- Bob Ney (R-Ohio) told Senate Indian Affairs Investigators that he could not remember meeting with the Tigua Tribe of Texas, a client of Jack Abramoff, when he was interviewed by the committee. Unfortunately for Ney cameras do not forget. The Cleveland Plain Dealer blog has posted a picture of a smiling Ney posing with the Lt. Governor and a governing council member of the Tigua Tribe.
- Ney's buddy Jack Abramoff is such a nice guy. Roll Call reports that he called Gabon, a small African nation, a "monkey coloney" [sic]. Abramoff also liked to call Indians "troglodytes" and "morons". He sounds like such a caring man.
- The Press-Enterprise reports on the details of the subpoena issued to San Bernardino County in the ongoing investigation into the ties between Rep. Jerry Lewis (R-Calif.) and the lobbying firm of Lewis' friend Bill Lowery.
- Earmark reformers are concerned that the exclusion of joint resolutions from restrictions imposed by earmark reforms would cause the resolutions to be a new place to seed pet projects. Meanwhile, Jeff Flake (R-Ariz.) plans on going back to the floor of the House to challenge more earmarks, this time inserted into the Science-State-Justice-Commerce Appropriations bill.
- The New York Times tallies the amount of fraud in relief spending after Hurricane Katrina and determine that 6 percent of the total money "obligated" was wasted. Continue reading
LaHood Defends Hastert Earmark for Campaign Contributor:
Last week Rep. [sw: Jeff Flake] (R-Ariz.) launched an assault on earmarks in the Defense Appropriations bill by introducing numerous amendments to strip member's earmarks out of the bill. One of the amendments that Flake took aim at was inserted by Speaker [sw: Dennis Hastert] (R-Ill.). Vigorously defending Hastert was Peoria Rep. [sw: Ray LaHood] (R-Ill.) asking on the floor of the House, "Do you know who earmarked this money?" LaHood has previously stated that he will fight conservative lawmakers who challenge earmarks declaring, "I'm not going to take their crap!"
The $2.5 million earmark was for the Illinois Technology Transition Center, which "helps develop new technologies that create jobs". According to LaHood, the center "has aided the Peoria-based Firefly Energy, an offshoot of Caterpillar Inc." What LaHood does not mention is that Firefly Energy and Caterpillar have aided him throughout his career.
The Peoria Journal Star notes that LaHood, a member of the House Appropriations Committee has "included $5 million for Firefly Energy in the House bill," and that Caterpillar, Inc. "would receive $75.2 million, if the Senate doesn't make changes to the bill." The lobbyists at American Defense International, who presumably aided in obtaining these earmarks, had, until the Cunningham and Abramoff scandals broke in January, "served on LaHood's campaign fund-raising committee." LaHood has previously come under fire for earmarking funds to Firefly and Caterpillar because of his ties to their lobbyists.
Caterpillar is the number one contributor to LaHood's congressional career having given the congressman $148,325. Perhaps LaHood's defense of Hastert's earmark was not solely a defense of the Speaker, but a defense of his prime funding source.
Continue readingWeekend Round-up:
- The San Bernardino Sun reports on the release of documents in the [sw: Jerry Lewis] (R-Calif.) investigation. In the documents Lewis' wife, Arlene Willis, recommends the lobbying firm at the center of the investigation, Copeland Lowery Jacquez Denton & White, to San Bernardino County.
- The San Diego Union-Tribune traces the arc of success for defense contractors that have hired the Lowery law firm to lobby Appropriations Chair [sw: Jerry Lewis]. Orincon, a software engineering company, hired Bill Lowery in the late 1990s and, through the earmarking of funds by Lowery's friend Lewis, saw their "growth curve turned sharply upward." Daniel Alspach, the head of Orincon, and "Lowery would visit Lewis' office, meeting with Letitia White and sometimes with Lewis himself". From the mid-1990s to 2003 Orincon's sales, "heavily dependent on federal contracts," shot from $10 million to $52 million. When Alspach eventually sold his company to Lockheed in 2003 Lowery cashed out too having collected thousands of shares in the company which he lobbied for. Trident Systems, Inc. follows a simliar path having found success after hiring Lowery lobbyist Letitia White to collect earmarks from Lewis. White and Trident owner Nicholas Karangelen own a DC townhouse together which serves as the mailing address for Karangelen's Small Biz Tech PAC, which happens to be run by Lewis' stepdaughter. White also has deal with Trident that seems to similar to Lowery's receipt of shares in Orincon. Karangelen "has arranged to pay [White] a bonus based on the company's profitability."
