Secretary of Labor Raymond J. Donovan was given two "no-interest" loans last year by the New Jersey construction company of which he had been executive vice president.
Donovan's annual financial disclosure report, made public yesterday at the Labor Department, also showed that he collected $146,300 in salary and bonuses from the firm in 1981. Donovan was paid another $94,940 in consulting fees by the joint venture, headed by Schiavone Construction, which has undertaken several multimillion-dollar New York City subway projects.
Vernon Louviere, a spokesman for Donovan, said he believed the loans were arranged by Donovan's trustee, Frank Steiffleman, to fill a short-term need and were quickly repaid.
According to Donovan's disclosure statement, he received the first "advance," of between $50,000 and $100,000, from Schiavone on April 16, 1981, and repaid it with no interest four days later. He received a second loan of between $15,000 and $50,000 last Aug. 10 and repaid it without interest Sept. 23.
During last August, Donovan also sold 9,699 troy ounces of silver for between $100,000 and $250,000.
A breakdown of Donovan's salary and bonus from Schiavone was not immediately available, but Louviere said most of the $146,300 was probably 1980 bonus money paid in 1981. The rest of the salary and consulting fees, Louviere said, were probably for the January-to-February period last year before Donovan was sworn in as a Cabinet member.
Donovan and company president Ronald Schaivone own approximately 90 per cent of the stock in Schiavone Construction. Donovan took a leave of absence from the firm Feb. 2, 1981, and placed his Schiavone holdings in a trust.
The financial report shows that Donovan has more than $250,000 in assets in the Schiavone Holding Corp. of Secaucus, N.J., and drew more than $100,000 in dividends from it last year.
The report was certified by Solicitor of Labor Timothy Ryan as showing "no conflict of interest under applicable laws and regulations" and was sent to the Office of Government Ethics for review.