Corruption Digest - December 16, 2005

As my new book Hostile Takeover prepares to be released in the Spring, here is your December 16, 2005 briefing on how America's political system is being sold to the highest bidders. To sign up to receive the Corruption Digest in your email box, just go to www.davidsirota.com and enter your email address on the righthand side.

CONGRESSIONAL CORRUPTION - REPUBLICANS
On Tuesday, Sen. Conrad Burns (R-MT) told reporters he would refuse to give back the $150,000 in campaign contributions he pocketed from indicted lobbyist Jack Abramoff. On Wednesday, Burns was hammered across his home state for his refusal. Now today, AP reports that "retreating under fire," Burns is returning the money. That hasn't stopped the criticism, however. The Missoulian - one of the largest papers in Montana - published an editorial demanding Burns not run for re-election, saying the state "will be best served if he doesn't run for a fourth term." Polls show Burns is currently the most unpopular Republican Senator in America. Burns has denied he is a target of the federal criminal probe, but Roll Call reports that the Senate Ethics Committee told Burns "it cannot begin any inquiry into his dealings with ex-lobbyist Jack Abramoff because of the ongoing federal criminal inquiry into the matter." And in case Burns does take the Missoulian's advice and retire, that doesn't mean Montanans will be through with Abramoff-connected politicians. Rep. Denny Rehberg (R), who will likely step up to run for Burns' seat should Burns retire, has also pocketed campaign contributions from Abramoff...In other Abramoff-related news, the New York Times reports "Newly disclosed e-mail messages from the lobbyist Jack Abramoff show that he told an Indian tribe client that he was being pressured by Representative Tom DeLay for a contribution for a $25,000-a-table Republican fund-raiser and that Mr. DeLay had personally phoned the lobbyist's office in search of the money." Meanwhile, Reuters reports that Abramoff's former business partner "pleaded guilty on Thursday to fraud and conspiracy in a case involving the purchase of a Florida casino cruise line."

CONGRESSIONAL CORRUPTION - DEMOCRATS
Sens. Russ Feingold (D-WI) and John McCain (R-AZ) are back at it, this time pushing new legislation to crackdown on lobbying abuses in the wake of the unfolding Abramoff scandal. But those efforts might run into a wall in the House. As American Prospect writer Sam Rosenfeld notes, a growing divide is plaguing the House Democratic Caucus. The divide is not between Iraq policy, it's the K-Street-embracing crowd vs. The Reformers...In the wake of Rep. Duke Cunningham's guilty plea on bribery charges, the Los Angeles Times reports that the GOP has "introduced legislation that would bar lawmakers convicted of various crimes, including bribery, from collecting congressional pensions." However, Duke doesn't have to worry because "the legislation would not apply retroactively to Cunningham."

WHITE HOUSE CORRUPTION
President Bush broke his publicly-stated commitment to not comment on ongoing law enforcement investigations this week when he told reporters he thinks Rep. Tom DeLay (R) is innocent in his indictment for money laundering. The move brought criticism from Democrats, who noted the President was using his power to slant the outcome of the case...The Financial Times reports that former Bush Commerce Secretary Don Evans, a close personal friend of the President, refused to answer questions about whether he would be accepting the offer to head Russia's state-controlled oil company. The Times notes that "The appointment of a former high-ranking Bush administration official to the top ranks of a Russian oil company would generate shock waves in Washington. Although the Capitol’s so-called 'revolving door' has seen many former politicians enter the private sector as consultants or lobbyists, there is no precedent for one of Mr Evans’s stature to sit on the board of a state-controlled Russian enterprise."

STATE CORRUPTION
The Atlanta Journal-Constitution reports "Ralph Reed, the political strategist and candidate for lieutenant governor, said recently that his work for disgraced Washington lobbyist Jack Abramoff was a mistake that — if given the chance — he wouldn't repeat." Reed has been skewered for claiming to be a religious moralizer against gambling, and then helping Abramoff's gambling clients. Reed claims he didn't know about Abramoff's connection to gambling interests, but back in June the Journal-Constitution noted "Documents from a congressional investigation seem to contradict Reed's frequently told story." AP reports that watchdog groups are now calling for a formal law enforcement investigation into Reed's connections with Abramoff - connections which have made Reed millions...The Florida Sun-Sentinel reports that following a new Florida crackdown on lobbying abuses, "the Broward Sheriff's Office will announce today tightening rules on how lobbyists can do business and influence decisions at the county's largest law enforcement agency." And the Miami Herald reports that under new rules, "lobbyists hoping to win contracts or reduce property-tax assessments for clients at the Broward Property Appraiser's Office won't be able to operate in secret anymore." Nonetheless, Big Money forces are still working furiously to corrupt state policy in Florida: Gannett reports "Florida's most powerful business lobbying organization Monday threw its support behind a plan to expand oil and gas drilling in the Gulf of Mexico." Just a few years ago, CBS News reported that "polls show 75 percent of Floridians opposed to offshore drilling." Stay tuned to see if Big Money wins out over public sentiment...In California, the Sacramento Business Journal reports that Gov. Arnold Schwarzenegger (R) has tapped an insurance lobbyist to be his deputy chief of staff...

THE CORRUPTION INDUSTRY
Businessweek reports that Cato Institute senior fellow Doug Bandow, who writes a syndicated column for Copley News Service, has resigned from his post at the right-wing think tank, "after admitting that he had accepted payments from indicted Washington lobbyist Jack Abramoff for writing op-ed articles favorable to the positions of some of Abramoff's clients." Bandow is also affiliated with the American Legislative Exchange Council - the right-wing think tank that influences state legislation. No word on whether ALEC will ask for his resignation...The New York Times reports that "Under pressure from some institutional shareholders, a handful of major companies are disclosing which politicians - and which political causes - they are financing."

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