- The Washington Post reports that conservative power house Grover Norquist's Americans for Tax Reform "served as a "conduit" for funds that flowed from Abramoff's clients to surreptitiously finance grass-roots lobbying campaigns. As the money passed through, Norquist's organization kept a small cut, e-mails show." Abramoff also used, with the acquiesance of the heads of the organization, numerous other non-profits associated with the conservative movement to funnel money, hiding his activities, in his illegal schemes. These organizations included the National Center for Public Policy Research, headed by Amy Ridenour and the Council of Republican Environmental Advocacy, headed by Italia Federici. Continue reading
Daylight AM:
- The Washington Post and The Hill finally run stories on [sw: Dennis Hastert]'s land deal in Kendall County, Illinois. The Post story looks at Hastert's land deal along side the land deals of Reps. [sw: Ken Calvert] (R-Calif.) and [sw: Gary Miller] (R-Calif.). Both Calvert and Miller made large sums of money off of land that they helped, through the earmarking process, become more profitable. Their stories are here and here respectively.
- New tax records show that Rep. [sw: Alan Mollohan] (D-W.Va.) steered $179 million in federal earmarks to companies that contributed to charities that he is associated with. According to Bloomberg, "The money went to 21 companies and nonprofit groups that contributed $225,427 to the Robert H. Mollohan Family Charitable Foundation in 2004 -- almost half of the charity's revenue". Charities connected to politicians (or spouses of politicians) are a way for companies and interests to curry favor from a legislator out of the public eye. Numerous lawmakers have used their charities inappropriately including Senators Rick Santorum (R-Penn.) and Bill Frist (R-Tenn.). I'm sure that there are many more political charity abuses that go unnoticed.
- The Senate Indian Affairs Committee just released their final report on the Jack Abramoff tribal scandal, "Gimme Five -- Investigation of Tribal Lobbying Matters". The Arizona Republic reported this morning that the report is expected to "read more like a summer mystery novel with chapters missing than a tell-all account of former GOP lobbyist Jack Abramoff's corrupt influence in Washington." Since Committee Chairman John McCain (R-Ariz.) refused to call members of Congress to testify before his committee those "missing chapters" will have to be filled in by the Justice Department and our courts.
- Most members of Congress do not read the bills that they vote on. Rep. [sw: John McHugh] (R-N.Y.), the chairman of the House Armed Services Committee personnel subcommittee, did not know that a provision existed in a bill that he crafted that he "philosophically" opposed. Oops. Maybe we should pay attention next time. Or we could make bills available 72 hours before they are voted on (as Readthebill.org is pushing) so that maybe somebody else could have caught what John McHugh didn't.
Seeking Volunteers to Investigate Congress:
Last week at Sunlight, we exposed House Speaker Dennis Hastert's use of a secret, undisclosed trust to make a $2 million profit selling land located near the proposed route of the Prairie Parkway, a project Hastert has backed with $207 million in earmarks.
There are still 539 congress members and delegates whose disclosure forms haven't been scrutinized. Want to investigate them, I'll explain below, and then you can email me if you're interested (ballison@sunlightfoundation.com).
Today’s News:
- Roll Call tells Congress to "Start Over" on lobbying and ethics reform instead of heading forward, "[i]n typical GOP fashion," in manufacturing a compromise before the conference committee meets. The newspaper calls the reform the "Big Nothing" as it fails to fix the inherent problems in the matrix between lobbyists and Congress. The revolving door is a specific case that is not adequately addressed, a problem considering the revelations about members of Appropriations Chairman Jerry Lewis' (R-Calif.) staff ferrying between K Street and Capitol Hill.
