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This Week in Corruption

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Another week, another hurricane, and another Abramoff associate in hot water--though this time it's a fresh face who's making their debut on the Week in Corruption.

The Office of Management and Budget's (OMB) former procurement chief, David Safavian, was arrested on Sept. 19th for lying to officials and obstructing a Justice Department investigation in connection to his relationship with Jack Abramoff.  Safavian accompanied Abramoff on an August 2002 golf junket to Scotland--a trip that also included Ralph Reed and Bob Ney--and asked for permission to accept the free airfare, claiming in an email to a GSA ethics official that "[t]he host [Abramoff] is a lawyer and lobbyist, but one that has no business before GSA (he does all of his work on Capitol Hill)."  Safavian twice later repeated this claim, once in a late March-early April questioning by the GSA Inspector General, and again in a 2005 email to the Senate Indian Affairs Committee.


As emails have shown, Safavian worked with Abramoff both before and after the Scotland trip on affairs that did involve the GSA, the federal agency that manages federal land and property.  Safavian aided Abramoff in his efforts to acquire 40-acres of GSA-managed land in Silver Spring, MD, and also in changing development regulations on the Old Post Office building in DC, which, according to FBI special agent Jeffrey Reisig, would help Abramoff give "tribal clients a competitive advantage in efforts to lease and develop the building."  In an email exchange one of Abramoff's colleagues asked Abramoff about Safavian's presence on the golf trip, "Why Dave?...  Business angle?" to which Abramoff replied in bold, "Total business angle. He is new chief of staff at GSA."  Safavian claims he will fight the three-count criminal complaint "vigorously."  He previously worked with Abramoff in the 1990s at the law firm Preston Gates Ellis & Rouvelas Meeds, and with Grover Norquist at Janus-Merritt Strategies LLC.


In other Abramoff news, Tyco's general counsel Timothy Flanigan, in a statement to the Senate Judiciary Committee, said that Abramoff boasted he could help the company fight taxes aimed at offshore corporations because "he had contact with Mr. Karl Rove," and "had good relationships with members of Congress," including Tom Delay.  A Silver Spring-based company, Grassroots Interactive, was given $2 million by Tyco at Abramoff's behest, $1.5 million of which Abramoff promised to repay after a Tyco investigation found that, according to Flanigan, the $2 million was "diverted to entities controlled by Mr. Abramoff" and wrongfully spent.  Flanigan's statements came during his confirmation hearing as President Bush's nominee for deputy Attorney General.  Yesterday the Washington Post reported that Edward Miller, a "top aide" to Robert Ehrlich (R-MD), was subpoenaed last summer by a federal grand jury for his efforts in establishing Grassroots Interactive, and has been "cooperating" with the federal investigation ever since.


It seems that claims made by Adam Kidan's lawyer less than a month ago that Abramoff and Kidan will not testify against each other might not hold up much longer.  In court documents filed in the SunCruz Casinos lawsuit, Abramoff blames Kidan for not telling Abramoff of his past business failures and disbarment, and said of the loan papers used to buy the SunCruz, "[h]ad I known these facts about Kidan, I would never have signed."  (For those of you in need of an Abramoff-Kidan refresher course, the Associated Press has a useful timeline of all the important events).


The other big ethics news of the week centers around Senate Majority Leader Bill Frist, who sold all his stock, as well as his family's, in the family owned HCA Inc., the nation's largest private hospital chain.  Frist asked for his stock to be sold on June 13th, and by July 8th his family's stock had been sold in entirety as well.  On July 13th HCA said its second quarter earnings would be less than expected, and its stocks fell by 8.85 percent.  Since Frist had "blind assets" in HCA--to relieve him of the conflict of interest that could come from crafting healthcare legislation--exactly how much he had invested in the company is unknown, but his 2004 financial disclosure puts this amount between $6.7 million and $36.5 million.  On Thursday the SEC requested information from Frist, and on Friday a federal probe of the sale expanded by asking for information from both Frist and HCA.


