Getting answers on 38 Studios can prevent reoccurrence

SHADY POLITICS: Regarding the 38 Studios loan guarantee, Rep. Karen L. MacBeth said “we were led to believe this was going to be a job-creation bill to help our economy and our businesses and what it really was, it was a backroom deal.” / PBN PHOTO/MICHAEL SALERNO
SHADY POLITICS: Regarding the 38 Studios loan guarantee, Rep. Karen L. MacBeth said “we were led to believe this was going to be a job-creation bill to help our economy and our businesses and what it really was, it was a backroom deal.” / PBN PHOTO/MICHAEL SALERNO

Rep. Karen MacBeth is in a high-visibility position chairing the House Committee on Oversight and charged with overseeing an inquiry into the failed 38 Studios video game company and the state’s $75 million loan guarantee to the business.
MacBeth was appointed to chair the panel by new House Speaker Nicholas Mattiello, who moved into that position in March, with the sudden and dramatic resignation of previous Speaker Gordon Fox after state and federal officials raided Fox’s home and Statehouse office.
MacBeth wants to help ensure taxpayers don’t get stuck footing such a massive bill for a failed state loan guarantee again.

PBN: How would you describe your position as chair of the House Committee on Oversight, with the committee conducting an inquiry into the 38 Studios failure?
MACBETH: The role right now is definitely unique with 38 Studios. The original point of having oversight certainly is to oversee departments and things that are going on in the state, but with 38 Studios, certainly, it’s become bigger than that.

PBN: Did you ever imagine you’d be in this position, moderating hearings on such a controversial topic?
MACBETH: No, I didn’t see that. Certainly, in the role with the new speaker taking over, I’m very pleased that he made me chairwoman because I have been advocating to get answers for months on this. … During the original vote I questioned the leadership and the chairman of finance. … I was a fairly new rep. at the time and they come back with this bill that had increased by $75 million. It was a job-creation bill but I thought, something’s not right here. I made phone calls. I stood on the House floor and said I’m going to look at everything on record that I can and that’s what I did. Had we been told the truth then, this would have never passed.

PBN: What was your understanding of the legislation at that time?
MACBETH: I think it was a total of about $125 million and it was a job-creation bill and it was meant for businesses that needed money to expand or improve. It was my understanding that it was going to be $1.5 million maximum for each business that came forward for money. I did question that, but to find that on tape has been very difficult.

PBN: Did you try to find the tape?
MACBETH: Yes. I know it exists because I’ve had a constituent call me [and ask for a copy]. … So we’re still looking. I don’t understand where that went. Even bigger than that, there was a representative, a Republican representative at the time, who had an amendment, because I was going to have an amendment, but I was told, that’s OK, the amendment has already been drawn up that would have limited the amount. But I heard he was going to offer it so I thought I didn’t need one. But … he chose not to offer that amendment. I’ve learned to always have my amendments drawn up anyway.

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PBN: How would you describe all that happened? Would you say it was misleading?
MACBETH: Absolutely, it was misleading. It was smoke and mirrors. I know that phrase is overused, but we were led to believe this was going to be a job- creation bill to help our economy and our businesses and what it really was, it was a backroom deal, where some people made millions and some people lost millions. And it was on the backs of us, the taxpayers.

PBN: How do you feel about the responsibility of leading this public inquiry into 38 Studios?
MACBETH: I never thought of it that way, but I’m glad it’s me because I’ve always been advocating what’s right for the people and I can continue to do that. I’m not a career politician. I’m the average citizen who ended up at the Statehouse representing people and I think that’s what I bring. And I’m not stopping.

PBN: Have you felt a lot of pressure since you’ve been in this role leading the inquiry into 38 Studios?
MACBETH: No. It’s more just being in a leadership position and working with the new speaker to make sure the agendas are set to these answers. Certainly, him coming out saying he’s not going to issue subpoenas was a hit for the committee, but we’re not going to let that stop us.

PBN: Would you still like to subpoena witnesses?
MACBETH: Yes.

PBN: Do you think things might change and at some point you might be able to do that?
MACBETH: There’s always a possibility of things changing. Two months ago I didn’t expect to be in this role.

PBN: When do you think these hearings on 38 Studios will wrap up?
MACBETH: I don’t have any idea. What’s unique about this committee is that we meet year-round, so even though the legislative session is ending, it doesn’t mean the committee hearings will end. •

INTERVIEW
Rep. Karen L. MacBeth
POSITION: Democratic state representative from Cumberland and chair of the House Committee on Oversight
BACKGROUND: MacBeth is principal of Harris Elementary in Woonsocket. She has been an elementary, middle and special education teacher. She was elected as a state representative in 2008. She is also a member of the House Finance Committee and the House Veterans Affairs Committee.
EDUCATION: Bachelor’s degree in elementary and special education from Rhode Island College, 1990; master’s degree in education administration from Providence College, 1999
FIRST JOB: Working at Shaw’s Meat Market in Woonsocket
RESIDENCE: Cumberland
AGE: 46

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