Clinton aide named to lead Arkansas' economic development

BYLINE: By ANDREW DeMILLO, Associated Press Writer

DATELINE: LITTLE ROCK Ark.

A longtime aide to former President Clinton whose relationships with foreign investors were targeted by investigators looking into Democratic Party political contributions was named Wednesday as the state's new economic development chief.

"Maria Haley will open doors around the world for Arkansas" as head of the Arkansas Department of Economic Development, Gov. Mike Beebe said at a news conference.

Haley has worked in international business development since 1979 and for the Arkansas Industrial Development Commission for 13 years. She also spent five years on the board of the Export Import Bank of the United States during the Clinton administration.

For the past six years, she has been a senior director at Kissinger McLarty Associates, a New York- and Washington-based consulting group for domestic and multi-national companies, and has served as an adviser to the president of the Philippines, Gloria Macapagal Arroyo.

"Oh, if my father and mother could only see me," said Haley, who emigrated from the Philippines more than 30 years ago. "They tried everything possible to stop me from coming to Arkansas."

Haley was married to lawyer John Haley, who pleaded guilty to a misdemeanor and was fined in a Whitewater case involving Jim Guy Tucker, a former Arkansas governor who attended Wednesday's news conference. John Haley died in a 2003 plane crash.

Maria Haley was friends with James Riady and John Huang, key figures in an investigation of foreign campaign contributions in 1996. More than $1 million in Democratic National Committee contributions raised by Huang was returned because of questions about their origin.

At the time, Haley was on the Export Import Bank board after her appointment by Clinton.

Haley and Huang met in the 1980s in Arkansas, when Haley was at the Arkansas development agency and Huang worked for Worthen Banking Corp. At the time, Worthen was partly controlled by the Riady family of Indonesia, which also owned the Lippo Group.

"They were friends and they were investors in the state of Arkansas and at the time I was in charge of international investments for the state," Haley told The Associated Press. "Normally, every international investor ends up in my office and that's the relationship."

Beebe said during the news conference that he didn't have any concerns about the investigation into Haley.

When Haley asked to respond to a reporter's question about the investigation, Beebe said to her, "You knew that was coming."

Haley said her friendships with Huang and Riady did not influence her. She said an investigation by the Senate Banking Committee during the fundraising scandal cleared her.

"After they looked over 10,000 pieces of personal and official documents, they could find nothing," Haley said.

Haley replaces Larry Walther at the Arkansas Department of Economic Development. Walther was appointed the state's economic development chief in 2003 by former Gov. Mike Huckabee. The replacement comes as the state is reportedly in contention for a Toyota Motor Corp. plant and a German steel plant.

Beebe said he didn't believe changing directors of the agency would hurt the state's efforts to attract new industry.

"Governor Huckabee went out of his way to provide consolation to prospective projects that the commitments of this state from the previous administration would be my commitments," Beebe said. "We were able to project to potential economic opportunities a seamless transition with no difficulties."

Haley said one of her first priorities is pushing for the Legislature to enact tax credits for the promotion and development of alternative fuels such as biodiesel.

"Climate change is now a major business focus," Haley said. "It is no longer the language of environmentalists. It is the language of business."

Tucker said after the announcement that Haley's international ties would help the state as it tries to attract new industries.

"She knows Arkansas, and at a time when we have ... an international issue lying there as well, she's a perfect choice for helping develop Arkansas' future," Tucker said. "She knows the world and she knows the state."