Muni meltdown, and Newsom has done almost nothing to address them. The right candidate could mount a real challenge.

And even if it’s a long shot, San Francisco needs a mayor’s race. Newsom has gone into hiding of late; he won’t face the press, won’t appear before the supervisors to answer questions, and holds only farcical community meetings where all the questions are planted or screened ahead of time. A challenge would force him into the open and give the voters a chance to hold him accountable.

If it’s done right, a campaign could energize the legions of disenfranchised and create the sort of momentum the progressives need to retain control of the Board of Supervisors next year. And it would ensure that the left turn out for the election in November — which will be crucial if some downtown-backed initiatives and an attempt to recall Sup. Jake McGoldrick are on the ballot.

It’s late, and it’s getting very late for a candidate to enter the race, but there’s still a short window of time. Former supervisor Matt Gonzalez is still thinking about a run, and if he’s going to do it, he should be talking now to some of the progressives whose support he’ll need. Frankly, he has some fence-mending to do from his last race and from his decision to leave the board, and he should start that now.

We still think Ross Mirkarimi ought to run, and despite his official reluctance, he still can. A win would shake up city hall like nothing in years; a loss might still position the supervisor well to try again when Newsom is termed out. Daly at this point has taken himself out for family reasons, which is understandable — but he could also mount a strong campaign.

In his convention speech, Mirkarimi kept saying that "somebody" needs to take on the mayor. Ross, Matt, Chris … we’re waiting. *

Tokeville

0

› a&eletters@sfbg.com

There’s a section in Josh Kornbluth’s new show wherein the veteran (but weirdly ageless) monologist, waxing on admiringly about Sheldon S. Wolin, notes his old Princeton political science prof’s capacity for turning a student’s half-baked ideas into $10 notions. It reminded me of a professor I knew who was adept at the same thing. I’ve forgotten the exact metaphor Kornbluth employs to describe this pedagogical magic act, but I used to liken it to pushing a battered old Dodge across the seminar table and having the professor transform it into a Rolls Royce before sending it gliding back with your name on the license plate.

Of course, as anyone who knows his style will attest, the same might be said of writer-performer Kornbluth — or Citizen Josh, as his solo play premiering at the Magic Theatre has him. Kornbluth, though, works his similar magic with his own thoughts, the detritus of a quick but wandering mind: the memories, spontaneous associations, and clumsy social encounters of daily life. He manages to swirl these together, with plenty of humor, into a big, inquisitive stew, until they coalesce into a solution to the problem he has set for himself and his audience, whether it’s growing up in (and out of) a red diaper, negotiating the nightmare that is the federal tax system, or, in the present case, coming to terms with the meaning of democracy in the United States.

It’s in keeping with Kornbluth’s at once self-deprecating and knowing humor that this exploration of the American institution takes place on a stage efficiently made up to suggest a classroom. He and director-collaborator David Dower (along with production designer Alexander V. Nichols) proffer a short bookcase, an American flag on a freestanding pole, and a slide projector and screen. But Kornbluth stands there as teacher and student, we soon realize, and we’re merely along for the ride.

The spark sending him back to civics class comes from his frustrated disillusionment following the 2004 election, a response challenged by his Berkeley neighbor — an old-school chum and political scientist — as not in keeping with a democratic ethos. (You too may be wondering exactly how democracy fits into national elections these days. But as our guide suggests, for the purposes of this exercise, "Let’s just say it’s not passé.") Before giving up on democracy altogether, Kornbluth agrees to do some digging into the subject. (There’s a more fundamental incentive than saving face with his neighbor: Kornbluth’s son, while not a very detailed or developed character in the show, nonetheless provides his father with a certain critical perspective throughout. Fatherly instincts demand he do something to save the world his child will inherit.) The research sends him bouncing across a lot of time and territory, including his first year at Princeton, his graduation day four years later (when the desultory student did not officially graduate but rather began a 27-year incomplete that he finally decided to remedy by contacting senior thesis adviser Wolin), and even 1957 Little Rock, Ark.

In this last instance (a particularly well-written and engaging passage), he unpacks the image of the famous photograph depicting African American high school student Elizabeth Eckford — one of the Little Rock Nine, who tried to enter a previously all-white school — and the white woman spewing racial epithets behind her, one Hazel Bryan, whose democratic skills were none too desirable. Since Kornbluth catches himself "going Hazel" in a playground dispute (literally) with another Berkeley neighbor, this is also a self-effacing and humanizing reference that eschews simple dichotomies of good and evil in the name of the hard, imperfect work of talking to, rather than past, one another. (Much of Kornbluth’s monologue takes place, figuratively speaking, in Berkeley’s Ohlone Park, known as People’s Park Annex during the student protests of the late 1960s and still host to the lumpy lattice dome welded together there by protesters, which the unsuspecting Kornbluth uses as a cell phone reception platform and refers to in aesthetic horror as "the structure.")

It’s a bumpy ride, all said, for this self-fashioned Don Quixote of democracy. The first 15 minutes or so feel almost too neat, too presentational or precious. Then, as Kornbluth relates the story of his brother’s troubled beginning as an extremely premature newborn — and his (by now famous) nonconformist father’s startling intervention to save the baby — the performance moves suddenly to a new and altogether gripping register. Although it’s not entirely sustained afterward, the next hour proves an engaging one. At the same time, the show ends on an upbeat note of liberal defiance and optimism that is hard to credit in an era when even Wolin can write, in 2003, that "a kind of fascism is replacing our democracy." The show’s overt politics is less satisfying than the nuance and complexity that emerge from the more personal and idiosyncratic passages. Citizen Josh is at its most charming and compelling when the accent falls on the second half of that moniker. *

