Alluin responds to EP city council campaign spending on suits, restaurants he owns

EL PASO, Texas (KVIA) -- Ethics and campaign finance law questions were raised following recent reports that El Paso City Council District 8 candidate Arturo Alluin had spend thousands of campaign dollars on clothing and businesses he owned, as shown in his initial campaign finance filing.

With the election months away, he sat down with ABC-7's Andrew J. Polk to answer those questions and more.

"I didn't mismanage any funds," Alluin said. "I didn't steal any funds. I didn't misuse any funds."

Alluin says he was trying to be as transparent as possible, including in reporting what he personally spent on new suits for the campaign.

He has since filed a corrected report as of Tuesday that removes that more than $2,500 expense and clarifies other donations.

But he says the clothing will be used just for the campaign and office to match what constituents expect from their elected officials.

"That's the only use, realistically, that I have for all of this," Alluin said. I don't use it, I don't - I didn't dress like this. I do have and I have had suits before."

Alluin also owns two restaurants - Sushi Itto near downtown and Meduza Mediterranean Steakhouse on the Westside. He has spent more than $3,500 for campaign events and meetings at them since starting his campaign.

The Texas Election Code has a section addressing restrictions on certain payments from campaigns to businesses that candidates own or are involved in.

Sec. 253.041. RESTRICTIONS ON CERTAIN PAYMENTS. (a) A candidate or officeholder or a specific-purpose committee for supporting, opposing, or assisting the candidate or officeholder may not knowingly make or authorize a payment from a political contribution if the payment is made for personal services rendered by the candidate or officeholder or by the spouse or dependent child of the candidate or officeholder to:

(1) a business in which the candidate or officeholder has a participating interest of more than 10 percent, holds a position on the governing body of the business, or serves as an officer of the business; or

(2) the candidate or officeholder or the spouse or dependent child of the candidate or officeholder.

(b) A payment that is made from a political contribution to a business described by Subsection (a) and that is not prohibited by that subsection may not exceed the amount necessary to reimburse the business for actual expenditures made by the business.

(c) A person who violates this section commits an offense. An offense under this subsection is a Class A misdemeanor.

While Alluin did note on his campaign finance reports that the expenditures could directly benefit his businesses and thereby himself, he says he didn't charge his campaign the full cost, leading to a net loss for the restaurants.

He added that he was not fully aware of the provision of the election code.

"I wasn't aware of anything," Alluin said. "Like I said, I'm not a politician. I just did the right thing. I gave myself the discount that I should have. And thankfully, and fortunately for me, it coincides with the code. And like I said, all of those expenses were paid for by me personally. They were personal funds with my credit cards. I didn't get a single contribution or a single dollar out of anybody that I met. 

Alluin says he has spent thousands more at other local businesses to have other meetings with consituents of the district and campaign meetings since starting his run for office.

"You know, I was building trust and building my connections and building my relationships," Alluin said. "So to that, again, I say, yes, they were meetings with different people and everybody can attest for that. And it was just a coincidence thing. You know, I strive to do the right thing always. And I did the right thing, and I've been doing the right thing.

You can watch the full interview with Alluin at the top of this article.