Tag Archives: ethics

Trump’s Confederacy Of Dunces

It’s something new–and depressing–every day.

Just last week, Trump fired both Andrew McCabe and Secretary of State Tillerson in the most humiliating manner possible; one of his close aides was escorted out of the White House without even being given time to gather his belongings (he was under investigation for “financial crimes” of an unspecified nature); and multiple rumors surfaced about the imminent replacement of National Security Advisor McMasters with crazy-as-a-loon chickenhawk John Bolton.

Now, we learn that an advisor to Ben Carson–he of the $31,000 dining room set and the repeated admonitions to America’s poor about “personal responsibility”–has quit among questions of fraud and the inflation of his biography.

He said he was a multimillionaire – an international property developer with a plan to fix America’s cities through radical privatization. He felt that Donald Trump’s administration was where he was meant to work.

“It was a natural fit,” Naved Jafry said in an interview. Citing connections across the military, business and academia, he said: “I bring, and draw on, experiences from different areas of knowledge, like a polymath.”

Jafry was contracted to work for Trump’s housing and urban development department (Hud). His government email signature said his title was senior adviser. Jafry said he used his role to advocate for “microcities”, where managers privately set their own laws and taxes away from central government control.

Among other things, Jafry had claimed control over a multimillion-dollar trust fund; a claim inconsistent with court records showing that he struggled to pay rent and bills.

Wasn’t a major part of Trump’s “attraction” that he was rich? Trump voters drew two (unwarranted) conclusions from that wealth– that rich people must be smart and that they would be less incentivized to (mis)use tax dollars for personal gratification. Those same claims were made about the cabinet of wealthy white guys he’s assembled.

Um…not so much….

It turns out that HUD had agreed to spend $165,000 on “lounge furniture” in addition to the $31,000 dining set that–it also turns out–had been personally selected by Carson and his wife for his office. The news followed an administration proposal to cut $6.8 billion, or 14%, of HUD’s annual budget.

Then there’s treasury secretary, Steve Mnuchin, a former Wall Street executive purportedly worth as much as $35 million, who managed to run up bills in excess of $800,000 in his first six months in office for travel on military jets, (and whose wife made news by bragging about her pricey designer clothes on social media).

Scott Pruitt may not believe in science (or, apparently, the importance of clean air and water), but he evidently believes in using tax dollars to avoid those pesky citizen types who do. The environment secretary has said he has to travel first-class because of threats from members of the public who object to his climate-change-denying, regulation-slashing approach to government.

He also spent as much as $43,000 on a soundproof “privacy booth” inside his office to prevent eavesdropping on his phone calls and $9,000 for biometric locks and to have his office swept for listening devices. Earlier this month it was reported that he used $6,500 in public money to hire a private media firm with strong Republican ties to help produce a report promoting his accomplishments.

The Secretary of Veterans Affairs, David Shulkin, was the subject of a blistering report detailing ethical violations in a trip to Denmark and Britain that mixed business with pleasure, including a trip to Wimbledon and a cruise down the Thames.

When Interior secretary Ryan Zinke wanted to go horseback riding with Mike Pence, he took a government-funded helicopter – one of three such journeys in 2017 that cost a total of $53,000 of public money. In addition, Zinke, who favors oil, gas, coal and uranium mining on public lands out west, has been rebuked by the department watchdog for failing to keep proper records of his travel expenses and to disclose who paid for his wife to accompany him on work trips.

Health and human services secretary Tom Price was forced to resign last September after it was revealed that he used at least $400,000 and probably more than $1m in taxpayer funds on private and military flights for himself and his staff.

This Administration has clearly demonstrated that wealth doesn’t guarantee competence. As these examples show, neither does it promote ethical behavior.

But it sure seems to translate into a sense of entitlement.

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We Don’t Need No Stinkin’ Ethics

A few days ago, I got an email from an old friend, asking me whether I’d seen the article about Trump’s myriad conflicts of interest in the most recent Forbes. I hadn’t.

He very thoughtfully brought me a copy.

After I had read it, I sat for awhile thinking about how diminished our expectations of presidential behavior have become. If any other President in my lifetime had simply ignored long-settled legal and ethical constraints in pursuit of personal gain, bipartisan outrage would have already triggered impeachment proceedings. (We wouldn’t need Robert Muller.)

The article is titled “Trump’s Towering Tenant Conflicts,” and it begins with the Bank of China.

The largest American office of China’s largest bank sits on the 20th floor of Trump Tower, six levels below the desk where Donald Trump built an empire and wrested a presidency. It’s hard to get a glimpse inside. There do not appear to be any public photos of the office, the bank doesn’t welcome visitors, and a man guards the elevators downstairs–one of the perks of forking over an estimated $2 million a year for the space.

Trump Tower officially lists the tenant as the Industrial & Commercial Bank of China, but make no mistake who’s paying the rent: the Chinese government, which owns a majority of the company. And while the landlord is technically the Trump Organization, make no mistake who’s cashing those millions: the president of the United States, who has placed day-to-day management with his sons but retains 100% ownership. This lease expires in October 2019, according to a debt prospectus obtained by Forbes. So if you assume that the Trumps want to keep this lucrative tenant, then Eric Trump and Donald Trump Jr. could well be negotiating right now over how many millions the Chinese government will pay the sitting president. Unless he has already taken care of it: In September 2015 then-candidate Trump boasted to Forbes that he had “just renewed” the lease, around the time he was gearing up his campaign.

