Government Accountability

Arizona Republicans Call for Additional Investigation into ‘Pay to Play’ Allegations Against Governor Katie Hobbs

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More Republican state officials are calling on Maricopa County Attorney Rachel Mitchell to investigate the “pay to play” allegations involving the Hobbs administration and Sunshine Residential Homes.

The allegations center around the claim that Sunshine Residential Homes received better daily pay rates per child after donating approximately $400,000 to Hobbs’ campaign, inaugural fund, and the state Democratic Party. These accusations were brought to light in an Arizona Republic story.

Current Investigations and Responses

Attorney General Kris Mayes, a Democrat, has already initiated an investigation following a letter from Senate President Pro Tempore T.J. Shope. Mitchell, a Republican, has indicated she may also launch an investigation after the Auditor General’s office reached out to her.

“As the Treasurer of Arizona, I am responsible for overseeing, safekeeping, and managing the State of Arizona’s securities and investments, which are duties I take seriously. Arizona taxpayers need financial accountability and deserve to know how their money is being spent,” stated Treasurer Kimberly Yee, a Republican.

“Providing state dollars to political donors is a grave misuse of public funds. ‘Pay to play’ and special favors have no place in state government,” Yee added.

Concerns Over Ethical Conflicts

Yee criticized Mayes for asserting control over the investigation, suggesting potential conflicts of interest. “I have requested a separate investigation to be conducted by the Maricopa County Attorney’s Office. The Maricopa County Attorney’s Office has separate jurisdiction in this matter, and the current investigation by the Attorney General’s Office raises concerns of potential ethical conflicts of interest in representing state agencies and officials involved in the alleged scheme,” Yee said.

In response, Attorney General Mayes emphasized the state’s role in handling such allegations. “As with any other investigation our office conducts, we will follow the facts wherever they lead us. As with everything else we do, we are also fully cognizant of our ethical obligations and have taken appropriate measures to protect the interests of all concerned, including directing the Department of Child Services to obtain outside counsel in this matter,” Mayes wrote.

Mayes also pointed out that Yee’s concerns do not fall within her statutory duties as defined by state law.

Calls for Recusal

Rep. David Livingston, R-Peoria, called for Mayes to recuse herself from the investigation, citing a potential conflict of interest due to previous funding she received from the Arizona Democratic Party and her handling of a prior complaint related to Governor Hobbs.

“Your conflict of interest and mishandling of my complaint warrants your recusal from investigating the pay-to-play scandal because it likewise stems from Governor Hobbs’ unprecedented inaugural fundraising and political donations to the ADP. You have already proven that you will shield both the Democrat Governor and your own party from any liability,” Livingston wrote.

Coordination of Investigations

The Center Square reported that Mayes is asking Mitchell to avoid conducting a parallel investigation to streamline the process. During a media availability on Tuesday, Hobbs refused to comment on the allegations or whether she would comply with both investigations if they proceed.

The Attorney General’s office has stated it will not respond to Livingston’s letter.

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