CITIZEN JOSH

Through June 17

Tues.–Sat., 8:30 p.m.; Sun., 2:30 and 7 p.m.; $20–$45

Magic Theatre, Sam Shepard Stage

Fort Mason Center, bldg. D

Marina at Laguna, SF

(415) 441-8822

www.magictheatre.org

Too quiet in Oaxaca

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By John Ross
OAXACA, OAXACA (May 27th) — On the first anniversary of the beginning of last summer’s feverish uprising here, the city’s jewel-box plaza which had been occupied for seven months by striking teachers and their allies in the Oaxaca Peoples’ Popular Assembly (APPO) from May until October when federal police forced them into retreat, shimmered in the intense spring sunbeams. The only massive police presence on view was the city police department’s orchestra tootling strident martial airs to a shirt-sleeved crowd of gaffers. Here and there, handfuls of burley state cops, sweltering in bulletproof vests and helmets in hand, huddled in the shade quaffing aguas frescas (fruit water) and flirting with the senoritas.

Evidence of last summer’s occupation has been obliterated. Surrounding government buildings have been scrubbed clean of revolutionary slogans and no marches were scheduled to commemorate last May 22nd when the teachers first established their camp in the plaza. Indeed, militant members of Section 22 of the National Education Workers Union (SNTE) were not encamped in the stately old square for the first time since the section’s founding 27 years ago. Ulises Ruiz Ortiz (URO), the object of their fury, was still the despotic governor of Oaxaca.

Despite the relaxation of U.S. State Department travel advisories and the apparent calm, few tourists were strolling the cobblestone streets of Oaxaca’s historic center and the cavernous colonial hotels around the plaza were virtually deserted.

The 2006 uprising has put a serious kibosh on the international tourist trade, the backbone of the local economy. If the experience of San Cristobal de las Casas after the 1994 Zapatista uprising is any lesson, the tourist moguls will take years to recoup.

“Apparent calm” is a euphemism oft utilized to describe the uneasy lulls that mark social upheaval in Mexico. True to the nation’s volcanic political metabolism with its fiery spurts of molten fightback and sullen, brooding silences, the Oaxaca struggle seems to have entered into a period of internal contemplation.

Government repression, which featured death squad killings and the jailing of hundreds of activists, slammed the lid down on the social stew but did not extinguish it. Discontent continues to brew and fester, the bad gas building down below. The structures of the Popular Assembly and the teachers union, which served to catalyze this discontent throughout 2006, remain intact.

To be sure, the social movements that lit up red bulbs as far away as Washington last year are not enjoying their best moments. Section 22, which itself is a loose amalgam of left factions, is wracked with division and dissonance, and its titular leader, Enrique Rueda Pacheco, is held in profound contempt for having forced the strikers back into the classroom last October and abandoning the APPO to savage government repression.

Moreover, in response to the 70,000-strong Section 22’s rebellion against the leadership of the National Education Workers Union (SNTE), union czarina Elba Esther Gordillo, a close confidante of President Felipe Calderon, chartered a new Oaxaca local, Section 59, to diminish the control that the militants exert over the state’s classrooms.

The division has put a dent in the teachers’ usual aggressive stance and instead of walking out this past May 15th, National Teachers Day, when new contracts are negotiated, Section 22 tentatively accepted a 4.8 percent base wage increase (above the 3.7 percent Calderon had conceded to other sectors) and 122 million bonus pesos to “re-zone” Oaxaca for cost of living increases in this tourism-driven state.

Although the “maestros” did participate in a two-day boycott of classes in May to protest the Calderon government’s privatization of government workers pension funds, whether the teachers will take part in an indefinite national walk-out June 1st that has been called by dissident education workers organized in the Coordinating Body of Education Workers or CNTE, remains unresolved at press time.

Nonetheless, the teachers’ disaffection with Ulises remains strong and Section 22 spokesperson Zenen Reyes last week (May 23rd) called upon the teachers and the APPO to push for cancellation of the Guelaguetza, an “indigenous” dance festival in July that has become Oaxaca’s premier tourist attraction. Last year, the strikers and the APPO destroyed scenery and denied access to the spectacle, forcing URO to suspend the gala event. In its place, activists reclaimed this millennial tradition of Indian cultural interchange by staging a “popular” Guelaguetza in the part of the city they were occupying, and plans are afoot to repeat that celebration this year.

The Oaxaca Popular Peoples Assembly, which came together after the governor sent a thousand police to drive the maestros out of the plaza last June 14th and which at one time included representatives of the state’s 17 distinct Indian peoples and many of the 400 majority indigenous municipalities plus hundreds of grassroots organizations, is equally fractured. Having borne the brunt of the repression – 26 killed, 30 disappeared, hundreds imprisoned – the Popular Assembly has been reduced to a defensive posture when only months ago it was an aggressive lightning rod for social discontent.

Even more debilitating than the government crackdown has been the prospect of upcoming local elections August 7th to choose 42 members of the Oaxaca legislature and October 5th balloting for 157 non-Indian municipal presidents (majority indigenous municipalities elect their presidents via traditional assemblies.) While the APPO considers that its goals transcend the electoral process and rejects alliance with the political parties, some Popular Assembly leaders engage in a quirky dance with the left-center Party of the Democratic Revolution (PRD) which last July almost catapulted Andres Manuel Lopez Obrador (AMLO) into the presidency.

Prominent APPO mouthpiece Flavio Sosa, jailed by Calderon as his first political prisoner, is a former Oaxaca party leader and the PRD has mobilized to achieve his release.

Perhaps the cruelest blow the APPO and the striking teachers struck against Ulises came during July 2nd 2006 presidential elections. Although URO had promised the long-ruling (77 years – at least in Oaxaca) Institutional Revolutionary Party (PRI) a million votes for his political godfather Roberto Madrazo, the popular movement inflicted the voto del castigo (punishment vote) against the PRI, handing the state to AMLO’s presidential bid in addition to electing both PRD senators and nine out of 11 federal representatives to the new congress for the first time ever.

