Making Government Transparent and Accountable
The Sunlight Foundation uses cutting-edge technology and ideas to make government transparent and accountable. Underlying all of our efforts is a fundamental belief that increased transparency will improve the public's confidence in government
The Sunlight Foundation Blog
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Vis-a-Visclosky: Or How I Learned to Take Campaign Contributions and Turn Them Into Earmarks
It comes as no surprise that Indiana Democrat Pete Visclosky’s favorite word to say in Congress is “Indiana.” While staying out of the spotlight in Washington, he has been a champion for his Northwestern Indiana congressional district, bringing home millions of federal dollars to create jobs and win fans. Since the decline in manufacturing, new jobs have become essential for this Rult Belt region and Visclosky, from his position on the House Appropriations Committee, has sought to get as big a piece of the federal pie as he can for his constituents.
This hard work bringing home federal dollars has made Visclosky a national news name as his connection to a lobbying firm, the PMA Group, which represented many of the recipients of federal money earmarked by the congressman, has brought him under investigation by the FBI. In the past two weeks, Visclosky’s offices and campaign committess have been subpoenaed and he has reliquished control of the Energy & Water Appropriations Subcommittee to Rep. Ed Pastor.
All of this is due to the connection between campaign contributions flowing from the PMA Group and their clients to Visclosky’s campaigns and the millions of dollars in earmarks to PMA Group clients that Visclosky secured in his post on the powerful House Appropriations Committee.
(Continue reading…)
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The Appropriate Culture of Corruption
The New York Times reports today on what could be the next great lobbying scandal. After his house and offices were raided by the FBI, Paul Magliocchetti, top lobbyist at the PMA Group, is shuttering his lobby shop. Once seen as the top earmark factory in Washington, the PMA Group fell apart weeks before the FBI raid occurred as rumors circulated that Magliocchetti was under investigation for various reasons, including making fraudulent campaign contributions and potentially trading contributions and gifts for legislative actions–earmarks–from legislators.
According to the Times, Magliocchetti was a pioneer and master of the earmarking process who skirted as close to the ethical line as possible:
[S]everal former PMA lobbyists and former Congressional staff members, speaking anonymously for fear of retaliation from lawmakers close to Mr. Magliocchetti, said that for decades he sought loopholes to shower food, drink and gifts on the members and staff members of the House defense appropriations subcommittee.
He regularly arranged food deliveries for late-working committee staff members, for example, taking advantage of an exception written into the fine print of the ethics code, the former PMA lobbyists and Congressional staff members said. And each year he hosted lawmakers and their staff members at a legendary Christmas party at the Alpine or, more recently, at the Army Navy golf club, that fit into a gift-rule exception for “widely attended events.”
Mr. Magliocchetti helped pioneer the lucrative specialty of helping contractors lobby for military earmarks, the several billion dollars in pet spending items that members of the panel insert in annual spending bills, often with little oversight.
Many are beginning to question whether Magliocchetti is the new Jack Abramoff; the next lobbyist who could ensnare dozens in a corrupt conspiracy. My colleague Bill Allison offered his thoughts on the Magliocchetti-Abramoff comparison at the Real Time Investigations blog:
I’ve told a few people that while the PMA Group scandal is different from Abramoff, in many ways it’s more serious. Abramoff was a sort of Bernard Madoff character, unique in his personal excesses, corrosively corrupting, but still just one guy. PMA Group is a methodical business. It rakes in millions of dollars in lobbying fees. Its employees and PAC contributes a few hundred thousand to various congressional campaign committees and leadership PACs. Its clients get hundreds of millions of dollars in earmarks and billions more in federal contracts. Abramoff’s excesses were fairly unique; PMA Group’s business model is standard operating procedure in Washington.
And for the most part I agree with this assessment. (Abramoff’s operation was tightly wound up in a racket to ensure the maintanence of power by then-Majority Leader Tom DeLay. So, he wasn’t quite a rogue grifter.) PMA Group’s excess highlights what one could call a “culture of corruption” that exists around the Appropriations Committee, most prominently in the House.
