TSET board of investors remove Oklahoma Attorney General from legal counsel

The Oklahoma Tobacco Settlement Endowment Trust board of investors votes to remove Oklahoma Attorney General Gentner Drummond from legal counsel.

TSET says it is firing Drummond over what it calls "improper interference" related to Drummond's management of the trust's investments.

“The people of Oklahoma voted to protect these funds from political interference,” State Treasurer Todd Russ and Chairman of the TSET Board of Investors said. “The Attorney General’s attempt to override a legal investment process — is a direct threat to the constitutional independence of the investment board.”

The firing comes after TSET filed a request with the Oklahoma Supreme Court to remove the attorney general over his management of the trust's investments.

TSET manages money from the state's tobacco settlement to promote health programs, but claims Drummond has been trying to block investments the board already approved.

The board says the blockage has caused a loss of $26 million for public health funding.

"That’s not how constitutional governance works, and it’s certainly not how Oklahomans expect their settlement funds to be managed," Russ said.

In his response, Drummond says legal precedent gives him the authority to step in and approve investments.

"To be clear, my office respects the fund and its outside counsel," Drummond said. "Neither the fund nor its counsel are the issue, as they are innocent observers of your acts."

TSET is asking the Oklahoma Supreme Court to confirm its independence when it comes to making decisions on investments.