The left party seemed positioned to bump Ruiz again in 2007 by taking the state legislature and neutralizing the tyrannical governor’s clout. But instead of rewarding the APPO and Section 22 for having dumped the PRI in 2006, the party has responded by excluding activists from its candidate lists.

“If, at one time, there was hope that elections could provide a solution to the conflict, exclusion of the APPO has canceled them,” writes Luis Hernandez Navarro who follows Oaxaca closely for the national daily La Jornada.

One Oaxaca-based PRD insider who preferred not to be named confides that APPO activists were vetoed by the left party’s national leadership least front-page photos of the candidates hurling rocks during last summer’s altercations lend credence to the perpetual allegations of the PRI and Calderon’s right-wing PAN that the PRD is “the part of violence.” Most local candidacies were distributed in accordance with the laws of PRD nepotism and amongst the party’s myriad “tribes.”

The exclusion of the APPO activists so infuriated 50 members of grassroots organizations led by Zapotec Indian spokesperson Aldo Gonzalez that they stormed the PRD’s Oaxaca city headquarters May 18th, leaving its façade a swirl of spray-painted anguish. The failure to select candidates from the popular movement, Gonzalez and others charge, throws the elections to URO, suggesting that the PRD has cut a deal with the APPO’s arch enemy.

Given the hostilities the upcoming elections have sparked so far, the August and October balloting could well signal another “voto del castigo” – this time against the PRD.

The election season was in full swing by mid-Spring in Oaxaca. PRD leader Felix Cruz, who had just coordinated Lopez Obrador’s third tour of the Mixteca mountains (AMLO was conspicuously absent during last summer’s struggle), was gunned down in Ejutla de Crespo on May 21st. Juan Antonio Robles, a direction of the Unified Triqui Liberation Movement (MULT), a participating organization in the APPO, met a similar fate the next day. That same week, a car carrying a local candidate for Elba Esther Gordillo’s New Alliance Party was riddled with gunfire along the coast. Drug gang killings have also jacked up the homicide rate in the state – under Ulises’ governance, drugs and drug gangs have flourished.

Meanwhile, in classic “cacique” (political boss) style, the PRI governor is out and about dishing up the pork to buy votes, passing out cardboard roofing and kilos of beans, building roads to nowhere and bridges where there are no rivers to cross, to pump up his electoral clientele. Gifting opposition leaders with pick-up trucks to enlist their allegiances is a favorite URO gambit, notes Navarro Hernandez.

Despite the ambitions of some of its members, the APPO is not enthusiastic about participating in the electoral process. At a statewide congress in February, APPO members were allowed to run for public office as individuals and only if they resign from any organizational function.

Miguel Cruz, an APPO activist and member of the directive of the CIPO-RFM or Popular Indigenous Council of Oaxaca – Ricardo Flores Magon (Flores Magon was a Oaxaca-born anarchist leader during the Mexican revolution) is not a partisan of the electoral process. Seated in the CIPO’s open-air kitchen out in Santa Lucia del Camino, a rural suburb of Oaxaca city where police gunned down U.S. journalist Brad Will last October, Miguel explains his disdain for how the elections have split the APPO “when they were supposed to bring us together.

“Everyone is working on their own agendas now and the so-called leaders are all looking for a ‘hueso” (literally ‘bone’ – political appointment.) This is a crying shame. The APPO is a mass movement, not a political party. Our consciences are not for sale.”

June 14th, the day last year Ulises sent a thousand heavily armed police to unsuccessfully take the plaza back from the striking teachers, is a crucial date. The APPO and Section 22 are planning one of their famous mega-marches which last summer sometimes turned out hundreds of thousands of citizens. Will June 14th signal a resurgence of massive resistance and if it does, will the popular leadership be able to restrain hotter heads and government provocateurs that last November gave the federal police the pretext to beat and round up hundreds? Miguel Cruz is hopeful the APPO will persevere. “Whatever the ‘leaders’ do and say, the APPO lives down at the bases.”

Up the steep, windy hill in San Pablo Etla, where the cognoscenti live above the hurly-burly on the streets of Oaxaca, political guru Gustavo Esteva views the popular struggle down below geologically. “The popular movement in Oaxaca is like an active volcano” he writes in La Jornada, “last year when it erupted, the movement left its mark in the form of molten lava trails. Now the lava has cooled and formed a cap of porous rock that marks the point through which the internal pressure will find its way to break through to the surface again.”

John Ross is in Mexico City hot on the trail of Brad Will’s killers and re-immersing himself in the real world. Write him at johnross@igc.org if you have further information.

Vote or die

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› cheryl@sfbg.com

Now that the wave of Asian horror films (and subsequent American remakes) seems to have crashed under the weight of too many spooky kids and ladies with long, wet hair, are Asian gangster flicks the new hotness? Practically everyone in the United States has now seen a Hong Kong cops ‘n’ robbers thriller or at least a film once removed from such, thanks to Martin Scorsese and his Best Picture–winning Infernal Affairs remake. But while The Departed pilfered from director Andrew Lau (this fall look for his English-language debut, the Richard Gere–starring crime drama The Flock), HK’s most exciting director, Johnnie To, remains largely unknown stateside.

For now, that is: with films such as 1999’s The Mission and 2001’s Fulltime Killer, To earned notice among genre buffs. Last year’s Exiled screened at the 2007 San Francisco International Asian American Film Festival and is due for local theatrical release this summer; I think it’s the film poised to earn To a fan base beyond the cinema-geek crowd. But until Exiled emerges, there’s Triad Election, a.k.a. Election 2, which offers enough stylish direction and underworld shenanigans to tide over the To faithful — and maybe snare a few new devotees along the way.

