News :
Schwarzenegger urged to cut ties with magazines
THE LONDON FREE PRESS, July 15 2005 -- SACRAMENTO -- California
Gov. Arnold Schwarzenegger came under fire yesterday for accepting millions
of dollars from fitness magazines in a consulting deal that critics
say represents a clear conflict of interest.
Schwarzenegger is being paid about $8 million US over five
years to serve as a consultant for several magazines published by American
Media Inc., including Flex and Muscle & Fitness, according to a
U.S. Securities and Exchange Commission filing.
The publications derive much of their profit from advertisements
for nutritional supplements. Last year, Schwarzenegger vetoed a bill
seeking to crack down on the use of performance-enhancing substances
in high school sports.
The bill's sponsor, Senator Jackie Speier, called on Schwarzenegger
to sever his ties with the publisher.
"The governor of the state of California makes some
important decisions every day. Today, he has to make a decision about
a conflict of interest -- his own," Speier said during a news conference.
Schwarzenegger's office had no immediate response.
On Wednesday, after the SEC filing, a spokesperson for
the governor said the arrangement does not represent a conflict of interest.
"The governor did not direct sales or marketing activities
of American Media and did not have personal contact with any advertisers
to generate the advertising revenue," spokesperson Margita Thompson
told the Los Angeles Times.
The governor does not accept his $175,000 annual salary
from the state, and California law allows elected officials to keep
outside jobs.
Schwarzenegger's consulting contract pays him one per cent
of the magazines' advertising revenue each year for five years, a sum
that could total $8 million.
A spokesperson for the Santa Monica-based Foundation for
Taxpayer and Consumer Rights said Schwarzenegger hid from the public
"a significant source of revenue that was given to him to advocate
for the interest of an industry."
Schwarzenegger's failure to reveal the deal to the public
and his decision to veto a bill that would have regulated the supplements
industry "deserves legislative hearings and could possibly lead
to a charge of misconduct in office," foundation president Jamie
Court said.
The governor's financial disclosure filings with the state
show only that he received an undisclosed amount from American Media.
Schwarzenegger writes monthly columns for Muscle &
Fitness and Flex, and last year announced that he had agreed to serve
as executive editor for both magazines.
At the time of the announcement, Schwarzenegger said he
would take a salary that was "petty compared to the movies."
The magazines also agreed to donate $250,000 a year to
the California Governor's Council on Physical Fitness.
The SEC filing, which refers to Schwarzenegger as "Mr.
S," also shows American Media is paying $100,000 a year for five
years to the Arnold Classic, an annual bodybuilding competition in Ohio.
(source : www.canoe.ca)
