American Notes Alaska

In the 2 1/2 years since he was elected Governor of Alaska, Bill Sheffield has been involved in four federal or state investigations into the handling of his campaign funds. Last week in a new inquiry, a 15-member state grand jury looking into the award of a $9.1 million state office-leasing contract recommended that a special session of the Alaska legislature be convened to consider impeaching the Democratic Governor. Said the grand jury's 69-page report: "The Sheffield administration has not best served the interests of the public and is unfit to fulfill the inherent duties of public office."

The grand jury investigation was launched in April after a newspaper reporter in Fairbanks questioned the awarding of a noncompetitive, ten-year contract for government office space to a company partly owned by Lenny Arsenault, a Sheffield campaign fund raiser. According to the jury's report, Sheffield and his staff manipulated lease specifications to guarantee that the firm would win the lucrative contract. Sheffield, who has denied the charges, said that he was "devastated" by the grand jury's findings. State legislators, who adjourned in May, will convene in Juneau on July 15 to consider the impeachment issue.