Haven’t watched the first Election? Me neither, so rest assured that you don’t need to have seen it to follow Election 2. HK’s oldest triad, Wo Sing, puts the organized in organized crime, holding elections for chairperson every two years. Current boss Lok (Simon Yam) doesn’t want to step down, especially for front-runner Jimmy (Louis Koo), whose lucrative ventures in mainland China have left him yearning to leave HK’s crime biz behind. Trouble is, the crooked higher-ups in China won’t let Jimmy continue his dealings unless he becomes head of his mob family; they see his cooperation as an asset they can exploit to everyone’s advantage. So the race is on, and it’s way dirtier than anything Karl Rove could dream up. Campaign strategies include kidnapping, double-crossing, limb severing, and putting assorted hired killers on the payroll.

To aligns the viewer’s sympathies with Jimmy, but he’s as morally ambiguous as they come, as movie mobsters tend to be. And on that note, a few delicious torture scenes aside, there’s not a lot going on here that hasn’t appeared in gangster dramas past. But even if its themes are familiar, Triad Election does feature one particularly unusual element: no gun battles whatsoever. Exiled is as bullet-riddled as the films of John Woo’s late-’80s prime, but Election‘s characters dole out their punishments with an array of blades.

It’s actually appropriate, since you really have to get right up on someone to stab ’em good. This visceral, intimate choice raises the stakes of Election‘s all-in-the-family violence. Keep your friends close and your enemies closer indeed. *

TRIAD ELECTION

Opens Fri/18 in Bay Area theaters

See Movie Clock at www.sfbg.com

Out of downtown

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› steve@sfbg.com

It wasn’t going well for Ted Strawser, predictably. The alternative transportation activist faced an uphill battle March 14 trying to convince a San Francisco Chamber of Commerce committee to endorse Healthy Saturdays, a plan to ban cars from part of Golden Gate Park.

Representatives of the park’s museums and Richmond District homeowners had just argued their case against the measure. “Visitors want access to our front door, and we want to give it to them,” Pat Kilduff, communications director for the Fine Arts Museums of San Francisco, indignantly told the group of two dozen business leaders gathered around a large conference table.

Strawser gave it his best shot: he talked about following the lead of other great cities to create car-free spaces; he said, “Golden Gate Park is one of the best parks in the nation, if not the world”; and he made a detailed case for closure. But around the table there were scowls, eye rolls, and other obvious signs that Strawser was being tolerated, not welcomed. Some — including chamber vice president Jim Lazarus — even started to interrupt and argue with him.

Then the man sitting next to Strawser spoke up. “I don’t think this is fair,” he said. And suddenly, everyone in the room shaped up. Strawser’s ally — his only supporter in the room — was somebody no chamber member could or would dismiss. Warren Hellman doesn’t shout or bang the table — but when he speaks, downtown pays attention.

Hellman, a prominent investment banker, told the committee members that he expected them to show the same respect for Strawser that they had for the previous two speakers. The nonsense ended, immediately.

And by the time Strawser turned the floor over to Hellman, the mood had changed. The group listened raptly, smiled, and nodded as Hellman spoke in his usual folksy, familiar, disarming style.

“It’s not a lot of fun when friends fall out,” he began, “because the previous speakers and many of you all agreed on the necessity of the garage [that was built in Golden Gate Park], and we worked together.”

He pointed out that many in the group had promised during the fall 2000 election to support Healthy Saturdays once the garage was built, although Hellman was now the only member of the coalition honoring that commitment. But he didn’t chide or shame his colleagues. That isn’t Hellman’s style.

Instead, he spoke their language. The garage has never been full and needs the money it can charge for parking to repay the bonds. This isn’t a fight that’s going away, since “part of the conflict is because this park is everybody’s park.” But there are “about 100 compromises not acceptable to either side that would move this forward.” And if a solution can’t be found, there will probably be an expensive ballot fight that nobody wants.

“My conclusion is we should attempt this test,” Hellman told the group. Ultimately, when the vote was later taken in secret, the chamber didn’t agree, although it did vote to back a trial closure after the California Academy of Sciences reopens next year.

At the meeting, Hellman openly called for Mayor Gavin Newsom to get involved in seeking a compromise, something Hellman said he had also just requested of the mayor at a one-on-one breakfast meeting. A couple of weeks later Newsom — who had already indicated his intention of vetoing the measure — did broker a compromise that was then approved by the Board of Supervisors.

As usual, Hellman didn’t take credit, content to quietly play a role in making San Francisco a better place.

Healthy Saturdays isn’t the most important issue in local history — but the significance of Hellman’s involvement can’t be underestimated. His alliance with the environmentalists and park advocates might even signal a sea change in San Francisco politics.

Warren Hellman represents San Francisco’s political and economic past. And maybe — as his intriguing actions of recent years suggest — its future.

This guy is a rich (in all senses of the word) and compelling figure who stands alone in this town. And even though his leadership role in downtown political circles has often placed him at odds with the Guardian, Hellman consented to a series of in-depth interviews over the past six months.

“Our family has been here since early in the 19th century, so we had real roots here,” Hellman told us. His great-grandfather founded Wells Fargo and survived an assassination attempt on California Street by a man who yelled, “Mr. Hellman, you’ve ruined my life,” before shooting a pistol and barely missing.

The Hellman family has been solidly ruling class ever since, rich and Republican, producing a long line of investment bankers like Warren.

Yet the 72-year-old comes off as more iconoclast than patrician, at least partly because of the influence of his irreverent parents, particularly his mother, Ruth, who died in 1971 in a scuba-diving accident in Cozumel, Mexico, at the age of 59. “She was entirely nuts,” Hellman said, going on to describe her World War II stint as a military flier in the Women’s Auxiliary Service Pilots and other colorful pursuits. “She just loved people, a little like I do. She collected people.”

