WASILLA CITY HALL 

(sorry, I can’t make it any bigger……… because it’s not)

Sept. 11 (Bloomberg) — John McCain’s choice of Sarah Palin as his running mate sent a signal that he would end business as usual and cronyism in government. Her record shows the Alaska governor engaged in some of the same practices she and McCain now condemn.

Palin’s office approved a state job for a friend and campaign aide with whom she shared a land investment, financial records and interviews over the past two weeks show. She hired a former lobbyist for a pipeline company to help oversee a multibillion-dollar deal with that same company.

She named a police chief accused of harassment to head the state police. And she sent campaign e-mails on her city hall account while serving as mayor of Wasilla — conduct for which she later turned in an oil commissioner on ethics charges.

Shortly after she was elected governor, Palin’s office signed off on hiring Deborah Richter — who attended college for a year then worked in bookkeeping and finance jobs — as director of a division that distributes dividends to Alaskans from the state’s oil-wealth savings account.

Richter, who said she’s known Palin for 13 years, was Palin’s gubernatorial campaign treasurer and ran her inaugural committee.

Sharing an Investment

The Richters and Palins also shared an investment: 30 acres of rural property near a lake in Petersville, Alaska, worth $47,300, according to Matanuska-Susitna Borough data.

“It sounds like a patronage deal for someone who ran your campaign; that’s pretty normal,” said Bill Buzenberg, executive director of the Center for Public Integrity in Washington. “What’s not normal is that they have business dealings together.”

Deborah Richter gave up her share of the property last September in a divorce settlement that followed an affair with Palin’s legislative director, John Bitney. Bitney and Richter both acknowledged the affair in interviews. Bitney said Palin fired him over it; Richter is still on the job. They are now married.

Last month, Palin signed a law granting TransCanada Corp., Canada’s largest pipeline company, an exclusive state license and up to $500 million in subsidies to proceed with work on a $27 billion pipeline, which would carry natural gas from Alaska to other U.S. markets.

Once a Lobbyist

Marty Rutherford, the chief coordinator behind Palin’s pipeline effort, once worked as an Alaska lobbyist for a TransCanada pipeline subsidiary, according to state records. Rutherford, deputy commissioner at the Alaska Department of Natural Resources, earned $40,200 as a lobbyist for 10 months in 2003 working for Foothills, the subsidiary.

Asked about these episodes in Palin’s career, McCain campaign spokesman Tucker Bounds lauded her reform efforts. Bounds said Palin has allowed the public to scrutinize state financial information, “cut wasteful spending by a quarter of a billion dollars just last year and ushered in landmark ethics legislation.”

The moment that crystallized her image as a reformer came when she turned in state Republican chairman Randy Ruedrich after discovering he was using his state e-mail account to conduct party business.

Palin and Ruedrich were serving together as commissioners on the Alaska Oil and Gas Conservation Commission, a state regulatory agency, at the time. Ruedrich resigned from the commission in November 2003, and was later fined $12,000, according to a 2004 article in the Anchorage Daily News.

In 2006, Palin found herself asking forgiveness for a similar offense from her past, according to a July 28, 2006, article in the Anchorage Daily News. She had sent campaign e- mails from her Wasilla mayor’s office in 2002, when she made an unsuccessful run for lieutenant governor.

“For any mistakes like that (were) made, I apologize,” Palin said of the e-mail controversy in July 2006, according to the Anchorage Daily News.