- The Columbus Dispatch points to the key outcome of the David Safavian guilty verdict, that Bob Ney (R-Ohio) is in deep trouble. The Safavian trial cements Ney's former chief of staff Neil Volz as a credible witness and also provides the prosecution with the ability to coerce more plea agreements from staffers and former staffers of lawmakers. The prosecution's success could signal movement towards other indictments sooner rather than later.
- Looks like Dennis Hastert's (R-Ill.) earmarks are finding enemies within his own party. Rep. Jeff Flake (R-Ariz.) fired a shot across the bow at Hastert over an earmark Hastert inserted into the defense appropriations bill that would benefit a technology company headed by a former aide to the Speaker. Flake intends on offering an amendment to strip the earmark from the bill.
- Abbe Lowell, the lawyer for Jack Abramoff, pens an op-ed in USA Today that lambasts the Congress for not acting on real reform. He pinpoints the problem in the nexus of money and fundraising work provided by lobbyists who have a particular interest in legislation.
- Laura Rozen gives a round-up of the allegations and discoveries in the investigation into Rep. Jerry Lewis (R-Calif.) in this month's American Prospect.
News for the Afternoon:
- Roll Call reports that the lobbying reform bill is "stuck in limbo" thanks to the inclusion of 527 reform in the House reform package. Does anybody think that this bill is going anywhere? No. It doesn't matter much since the reforms that are included in the bills fall far short of what is needed to fix the problems in Congress. It does demonstrate that even after such high-profile guilty pleas and investigations that the leaders in Congress refuse to fix the inherent problems in the system that led to those abuses and guilty pleas.
- Glenn Reynolds provides a Pork Busters update at Instapundit. He provides links to a Heritage Foundation report on reforming the budget process, the new-fangled Pork Busters site, and to a group that has the name Sunlight in its name.
- If Homeland Security is supposed to be so important (and personally I think not getting blown up and emergency disaster assitance are pretty important things) then please explain why everyone wants to cash out of the Department. The New York Times wants to know too:
"If homeland security is the central concern of the Bush administration, one wonders how it managed to create a department in which so many of the top brass were so eager to quit the crusade so soon and cash in so efficiently. But the worst effect of this kind of take-the-money-and-run mentality is on the people left behind. How many of them, having watched others land lucrative jobs as lobbyists, will temper their own judgments about what systems to buy and what consultants to use with an eye on their own private-sector prospects?"
- The San Bernardino Sun keeps reporting on the lobbying and earmarking scandal surrounding their local congressman [sw: Jerry Lewis] (R-Calif.). San Bernardino County released 3,500 pages of documents related to their contacts with Copeland Lowery Jacquez Denton & White, the lobbying firm in question in the scandal. The documents reveal that San Bernardino used the lobbying firm to develop "strategies to get federal funding," work on "problems with endangered species," and "arranging meetings with senator and Congressmen". The key question is why on earth did a county represented by Lewis need to hire a lobbying firm to make contact with their representative. This should be completely unnecessary and it looks rather peculiar.
- And finally a noted conservative opponent of earmarking, [sw: Mike Pence] (R-Ind.), defended his own earmarks to CongressDaily. Pence, who has been a vocal opponent of earmarking and pork-barrel funding, was forced to defend two earmarks that he placed into the recently passed Transportation-Treasury appropriations bill. Pence's spokesman stated that the congressman, "stands by his earmark requests." Pence also stated that he supports earmark reform but does not wish to do away with the process entirely. Of course, his defense of his own earmarks sounds much like the defense given by so many others who have been criticized.
Moran’s Earmarks
I've been so busy talking about House Speaker Dennis Hastert's land deals, reading and working on replies to a ton of wonderful responses from citizen journalists (I kind of like "Citizen Muckraker" better, but that's just me) to our request for help in investigating Congress (about which more soon) that I've missed the party on Rep. Jim Moran, D-Va., who represents me in the House. Glenn Reynolds highlights a Washington Post piece (which ran in the Business Section, which was a little odd) about Moran's securing $37 million for a company that tried to develop magnetic technology that would make submarines less easily detected. In the end, the company tried to develop magnetic technology to make the small boats Navy SEALS use (which can be dangerous in rough seas) safer; instead, the Navy chose to buy better seats to keep the SEALS safe. Sounds almost like the company, an Alexandria, Va.-based firm called Vibration & Sound Solutions Ltd., had a solution in search of a problem. The company's president and his wife donated $17,000 to Moran.