Hellman grew up wealthy and cultured, but he also attended public schools, including Grant Grammar School and Lowell High School. In between, the young troublemaker did a stint at San Rafael Military Academy — “reform school for the rich,” as he called it — for stunts such as riding his horse to Sacramento on a whim.

After doing his undergraduate work at UC Berkeley, Hellman got his MBA from Harvard and went on to become, at the age of 26, the youngest partner ever at the prestigious Manhattan investment firm Lehman Bros. He developed into an übercapitalist in his own right and eventually returned home from New York and founded Hellman and Friedman LLC in San Francisco in 1984, establishing himself as the go-to financier for troubled corporations.

“He is really one of the pioneers of private equity,” said Mark Mosher, a longtime downtown political consultant and the executive director of Gov. Arnold Schwarzenegger’s California Commission on Jobs and Economic Growth, on which Hellman sits.

Hellman became what Business Week called “the Warren Buffett of the West Coast,” a man of extraordinary wealth and power. Among other accomplishments, Hellman took Levi Strauss private, recently made billions of dollars in profits selling DoubleClick to Google, and manages the assets of the California public employee retirement funds (CalPERS and CalSTRS), which are among the largest in the world.

Like many financial titans, Hellman has always been a generous philanthropist, giving to the arts, supporting schools in myriad ways, and funding the San Francisco Foundation and the San Francisco Free Clinic (which his children run). He vigorously competes in marathons and endurance equestrian events, often winning in his age bracket. And he has his humanizing passions, such as playing the five-string banjo and creating the popular Hardly Strictly Bluegrass festival.

But he’s also been a prime facilitator of downtown’s political power, which regularly flexes its muscle against progressive causes and still holds sway in the Mayor’s Office and other city hall power centers.

Hellman founded, funds, and is a board member of the Committee on Jobs, which is perhaps the city’s most influential downtown advocacy organization. Hellman and his friends Don Fisher, the founder of the Gap, and Sen. Dianne Feinstein also started SFSOS, which now wages the most vicious attacks on left-of-center candidates and causes.

When the de Young Museum and other cultural institutions were threatening to leave Golden Gate Park, Hellman almost single-handedly had an underground parking garage built for them, in the process destroying 100-year-old pedestrian tunnels and drawing scorn from the left. The Guardian called it “Hellman’s Hole.”

“We at the Bike Coalition very much started out on the opposite side of Warren Hellman,” San Francisco Bicycle Coalition executive director Leah Shahum told us. “We couldn’t have been more like oil and water on the garage issue.”

But over the past two years or so, Hellman’s profile has started to change. He went on to become an essential ally of the SFBC and other environmentalists and alternative transportation advocates who want to kick cars off JFK Drive in Golden Gate Park on weekends, crossing the downtown crowd in the process. He has shared his wealth with progressive groups such as Livable City, which often fights downtown, and has stuck up for edgy fun seekers over more conservative NIMBY types. He has also publicly repudiated the attacks of SFSOS and its spokesperson, Wade Randlett, and withdrawn his support from the group.

Hellman is still a Republican, but a thoughtful and liberal-minded one who opposed the Iraq War and wrote an article for Salon.com in February titled “If the United States Were a Company, Would George Bush Be Our CEO?” (His answer: hell no.) And to top it all off, Hellman sports a few tattoos and even attended 2006’s Burning Man Festival and plans to return this year.

Unguarded and reflective, Hellman’s comments to the Guardian foreshadow the possible future of capitalism and influence in San Francisco and point to potential political pathways that are just now beginning to emerge.

Our first conversation took place at the Guardian office two weeks before the November 2006 election, when it was starting to look like Nancy Pelosi had a good shot at becoming speaker of the House of Representatives.

“I think this election in two weeks is going to be really interesting,” Hellman told us.

This Republican was cheering for the Democrats to win. “They aren’t my kind of Republicans,” he said of the people in power. Hellman didn’t support the war or approve of how the Bush administration sold it, and he wanted Pelosi and the Democrats to hold someone accountable.

“What I’d like her to do is admit that we can’t get out [of Iraq immediately], but start to talk about what the fallout has been. Discuss the enormous cost in human life as well as money, and how it’s possible the war united the Middle East against us,” Hellman said.

The one thing he can’t abide is disingenuousness. Hellman speaks plainly and honestly, and he asked us to keep particularly caustic comments off the record only a few times during almost six hours’ worth of interviews. He was self-effacing about his political knowledge and seemed most interested in working through the problems of the day with people of goodwill.

Asked what he values most in the people he deals with, Hellman said, “It’s authenticity. Do they believe things because they believe in them, or do they believe in things because they’re cynical or they’re just trying to gain something?”

Locally, Hellman has reached out to people with varying worldviews and come to count many friends among those who regularly battle against downtown.

“I love to know people,” he said. “That’s probably the single thing that motivates me. When someone says to me, ‘How can you be friends with [then–head of SEIU Local 790] Josie Mooney?’ I say, ‘Look, I want to know Josie Mooney. And if she’s awful, then we won’t be friends.’ I’m just fascinated by getting to know people. And virtually always, they’re a little like Wagner operas: they’re better than they sound.”

Hellman was the chair of the Committee on Jobs when he got to know Mooney, who chaired the San Francisco Labor Council and was a natural political adversary for the pro-business group, particularly when Hellman was leading the fight to do away with the city’s gross receipts tax, which has proved to be costly for the city and a boon for downtown.

But after that victory, Hellman turned around and cochaired a campaign with Mooney to retool and reinstate the gross receipts tax in a way that he believed was more fair and helped restore the lost revenue to the city.

“We lost, but he put $100,000 of his own money into that campaign,” Mooney told us, noting that the proposed tax would have cost Hellman and Friedman around $70,000 a year. “I think he just thought the city needed the money. It was a substantive point of view, not a political point of view.”