When we look at the scandals of the last few years, these Appropriations Committee members keep popping up. Duke Cunningham, Jerry Lewis, Alan Mollohan, and now, the Magliocchetti connected John Murtha. Others have come under close scrutiny for their practices including Bill Young, Hal Rogers, Pete Visclosky, and James Moran. It really is an epidemic when this many members of a single committee bring this kind of attention (in many cases, federal investigations) to themselves.
It’s doubtful that lawmakers, especially appropriators, want any sunshine shed on the relationships between appropriators and appropriations seeking lobbyists. Perhaps some stricter disclosure rules would help to stop the ethical tightrope walk that the appropriations process has become.
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In Broad Daylight: Down the Tubes
Ted Stevens is toast; Hawaii is the Big Kahuna; and K Street says hello and goodbye. Today’s news round-up below:
Down the tubes. Sen. Ted Stevens did not become the first convicted felon to win election to the Senate, as was previously thought. After counting all the votes (that’s always a good idea), Anchorage Mayor Mark Begich became the first Democrat to win election to the United States Senate in 30 years (the previous Democrat being Mike Gravel). Stevens was the longest serving Republican in Senate history and not only shaped modern Alaska, but helped it to win statehood when he worked in the Eisenhower administration. The Alaska Daily News has an article on “The rise and fall of Sen. Ted Stevens.” I suggest you read it.
With Stevens out and Sen. Robert Byrd stepping down as Chairman of the Appropriations Committee, Hawaii is poised to become the Big Kahuna in Washington. Chief among the reasons that Hawaii is set to high-jump over the competition is that the frail 90 year old Byrd is being replaced as Appropriations Chair by the spry 84 year old Hawaii Sen. Daniel Inouye. Hawaii already gets its fair share of federal money, including huge sums from earmarks.
With Democrats ascendent in Washington, K Street is kicking their GOP lobbyists to the curb or leaving them lonely in their offices with little to do. Meanwhile, frosh Democratic lawmakers are being introduced to business lobbyists in process not too different from an arranged marriage. Two young calves for a vote on the farm bill. “‘Introductions are being made to the business community of key moderates coming into Congress, so we can get an early start building relationships,’ one Democratic lobbyist said.”
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Spooky Appropriations Seat:
Some seats in Congress are famous and carry strong traditions. There is the Daniel Webster desk and the Jefferson Davis desk. There is the New York Senate seat currently occupied by Hillary Clinton that was previously occupied by equally well-known out-of-staters with strong personalities Daniel Patrick Moynihan and Robert Kennedy. But what about seats of infamy? I believe we may have one on the House Appropriations Committee. When Randy “Duke” Cunningham resigned his seat in Congress and was subsequently sent to prison for his role in a sweeping bribery scandal he also left a seat on the Appropriations Committee, a seat from which he did a lot of his dirty work. That seat remained open until Majority Leader Tom DeLay (R-TX) resigned his leadership post after being indicted on money laundering charges. DeLay immediately took Cunningham’s seat on the Appropriations Committee. DeLay later announced that he was going to resign from Congress after one of his top former aides pled guilty to charges in another Congressional scandal, the one that involved Tom DeLay’s “best friend” Jack Abramoff, his former press secretary Michael Scanlon, his former chief of staff Ed Buckham, and lots of money. CongressDailyPM reports that the front-runner for this tainted seat is Rep. Ken Calvert (R-CA). Who knows how the seat will corrupt Calvert? Oh wait a second. He’s already involved in some dubious actions (noted previously here). From CongressDailyPM:
The Los Angeles Times reported Monday that Calvert made a significant profit off an empty four-acre tract bought last year after steering an $8 million earmark near the area to build a highway, and $1.5 million to boost commercial development. Those earmarks were included not in an appropriations bill, but in last’s year’s $286.4 billion highway reauthorization bill. Calvert and a business partner bought the lot for $550,000, and sold it for $985,000 a few months after the bill became law — a 79 percent increase in value.
Now that is a sweet deal he’s got going for him. Imagine the kind of stuff that Calvert can earmark near his land holdings when he’s on the Appropriations Committee. Maybe the seat doesn’t corrupt people, it just attracts unseemly types. Or it could go the other way considering Cunningham seemed like an upstanding guy when he came to Congress. One of those chicken or the egg things I guess.
