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Alabama Speaker Mike Hubbard voids private consulting contract

Monday, September 9, 2013

Alabama House Speaker Mike Hubbard has ended a contract with the Southeast Alabama Gas District in which his company, Auburn Network Inc., was paid $12,000 a month as an economic development consultant.

A spokeswoman for the Andalusia-based SEAGD said the contract, in place since February 2012, was terminated at Hubbard’s request on Aug. 23.

Hubbard, R-Auburn, gave no reason for his request, according to Shannon Jackson, marketing and communications manager for SEAGD. The public utility is a cooperative owned by 14 cities to provide natural gas service in the Wiregrass area of Alabama.

“He asked to void the contract and we honored his request,” Jackson said today.

A spokeswoman for Hubbard said the speaker chose to end the agreement because of “unfounded criticism being generated by politically-motivated liberal groups in Montgomery.”

“Auburn Network is confident that the economic development contacts, leads and prospects it developed while working with SEAGD will soon lead to more jobs, industry and opportunity for the citizens of the Wiregrass region,” said Rachel Adams, a spokeswoman for Hubbard.

The agreement was approved by the Alabama Ethics Commission in early 2012. Jim Sumner, the commission’s director, said he saw nothing wrong with the speaker’s contracts provided Hubbard didn’t take direct action to benefit himself or the Auburn Network’s clients.

According to a copy of the contract voluntarily submitted to the commission, SEAGD agreed to pay the Auburn Network $12,000-a-month to support marketing efforts, promote the use of natural gas and to identify and deliver economic development prospects for facilities utilizing natural gas.

“Mainly for Southeast Alabama Gas, it’s economic development and working with them to recruit new jobs and support local industry in their district and help build and market their brand,” Hubbard told AL.com in July.

SEAGD paid for Hubbard's trip to the Paris Air Show in June, which he attended along with the official state delegation that included Gov. Robert Bentley.

The commission approved a separate contract between the Auburn Network and the Bessemer-based American Pharmacy Cooperative, Inc., a group purchasing organization which represents independent pharmacists in 23 states.

Hubbard said through a spokeswoman that the pharmacy contract remained in place.

“The Auburn Network has a lot of contracts, and the Speaker works for the Auburn Network,” said Adams. “To my knowledge, they still hold that contract.”

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Keywords: Alabama House Speaker Mike Hubbard ,Southeast Alabama Gas District ,Auburn Network Inc., economic development consultant,

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