Allegations serious, Oxendine foe says

A leading gubernatorial candidate in the Republican primary for the 2010 race says John W. Oxendine may have to return money from two insurance firms headed by a Rome businessman.

An Atlanta Journal-Constitution investigative report found two Georgia insurance companies with the same boss funneled $120,000 to Oxendine’s campaign for governor.

The money was received from the two insurance companies through 10 political action committees set up by an Alabama board member of both firms.

Oxendine is Georgia’s insurance commissioner. He also is the state’s Safety Fire Commissioner. But Georgia’s Ethics-in-Government Act bars public officials from taking money from the companies they regulate.

“These are serious allegations,” said Dan McLagan, a spokesman for the campaign of Secretary of State Karen C. Handel. “If, indeed, Mr. Oxendine inadvertently took illegal contributions, we encourage him to return the money.”

Documents obtained from Georgia and Alabama state agencies show the money, which is nearly 10 times the legal limit, came through 10 Alabama-based political action committees formed by Donald V. Watkins, a director of Admiral Life Insurance Co. of America and State Mutual Insurance. Both firms are headed by Delos “Dee” Yancey III from the same building in Rome.

A key Oxendine adviser said the allegations raised suggest newspaper bias against the Republican candidate.

While not addressing the specific issues raised in the article, Jeff Breedlove, Oxendine’s chief strategist, characterized it as an attack on the commissioner because he is a front-runner.

Oxendine, 47, was the first Republican to announce his candidacy for the 2010 governor’s race, and he has been a leading fund-raiser. He raised more than $1 million by the end of 2008.

“Georgia Republicans know perfectly well a candidate is not a serious front-runner until they have been attacked and smeared by the AJC,” Breedlove said.

“We note that when John Oxendine issued a 12-point positive plan to solve the issues that affect Georgia taxpayers, the AJC gave it exactly zero words, but when there’s a scandal they can create out of thin air, it goes on the front page.”

Meanwhile, a representative of one of Oxendine’s other leading opponents in the GOP gubernatorial race called for a fair vetting of the contributions.

“Commissioner Oxendine deserves an opportunity to address these issues with the appropriate authorities,” Ben Fry, campaign manager for state Sen. Eric Johnson (R-Savannah), wrote in an e-mail response to a reporter’s questions. “Our campaign will not rush to judgment and will not rush to a microphone in an attempt to score political points.”

The allegations come days after Gov. Sonny Perdue signed legislation that calls for more transparency in campaign contributions.

“This is one of those things that creates the cynicism among the general public,” said state Rep. Austin Scott (R-Tifton), who chairs the House Governmental Affairs Committee and also is a GOP gubernatorial candidate.