Developers in Colorado enlisted the help of Tom Delay in building a massive ski resort on 288-acres of land that requires approval from the Forest Service.  The developers tried to get "midnight riders" attached to bills in the House Appropriations Committee that would have given the developers permissions to begin construction immediately rather than waiting for federal approval (which is expected to be decided upon in November).  One of the developers, Texas billionaire Joe "Red" McCombs, wrote to Delay in 2002 saying "We would have never gotten to first base without your help," and "I understand there may be an opportunity for the Amendment on another bill, like energy, and you know we will do whatever we can to help...  Thanks for all you've done."


In Kentucky, Gov. Ernie Fletcher's appointed Merit Systems task force announced it is considering decriminalizing portions of the state personnel law, which, incidentally, 9 members of Fletcher's administration have been indicted for violating.  Fletcher has already pardoned these 9, although there has been no ruling yet on these charges.  One task force member resigned last month after calling into question the task force's legitimacy, and recently the Deputy Attorney General said the preliminary recommendations are a "step backwards for Kentucky."


Finally, the watchdog group Citizens for Responsibility and Ethics in Washington (CREW) will issue a report on Monday entitled "Beyond Delay: The 13 Most Corrupt Members of Congress" (the LA Times was given an advanced copy and has a preview of the report).  The list includes: Sen. Bill Frist (R-TN), Sen. Conrad Burns (R-MT), Sen. Rick Santorum (R-PA), House Majority Whip Roy Blunt (R-MO), Richard W. Pombo (R-CA), Randy "Duke" Cunningham (R-CA), Maxine Waters (D-CA), Bob Ney (R-OH), Tom Feeney (R-FL), William Jefferson (D-LA), Charles Taylor (R-NC), Marilyn Musgrave (R-CO), and Rick Renzi (R-AZ).


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Frank Rich picks up this topic in a broadside today entitled "Bring Back Warren Harding"

The very nest article that I read after Rich  immediately follows:

Cronies and Huckersters: Bring Back Warren Harding
Frank Rich


THERE are no coincidences. On Monday, as L. Dennis Kozlowski was slapped with 8 to 25 years in jail for looting Tyco International of some $150 million, the feds were making their first arrest of a high-ranking member of the Bush administration. The official was David Safavian, the chief of White House federal procurement policy who once worked for Jack Abramoff, the sleazy Republican lobbyist whose disreputable client list, in another noncoincidence, included Tyco. While it's an accident of timing that Mr. Safavian was collared at his suburban Virginia home just as Mr. Kozlowski was sent to the slammer in New York, the two events could not better bracket a corrupt era worthy of the Gilded Age.

Ours will be remembered as the Enron era. Enron itself is a distant memory -- much like all that circa 2000 talk of a smoothly efficient C.E.O. presidency led by a Harvard M.B.A. and a former chief executive of Halliburton. But even as American business has since been purged by prosecutions and reforms, the mutant Enron version of the C.E.O. culture still rules in Washington: uninhibited cronyism, cooked books, special-favors networks, the banishment of whistle-blowers and accountability. More than ideology, this ethos has sabotaged even the best of American intentions, whether in Iraq or New Orleans. Unchecked, it promises greater disasters to come.

As recently as 10 days ago, when he resigned before his arrest, Mr. Safavian was the man who set purchasing policy for the entire federal government, including that related to Hurricane Katrina relief. The White House might as well have appointed a contestant from ''The Apprentice.'' Before entering public service, Mr. Safavian's main claim to fame was as a lobbyist whose clients included Indian gaming interests and thuggish African regimes. Mr. Safavian now faces charges of lying and obstructing the investigation of Mr. Abramoff, the Tom DeLay-Ralph Reed-Grover Norquist pal who is being investigated by more agencies than looked into 9/11. Mr. Abramoff's greasy K Street influence-peddling network makes the Warren Harding gang, which operated out of its own infamous ''little green house on K Street,'' look like selfless stewards of the public good.

You know that the arrest of Mr. Safavian, one of three known Abramoff alumni to migrate into the administration, is the start of something big. Alberto Gonzales's Justice Department announced it only after Mr. Safavian had appeared in court and had been released without bail. The gambit was clearly intended to keep the story off television, and it worked.

