Treasurer Denise Nappier
A $13 million profit from an investment in Taiwan is stranded on the island, unavailable to Connecticut’s pension funds, because the state Treasurer’s Office has failed to name an agent to handle its taxes there.
The Taiwanese investment – up 16.8 percent annually, according to the Treasurer’s Office – is part of the diversification strategy for the pension funds. However, despite the investment’s success, those profits aren’t accessible by the fund, according to a report by the Auditors of Public Accounts.
“The state is in effect shut off from selling stocks that normally are considered to be highly liquid,” the auditors said. “The investment manager is not able to actively manage these holdings since the proceeds from sales cannot be distributed.”
According to the Treasurer’s Office, there is a conflict between the indemnification language required by local tax agents in Taiwan and Connecticut’s state contracting laws which prohibit such language.
The office is in the process of hiring tax counsel who can then hire a local tax agent.
Treasurer Denise Nappier, one of six constitutional officers elected every four years in Connecticut, is in charge of the state’s $25 billion in pension investments, the issuance of state bonds and a few other responsibilities.
Nappier has been in the news recently since a controversial Sept. 1 traffic stop by Hartford Police. Nappier was driving her state vehicle, but with standard-issue plates instead of the “4” that marks her office. Apparently, all constitutional officers are afforded both their privileged plate and a second plate privileged with privacy.
However, the police officers at the scene noted problems with the car’s registration and towed it. Nappier went on to walk three miles home.
The Department of Motor Vehicles has taken responsibility for the inability of police to verify the car’s registration. A judge dismissed the charges against Nappier Wednesday.
In their report, issued the same day as Nappier’s evening traffic stop, auditors also found improper accounting of payroll overpayment recoveries and errors in official bond documents.
In a separate report, from July, auditors noted that $850,000 in banking contracts that had not been rebid in more than a decade.
“Treasurer Nappier and her staff take all audit findings seriously,” said Deputy Treasurer Jonathan Harris. “The Treasurer has always and will continue to work with the Auditors to resolve any issues.”
The Treasurer is too busy explaning why she was stopped by the police in a bad area.