This Week in Corruption
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).















The very nest article that I read after Rich immediately follows:
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
September 25, 2005 6:31 PM | Reply | Permalink
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."
September 26, 2005 9:03 AM | Reply | Permalink
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!
September 26, 2005 9:25 AM | Reply | Permalink
money changers in the temples of democracy.
September 26, 2005 9:13 PM | Reply | Permalink