Showing posts with label conflict of interest. Show all posts
Showing posts with label conflict of interest. Show all posts

Saturday, June 21, 2008

Conflict of Interest? At the Washington Post? You Don't Say...

While we tend to avoid talking about the media when it talks about itself, there was a curious disclosure this past week about concern troll extraordinaire David Broder and his practice of giving speeches to people in exchange for money.

The propriety of David Broder and Bob Woodward taking fees or having expenses paid for speeches to special-interest groups was raised recently by Ken Silverstein, Washington editor of Harper's magazine, in his Washington Babylon blog. Silverstein found the fees unseemly and asked whether editors had approved them.

Broder, 78, has worked at The Post 42 years, been its premier political writer and is probably the country's best-known political columnist. Woodward is the rare print reporter who became rich and famous on investigative journalism.

Both took an early retirement buyout last month. Broder continues as a columnist on contract. (Disclosure: I have known Broder for more than 25 years and consider him a professional friend.) Woodward has ties to the paper going back to the Watergate scandal, and he still consults for the paper. He has a token contract for $1,200 a year, and he said he is available for consultation and assignment.

The Post Stylebook's ethics and standards section says only: "We freelance for no one and accept no speaking engagements without permission from department heads." Broder and Woodward did not check with editors on the appearances Silverstein mentioned.



Thanks for the disclosure. It's always great to kick off a blog post by quoting an ombudsman. The problem is, everything Howell wrote is fairly self-serving and glosses over what really went on. Silverstein responds:

Howell acknowledges that Broder and Woodward broke the Post’s own rules and “did not check with editors on the appearances Silverstein mentioned.” She extracts an apology from Broder, and says the Post “needs an unambiguous, transparent well-known policy on speaking fees and expenses. . . . Fees should be accepted only from educational, professional or other nonprofit groups for which lobbying and politics are not a major focus–with no exceptions.”

But Howell goes very easy on Broder—who has been flagrantly dishonest with his own employer and with Howell–and Woodward, who is allowed to glide away from some very embarrassing matters. Also, Howell deals with only a few speeches by Woodward and Broder, even though Woodward gave dozens and Woodward gave roughly a score. I understand that she could not deal with each instance individually (nor did I), but she could have mentioned prominently the fact that the two men, and especially Woodward, are regulars on the talk circuit and that the problem is not restricted to the few speeches she discusses in her column.

Broder first told Howell, “I have never spoken to partisan gatherings in any role other than [that of] a journalist nor to an advocacy group that lobbies Congress or the federal government.” That turned out to be false, as Howell discovered, so Broder came back to say, “I am embarrassed by these mistakes and the embarrassment it has caused the paper.”

Broder told Howell he attended an event at the American Council for Capital Formation, “but did not give a speech.” So apparently someone at the ACCF made up this account of Broder’s speech to the group?

I reported that Broder gave a speech at a meeting of the Northern Virginia Association of Realtors (which paid him, he now admits, $7,000), which was a PAC fundraiser. Howell writes: “Mary Beth Coya, the Realtors’ senior vice president for public and governmental affairs, said the event was not a fundraiser but was attended by elected officials ‘to promote our government affairs programs’.” The event in fact was clearly promoted as a PAC fundraiser. And by the way, “government affairs program” is Washington-talk for lobbying.

I also reported that Broder spoke to the Gartner Healthcare Summit in 2007. “He was advertised as a speaker on an Internet site, but Broder said he canceled the engagement,” Howell reported. That’s possible, but since Broder has been so dishonest about all of this I wouldn’t take it to the bank. (I did note in my earlier posts on this topic that I could not confirm all details, in part because neither Broder nor Woodward replied to requests for comment about their speaking gigs.)

Howell doesn’t mention this—Post reporters, it seems, will call people to ask about their actions but won’t take calls about their own. More outrageous is that Broder specifically denied to Howell that I had sought comment from him (which I know only because Howell told me during a phone conversation), even though I contacted him several times, by phone and email, beginning forty-eight hours before posting the first story.

