NU Online News Service, Aug. 18, 3:40 p.m.EDT

A case involving the alleged inappropriate donations of twoinsurance companies and political actions committees to InsuranceCommissioner John Oxendine could be referred to the stateprosecutor for investigation.

Stacey Kalberman, executive secretary of the Georgia EthicsCommission (GEC), told the commission on Tuesday that it was timeto "consider referring this matter to the prosecutor."

The GEC has attempted to get more information about $120,000 ofcampaign funds given to Commissioner Oxendine from Rome, Ga.-basedState Mutual Insurance Company and subsidiary Admiral LifeInsurance Company toward Mr. Oxendine's campaign for governor.

Commissioner Oxendine returned the funds but the GEC issuedsubpoenas to the insurers for more documents–a move that has nettedlittle results, said Ms. Kalberman.

"We've been frustrated every step we take," she said of theattempt to get the documents.

The insurers fought to stop the subpoena, but a judge ruledagainst them. The insurers are now suing the commission in a casethat is still pending.

In the meantime, Ms. Kalberman wonders if "someone with bettersubpoena powers," like the state prosecutor, could get to thedocuments she suspects are being withheld by State Mutual andAdmiral Life.

Ms. Kalberman said she is "very, very concerned there aredocuments being held by the insurance companies, and perhapsothers, in violation of the subpoenas."

Commissioner Oxendine did not win the GOP nomination forgovernor.

Georgia State Senator Ralph Hudgens, meanwhile, gained theRepublican nomination for Commissioner Oxendine's current post ofinsurance commissioner.

The GEC on Tuesday accepted an agreement with Sen. Hudgens overimproperly transferring $100,000 campaign funds from hislegislative campaign to his campaign for insurance commissionerwhen he decided to run for the position.

Sen. Hudgens was given some misinformation by a former GEC staffmember about the legality of the transfer, said Ms. Kalberman, whoadded that the funds were never spent.

The matter can be reopened if more evidence surfaces, Ms.Kalberman said.