Mooney considers Hellman both a friend and “an extraordinary human being…. He has made a huge contribution to San Franciscans that doesn’t relate to ideological issues. A tremendous thing about Warren is he’s not ideological, even in his political point of view…. On politics, I’d say he is becoming more progressive as he understands the issues that confront ordinary people.”

Mooney is one of the people who have helped bring him that awareness. When they first met, Mooney said, Hellman told her, “You’re the first union boss I ever met.” That might have been an epithet coming from some CEOs, but Hellman had a genuine interest in understanding her perspective and working with her.

“In a sense, I think that was a very good era in terms of cooperation between the Committee on Jobs and other elements of the city,” Hellman said. “Josie and I had already met, and we’d established this kind of logic where 80 percent of what we both want for the city we agree on, and 20 percent [of the time, we agree to disagree].”

Committee on Jobs executive director Nathan Nayman — who called Hellman “one of my favorite people in the world” — told us that Hellman feels more free than many executives to be his own person.

“He’s not with a publicly held company, and he doesn’t have to answer to shareholders,” Nayman said. “He takes a position and lives by his word. You don’t see many people like him in his income bracket.”

Hellman has become a trusted hub for San Franciscans of all political persuasions, Nayman said, “because he’s very genuine. He’s fully transparent in a city that likes to praise itself for transparency. What you see is what you get.”

Hellman expects the same from others, which is why he walked away from SFSOS (and convinced Feinstein to bolt as well) in disgust over Randlett’s scorched-earth style. Among other efforts, SFSOS was responsible for below-the-belt attacks on Sups. Chris Daly, Jake McGoldrick, and Gerardo Sandoval (whom a mailer inaccurately accused of anti-Semitism).

“If all things were equal, I’d just as soon that SFSOS went away,” Hellman said. “SFSOS started doing the opposite of what I thought they would be doing, so it was fairly easy for me to part company with them. What I thought we were doing is trying to figure out ways to make the city better, not just being an antagonistic, nay-saying attack organization. I’m not a huge fan of Gerardo Sandoval, but I thought the attacks on him were beyond anything I could imagine ever being in favor of myself. And it was a series of things like that, and I said I don’t want anything more to do with this.”

Downtown, they’re not always quite sure what to make of Hellman.

“Every once in a while, he does things that irritate people who are ideologically conservative,” Mosher said. “He took an immense amount of heat for supporting the Reiner initiative [which would have taxed the rich to fund universal preschool].”

He’s given countless hours and untold riches to public schools, doing everything from endowing programs to knocking on doors in support of bond measures and often pushing his colleagues to do the same.

“My connection to him has been through the school district, and he’s really been a prince,” Sup. Tom Ammiano said. “He has even stopped calling me antibusiness. He put a lot of his energy into improving public education, and so he shows it can be done.”

Progressives don’t always agree with Hellman, but they feel like they can trust him and even sometimes win him over. “If you get a relationship with him and you’re always honest about the facts and your own interests, he will listen, and that’s pretty remarkable,” Mooney said. “He shows a remarkable openness to people who have good ideas.”

His appreciation for people of all stripes often causes him to reject the conventional wisdom of his downtown allies, who viciously attacked the Green Party members of the Board of Education a few years ago.

“Everybody said, ‘Oh my god, Sarah Lipson, you know, she’s a Green Party member, she’s the furthest left-wing person on the board,’ blah, blah, blah,” he said. “And I phoned her up one day and said, ‘I’d really like to meet you.’ And she’s — leave aside the fact that I think she’s a very good person as a human being, but she’s a very thoughtful, analytic person. Listening to her opinions about things that are happening in the school district, I really respect that. I mean, what do I know about what’s going on in the school district? I know more now than I did then. But just getting to know people, and maybe get them to understand my point of view, which isn’t that penetrating.”

Many of his efforts have received little publicity, as when he saved the Great American Music Hall from closure by investing with Slim’s owner Boz Scaggs and helping him buy the troubled musical venue. “There are things that you and I don’t even have a clue that he has done,” Nayman said.

“He’s an interesting guy,” Mosher said. “He’s one of a dying breed, a liberal Republican. He has a social conscience and wants to use his money to do good.”

Actually, calling Hellman liberal might be going too far. In the end, he’s still very much a fiscal conservative. He doesn’t support rent control, district elections for the Board of Supervisors, taxing businesses to address social problems such as the lack of affordable health care, or limits on condo conversions.

He also opposes the requirement that employers provide health care coverage, which downtown entities are now suing the city to overturn, telling us, “In general, I don’t think it’s a good idea, because I’m still, even in my aging years, a believer that the marketplace works better than other things…. Universal health care I do believe in, but what I worry is that it’s going to be another damned bureaucracy and that it’s not going to work.”

Yet he doesn’t believe wealth is an indicator of worth, saying of his fortune, “It is luck. Most of what you do you aren’t better at than everyone.”

He doesn’t believe in the law of the jungle, in which the poor and weak must be sacrificed in the name of progress. In fact, he feels a strong obligation to the masses.

As he told us, “My mantra for capitalism — and I didn’t invent this, but I think it’s pretty good — is that capitalism won, and now we need to save the world from capitalism.”

Hellman looms large over downtown San Francisco. His Financial District office offers a panoramic view of the Bay Bridge, Treasure Island, the Ferry Building, and the rest of the city’s waterfront. He likes to be personally involved with his city and the companies in which Hellman and Friedman invests.

“Usually I’m directly involved,” he told us in an interview earlier this year. “I’ve always said that I don’t like to go to the racetrack to just look at the horses. The fun of being a principal is that you’re standing at the track and not saying, ‘Gee, that’s a beautiful gray horse.’ You’re saying, ‘Come on, he’s got to win!’ So I’m almost always invariably invested in the companies that we work with, either individually or through the firm.”