It won't for long....

 

Witness the nomination of Julie Myers as the new head of immigration and customs enforcement at the Homeland Security Department. Though the White House attacked the diplomat Joseph Wilson for nepotism because he undertook a single pro bono intelligence mission while his wife was at the C.I.A., it thought nothing of handing this huge job to a nepotistic twofer: Ms. Myers is the niece of Gen. Richard Myers and has just married the chief of staff for the homeland security secretary, Michael Chertoff. Her qualifications for running an agency with more than 20,000 employees and a $4 billion budget include serving as an associate counsel under Kenneth Starr; in that job, she helped mastermind the costly and doomed prosecution of Susan McDougal, and was outwitted at every turn by the defense lawyer Mark Geragos.

..
.

YET it's not only the administration that is to blame, any more than it is only the executives who are at fault when a corporation rots. Culpability also belongs to the board that rubber-stamps the shenanigans -- to wit, Congress. Republicans in the Senate are led by Bill Frist, who, in the grandest Enron manner, claimed last week that it was to avoid a conflict of interest that his supposed ''blind trust'' unloaded all of his holdings in a Frist family-founded company just before its stock tanked. (Federal prosecutors and the S.E.C. are investigating.) As for the Democrats, they are nonpareil at posturing about the unstoppable nomination of John Roberts -- a conservative, to be sure, but the rare Bush nominee who seems both qualified for his job and unsullied by ethical blemishes. Yet when David Safavian was up for a job involving hundreds of billions of dollars, and much of his dubious resume was fully known, he was approved by the ranking Democrat, Joe Lieberman, and all his colleagues of both parties on the Governmental Affairs Committee.

Which is to say that the rest of us, the individual shareholders in government who have voted in our Enron-era politicians, are responsible, too.


You gotta HIDE the payola..

    WASHINGTON - If analysts agree on anything when it comes to the federal agency responsible for handling disasters, it's that it lacks the money to prepare for calamities that are not literally on the horizon. Much else about the budget of the Federal Emergency Management Agency defies consensus — or even comprehension


There are only 2 things that distinguish a Lurziana crook from a Bush crook..
- the Bushies steal more money
- and they get away with it
Oh that smell...
God knows, don't give the billions to those crooks in LA governmnent..

From Najaf to New Orleans: The Rape of America
Bush No-bid Contract, Cronyisms Rampant



September 26, 2005
Many Contracts for Storm Work Raise Questions
By ERIC LIPTON and RON NIXON

WASHINGTON, Sept. 25 - Topping the federal government's list of costs related to Hurricane Katrina is the $568 million in contracts for debris removal landed by a Florida company with ties to Mississippi's Republican governor. Near the bottom is an $89.95 bill for a pair of brown steel-toe shoes bought by an Environmental Protection Agency worker in Baton Rouge, La.

The first detailed tally of commitments from federal agencies since Hurricane Katrina hit the Gulf Coast four weeks ago shows that more than 15 contracts exceed $100 million, including 5 of $500 million or more. Most of those were for clearing away the trees, homes and cars strewn across the region; purchasing trailers and mobile homes; or providing trucks, ships, buses and planes.

More than 80 percent of the $1.5 billion in contracts signed by the Federal Emergency Management Agency alone were awarded without bidding or with limited competition, government records show, provoking concerns among auditors and government officials about the potential for favoritism or abuse.

Already, questions have been raised about the political connections of two major contractors - the Shaw Group and Kellogg, Brown & Root, a subsidiary of Halliburton - that have been represented by the lobbyist Joe M. Allbaugh, President Bush's former campaign manager and a former leader of FEMA.

"When you do something like this, you do increase the vulnerability for fraud, plain waste, abuse and mismanagement," said Richard L. Skinner, the inspector general for the Department of Homeland Security, who said 60 members of his staff were examining Hurricane Katrina contracts. "We are very apprehensive about what we are seeing."

I don't have many Republican friends, fortunately enough, however I do have a couple one of whom is party official.

