N.J. governor and his union boss ex-girlfriend face questions

[Omaha Steve]

http://www.pressofatlanticcity.com/news/newjersey/story/7322856p-7217704c.html

N.J. governor and his union boss ex-girlfriend face questions
By ANGELA DELLI SANTI, Associated Press Writer
Published: Friday, March 16, 2007

TRENTON, N.J. (AP) - After Jon broke up with Carla, he forgave a half-million-dollar mortgage loan he had given her. He also may have paid her kids' tuition and helped her with other expenses.

All of this might have been merely a story about a boyfriend and girlfriend who broke up and managed to stay friends, except that Jon is Gov. Jon S. Corzine and Carla is Carla Katz, president of New Jersey's biggest state employee union. And the two have been on opposite sides lately during contract talks covering 40,000 workers.

In recent weeks, their romantic and financial ties have raised conflict-of-interest questions, namely: Are Corzine and Katz faithfully serving the people they represent? Or are they hopelessly compromised?

The Republicans have called on the Democratic governor to seek a state ethics panel ruling on his financial dealings with his ex-girlfriend. The furor has also led to demands for more of an explanation than Corzine has been willing to give.

"Of course the public has a right to know about their past or present relationship," said conservative GOP state Assemblyman Richard Merkt. "These two people play a key role in how billions of public dollars get spent."

Corzine's decision to forgive a $470,000 mortgage loan to Katz became public during his 2005 campaign for governor and stirred controversy at the time. But the conflict-of-interest questions became stronger recently when it was learned that three months ago Katz bought a luxury condominium for $1.1 million in the same waterfront Hoboken building where Corzine lives.

At the same time, she was completing more than $500,000 in renovations to the country home he helped her buy.

Among the questions raised: Did he help her buy the condo? Has he given her other financial assistance since the breakup of their two-year relationship in 2004?

FULL article at link.