Path: bloom-picayune.mit.edu!enterpoop.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!americast-post Newsgroups: americast.twt.metro From: americast-post@AmeriCast.Com Organization: American Cybercasting Approved: americast-post@AmeriCast.com Subject: Wilder tells Terry to apologize to panel Date: Wed, 25 Nov 92 16:20:05 EST Message-ID: Lines: 74 \SE B;METROPOLITAN \SS (WS) \HD Wilder tells Terry to apologize to panel \BY Larry O'Dell \CR ASSOCIATED PRESS \DT RICHMOND RICHMOND - Gov. L. Douglas Wilder yesterday demanded Attorney General Mary Sue Terry apologize to state retirement system board members who were the target of a well-publicized investigation that uncovered no crimes. Miss Terry, who investigated the boards of the Virginia Retirement System and its real estate subsidiary, RF&P Corp., released a report Monday saying she found questionable operating practices, leadership problems and an atmosphere of distrust - but no criminal wrongdoing or breach of fiduciary duty. Mr. Wilder said Miss Terry's sole responsibility to the VRS was to provide confidential legal advice. He said the probe was outside her authority and that it unfairly tarnished the reputations of board members. "I feel that you owe an apology to the VRS board for incorrectly insinuating their criminal, legal or ethical failings," Mr. Wilder said in a letter to Miss Terry. "We cannot afford the luxury of abuse or misuse of authority to condemn, smear, or subject dedicated public servants to ridicule, surmise and conjecture," he said. Mr. Wilder told Miss Terry she also should apologize to VRS beneficiaries and to taxpayers "for raising the specter of a problem with the retirement fund." The VRS manages a $14.1 billion investment portfolio for state and some local retirees. Miss Terry was out of her office yesterday afternoon, spokesman David Parsons said. The governor stopped short of saying Miss Terry should withdraw as the VRS lawyer, saying that is up to the board. Mr. Wilder has legal authority to approve the hiring of outside counsel. "I have some question whether fair and objective representation can be had" from the Attorney General's Office, Mr. Wilder said. Mr. Wilder said he will support Miss Terry for governor next year if she receives the Democratic Party's nomination, as expected. He said he is not worried about any public perception of a feud between the two top state officials. "I'm concerned now with protecting the integrity of the [retirement] system," Mr. Wilder said. He said he would not back down from his position that the matters raised by Miss Terry are policy issues that properly lie within the executive branch. "The attorney general can wait to know what it means to be in charge of policy for the state," Mr. Wilder said. "That's my job, not hers." In her report, Miss Terry said the leadership and operational problems she found in her investigation are "more disturbing to me than any single incidence of criminal activity would have been." Miss Terry launched her investigation after learning that RF&P paid $460,000 in unauthorized legal fees for VRS. The payment was in addition to a $375,000 cap Miss Terry had set. This article is copyright 1992 The Washington Times. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM