NEW: Fung Demands Full Investigation of 38 Studios
GoLocalProv News Team
NEW: Fung Demands Full Investigation of 38 Studios
Fung Says No to Payments
“Despite the outcry against these payments, Governor Chafee and some members of the General Assembly refuse to waiver in their commitment to these bondholders,” said Fung. “I will continue to stand with the taxpayers of Rhode Island.”
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTFung maintains that there is not enough information available to justify using taxpayer dollars to pay back the 38 Studios bonds. Fung added that he plans to testify in support of legislation to deny the bond payments and to create an investigative commission.
“The only thing that is clear right now is that we don’t have all the facts. We have two bills in the House Finance Committee today that take positions intended to protect taxpayers – complete a full and thorough investigation and do not repay these bonds until we get to the bottom of this mess,” Fung said. “In addition, I am calling for a separate up or down vote on the specific provision within the state budget to repay the 38 Studios bonds. Rhode Islanders deserve to know where each and every member of the Rhode Island General Assembly stands on this question.”
Fung was joined at his press conference by Representative Michael Chippendale, who sponsored legislation aimed at denying the bond payments and opening an investigation. Chippendale’s proposal is scheduled today for consideration by the House Finance Committee.
Who Wants to Pay and Who Wants to Default on the 38 Studios' Bonds
CON
Allan Fung
Republican candidate for Governor
“I am repeating my opposition to the 38 Studios loan guaranty and to the use of taxpayer dollars to repay those moral obligation bonds.”
CON
Ken Block
Republican candidate for Governor
“38 Studios was a bad deal and a bad investment from the very beginning and now Rhode Island taxpayers are being asked to take the hit for bondholders who should have known better...As long as there are serious legal questions still to be decided, we need to stop the repayment process."
PRO
RIPEC
John Simmons, executive director of the Rhode Island Public Expenditure Council
“We’re not going to punish anybody but ourselves if we don’t pay."
PRO
Greater Providence Chamber of Commerce
Laurie White, President of Chamber of Commerce
“I think it’s important that action occur quickly. Our view is that economic development in Rhode Island has to be the main event. … We need a very dramatic, aggressive effort to change the path that we’re on.”
PRO
Gina Raimondo
Democratic candidate for Governor
“Despite my frustration with everything surrounding this transaction, I believe it is in the best long-term interest of the state and all taxpayers to repay these bonds."
PRO
Clay Pell
Democratic candidate for Governor
“Clay does not believe Rhode Island should default on its moral obligation bonds when they come due. 38 Studios was a terrible mistake — and another example of why we need to change the culture of politics in Rhode Island"-Devin Driscol.
PRO
Angel Taveras
Democratic candidate for Governor
“While I share the frustration of many Rhode Islanders, I believe that not paying back 38 Studios bondholders would have a detrimental impact on the state’s bond rating that would far outweigh any short-term benefit we might gain. We cannot afford to default on our obligations.”
PRO
Lincoln Chafee
Governor of Rhode Island
“The candidates who can’t understand these two obvious truths are unfit to be Governor. The consequences of default would place Rhode Island as one of the lowest state bond ratings in the nation, and the industry would reduce Rhode Island to ‘junk bond’ status. We have been told in no uncertain terms that the reaction to not paying our debt obligations will be severe and have an adverse impact on Rhode Island. In addition, failure to honor our obligations could have harmful effects on the pending lawsuit.”
CON
Mike Stenhouse, CEO of RI Center for Freedom and Prosperity
"It's not just about not paying off bondholders. Bondholders are adults, they knew the risk. It's not just a question of the credit agencies. It's a question of what would payment crowd out, what reforms could we achieve with that money, such as sales tax reform, which would enable us to create jobs."
CON
Mike Riley
2012 Republican candidate for the 2nd Congressional District of Rhode Island.
"If we had a real Governor, he would stand up for the Taxpayers and the State of Rhode Island and stand up against threats by rating agencies."
PRO
Professor Ed Mazze
Professor of business at University of Rhode Island
"Even though this is a moral obligation in terms of the way the financial deal is set up I still feel the state has an obligation to the bondholders, to make good on their payments."
