Legislature neglects its duty to monitor the Permanent Fund, contributing to the current leadership crisis

An independent investigation of the Permanent Fund trustees is needed. The trustees are in no position to do this on their own.

It’s time for the Alaska Legislature to follow the law and perform its oversight duties for Alaska’s most important financial institution.

The Legislature has long ignored the requirement in state law to “provide for an annual post audit and annual operational and performance evaluation of the Alaska Permanent Fund Corporation investments and investment programs.” Here is that requirement in state law.

That language about operations and performance is broad enough to include an evaluation of the operations and performance of the trustees. Two of the trustees are employees of the governor, one is a former employee of the governor and one is a contract employee of the governor. Legislative confirmation is not required because it is a state corporation controlled by the executive branch.

The Legislature needs to begin monitoring the APFC and other state corporations as part of the checks and balances essential to preserve or rebuild public trust.

This is not just a task for the trustees, as Gov. Mike Dunleavy has claimed.

The six-member Board of Trustees is clearly divided over how to deal with the behavior of trustee Gabrielle Rubenstein, who has been described in leaked emails as inserting herself into corporation operations in ways that are inappropriate for a trustee.

That’s one of the takeaways from the special meeting Wednesday, which included a sharp exchange between Craig Richards and Jason Brune. Richards referred to inappropriate actions by unnamed trustees, while Brune complained that Richards was making “large allegations.”

Richards said he was not so concerned with the leaks, as with the behavior that caused the leaks.

Richards and Ethan Schutt, the chairman of the trustees, voted against going into executive session, while Adam Crum, Jason Brune, Ryan Anderson and Rubenstein voted for the secret session.

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