[SNIP]

Finally, Woodward told Howell “all his speaking fees — which range from $15,000 to $60,000 — go to a foundation he started in the 1990s.” He added, “It’s a straight shot into the foundation that gives money to legitimate charities. I think that’s doing good work.”

St. Woodward can don his halo and gaze in the mirror all he likes, but he really shouldn’t treat Post readers with such contempt. The facts are clear. He reaps significant tax savings by giving the fees to a “charity” that gives away a small fraction of its assets, and by far the biggest beneficiary of his foundation is Sidwell Friends, the elite private school sitting atop a reported $30 million endowment and attended by his own children.



How can we believe anything that David Broder or Bob Woodward publish after this? Both got caught with their hands in the cookie jar and both got caught by Silverstein's legwork and reporting. They got caught, they lied, they twisted in the wind, and then they were nailed for what they had done.

The Washington media elite does whatever the hell it wants, and who are we to judge? These people are the serious people, after all, and what's a few hundred grand here and there between the elite and the rabble who are to hang on their every word? If you ever want to get to the "why" about things--as in, "why are we in Iraq?" and "why did the press let Bush get away with destroying the Constitution?" and "why do they tell us it's raining when they're all pissing on our legs?" you need look no further than the system which allows a David Broder to become America's concern troll and Woodward to become the insider with inside information that makes people like Bush look one way when, if the "insider" had done his job, he would have revealed a mountain of evidence that would have shown every single American that Bush had no idea what the hell he was doing when he ordered US troops to invade Iraq.

Broder and Woodward may have come to Washington to write stories that would challenge the status quo, but here at the end of their careers they have become the status quo, they have become the so-called elite without having risen by a merit system but having risen by arranging to never seriously challenge the power structure, and they have become people who need to be brought down because of their arrogance and their corruption. In short, they became the people they were supposed to stop. They sold out. They allowed themselves to become corrupted. Hey, I hope you've made a great living out of it. Enjoy your retirement. Hope the cash doesn't run out on you.

Don't worry--there are no 'young Broders and Woodwards' out there looking to really bring down Broder and Woodward. There are bloggers out there, but who would ever listen to anything a smelly blogger would say? How uncouth. They say fuck too much. And they're not sending their kids to the right school, you know.

As much as I would like to believe Silverstein's work has made all of this possible, it's more likely that, years from now, both Woodward and Broder will still be churning out their tired insider-laden crap.

How'd we get through all of this without saying something awful about Howard Kurtz? Beats the fuck out of me.

Tuesday, January 22, 2008

Sam Graves, Andy Blunt and the Conflict of Interest Caper

One for the "Well! I'll be damned!" file. Time to give props to an ethical Republican!

Republican State Treasurer Sarah Steelman is sticking to her ethical guns and withholding tax incentives from an ethanol plant with investors who have first-degree ties to elected officeholders.

If the relatives do not divest,and do so quickly, the rest of the stockholders will find themselves bearing the burden of millions of dollars in interest on loans written to get the Show Me Ethanol plant operational.

A couple of years ago, Ms. Steelman issued a proclamation that she would not tolerate conflicts of interest and she would withhold state incentives from companies that did not comply. A part of that proclamation was that no investor in any company petitioning for preferential treatment, such as below-market interest rates on economic development loans, can have investors with ties to elected officials.

Seems simple enough, doesn't it?

Somehow, though, that simple, straight-forward, easily understood, common-sense edict just clean evaded Missouri Congressman Sam Graves (MO 06) and uber-lobbyist Andy Blunt, the more-weaselly brother of our nefarious governor, Matt Blunt.

But it gets better.

Sam Graves "forgot" about the investment in Show Me Ethanol when he filed his congressional financial disclosure paperwork - until reporters started digging around in his investments. Made aware of this development, his memory improved instantly, and he amended the paperwork two days before the story broke in Roll Call about Graves' specious financial reporting.

