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Gov. Chris Christieis shown campaigning in Massachusetts with Republican candidate for governor Charlie Baker in this 2010 file photo

(Star-Ledger file photo)

TRENTON — In May, the New Jersey State Investment Council announced that the state would conduct an audit amid allegations that its investment with a firm tied to Massachusetts Republican gubernatorial candidate Charlie Baker violated pay-to-play rules.



The news of the investment became an issue in the Massachusetts race, where polls show Baker and Democrat Martha Coakley neck-and-neck. And the audit was supposed to take several weeks, state officials said at the time.



But with the election coming up on Nov. 4, the Department of Treasury has still not concluded the audit, according to spokesman Chris Santarelli — even after the state sold its controversial investment with the firm.

The state won't release the audit's results until at least the next meeting of the State Investment Council, which is scheduled for Nov. 19 — two weeks after the election.



"A review of this nature and scope has never before been conducted under this administration, and that is why it is taking longer than expected," Santarelli said.



At issue is a $10,000 donation Baker made to the New Jersey Republican State Committee in May 2011. Seven months later, New Jersey decided to invest $15 million from its pension fund in the firm General Catalyst, which counted Baker on its website as "entrepreneur in residence." New Jersey sold its investment, at a 46 percent profit, before it invested the full $15 million.



New Jersey's pay-to-play law bans awarding state contracts to firms whose "investment management professionals" have made donations to New Jersey political parties and some candidates within two years of the award. The council's probe was meant to determine if Baker fit into that category, and whether General Catalyst should have listed him as such in its investment paperwork.



The investment came to light in a report of the tech news website Pando Daily. The reporter who wrote it, David Sirota, said Monday that his public records request for the review's outcome was denied by the Department of Treasury because it was considered "consultative and deliberative material."



Santarelli noted that State Investment Council Director Christopher McDonough "has said when the review is complete he will report back to the (State Investment Council) on the review's findings at the subsequent SIC meeting."

Matt Friedman may be reached at mfriedman@njadvancemedia.com. Follow him on Twitter @MattFriedmanSL. Find NJ.com on Facebook.

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