Unlike many Wall Street barons who strive to control a company and bring in new executives, flip it for a quick profit, or liquidate it, Hellman said his firm tries to identify solid companies and help facilitate what they do. “We don’t usually take over companies. I always think that we provide a service to help the businesses,” he said. “Our job is kind of the opposite of owning a factory. Our job is to be sure the people who run the business feel like it’s their business.”

Similarly, he thinks capitalists need to feel a sense of ownership over society’s problems, something he thinks is taking root in San Francisco and other economic centers, particularly among the younger generations. “It’s about understanding how much suffering there is on the other side and trying to figure out how that suffering can be alleviated,” he said. “I think it’s partly good economics that as you bring people up, they’re able to do more for society. If nothing else, they’re able to buy more and shop at a Wal-Mart or something — probably someplace you would wildly disapprove of — and buy goods and services. But I don’t think it’s that narrow.”

Rather, he believes that everyone has a little progressive in them, a little desire to cooperatively solve our collective problems rather than pass them off to future generations. He sees a marked change from his days at Lehman Bros.

“Everybody was into making it,” he said, noting that many capitalists then did charity work as a means of attaining social status but focused mostly on the accumulation of wealth. But, he said, the new generation of capitalists seems genuinely interested in improving the world.

“The feeling for giving back in the next generation, in the now 25- to 35-year-olds, it’s just an order-of-magnitude difference than it was for people who are now in their 40s and early 50s,” Hellman said. “I’m very encouraged.”

Yet the flip side is that, in Hellman’s view, downtown doesn’t wield as much power as it once did. Low political contribution limits have made politicians less dependent on downtown money, creating fewer shot callers, while democratizing tools such as the Internet have broadened the political dialogue.

“For the last 30 years we have become an increasingly tolerant city, and that’s great,” he said. “In the old days, [the Guardian] complained about downtown, and yeah, no shit, downtown really did control the city. The benefit was as that slipped away, the city became fairer and more open to argument. So now downtown hardly has any power at all anymore. In a sense, that’s a good thing. Tolerance grew tremendously when the city wasn’t dictated to.”

That tolerance caused street fairs to pop up all over town and festivals such as Hellman’s Hardly Strictly Bluegrass to blossom in Golden Gate Park. Bike lanes have taken space from cars, events such as Halloween in the Castro have gotten crazier, street protests have gotten bigger and more frequent, and people have felt more free to fly their freak flags. And all that freedom eventually triggered a backlash from groups of isolated NIMBYs who complain and often find sympathetic ears at city hall.

“Sometimes you get the feeling in this city that in the land of the tolerant, the intolerant are king,” said Hellman, whose festival has endured noise complaints even though the music is shut off by 7 p.m. “There is a continuing pressure to do away with fun, because fun is objectionable to someone, [but] we need to think about not creating a new dictatorship of a tiny group of people whose views are not in line with the opinion of most of the people of San Francisco…. You should try to balance the good of a lot of people versus the temporary annoyance of a few people.”

Preserving fun and a lively urban culture is a personal issue for Hellman, who plays the five-string banjo and calls his festival “the most enjoyable two days of the year for me.” He helps draw the biggest names in bluegrass music and acts like a kid in a candy shop during the event.

“I feel very strongly that an important part of our culture is built on the type of music and type of performance that goes on at Hardly Strictly Bluegrass,” Hellman said. From parables set to music to songs of struggle and the old union standards, “that kind of music is the conscience of our country.”

He considers bluegrass a vital and historically important form of political communication, more so than many of the upscale art forms that the rich tend to sponsor. “I’m glad that we have first-rate opera, but it’s equally important that we foster the kind of music, lyrics, etc., that support all this,” he said. “Somebody once said that most of the great Western philosophy is buried in the words of country songs. And that’s closer to the truth than most people think. A big passion of mine is to try to help — and people have defined it too narrowly — the kinds of music that I think have a hell of a lot to do with the good parts of our society.”

Perhaps surprisingly for a Republican venture capitalist from the older generation, Hellman also considers the countercultural freaks of San Francisco to be some of the “good parts of our society.” That’s why he attended Burning Man for the first time last year and why, he said, he loved it, as much for the culture and community as for the art.

“I went to Burning Man because as much as possible I want to experience everything,” he said. “I want to just see directly what it’s like. I knew I’d enjoy it. I never doubted that. But what really overwhelmed me is it was 40,000 people getting along with each other. I mean, it’s pretty intense. There were dust storms and the world’s most repulsive sight: nude men over 70 just dangling along. But I never saw an argument. It was 40,000 people just enjoying each other.”

It was most striking to Hellman because of the contrast with the rest of society. As he said, “I’ve never seen this country so divided.”

While Hellman supports Schwarzenegger — calling him “a good advertisement to California” — he has nothing good to say about his fellow Republican in the Oval Office. He calls Bush’s tenure “an absolute four-star disaster.” The invasion of Iraq is the most obvious problem, he said. “Our war policy has slowly veered from being ‘Don’t tread on me’ to we’re going to jump on your neck.”

But his antipathy to certain aspects of the Republican Party began even earlier, when the religious right began to take over.

“I thought we were not that polarized during the Clinton administration. I was somewhat encouraged,” Hellman said. “Maybe there was an undercurrent of strident religious behavior or strident conservatism, but not the conservatism that I think the Republican Party used to stand for, which was fiscal conservatism instead of social conservatism. Somehow, there was this angst in this country on the part of religious people who I guess felt this country was being taken away from them, and they were the kind of stalwart or underpinnings of society. And they took it back.”

