Ethics Complaints Against Regent Dropped by State Board

Amidst a swarm of protesters, the state ethics board decided to drop complaints against a member of the Iowa Board of Regents over a once-proposed land deal in Tanzania.

The Iowa Ethics and Campaign Disclosure Board dismissed the complaints filed by Citizens for Community Improvement (CCI) against Regent Bruce Rastetter saying they weren't "legally sufficient" and that Rastetter's financial disclosures weren't fraudulent.

Rastetter was not on hand for the hearing, nor did he respond directly to an email seeking comment, but a spokesperson released a statement.

“I strive to manage my business interests with the highest degree of integrity,” Rastetter said in the statement. “I look forward to continuing to improve the educational opportunities and affordability of Iowa’s public universities as a member of the Board of Regents. With this matter now behind me, I can focus my efforts on advocating on behalf of Iowa’s outstanding universities and, most importantly, Iowa’s students.”

The hearing came during an ethics board meeting packed with protesters on Thursday at the Jessie Parker Building in Des Moines. The board heard statements from Ross Grooters, a locomotive engineer and a member of CCI, and Richard Sapp, an attorney speaking on behalf of Rastetter, before entering an hour-long closed session. They emerged to make the unanimous decision.

James Albert, the chairman of the board, which includes three Republicans, two Democrats and one Independent, told the room before they deliberated in closed session that the board is not politically motivated.

“Our decisions are in no way based on politics,” he said, noting that all decisions are based on ethics rules and the laws of Iowa.

About 50 protesters gathered by doors to the Jessie Parker Building, across from the state Capitol prior to the meeting. Many held pink signs that read “Pink Slip Rastetter.” A larger poster read in part, “… our universities should not be used to line Rastetter’s pockets.”

The group is not ready to give up just yet though, calling the ruling a "black eye."

“Iowa has as proud tradition of our statewide universities serving the common good, not corporate greed. Rastetter’s actions are a black eye on that historical reputation,” said Barb Kalbach, a nurse from Dexter and a CCI member.

Following the decision, Kalbach said CCI will continue to pursue ways to draw attention to the issues with Rastetter.

“Today’s decision landed squarely on the side of the corporations, not on the side of Iowans,” she said.

CCI's complaints stemmed from Rastetter’s involvement in an attempted land deal in Tanzania between , which Rastetter oversees as a Regent, and his company AgriSol Energy. CCI alleged abuse of power and conflict of interest.

The decision on the conflict of interest complaint was based on the fact that for Rastetter to have been in conflict under the ethics rules, he would have had to taken some action as a board member which caused him to be in conflict, and that was not the case, explained Megan Tooker, the board’s executive director and attorney.

The board said Rastetter's financial disclosure forms were incomplete, but not fraudulent, as was suggested. Rastetter filed an amended disclosure form with additional information this week, which the board said satisfied his obligation. Rastetter had always maintained his disclosures were in compliance with the law already.

Ethics Board member Jonathan Roos said the board needs to do something to make the forms more usable to help provide more detailed. Board Director Megan Tooker responded that staff has been looking into how to improve on the forms and that she should be bringing suggestions back to the board soon.

Following the meeting, the Iowa Board of Regents said they have no comment on the ruling, or whether they will consider the matter further.