Mayor John Whitmire and City Controller Chris Hollins traded barbs in dueling press conferences Thursday, each alleging the other has conflicts of interest by providing special access to private companies looking to do business with the city.
Whitmire called on city employees and event sponsors not to attend the controller’s annual Investor Conference next week. The proceeds from the sponsorships go to the nonprofit Houston Forward, which then funds and supports the banking equity program Bank on Houston. Whitmire said regardless of the group’s mission, the event sponsorship benefits, including a private dinner with Hollins and event advertising, promoted a “pay-to-play” system.
Whitmire said this is the first time the specific sponsorships have been offered by the controller’s office, but city events are regularly financially supported by corporations – including the mayor’s state of the city address last month.
The mayor said he learned about the sponsorship two weeks ago but did not contact Hollins. Instead, Whitmire called Thursday’s press conference in order to make it “a transparent issue.”
Whitmire said his concerns centered on the potential for preferential treatment and perceived disadvantages for companies that did not buy sponsorships, which ranged from $10,000 to $100,000.
Hollins defended the mission of the sponsorships, to support the longheld controller initiative Bank on Houston. He said it was not a conflict because he does not approve city contracts, City Council does. The city controller acts as a financial watchdog for the city, separate from the finance department in the mayor’s office.
The controller and the mayor sit on a finance selection committee, but both send office staff to the meetings.
Nancy Sims, a University of Houston political analyst with specialty in Houston politics, said elected officials are regularly asked to attend private dinners or events in the name of charity.
Sims said a primary question would likely be: Did Hollins personally benefit from the sponsorships?
“State of the City had a VIP reception. The Freedom Over Texas (event) has a VIP reception,” Sims said. “It’s not uncommon for your large donors to gain private access.”
Whitmire called on the Houston Office of Inspector General to investigate whether the sponsorships violated the city’s ethics policies.
A history of clashes between Hollins and Whitmire
Hollins and Whitmire have found themselves on opposite sides of city financial decisions since their elections as recently as late last month when discussing a change in the property tax rate.
Whitmire repeatedly opposed a rate increase, while Hollins warned the city needed a new source of revenue to offset a growing $200 million deficit. The city had entered into expensive agreements, including the $650 million firefighter union settlement, without having a way to pay for them, Hollins said. Two of the three major credit rating agencies have since called the city’s financial outlook “negative.”
Whitmire has vehemently defended the firefighter settlement and union contract as an overdue necessity. Instead, he said he was “alarmed” and concerned as to how the sponsorships of Hollins’ event would hurt the credit rating.
Comparing the controller’s event with mayor’s office events, such as Freedom Over Texas sponsored by Shell, was “apples and oranges,” Whitmire said.
“It’s for the general public, and no comparison,” he said.
Hollins, in turn, called Whitmire a “walking conflict of interest” as his campaign for mayor accepted donations from the firefighter union before advocating for its contract.
“This is a huge nothing burger that is meant to distract from the mayor’s failed leadership on fiscal responsibility at the city,” Hollins said.
Hollins said he had not heard of any canceled event attendees or sponsorships at the time of his afternoon press conference.
The investigation will now be turned to the Office of Inspector General, which is a branch of the Legal Department that reports to the mayor’s office. Should the OIG find any violation of the law, it could refer the information to the Harris County district attorney’s office for further investigation.
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