Debt Collector at Center of Political Donation Scandal in Texas

Ordinarily, a company’s political contributions don’t make waves, unless they are of an unusual size. But when the largest government-focused collection agency is making the donations to a candidate running for the largest office in a state known for largeness, then you’ve got yourself a scandal.

The Dallas Morning News is running a piece in its Tuesday edition questioning the connection between Texas Attorney General Greg Abbott, who is the Republican nominee in this year’s governor’s race, and debt collection law firm Linebarger, Goggan, Blair & Sampson, which focuses on state and municipal ARM work.

Linebarger has donated some $200,000 to Abbott’s various campaigns over the past 12 years. Abbott has been attorney general of Texas since 2003. And that’s where this budding “scandal” is attempting to take hold.

Under Texas law, the attorney general must approve various types of contracts the state signs with private firms, including debt collection contracts. Since Linebarger is the largest collector of government debt in Texas and Abbott was the AG signing off on the contracts, a conflict of interest is being intimated.

Abbott’s team in his AG office vigorous denied the claims.

“The office of the attorney general has no say in which firms are selected by other state agencies,” spokesman Jerry Strickland told the paper. “The very premise of your story is ridiculous because it totally ignores the fact that the OAG does not select this or any other firm.”

If it was a case of Linebarger singling out Abbott for donations, there could be some fire. But the firm really spreads its donations around. Since 2000, the company has made more than $4 million in campaign contributions in the state of Texas alone, contributing to politicians of both parties and for various offices. When Dale Linebarger, the founder of the firm, and his family are included, the total is more than $4.3 million.

In fact, the firm and the Linebargers individually since late 2008 have donated $12,750 to the campaigns of Abbott’s Democratic opponent in November, Wendy Davis. Davis first ran for Texas State Senate in 2008.

But none of that matters. Further complicating the story is that both Abbott and Davis are running for governor on platforms that include a focus on ethics in Texas politics. So expect the story to circulate widely as the campaign drags on.