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Why Mike Kemp’s withdrawal from BCA is highly significant

As reported earlier today, BCA Progress PAC Chairman Mike Kemp has resigned his position and withdrawn his membership from the group. Kemp was also set for installation as Chairman of BCA later this year.

The Yellowhammer Multimedia Executive Board has obtained a copy of Kemp’s letter of resignation to BCA Chairman Perry Hand. The letter is dated June 20, 2018.

Based upon Kemp’s position in the organization and the reasons he states for his withdrawal, his leaving BCA is a highly significant development in this ongoing saga.

Kemp served as Progress PAC Chairman and was next in line for the BCA chairmanship.

The funds in Progress PAC, the BCA’s campaign finance apparatus, typically swell above $2 million during any given state election cycle. As this year’s Progress PAC chairman during a busy state election cycle, Kemp was right in the middle of choosing on whom those dollars got spent. Overseeing the distribution of that kind of money brings with it a tremendous amount of power and influence.

Kemp was also set to take over as the next chairman at BCA. The list of people who have held that position reads like a who’s who in the Alabama business community the last 30 plus years. Kemp was set to join an elite group of business leaders.

No one gives all this up lightly.

And so one can imagine that it took grave concerns about the organization’s direction and actions for him to forego the opportunities that lay in front of him.

Kemp’s stated reasons for withdrawal reveal that deeper problems may exist within BCA.

One passage, in particular, jumps out in Kemp’s letter:

“We must also demonstrate unwavering integrity in communicating with and managing the resources of our membership, to whom we are ultimately accountable. This is particularly true in a time of crisis, like the one before us. I am disappointed that the BCA leadership’s actions to date have failed to meet these standards, and as such, are antithetical to my views in all respects.”

Without elaborating in more detail, Kemp clearly identifies internal communications and financial management as contributing factors to his withdrawal. The organization recorded annual expenses of $4.7 million, according to IRS documents filed in 2016. With so many large members having left already, BCA will likely encounter an even greater budget shortfall. Time will reveal the severity of these shortfalls given that any proposal to dip into organizational reserves requires adoption by the full 132 member board. Additionally, according to multiple sources, a full financial audit of the organization is being pursued.

Attempts at communication within BCA were poor. We have been told repeatedly by current members of the Executive Committee that no one was updated with any regularity. The details surrounding transition were murky. Members feel as if they are being kept at arms-length.

Kemp was a trusted mediator.

Kemp worked diligently to find a solution to the problems that have contributed to this crisis. Other members trusted Kemp based upon his prudent and measured approach. He was making a genuine, good-faith effort to preserve the mission of the organization and improve our state’s economy.

The fact that he has withdrawn completely from BCA would indicate that the group’s leadership has strayed too far from its mission and the problems are beyond repair.

The Yellowhammer Multimedia Executive Board is comprised of the owners of the company.