MADISON, WI (WTAQ) - Questions are being raised about one of three new appointees to the State Investment Board.
According to the Milwaukee Journal Sentinel, John Petersen III of Madison was criticized by state auditors in 2001, when he previously served on the board.
An audit report said Petersen voted to have the state board invest $80 million in a company connected to a firm in which he owned stock.
The former State Ethics Board looked into the matter and took no action. Spokesman Cullen Werwie said Governor Scott Walker’s office was aware of the 2001 situation. But considering Petersen’s credentials, and a lack of accusations since then, Walker thought he was fit to serve on the board.
The state Senate Financial Issues Committee will hold a public hearing Wednesday afternoon on the appointments of Petersen and the other two appointees.
The chairman of the panel, West Bend Republican Glenn Grothman, said he was not aware of any present issues involving Petersen – and he planned to look into the matter before Wednesday’s hearing.
Petersen told the Journal Sentinel in 2001 he didn’t believe there was a problem with him owning the same stocks as those of the Investment Board, which manages $83 billion in retirement funds for state workers and most local government and school employees.
