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8/4/2009 
FOR IMMEDIATE RELEASECONTACT:
 August 4, 2009Jeff Sadosky, Press Secretary512.236.8656
Rick Perry Funnels Taxpayer Money To Friends
$1 Million To Pharmaceutical Company With Perry Allies On Board Of Directors
 
Austin, TX –
Rick Perry’s penchant for awarding taxpayer dollars to his political friends was readily apparent onMonday when he announced a $750,000 Emerging Technology Grant (ETF) to Halsa Pharmaceuticals. This is thesecond ETF Grant Halsa has received and brings the total amount of taxpayer money Perry has funneled thecompany to $1 million. Not surprisingly, a few of Perry’s buddies and former political appointees sit on thepharmaceutical company’s board of directors. The same friends who have advised Perry to award controversialgovernment contracts and defended his notorious $50 million ETF grant to Texas A&M. The decision-makingprocess for the ETF remains behind closed doors.
Texans for Kay Press Secretary Jeff Sadosky released the following statement today:
“Hypocrisy and cronyism define Rick Perry’s tenure as Governor of Texas. With small businesses in Texasfacing a projected $2 billion in tax increases to pay for Rick Perry's politics, millions upon millions of taxpayer dollars have gone to a well-connected few. Rick Perry's payoffs to his friends won't get Texas' economy back on track, that takes real leadership." 
Rick Perry Gave $1 Million To Halsa Pharmaceuticals Through Emerging Technology FundOn August 3, Rick Perry Announced $750,000 Emerging Technology Grant Awarded To HalsaPharmaceuticals, Bring Total ETF Grants Awarded To Halsa To $1 Million.
“Gov. Rick Perry today announcedthe state will invest $750,000 in Halsa Pharmaceuticals Inc. of Houston through the Texas Emerging Technology
 
Fund (ETF). This investment follows a $250,000 deal announced in March 2008, and will fund additionaldevelopment of Halsa’s treatment for obesity and diabetes.”
(Governor Rick Perry, “Gov. Perry Announces Second ETF Investment In HalsaPharmaceuticals,” Press Release, 8/3/09)
 
Perry Has Close Ties To Halsa Board Members
 
Perry Has Close Ties To Halsa Board Member Guy Diedrich
 
Texas A&M Vice Chancellor For Federal Relations, Commercialization And Economic Development GuyDiedrich Is On Halsa’s Board Of Directors.
“Dr. Diedrich is the Vice Chancellor for The Texas A&M UniversitySystem responsible for federal relations, economic development and technology commercialization. Dr. Diedrichserved for eleven years as President and CEO of GRA Inc., a software development and consulting companyacquired in 1998 by a publicly-traded technology company. He also served as President of Austin TechnologyVentures. Dr. Diedrich serves as a member of the Board of Directors of the Texas Life Sciences Center, AmericanTrauma Society, Texas A&M College of Science, Young President’s Organization, Royal Economic Society, andSociety of Business Economists. He is a founding member of the Board of Directors of the Texas Institute for Genomic Medicine.”
(Halsa Pharmaceuticals Website,www.halsapharma.net, Accessed 8/3/09)
 
June 2009
 Austin American-Statesman
Article On Power Struggle Between A&M System Chancellor MikeMcKinney And Then-A&M University President Elsa Murano Describes Diedrich As “Close” With Perry.
“Recent events and disclosures reveal a power struggle involving system Chancellor Mike McKinney, campusPresident Elsa Murano, the regents, the faculty and, to some extent, Gov. Rick Perry. … Not only did Perry appointall nine regents, but McKinney is a former chief of staff for the governor. Guy Diedrich , vice chancellor for federalrelations and commercialization, is also close to Perry. Mark Ellison , associate vice chancellor for economicdevelopment, is a former director of the state's Emerging Technology Fund, a pet project of Perry's.”
(Ralph K.M. Haurwitz,“Aggie leadership fight coming to a head,”
 Austin American-Statesman
, 6/13/09)
 
In May 2009, Perry Appointed Diedrich To Product Development And Small Business Incubator Board.
 “Gov. Rick Perry has appointed four members to the Product Development and Small Business Incubator Board.The board advises the Economic Development Bank on the administration of the product and small businessdevelopment fund. Guy K. Diedrich of Austin is vice chancellor of the Texas A&M University System. … Hereplaces Richard E. Ewing of College Station for a term to expire Feb. 1, 2011.”
(Gov. Rick Perry, “Gov. Perry Appoints Four toProduct Development and Small Business Incubator Board,” Press Release, 5/14/09)
 
On March 24, 2009, Diedrich Appeared Before State House Appropriations Committee To Testify OnControversial $50 Million ETF Grant To National Center For Therapeutics Manufacturing.
“Lawmakers grilledGov. Rick Perry’s advisers Tuesday on their decision to spend $50 million meant to lure new businesses to Texason a new research facility. Members of the House budget-writing committee said they don't oppose creation of theTexas A&M University System's National Center for Therapeutics Manufacturing, which will be built on the campusof A&M, Perry's alma mater. The world-class facility will help researchers advance production processes for newdrug therapies. But the way Perry's office funded it - moving $50 million that lawmakers earmarked for the state'sdeal-closing fund into an account used for new technology programs - raises red flags for legislators. The grant isthe largest by far from a fund that has never before been used to construct university buildings. The money transfer was the first of its kind.”
(Emily Ramshaw, “Perry advisers take heat on A&M grant,”
The Dallas Morning News
, 3/25/09; Appropriations Committee, Texas StateHouse, Hearing, 3/24/09)
 
