Grand Jury Investigates Perry Fund Cutoff to DA

texas-gov-perry-at-dais.jpg

DALLAS - An Austin grand jury will consider whether Texas Gov. Rick Perry violated the law by cutting off funding for the Travis County District Attorney's office Public Integrity Unit as it investigated possibly improper state grants to Perry's campaign contributors.

The grand jury is being formed solely to investigate Perry, according to the Austin American-Statesman.

Perry last June demanded that District Attorney Rosemary Lehmberg, a Democrat, resign after her arrest for driving while intoxicated and threatened to line-item veto state funding for the PIU, which was created by state law to investigate public corruption statewide. When Lehmberg refused to step down and allow Perry to appoint a Republican to replace her, Perry followed through on his threat.

A citizens watchdog organization called Texans for Public Justice brought a complaint against Perry, citing three possible violations: coercion of a public servant, abuse of official capacity and official oppression. Attorney Mike McCrum was named special prosecutor to lead the investigation.

Perry, who is not seeking another term as governor and is considered a likely Republican presidential contender in 2016, hired high-profile Austin defense lawyer David L. Botsford to represent him in the criminal investigation. Botsford has said Perry was acting within his authority in issuing the threats and vetoing the funding.

State District Judge Bert Richardson of San Antonio began the selection of grand jurors to hear the evidence on Monday.

At the time of Perry's ultimatum to Lehmberg in 2013, the Public Integrity Unit was investigating the awarding of grants from the $3 billion bond-funded Cancer Prevention and Research Institute of Texas to Perry's donors and friends without proper review. Perry said he demanded Lehmberg resign because of her conviction on the drunken driving charges.

A Travis County grand jury indicted CPRIT's chief commercialization officer Jerry Cobbs in December 2013, after which the Public Integrity Unit, still operating with county funds, declared the investigation closed.

CPRIT has disbursed nearly $1 billion of cancer research grants since early 2010. In 2013, the Texas Legislature approved legislation designed to prevent future funding scandals and restore the organization's reputation after CPRIT's top officials resigned or were fired.

For reprint and licensing requests for this article, click here.
Bankruptcy Texas
MORE FROM BOND BUYER