Arizona Gov. Katie Hobbs wouldn’t answer questions Monday about a criminal investigation that will probe ties between her administration and a state contractor that donated $400,000 to benefit Hobbs and Democrats in recent years.

“In light of the fact that there is an investigation, I’m not going to comment except to say I look forward to its conclusion, and it showing that we acted in the best interest of the state,” the governor said following one of her first public appearances since her ties to Sunshine Residential Homes were revealed by The Arizona Republic.

Hobbs skirted questions about the investigation as GOP leaders heaped pressure on Arizona Attorney General Kris Mayes to hand off the probe on Monday, citing conflict of interest concerns.

Hobbs declined to say if she had been contacted by the Attorney General’s Office, which launched a criminal investigation of the matter last week at the request of a Republican senator.

As she left an event in Tucson highlighting a new affordable housing development, the governor did not respond to a question about the appearance that Sunshine Residential Homes, Inc., may have benefited from its political donations, which came before and after the for-profit company was awarded a more lucrative agreement with the Arizona Department of Child Safety.

Sunshine Residential Homes operates about 30 group homes for children who are taken from their parents and placed into state custody.

Since Hobbs took office in Jan. 2023, Sunshine Residential Homes was the only group home operator to receive a special rate increase. When DCS redid group home contracts this year, Sunshine Residential was awarded the highest daily rate to house a child.

Sunshine Residential Homes’ chief executive officer, Simon Kottoor, hosted a private event with Hobbs and her husband this year. The company also made a cumulative $400,000 in political donations in 2022 and 2023, state campaign finance records show.

Of that, $300,000 went to the Arizona Democratic Party, and $100,000 benefited Hobbs’ inauguration fund. Sunshine Residential was the second largest donor to the inauguration, records provided by Hobbs’ campaign show.

Does Mayes’ office have a conflict?

Mayes’ office said it would open a criminal investigation of the matter a day after the Republic’s report. But the Democratic attorney general has faced mounting skepticism from Republicans about running an investigation that involves the Democratic governor, including a call to recuse herself.

Mayes’ spokesperson, Richie Taylor, pledged a thorough investigation that would expand beyond Sunshine Residential Homes.

“We’ll be looking at every angle of this, we’re not limiting ourselves to looking at just one actor here,” Taylor said.

Taylor said the Attorney General’s Office had taken steps to ensure an impartial investigation. Those include directing DCS to hire an outside law firm in the matter, and screening Attorney General’s Office lawyers who represent DCS from the criminal investigation, according to Taylor.

Rep. David Livingston, R-Peoria, called on Mayes to recuse herself, noting Sunshine Residential Homes made significant donations to Mayes’ political party. Livingston has previously asked Mayes to investigate the use of public resources related to Hobbs’ inauguration. After Mayes found no wrongdoing, Livingston raised concerns she had a conflict of interest.

“You have already proven that you will shield both the Democrat Governor and your own party from any liability,” Livingston wrote in a letter to Mayes.

Maricopa County Attorney Rachel Mitchell, a Republican, and the Arizona Auditor General, a nonpartisan office, have also expressed interest in investigating, but Mayes’ office has sought to isolate the investigation within her office. A spokesperson for Mitchell said the county attorney’s office was reviewing the matter to see what it could do.

The state’s top-ranking Republican official, Treasurer Kimberly Yee, added her voice in support of Mitchell.

Yee, who ran for governor in 2022, called on Mayes to allow Mitchell’s office to conduct a separate investigation, and raised conflict of interest questions because Mayes’ office represents state agencies including DCS.

“The Maricopa County Attorney’s Office has separate jurisdiction in this matter and the current investigation by the Attorney General’s Office raises concerns of potential ethical conflicts of interest in representing state agencies and officials involved in the alleged scheme,” Yee said in a statement.

In a letter replying to Yee, Mayes quipped that “nothing about the matters Sen. Shope has asked us to investigate are remotely related to any of your statutory duties.” Mayes’ office said Yee’s request was insulting to the office’s prosecutors, and that it would not respond to Livingston.

“The over 200 employees in the Criminal Division have all taken an oath to uphold Arizona’s Constitution and its laws. They are non-partisan, professional, and dedicated to obtaining justice for the people of Arizona,” Mayes’ reply reads.

“As with any other investigation our office conducts, we will follow the facts wherever they lead us,” she wrote, copying Mitchell’s office.

Reach reporter Stacey Barchenger at stacey.barchenger@arizonarepublic.com or 480-416-5669.

This article originally appeared on Arizona Republic: Sunshine Residential-Hobbs probe: Gov. won’t comment as GOP seek AG recusal