On Separate Scandals (Editorial)

The word “transparency” has been the rage in certain circles — legislative, nonprofit — for quite some time. But we’re not going to hold its overuse against it.

It’s a good word, particularly when used in the title of a bill, as of earlier this month a law, seeking to increase public disclosure for improvement districts. The Improvement District Transparency Act, signed by Gov. Mike Beebe, requires special improvement districts to file annual disclosure forms with county collectors.

Such a law might have helped prevent the building and inexorable tumbling of the house of cards built by one Kevin Lewis. The former Little Rock lawyer apparently created fake improvement districts linked to equally fictitious bonds that he used to help secure multimillion-dollar loans, loans that he has defaulted on. His failure to make good on his financial obligations — to the tune of $50 million — brought down First Southern Bank of Batesville and has exposed a number of other Arkansas banks to potentially big losses.

Shane Broadway, the former legislator, former speaker of the House and current interim chief of the state Higher Education Department, had fought for a similar measure in the 2009 legislative session, but it failed in the House.

This time — with the aid of hindsight, the leadership of Rep. Jane English of North Little Rock and the support of numerous groups such as the Association of Arkansas Counties and Arkansas Municipal League — the measure made it through to the governor’s desk.

Although we’re not so deluded as to think this law will prevent all future Ponzi schemes, it will at least make it easier for property owners to know that their money is being used legitimately.

Speaking of delusions, the one held by Lu Hardin that he could rob Peter (the state of Arkansas) to pay Paul (those to whom he owed money because of gambling losses) surely must have been stripped away earlier this month. Pleading guilty to money laundering and wire fraud has that effect.

Delusions might have been extinguished, but illusions also suffered, illusions about the honesty and integrity of a man once held in such high regard by so many.

The regard was high enough that Hardin, who resigned the presidency of the University of Central Arkansas because of the controversy caused by his illegal bonuses, could easily land a job as president of a private Florida university. The regard was high enough that before the bonus sleight of hand, Hardin was considered gubernatorial or senatorial material.

The always quotable Rush Harding said, “I really believe in Lu and I’m hopeful and confident that once he’s got this behind him he can get on with rebuilding his life.”

The larger-than-life Harding, who once said he was “blinded” by Hardin’s successes at UCA, was chairman of the university’s board of trustees during the bonus controversy. Harding was among those who gave Hardin a positive recommendation that helped him land the plum Florida post. It was a post Hardin resigned once he came face to face with felony charges.

So we’re not going to begrudge Hardin ultimately receiving what all of us need at some time or other: forgiveness. But we think redemption of the secular sort may take longer.

He might seek some advice on that topic from another disgraced pol who’s found a new and productive life: Steve Clark.