Continue readingA Tale of Two Appropriators:
[sw: Ralph Regula] (R-Ohio) and [sw: Jim Moran] (D-Virg.) come from different parties and from different parts of the country but they both share a commonality -- they are appropriators. In this they share that love of controlling the purse strings of government, and with that power comes the ability to send money to their district or to their family members. The need of the earmark is not taken into consideration. The purpose of the earmark is not much considered either. In the end, we see two stories of odd ways to spend tax payer money. One for an unwanted defense technology and the other for a nonprofit headed by the appropriators wife. This is a tale of two appropriators. In the case of Ralph Regula, a congressman out of Ohio since 1972, we find appropriations that are pro-family -- pro-Regula family, of course. Regula's wife Mary heads an organization called the National First Ladies' Library, a nonprofit that serves as a "national archive devoted to educating people about the contributions of First Ladies and other notable women in history". According to Knight Ridder, Regula has aided his wife's organization by earmarking funds to it throughout the years:
Over the years, Ralph Regula's subcommittee inserted more than $2 million in special "earmarks" for the first ladies project into federal spending bills, including $800,000 to buy a mansion that once belonged to President William McKinley and his wife. In addition, the panel okayed a $2.5 million federal matching grant to help renovate a nearby bank building that his wife's group owns.
The NFLL's website lists the projects that these earmarks funded as their Accomplishments:
* Restore and historically document all the public rooms located in the family home of First Lady Ida Saxton McKinley from the parlor through the kitchen. * Restore and renovated the historic 1895 City National Bank Building, which now serves as a research library and educational center dedicated to the history of First Ladies and notable women in America.So I guess when Mary Regula says, "Unless you are determined and have a mission, you don't get much accomplished," she means that you don't get much accomplished without earmarked funds coming from your husband's seat on the Appropriations Committee. Now, I shouldn't be so harsh, the NFLL does get money from private interests. One of the sponsors of the NLFF, Timken Corp., is Ralph Regula's second biggest donor for his career. One of the unchecked ways that corporations or lobbyists can curry favor with legislators is to put money into a nonprofit or a charity that is connected to that lawmaker. The member of Congress doesn't have to report his connection to the non-profit or the charity and so these donations fly under the radar. Timken contributed $750,000 to help renovate the bank the bank building. And now Timken will receive more than $20 million in earmarks thanks to Regula. They have already benefited greatly from a law passed by the Ohio congressman.
Timken gained more than $200 million in federal payments from a law Ralph Regula sponsored that curbed "dumping" of underpriced foreign goods, according to a 2005 report by the Government Accountability Office, a congressional watchdog agency. In a news release Tuesday, Regula announced that he'd sponsored a $3 million earmark for Timken's research on high-tech bearings. Since 2002, Regula has announced more than $20 million in earmarks for Timken, which does a lot of defense contract work.Regula is rumored to be the successor to Appropriations Chairman Jerry Lewis (R-Calif.) if the Republicans maintain the majority after this November's midterm elections. Lewis is currently under investigation for his role in improperly earmarking funds -- an outgrowth of the Duke Cunningham investigation. If Lewis is deposed prior to the election by this investigation I don't think that Regula is going to be the "unity" candidate in the Pork Wars. Another possible candidate is the aforementioned Jim Moran, who could take the reigns of the committee if the Democrats regain control of the House. Moran recently made the following statement about how he would lead the powerful committee: "I plan to earmark the sh_t out of it." Classy. Moran later stated that he was making a joke, but the real joke is that he has been earmarking funds to a defense contractor for a technology that can't be used and that nobody wants. The Washington Post reports on "Project M", "a technology involving magnetic levitation," which has received $37 million in earmarks from congressmen including Jim Moran and Duncan Hunter (R-Calif.). Project M was believed to be able to "keep submarine machinery quieter," "keep Navy SEALs safer in their boat," and "was examined as a possible way to protect Marines from roadside bombs." The problem with Prjocet M is simple: "All the applications have one thing in common: The Pentagon hasn't wanted them." The contractor who created Project M, Vibration & Sound Solutions Ltd., operates in Moran's district and has donated $17,000 to Moran's campaign committee. Moran states that the 25 jobs the company creates are important for his district and said that "he earmarks projects if the company involved employs people in his district and the military thinks it has merit." One of those reasons turns out to be correct. The Post story explains the complications involved in eliminating these kinds of earmarks:
Once begun, promising but speculative programs like Project M are hard to kill, sustained by members of Congress who want to keep jobs in their districts, military officials who want to keep their options open and businesspeople who want to keep their companies afloat.Ultimately, with Moran or Regula in charge of such an important committee, there is no chance there could be a reduction in the outrageous earmarking industry. They may have ideological differences, they may serve different populations, but in the end, they are appropriators who have fed from trough of an Appropriations Committee run amok. Continue reading
The Pork Wars:
The saga of the Pork Wars continues with news about the battle between conservative bulldog [sw: Jeff Flake] (R-Ariz.) and Appropriations Chairman [sw: Jerry Lewis] (R-Calif.); a new name for earmarks: "projects initiated by a member"; a new face on the Appropriations Committee, but one with the same old problems; more questions about Jerry Lewis' connections to lobbying firm and that firm's connections to a PAC run by Lewis' step-daughter; and [sw: Duncan Hunter] (R-Calif.) makes his earmark requests, or his "projects initiated by a member," public.
- Robert Novak writes about the crusade to stop earmarks and its opponents. Last week Rep. [sw: Jeff Flake] presented amendments challenging numerous earmarks in an appropriations bill only to lose every vote. He even failed to win the vote of the supposedly anti-earmark Majority Leader [sw: John Boehner] (R-Ohio), "At Charlie Palmer's restaurant last Wednesday, assembled Republican campaign contributors cheered as John Boehner was introduced as the majority leader who never has sponsored an earmark. Later that day, Boehner voted against each of Flake's attempted earmark removals. In the House, one conservative reformer commented to another seated beside him, 'With this leadership, we never will get rid of earmarks.'"
- Rep. [sw: Bill Young] (R-Flor.), a member of the Appropriations Committee, say that there are "no more earmarks." That's because, "We don't call them that anymore." According to Young, the chairman of the subcommittee on Defense Appropriations, the new term is "projects initiated by a member." Well, I'm glad we fixed that problem. No more earmarks to worry about.
- Who will take the tainted Appropriations seat vacated by ethical black holes [sw: Duke Cunningham] (R-Calif.) and [sw: Tom DeLay] (R-Tex.)? Looks like [sw: Ken Calvert] (R-Calif.) is still the front runner despite his Dennis Hastert-esque problems. The FBI pulled Calvert's financial disclosure forms and are looking into his connections to the law firm of Bill Lowery. Lowery's firm, under investigation in connection to earmarks secured by Jerry Lewis and the Duke Cunningham case, is one of the top donors to Calvert's reelection committee. Calvert has been accused of earmarking funds around a piece of land that he owned and subesquently sold for a massive profit. In one year Calvert's assets nearly doubled in worth from between $1.7 million and $3.65 million in 2004 to between $2.55 million and $5.25 million in 2005.
- [sw: Jerry Lewis] represents parts of the Inland Empire so why on earth do the cities and municipalities have to hire a lobbying firm to get funds from their congressman? The Los Angeles Times tries to answer the question and finds that nobody has a good answer. The Washington Post also digs deeper into the political action committee run by Julia Willis-Leon, Lewis' step-daughter, and the funds she receives from clients of Letitia White and the Lowery law firm.
- House Armed Services Chairman [sw: Duncan Hunter] (R-Calif.) is making his earmark requests public, according to the Washington Post. Normally earmarks remain hidden in bills only to be discovered by those who find them odious. Hunter has decided that transparency is necessary to defend the practice. Transparency also allows me to point out that two of his earmarks are to one of his biggest campaign donors, Titan, Inc. For more information Hunter's ties to Titan -- a very controversial defense contractor -- check out this blog post by Jason Vest at POGO.
Continue reading
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