But in the wake of that disaster, Hellman thinks, there is an opportunity for reasonable people of goodwill to set the future political course. As Nayman said of Hellman, “He does believe there is a middle way pretty much all the time.”

Politically, that’s why Hellman gravitates toward the moderates of both major parties, such as Schwarzenegger and Newsom. He looks for people who will marry his economic conservatism with a regard for things such as environmentalism and social justice.

“It’s very tough to be a big-city mayor,” Hellman said. “[Newsom is] probably the best mayor we’re entitled to. He’s got this fantastic balancing act.”

Hellman said downtown hasn’t been terribly happy with Newsom for supporting striking hotel workers, getting behind Ammiano’s health insurance mandate, supporting tax measures, and generally letting the Board of Supervisors set the city’s agenda for the past two years.

“Their measure is he has 80-percent-plus popularity, and he ought to spend some of it. Well, they might not agree with what he would spend it on. And he’s been unwilling to spend very much of it. In some parts of the business community there is disappointment with him, but I don’t think that’s right. He didn’t hide what he would be like.”

What Newsom said he would be — a big reason for his popularity — is a mayor for the new San Francisco, a place where the city’s traditional economic conservatism has been tempered by a greater democratization of power and an ascendant progressive movement that expects its issues to be addressed.

“I don’t like people who are intolerant,” Hellman said. “I don’t like people that are telling you something to get some outcome that, if you understood it, you probably wouldn’t want. I like people that are passionate.”

Asked, then, about Sup. Chris Daly, the nemesis of downtown and most definitely a man of strong political passions, he said, “I admire Chris Daly. I disagree with Chris on a lot of things he believes, but there are also probably a lot of things I would agree with Chris on. And I respect him.”

Hellman is the rare downtown power broker who wants to bridge the gap between Newsom — whom he calls a “moderate to conservative establishment person” — and progressives such as Daly, Mooney, and the Bicycle Coalition. The middle ground, he said, is often a very attractive place, as it was with Healthy Saturdays.

“I’m sure you spend time in the park on Sunday, and it’s a hell of a lot nicer in there on Sundays than Saturdays,” Hellman said. But even more important to him, this is about integrity and being true to what Golden Gate Park garage supporters promised back in 2000.

“They were proposing Saturday closing at that time, which I’ve always thought was a good idea,” he said. “And we made a commitment to them, or I thought we made a commitment to them, that let’s not have Saturday closure now, but as soon as the garage was done, we’d experiment with Saturday closure.”

We brought up what Fine Arts Museums board president Dede Wilsey has said of that pledge, that it was under different circumstances and that she never actually promised to support Saturday closure after the garage was completed.

“There’s a letter. She put it in writing,” he said of Wilsey. “She signed a letter on behalf of the museums saying that when the de Young is done, we should experiment with Saturday closings.”

The Bike Coalition’s Shahum said that even when Hellman was an enemy, he was a reasonable guy. But it’s in the past couple of years that she’s really come to appreciate the unique role he plays in San Francisco.

“He showed decency and respect toward us,” she said. “We never saw him as a villain, even though we disagreed completely. Later he really stepped up and has been a leader on Healthy Saturdays. And what I was most impressed with is that he was true to his word.”

Supervisor McGoldrick, who sponsored the measure, echoed the sentiment: “Hellman was certainly a man of his word who acted in a highly principled way.”

So why does Hellman now stand apart from the downtown crowd? Has he parted ways with the economic and cultural power brokers who were once his allies?

No, he said, “I think they parted ways with me.” *

 

Istanbul May 11, 2007

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By Bruce B. Brugmann

CNN today was drumming on with news of Tony Blair going and Gordon Brown coming in as prime minister of Great Britain. The Turkish Press was reporting that the national elections here had been moved up three months to July 22, and this surprised the political parties, who were alarmed and said they were forced to bring in the professionals to help them carry on effective campaigns during the short period left before the election. The Turkish Daily News, Turkey’s English daily, reported that there was no space left on the TV stations or on the billboards and that campaign ads would be competing with ice cream manufacturers.
On the plane coming in, Spiro Vryonis sat next to associate pubublisher Jean Dibble and filled her in on the elections from his perspective as a Byzantine scholar. Vryonis, retired director of the center for the study of Hellenism in Sacramento, told her that Prime Minister Recep Tayyip Erdogan supported his Foreign Minister Abdullah Gul for president. “They get along like two dogs until someone throws a bone between them,” he said.
Meanwhile, I found good advice in Time Out Istanbul, the city-living guide in English. It wrote about the art of Keyif, which translates as “a pleasurable state of idle relaxation.” The article said that Keyif has been honed down to an art form by the Trurks and laid out 10 ways of experiencing Keyif the Turkish way. My favorite was the idea of walking aimlessly along the Bosthorus, the body of water seperating Asia from Europe. It said that “you’ll be surprised how relaxing the Oriental art of walking around with no destination is.” The 58th International Press Institute world congress and general assembly starts tomorrow. So I think I’ll spend the rest of the afternoon doing Keyif. B3

Challengers to Newsom

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Steven T. Jones
There’s been much fretting among Mayor Gavin Newsom’s critics that no serious candidate has yet stepped forward to challenge him. But that’s not to nobody is challenging him. In fact, according the Elections Department, a baker’s dozen of San Franciscans have filed for a potential run (the list won’t be finalized until August). They are Cesar Ascarrunz, Rodney Hauge, Lonnie Holmes, Kenneth Kahn, Grasshopper Kaplan, Robert McCullough, Matthew Mengarelli, David Merlin, Antonio Mims, Malinka Moye, Robert Myers, Frederick Renz, and Ahimsa Porter Sumchai. None are exactly household names. The only one I know is Sumchai, whose base is basically Bayview Hunters Point lefties. But I had a chance this afternoon to chat with the latest mayoral candidate: David Merlin.