Chafee calls Republican candidates unfit for office

May 13, 2014 3:22 pm

?By: Dee DeQuattro
Email: ddequattro@abc6.com
Twitter: @deedequattro

Governor Chafee is calling two Republican Gubernatorial candidates unfit for the office because they say they won’t pay back the moral obligation loan from Curt Schilling’s failed video game company 38 Studios.

“The push by Allan Fung and Ken Block to default is disheartening. We hear from them populist rhetoric that lacks any empirical research or credible support. Common sense dictates that you pay your debts however distasteful,” said Chafee.

Chafee recently commission a report by SJ Advisors that found that the effects of defaulting on the 38 Studios loan guarantee could be dire to Rhode Island and possibly lower Rhode Island’s bond rating to junk status.

“We have been told in no uncertain terms that the reaction to not paying our debt obligations will be severe and have an adverse impact on Rhode Island. In addition, failure to honor our obligations could have harmful effects on the pending lawsuit,” said Chafee.

Gubernatorial Candidate Ken Block fired back questioning Chafee’s ability to lead.

“These bonds are moral obligation bonds and are not owned by the taxpayers of Rhode Island,” said Block. “I find it unconscionable that the Governor would put insider Wall Street investors ahead of the taxpayers who elected him. These investors were adequately warned and knew the risk they were taking when they purchased the bonds. The fact that Governor Chafee doesn’t understand this underlines his failed leadership.”

Gubernatorial Candidate Allan Fung also shot back saying Chafee is unfit to speak for Rhode Island tax payers.

Both Block and Fung said they do not support paying back the $75 million moral obligation bond that the Rhode Island Economic Development Corporation gave to 38 Studios in 2010. The video game company later went bankrupt leaving the state on the hook to pay back the loan. The issue has been debated several times in the General Assembly. Last year’s budget allocated money to begin repayment of the loan.