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Charges in governor's race can sometimes fudge the truth

Published November 1, 2006

LANSING, Mich. (AP) - Have you seen the ad with the teddy bear yet? The one that accuses GOP gubernatorial candidate Dick DeVos of not telling the truth?

It's not the only charge being made in the governor's race that fudges on the facts. Whether it's a question of whether the governor went after a Honda Motor Co. plant or talk of investments in China, the campaigns - as well as their supporters - have shoveled out their share of half-truths and differing interpretations of the facts.

Take the latest ad being run by Democratic Gov. Jennifer Granholm, who has repeatedly criticized DeVos for cutting jobs in Michigan and opening a factory in China while he was head of direct marketer Amway Corp. and its parent company, Alticor Inc.

The DeVos campaign has said several times that no Chinese product made by the company is exported to the United States. But Democrats were able to buy a teddy bear made in China from Quixtar, the Internet sales company run by Alticor.

The bear wasn't made by the Amway factory in China, as the ad implies. Instead, it was made by another company and sold through Quixtar.

Quixtar "is much like Amazon.com. On the same invoice the Granholm for Governor campaign has on their web site demonstrating the purchase of the teddy bear . the campaign also purchased a Mizuno travel bag," Michigan Republican Party spokeswoman Sarah Anderson said in a release.

"As I am sure you are well aware . (Quixtar) does not own Mizuno. Nor do they own Apple, but they sell iPods. Nor do they own Remington, but they sell their shavers. . These companies all manufacture products in China and sell them across the world. Alticor does not manufacture these products," she said.

The Granholm campaign sticks by its contention that the DeVos campaign is now saying something different from what it said before.

"They're constantly trying to change things, and this ad holds them accountable," Granholm campaign spokesman Chris De Witt said yesterday.

The DeVos campaign has not been totally up-and-up in some of its accusations, either.

It has run at least two ads knocking the governor for not meeting with Honda Motor Co. officials during her trade trips to Japan and for not pursuing a manufacturing plant the Japanese automaker announced it would build in Indiana.

"The press reports Indiana's governor pursued Honda for a year, while Governor Granholm was blindsided _ only got interested 'at the 11th hour,'" the DeVos campaign said in an ad. DeVos also criticized the governor during a speech to Detroit business leaders for not meeting with Honda officials.

But the governor did meet with Honda officials during her 2005 trade trip to Japan, and sent her economic development team to meet with them this year during her second swing through Japan.

And Michigan was in the mix with Indiana, Ohio, Wisconsin and Illinois trying to win the plant after Honda announced in May it would build a plant in the Midwest. Auto analyst David Cole said only Indiana and Ohio were seriously in contention for the Honda project, noting that Honda already had assembly plants in Ohio and suppliers nearby.

During her third debate with DeVos, Granholm said that Amway, under DeVos' leadership, had incorporated a company called Amway Asia Pacific Ltd. in Bermuda. The subsidiary, formed in 1993, was a public company at the time but later was taken private.

The Michigan Democratic Party has run an ad criticizing DeVos for that move, as well as for supporting the North American Free Trade Agreement.

"Now we find out Dick DeVos incorporated his company in Bermuda. Perhaps to avoid paying U.S. taxes," an announcer says in the ad. "So where do you suppose Dick DeVos thinks the governor's office should be? The Cayman Islands?"

Rob Zeiger, Alticor corporate communications director, said the company incorporated several foreign subsidiaries in Bermuda that it had used to raise capital. He said the company didn't avoid paying any U.S. taxes by the move.

Granholm and the Democrats also have said that DeVos, along with his family, controlled a troubled assisted living company cited for allowing elderly patients to be abused. They said the family controlled Alterra not just through stock ownership but by loaning the company $173 million in 2000 and getting the power to appoint four of the corporation's nine directors.

Among those directors was Jerry Tubergen, president and chief executive of RDV Corp., the Grand Rapids company that makes investments and handles taxes for DeVos, his siblings and his parents, Helen and Richard DeVos Sr., a billionaire who co-founded Amway Corp.

But DeVos campaign officials said DeVos was not active in the company and didn't know about the allegations of abuse. DeVos and his wife, Betsy, never had a controlling interest in Alterra and lost $9 million on their investment when the company was broken up, campaign spokesman John Truscott said.


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