New Orleans Mayor Nagin, Home Depot Living In A Stone Age

Has Mayor Nagin done anything illegal, unethical or improper by his family apparently engaging in business (Stone Age) with a company which is trying to do business with New Orleans (Home Depot)?

According to the ethics rules, it appears the ethics rules apply when the Mayor has an interest of 25% in the Stone Age.

For now, based upon the detailed investigative reporting from the Times Picayune, we know that Mayor Nagin and his family started Stone Age supplying table tops as a vendor to Home Depot during the period when Home Depot has been negotiating with New Orleans for a location on Claiborne Avenue. Part of the negotiations involves tax credits and part involves Home Depot’s acquisition to streets belonging to the city.

From the TP article, it appears that Mayor Nagin’s immediate family supplied the tops and serviced the product to consumers. If Mayor Nagin owns a twenty-five percent interest, then he is said to be in violation of the Louisiana Ethics Law. Also, since his wife is in the business and might be an owner, if their joint ownership equaled 25 percent, there could be a violation.

This could be a case for the New Orleans Inspector General who would have subpoena powers and who can ask the right people, the right questions.

It’s important that we not jump to major conclusions based upon the TP article. Still, there appears little doubt that Mayor Nagin and his wife either own a percentage of the company or are acting as officers for their two sons who could be the sole owners. Either way, from a public relations and a perception perspective, the Mayor has a public relations problem. He must explain his Stone Age involvement and all communications with, Home Depot. Even if he had no communications with Home Depot over Stone Age matters, the mere presence of the Mayor’s family engaging in business with a company, Home Depot, which has been negotiating with New Orleans on a variety of issues--is problematic for his image.

Let’s put things in perspective. Nagin was not doing business with the City or any of the agencies of the City. Instead, Stone Age a company which he is an officer was engaged in business with Home Depot while Home Depot negotiated with the City over tax credits and acquisition of city property. In the best of all worlds, it would have been more prudent for the Nagins to have refrained from any relationship with Home Depot--especially during the Tax Credits and property negotiations period. While Nagin has two young sons who are involved in the business and while any father would want to help his kids get started, as Mayor of New Orleans, he has a higher calling at a time when New Orleans is recovering from brutal disasters. Even if he did nothing illegal or unethical, he has allowed himself to be in the zone of the “appearance of impropriety”, a twilight zone for Louisiana public officials especially sensitive in a post-Katrina environment. Sometimes, it is just better to say “no” regardless how much one wants to help out family.

At first blush, it appears that Nagin has made a mistake. Even if he is technically totally within bounds, perception is still the “buzzword”. Mayor Nagin would be wise to come forward with all information as rapidly as possible to put this story to rest as much as he can. Had his family been dealing with a company that had no relationship with New Orleans whatsoever, nobody would be asking any questions. However, when Stone Age is contracting with Home Depot and Home Depot is contracting with New Orleans, then, Houston, we have some type of problem.

Ultimately when the facts are revealed, this could be a story involving much ado about very little. Alternatively, the story could have many legs. Much depends upon details Mayor Nagin provides to us. Regardless, Mayor Nagin has created what appears to be an “appearance of impropriety” which, at the minimum, is going to distract him, and could deter investors from wanting to do business in this “City of Need. It is one thing for vendors to compete with a “third party” without city connections. It’s another to compete with the Mayor’s family. That is not the way for New Orleans to rebuild an image that needs to be “squeaky clean” as never before. After all, we are recovering from almost total devastation where literally many inhabitants are living as if they are members of the Stone Age.

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