Nov 19: No spilling the milk. A gag order on the Matanuska Maid fiasco

In what has quickly become one of the most costly and poorly thought out decisions since former Governor Murkowski bought the ill fated jet, Governor Palin's decision to keep open the failing Matanuska Maid Dairy has culminated in her ordering a gag on employees from sharing public information about Mat Maid's  questionable business practices.

Has being open and transparent gone out of style?

In a November 13 memo from Division of Agriculture Director Franci Havemeister, she writes "Other than Ray Nix, no other Division of Agriculture staff, while serving in his or her official cpacity, may contact or provide information to the media, the legislature or the public regarding matanuska Maid and its disposal."

Havemeister, whose father in law is one of the few remaining dairy farmers who is currently making money off of the state dairy and who was appointed to her position this summer with little or no qualifications, goes on to write in her memo:

"In addition, I would like to remind staff that no one may disclose confidential information. Nor may staff disclose information gained in the course of ones official duties that could any way result in a benefit to the staff member or his or her family."

The red flags and hypocrisy are endless with this memo which was copied to both Commissioner Tom Irwin and Deputy Commissioner Richard LeFebvre.

First, Matanuska Maid is a public asset but the Palin administration has been running it like it was their own private corporation. Already, under the existing administration, they've spent an inordinate amount of board time in executive sessions that are already confidential.

The reason for the gag order is clear: The more Palin's folks running the dairy skirt the law, the more employees speak out.

Over the last week alone, press reports have stated that Mat Maid might end up in the red. With losses mounting every month and payables continuing to grow, the state will have to pony up for losses incurred by the mismanagement of Palin's handpicked board.

Also, just two days ago the media reported that former Mat Maid CEO Joe Van Treek has filed a lawsuit against the Creamery Corporation for failing to make good on his employment contract. Van Treek becomes the second former executive to file suit against the state as Terry Clark already has filed suit for $500,000 for the same reasons.

In both cases the state is severely exposed.

In Clark's case he was told repeatedly during an exit interview that he was being laid off. In fact it was Board Chair Kristen Cole who instructed Van Treek to go out to Palmer with a state employee and lay Clark off due to cost cutting. During the meeting at the Palmer plant that Clark managed, he was told more than once by both Van Treek and Joe Austerman of the Division of Agriculture that he was being laid off due to cost cutting and would get his pension.

A few weeks later Clark received a letter in the mail from the Creamery Board's new lawyer saying he would not get his pension because he was fired not laid off as he was told.

Van Treek's claims also appear to be open and shut case. Sources have told me that a long string of emails exist between Van Treek and the board confirming the terms of his departure that clearly spell out the Creamery Board's pension obligations.

It's becoming quite clear that the governor's hand picked board of her friends have left a long paper trail since they took over the dairy in June that will prove gross mismanagement and a pattern of misleading the public.  

For instance, in a June 6th memo to the Creamery Board advocating for the shuttering of the dairy, former CEO Van Treek writes, "Current predictions made by the USDA, suggest that higher milk prices we see today will last well into 2008."

Four months later when trying to explain Mat Maid's continued massive cash losses to the press, Board Chair Kristen Cole stated, "if milk prices had stayed stable" the dairy would have been fine.

However, everyone predicted they'd continue to skyrocket but Palin, Cole and Commissioner Tom Irwin ignored every bit of credible information.

Second, Havemeister has violated her own prohibition against using information to benefit "the staff or his or her family."

In fact, Havemeister even after being told not to, has reportedly had repeated meetings in her office with local farmers hoping to lease Mat Maid's equipment at a sweetheart price. Her father in law is one of the main players in the newly formed SouthCentral Dairy Co-Op.     

At the last Creamery Board meeting on November 11, the board voted to lease the equipment to the newly formed co-op.

But there is more to the story.

Apparently Joe Austerman is being paid double duty by the state.

He works for the Department of Commerce during the day and is on the payroll at Matanuska Maid (reportedly $2k per week) working at night.

This is exactly why this administration doesn't want anyone speaking out about the on going fiasco at Matanuska Maid.

This has long been an exercise of protecting the governor's friends and neighbors and Alaskans are paying the price which continues to grow everyday.

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