In June MoveOn called for volunteers to deliver Fire DeLay petitions and for some reason I thought it would be capital idea to accompany the small group of well-dressed middle class white activists to the event.


Boy what was I thinking.  I now have even fewer Republican friends.

At least now, I know why!

Find the Brownie - Oh That Smell 



PAUL KRUGMAN



For the politically curious seeking entertainment, I'd like to propose two new trivia games: ''Find the Brownie'' and ''Two Degrees of Jack Abramoff.''

The objective in Find the Brownie is to find an obscure but important government job held by someone whose only apparent qualifications for that job are political loyalty and personal connections. It's inspired by President Bush's praise, four days after Katrina hit, for the hapless Michael Brown, the director of the Federal Emergency Management Agency: ''Brownie, you're doing a heck of a job.'' I guess it depends on the meaning of the word heck.

There are a lot of Brownies. As Time magazine puts it in its latest issue, ''Bush has gone further than most presidents to put political stalwarts in some of the most important government jobs you've never heard of.'' Time offers a couple of fresh examples, such as the former editor of a Wall Street medical-industry newsletter who now holds a crucial position at the Food and Drug Administration.

A tipster urged me to look for Brownies among regional administrators for the General Services Administration, which oversees federal property and leases. There are several potential ways a position at G.S.A. could be abused. For example, an official might give a particular businessman an inside track in the purchase of government property -- the charge against David Safavian, who was recently arrested -- or give a particular landlord an inside track in renting space to federal agencies.

Some of the regional administrators at G.S.A. are longtime professionals. But the regional administrator for the Northeast and Caribbean region, which includes New York, has no obvious qualifications other than being the daughter of the chairman of the Conservative Party of New York State. The regional administrator for the Southwest, appointed in 2002 after a failed bid for his father's Congressional seat, is Scott Armey, the son of Dick Armey, the former House majority leader.

You get the idea. Go ahead, see what -- or rather who -- you can come up with.

Jack Abramoff is a lobbyist who was paid huge sums by clients such as casino-owning Indian tribes and sweatshop operators on Saipan. Two Degrees of Jack Abramoff is inspired by the remarkable centrality of Mr. Abramoff, who was indicted last month on charges of fraud, in Washington's power structure.

The goal isn't to find important political players who were chummy with Mr. Abramoff -- that's too easy. Instead, you have to find people linked by employment. One degree of Jack Abramoff is someone who actually worked for the lobbyist. Two degrees is a powerful Washington figure who hired someone who formerly worked for Mr. Abramoff, or who had one of his own former employees go to work for Mr. Abramoff.

Grover Norquist, the powerful antitax lobbyist, is a one-degree man. Mr. Norquist was Mr. Abramoff's campaign manager when he ran for chairman of the College Republican National Committee, then became his executive director. And don't dismiss this as kid stuff: as Franklin Foer explains in The New Republic, the college Republican organization pays serious salaries and has been a steppingstone for the likes of Lee Atwater and Karl Rove.

Mr. Rove, by the way, is a two-degree man. He hired Susan Ralston, Mr. Abramoff's personal assistant, as his own personal assistant. For those unfamiliar with what that means, Ms. Ralston became Mr. Rove's gatekeeper -- the person who determined who got to see the great man.

Tom DeLay, the House majority leader, is also a two-degree man. Tony Rudy, who worked for Mr. DeLay in several capacities, left to work for Mr. Abramoff.

Finally, somebody should be considered a two-degree man on account of the recently arrested Mr. Safavian, who worked for both Mr. Abramoff and Mr. Norquist, then went first to the G.S.A. and on to the White House Office of Management and Budget, where he oversaw procurement policy. But I'm not sure who gets credit for hiring Mr. Safavian.

O.K., enough joking. The point of my games -- which are actually research programs for enterprising journalists -- is that all the scandals now surfacing are linked. Something is rotten in the state of the U.S. government. And the lesson of Hurricane Katrina is that a culture of cronyism and corruption can have lethal consequences.



money changers in the temples of democracy.

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