In 2008, Diedrich Was Interviewed By Perry Advisers As A Possible Replacement For Former Secretary Of State Phil Wilson.
“Gov. Rick Perry has a high-profile job to fill and, far as I can tell, hasn't found a favorite. Don'trush to apply, though. Unless he breaks with history, Perry isn't likely to give the job to just anybody. The post of secretary of state, which pays up to $117,516, amounts to a political plum - meaning only a select few have a shot.
 
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… Secretary of State Phil Wilson took a private-sector job this month. … One prospect has come and gone. GuyDiedrich, vice chancellor for technology commercialization at the Texas A&M University System , talked to Perry'sadvisers before concluding he fits where he is.”
(W. Gardner Selby, “Will Perry play it safe in choosing secretary of state?,”
 Austin American-Statesman
, 7/10/08)
 
Halsa Board Member James Cox Is A Former Perry Appointee
 
James Cox Sits On Halsa’s Board Of Directors.
“Mr. Cox served as Chairman of the Texas Lottery Commissionfrom 2002 to 2009. He also served on the Texas General Services Commission from 1999 to 2002. Cox waspresident of the Casino and Aviation Groups of the Estate of Howard Hughes, and president and CEO of HydrolabCorporation. He was previously a Deloitte accounting and auditing partner. He is a member of the AmericanInstitute of Certified Public Accountants (AICPA) and served on the Gaming Industry Special Committee, whichwrote the AICPA’s Audit Guide for Casinos.”
(Halsa Pharmaceuticals Website,www.halsapharma.net, Accessed 8/3/09)
 
Cox Served As A Perry Appointee To Texas Lottery Commission From 2002 To 2009.
“Mr. Cox served asChairman of the Texas Lottery Commission from 2002 to 2009. He also served on the Texas General ServicesCommission from 1999 to 2002. Cox was president of the Casino and Aviation Groups of the Estate of HowardHughes, and president and CEO of Hydrolab Corporation. He was previously a Deloitte accounting and auditingpartner. He is a member of the American Institute of Certified Public Accountants (AICPA) and served on theGaming Industry Special Committee, which wrote the AICPA’s Audit Guide for Casinos.”
(Halsa Pharmaceuticals Website,www.halsapharma.net
 
, Accessed 8/3/09)
 
•
 
Perry Appointed Cox To Chair Commission In January 2007; Cox Served In That PositionUntil March 2009.
“Gov. Rick Perry has announced the appointment of Jim Cox of Austin as presiding officer of the Texas Lottery Commission for a term to expire at the pleasure of thegovernor. The commission oversees the Texas Lottery and ensures that lottery and bingo games areconducted in a legal and fair manner. Cox has served on the Texas Lottery Commission since2002.”
(Gov. Rick Perry, “Gov. Perry Appoints Jim Cox As Presiding Officer Of Texas Lottery Commission,” Press Release, 1/5/07; Gov. Rick Perry, “Gov. Perry Names Williamson Chair Of Texas Lottery Commission,” Press Release, 3/27/09)
 
Cox Was Involved In Lottery Commission’s Controversial 2004 Decision To Hire Las Vegas Firm With TiesTo Gambling Industry To Draft Legislation Legalizing Video Lottery In Texas.
“A Las Vegas law firm thatrepresents some of the nation's largest manufacturers of video lottery terminals received a $250,000 contract fromthe Texas Lottery Commission to draft legislation for legalizing video lottery in Texas. A proposed stateconstitutional amendment to legalize video lottery -- a form of slot machine -- failed in the Texas House in the recentspecial legislative session. But both Gov. Rick Perry and Lt. Gov. David Dewhurst have indicated they would like torevive the issue if there is another special session on school finance.”
(R.G. Ratcliffe, “Texas Hires Vegas Firm to Push Video Lottery,”
Houston Chronicle
, 5/20/04)
 
•
 
Cox Recommended Firm That Received Contract.
“[Texas Lottery Commission GeneralCounsel Kim] Kipling said the Las Vegas firm was chosen on the recommendation of lotteryCommissioner James Cox of Austin. During the 1980s, Cox ran four hotels and casinos for the estateof Howard Hughes.”
(R.G. Ratcliffe, “Texas Hires Vegas Firm to Push Video Lottery,”
 Houston Chronicle
, 5/20/04)
 
•
 
In Defending Contract, Perry Cited Cox’s Advice On The Issue.
“Gov. Rick Perry on Thursdaydefended the state's hiring of a Las Vegas law firm, with ties to casinos and companies that makegambling devices, to draft the legislation that could legalize slot machines in Texas. Perry said thedecision to hire Lionel Sawyer & Collins was made on a recommendation from Jim Cox of Austin, aTexas Lottery Commission member and a former casino industry executive. ‘I think it wasappropriate, and it is my opinion that the (lottery) commission made that decision. There is somePage 3of 48/4/2009
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