AP Interview: Deal says he's not a target of probe

ATLANTA - Republican gubernatorial hopeful Nathan Deal said Wednesday that as far as he knows he is not the target or the subject of a grand jury probe into his longtime business arrangement with the state.

The Atlanta Journal-Constitution reported Wednesday that state Revenue Commissioner Bart Graham received a federal subpoena last month to produce documents about a 2009 meeting he had with Deal, then a congressman from north Georgia. (See separate story.)

Deal, in a wide-ranging interview with The Associated Press, said he has not been interviewed by federal authorities and has not received a subpoena.

He suggested politics may be behind the subpoena's surfacing more than two months after Graham received it.

"I think it is somewhat ironic that this surfaces after the original primary and just a couple of weeks before the runoff," Deal said. "I think you recognize that it is being used as a political tool."

The newspaper obtained, through a records request, a copy of the federal subpoena issued to Graham, who was asked to appear before the grand jury on June 8. Graham declined to comment Wednesday, and it was not clear if he appeared before the grand jury on that date.

Assistant U.S. Attorney John Horn said his office does not comment on grand jury investigations.

In 2009, the newspaper reported that Deal spoke with Graham and others about a state program that earned Deal's Gainesville auto salvage company nearly $300,000 a year. Graham was seeking to change the program in what he says was an effort to bring down costs by introducing more competition.

Deal was lobbying to keep the program unchanged. He reiterated Wednesday that he was motivated not by profit, but by a desire to protect the public from what he says are rebuilt cars that are no longer subject to rigorous inspections.

The discussions became the focus of a congressional ethics probe. In March, before the probe was concluded, Deal announced he was leaving Congress to run for governor. The nonpartisan Office of Congressional Ethics later said Deal may have violated House ethics rules by using his position to lobby state officials on behalf of his auto salvage business. They recommended that the House Committee on Standards investigate. Deal stepped down before the panel decided whether to take up the matter.

Chris Riley, who at the time was Deal's chief of staff, also sat in on the meeting being scrutinized by federal authorities. Deal said Wednesday that Riley - now his campaign manager - has not been subpoenaed.

Deal said he did not regret his decision to meet with Graham about the program, even though it has prompted him to answer questions about ethics.

"It is an example of people who will use anything to some kind of political advantage and I think that is tragic because, what that does is, it keeps people who know things that are wrong from being willing to step up and speak out for fear of retribution," Deal said.

"They're not going to intimidate me out of anything," he added.

Deal made the case Wednesday that he has the experience and negotiating skills to help Georgia resolve its long-standing water dispute with neighboring states. He also touted his broad appeal, noting he was born in south Georgia, grew up in middle Georgia and now lives in north Georgia.

Deal added that he is the best candidate to attract independent voters and would be a stronger candidate to run against Democrat Roy Barnes in November.

"I think I am the candidate that can keep Republicans from defecting," Deal said, adding that would be a concern if Handel is the Republican nominee. "There will be, in my opinion, major defections of people who will have traditionally voted Republican who will not support her."

Deal also said Barnes holds an edge over Handel when it comes to voter appeal.

"Roy is a very personable, gregarious kind of politician and that has appeal. You contrast that with a very stark, a very negative, a very attack-oriented campaign that we have seen consistently (from Handel)."

"I just think that on style alone she is going to have problems against him."

Handel's spokesman Dan McLagan said the former secretary of state is "positive, nice, smart, an outsider reformer, and she's Roy's worst nightmare."

Handel has also been invited to sit down for an interview with The Associated Press. Her campaign has yet to make her available.