Just fifteen months ago, Sarah Steelman conditionally approved Show Me Ethanol to receive the below-market interest rates on loans for the development of the project, but when Steelman says "conditional" she means it.

One of those conditions is the prohibition against elected officials having connections to any investors who might benefit. Incentives will be withheld if a company has a single investor who is a legislator, statewide elected official, director of any state department, or the parent, sibling, spouse or offspring of any of those officials.

What can I say? She takes conflict of interest seriously, and is having no part of it on her watch.

Show Me Ethanol has been unable to comply. That is because investors include the characters mentioned above, as well as Republican state representative John Quinn of Chillicothe and his wife, Mary.

Graves mouthpiece, Jason Klindt, once cornered, tried to put a noble spin on it, saying that "She [Lesley Graves] didn't want Show Me to be held to some sort of different standards just because she was an investor."

Actually, I would take the opportunity and correct his willful dishonesty and point out that the company will enjoy a "special standard" - once she and the other prohibited investors bow out - but until then, the company has to play by the same rules everyone else is bound by. But he is a spin doctor, and just doing what spin-doctors do: shining the most flattering light possible on every utterance and act. And the pressure must be tremendous - his guy is facing a tough reelection battle, where he is being challenged by former Kansas City Mayor Kay Barnes - a savvy politician with skills, name recognition and money. In other words, for the first time since he slid into the seat in 2000, he is facing a real opponent - and she has a whole passel of supporters who will be pointing out all of his myriad ethical lapses for the next ten months.

Spin that, Jason.


Crossposted from Show Me Progress - Missouri's Progressive Politics Community

Monday, November 5, 2007

This post is brought to you by the letters “C” and “I”

“C” is for Conflict and “I” is for Interest.

And when the head of the Consumer Products Safety Commission is taking trips on industry tabs – that’s a textbook case of conflict of interest! Of course, this is the Bush kleptocracy, so no one should be surprised.

Nancy Nord, the current chief of the CPSC and her immediate predecessor have taken dozens of trips on the largess of industry, lobbying groups and lawyers representing clients whose products had been linked to consumer hazards.

Records obtained by the Washington Post document 30 trips taken by acting chairman Ms. Nord, and previous chairman Hal Stratton that were financed in whole or in part by manufacturers and trade associations.

Most notable among the “gift travel” was an 11-day junket to China and Hong Kong taken by Stratton in 2004. That trip was financed by the “American Fireworks Standards Laboratory, a specious entity with an office in Bethesda, MD – but all of their labs are located in Asia. The junket is defended with a weak tea of a justification – the group had no business pending before the CPSC. Since that time, however, the fireworks group has encouraged the commission to adopt the safety standards the group wants in place, and that action is pending.

Consumer watchdogs have been complaining long and loud that the agency is too cozy with the regulated industries, and opting for “voluntary” standards – the sort of regulation of the industry that would make Irwin Mainway blush.

Let me take a moment to pre-empt the “Clinton did it too!” crowd. No – the CPSC wasn’t run by corporate stooges under Clinton. Ann Brown, who served as chairwoman from 1994 to 2001 was adamant that all travel be only at the expense of the agency itself or the media. Sometimes the media would sponsor appearances where recalls were announced. “We hated to have an industry pay for our staff for anything” said Pam Gilbert, an attorney who served under Brown.

Government-wide regulations on travel are explicit in stating that government officials not accept travel or other gratuities from non-federal sources if it would create a situation that “would cause a reasonable person…to question the integrity of agency programs or operations.” In other words, if it looks like a quid pro quo and walks like a quid pro quo and talks like a quid pro quo – it’s pretty freakin likely that it’s a quid pro quo. .

Ethics experts and lawyers said the travel by Stratton and Nord created an absolute conflict of interest. “This is a blatant violation of the ethics code,” said Craig Holman, an expert on government ethics for Public Citizen.

It is my opinion that regulatory agencies need to be Caesar’s Wife. There can be not even the slightest whiff of impropriety. The head of the CPSC and a trade association representative shouldn’t even share a cab uptown in the pouring rain.