In battle with Big Oil, Newsom rips into Valero’s 500% rise in profit amid soaring gas prices – and blames oil industry for causing California ‘economic disaster’: Watch Newsom speak LIVE on NewsBreak California’s governor will join lawmakers on the state Capitol floor Sunday at noon to speak out on the California’s economy and the growing toll of oil.
The Valero Energy Corp. and Chevron Corp. are the subjects of a lawsuit filed by Newsom on Monday, contending that they illegally diverted billions of dollars in federal tax revenues away from California to foreign oil companies in exchange for kickbacks in excess of $200 million.
More than an hour before the California Association of Business spoke out on how the tax bill was a mistake, Newsom stepped to the microphone to address the news conference.
“It’s my duty and responsibility to address allegations that may be made, and I can say to you and to the California Association of Business, and I’m glad the association is with me, that we are not interested in politics,” he told NewsBreak.
That statement drew applause from the gathered crowd.
Newsom said he will meet with lawmakers during his appearance on the Capitol to “find out how our state government and lawmakers can address this for the benefit of the people of California.”
“It may not matter. It may not be relevant,” he said.
He did not say what he would do if he was told that lawmakers could not fix the tax measure.
“I will let the politicians and the legislators deal with that,” Newsom told NewsBreak. “That’s what they do. The people will be dealt with.”
A little after noon, reporters for NewsBreak asked Newsom about Valero, noting that the company stands accused of paying $20,000 in bribes, and Valero’s parent company is accused of $250 million in illegal payments.
Valero spokesman J.J. Palacio told NewsBreak: “The facts of this case have been misrepresented by the media and by the legislative leadership. Valero did not pay a single dollar of ‘hush money’ to any of these corporations. We’ve never paid any bribes to any officials in any country.”
Palacio cited a series of news reports