Corruption Digest - December 23, 2005

As my new book Hostile Takeover prepares to be released in the Spring, here is your December 23, 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. Editor's note: The Corruption Digest will suspend publication until after the New Year. Happy Holidays!

CONGRESSIONAL CORRUPTION
The New York Times reports that indicted Republican lobbyist Jack Abramoff "is expected to complete a plea agreement in the Miami criminal case, setting the stage for him to become a crucial witness in a broad federal corruption investigation." That could be very bad news for lawmakers like Sen. Conrad Burns (R-MT) and others who have already been caught having switched their votes after Abramoff sent cash their way. As the Associated Press notes, "Not since the 1992 House banking scandal that led to the retirement or ouster of 77 lawmakers has a corruption probe like the one involving lobbyist Jack Abramoff struck fear in so many hearts on Capitol Hill."...The Billings Gazette reports that "Ryan Thomas, a staffer for Sen. Conrad Burns who accepted lobbyist Jack Abramoff's invitation to a 2001 Super Bowl trip, this week defended his role in working to secure a grant for one of Abramoff's tribal clients and said he only acted on other senators' requests." That defense, however, has already been debunked - the Gazette reported earlier that "Burns began advocating for the program more than a month before he received official requests from the Michigan delegation for the money." The Gazette also reports that according to one of Abramoff's clients, Burns was on a specific list of lawmakers called "Abramoff's group" that Abramoff gave to clients and told them to give cash to in order to secure legislative favors. The list is currently "under investigation" by law enforcement, according to Abramoff's client...KVOA-TV reports "Arizona Congressman J.D. Hayworth (R) won't be giving back any of the $150,000 in campaign contributions" he received from Abramoff's clients. In perhaps the most comedic explanation for refusing to return the tainted money, "Hayworth chief of staff Joe Eule says Hayworth has no reason to return the money because the donors want him to keep the funds." That puts him at odds with some of his fellow Republicans like, most recently, Rep. Ernest Istook (R-OK) who announced this week he is returning the Abramoff-tainted money...The LA Times notes that officials in Guam "apparently circumvented bidding requirements to secretly hire" Abramoff to lobby for judicial issues...The Hill Newspaper reports that even though Rep. Duke Cunningham (R-CA) was forced to resign for taking defense industry bribes, the decision about who to replace Cunningham with on the Appropriations Committee is coming down to which Republican has raised the most defense industry cash...The Washington Post reports that "a Texas appeals court thwarted former House Majority Leader Tom DeLay's bid" to "speed up the appeals process" in his money laundering indictment "by shortening the filing periods from 20 days to five days."

WHITE HOUSE CORRUPTION
After serious pressure, Bush crony and former Commerce Secretary Donald Evans finally decided not to accept an offer by Russian President Vladimir Putin to become the head of Russia's state-owned oil company.

STATE CORRUPTION
The LA Times reports that one of San Bernardino County's Sacramento lobbyists, former Republican Assemblyman Brett Granlund, "encouraged county officials to buy a jail in Adelanto without disclosing that he worked for the jail's owner."...Florida Gov. Jeb Bush (R) signed a state ban on lobbyist gifts to lawmakers...

THE CORRUPTION INDUSTRY
The New York Times reports that in the wake of two opinion writers admitting taking cash for writing pieces favorable to Jack Abramoff's clients, conservative nonprofit groups "are facing new and uncomfortable scrutiny over their links to special interest groups."...Michael Kinsley, writing in the Washington Post, says "Opinions [are now] for sale, like cheeseburgers. Can I supersize that tax break I'm advocating for you, sir? You can buy a pundit for even less than it costs to buy a politician."

CORPORATE CORRUPTION
The Wall Street Journal reports that, unbeknownst to most shareholders and "amid soaring CEO compensation, a number of companies are paying extra sums to cover executives' personal tax bills." So far, SEC regulators have done nothing to stop the practice, which can cost companies millions. Meanwhile, executives are desperately trying to bury and hide the rip-off schemes in the fine print of their corporate filings...As consumers are being forced to pay more for energy because of high natural gas prices, the Wall Street Journal reports that "an Alaska state authority charged that BP PLC and Exxon Mobil Corp.[with] conspiring to withhold natural gas from U.S. markets" to drive prices up even more...

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