The meticulously sourced article is accompanied by lists of tenants at a number of Trump’s signature properties, the rents those tenants pay, and the conflicts of interest they represent.

The numbers are significant: $21 million here, $12 million there. The names even more so: At least 36 of Trump’s tenants have meaningful relationships with the federal government, from contractors to lobbying firms to regulatory targets.

Those “regulatory targets” are the most worrisome. Trump’s other “meaningful relationships” are simply corrupt, but these landlord-tenant relationships facilitate highly sophisticated bribery that undermines the federal regulatory process.

How, then, to consider the backroom discussions between federal officials and Walgreens Boots Alliance, one of the largest pharmacies in the world? Through its brand Duane Reade, it is the highest-paying tenant in Trump’s skyscraper at 40 Wall Street in New York, with $3.2 million in annual rent, according to a 2015 prospectus. In October 2015, Walgreens Boots Alliance announced a $9.4 billion merger with rival Rite Aid, requiring a sign-off from antimonopoly regulators. After the deal failed to secure approval under President Obama, it then fell to the Trump administration, which arrived in Washington during the first quarter of 2017. According to federal disclosures, that was the same quarter Walgreens Boots Alliance began directly lobbying the White House on “competition policy issues.” In September, despite objections by one of the two commissioners at the Federal Trade Commission, Trump’s tenant got the green light for a slimmed-down, $4.4 billion version of the deal. In January, Trump announced he would nominate the commissioner who supported the deal, Maureen Ohlhausen, to be a federal judge.

This was anything but an isolated case. Capital One, for example, pays an estimated $1 million for space in Trump’s Park Avenue condo building while it is being investigated by the Justice and Treasury departments for alleged money-laundering.

In December, Trump tenants UBS, Barclays and JPMorgan, plus Trump lender Deutsche Bank, got waiver extensions from the Department of Labor that allow them to avoid part of their punishment for illegally manipulating interest rates and foreign exchange rates.

The article cites numerous similar “coincidences” –at best, they raise the appearance of impropriety; more likely, they really do represent the sort of graft engaged in by a blowhard who has always believed the rules are for other people.

Whether these unprecedented conflicts violate the Emoluments Clause will eventually be decided by a court–two cases raising the issue are pending. Of course, those who drafted the Emoluments Clause language would never have anticipated that the new country they were establishing–their “Shining City on the Hill”– would elect someone as unfit for public office–or for that matter, as unfit for polite society–as Donald Trump.

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Paying for Secrecy

Indiana doesn’t have money for adequate infrastructure repair and maintenance, or for preschool for at-risk children, or …well, you know the drill. There are all sorts of things normal citizens expect their state government to do only to be told by our elected overlords that the money isn’t there.

But there’s always enough money to pay the lawyers to defend our lawmakers’ misplaced priorities or ethically indefensible actions.

Did Indiana’s Governor refuse to resettle Syrian refugees, despite the fact that under long-settled law, he doesn’t have the legal authority to make that decision? Let’s have the Attorney General defend him in the inevitable lawsuit, and then appeal the (equally inevitable) adverse verdict.

Is the Environmental Protection Agency trying to bring 19th Century environmental policies into compliance with the realities of 21st Century problems? Sue the EPA and insist that Indiana won’t go along.

And don’t get me started on the entirely  voluntary participation of Indiana in several culture war lawsuits aimed at derailing equal rights for LGBT Americans. We do like to keep our AG busy!

Most recently, we learn from the Fort Wayne Journal Gazette (not from the Indianapolis Star, which is too busy reporting on the “beer beat” and obsessing over the broom guy to cover city or state government) that

Hoosier taxpayers have paid $160,000 in legal fees to shield Indiana House and Senate communications from public view in just eight months.

The final tab will be higher because the most recent tally from the Indiana Auditor’s Office doesn’t include a bill covering the March 17 oral argument before the Indiana Supreme Court.

“That’s a lot of money,” said Kerwin Olson, executive director of the Citizens Action Coalition. “It would have been a lot cheaper just to honor the public records law.”

“Follow the money” is a time-honored mantra that can mean many things. But one thing it almost always means is that people allocate resources based upon their actual priorities.

Indiana may not “have money” for preschool, or road repair, or environmental protection, but we seem to have unlimited resources to protect the perquisites of the powerful…

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I Don’t Think D- Is A Good Grade…

Here in Hoosierland, we like to grade stuff. Well, some stuff.

We assign grades to public schools despite the dubious nature of some of the criteria used. We are less enthusiastic about the grades given to our infrastructure by the Corp of Civil Engineers, although we’ve seen some grudging acknowledgment of those scores, given that our crumbling roads and bridges are hard to hide or ignore. (A former student tells me that a big chunk of the bridge from I70 into downtown Indy just fell off yesterday…)

Then there’s a grade I’m betting we won’t hear very much about: the grade for ethical government, awarded by the Center for Public Integrity. Indiana got a D-. (If you click through, you can see the scoring criteria, and the categories.

You may recall lawmakers’ promise to make ethics reform the centerpiece of the last session :

During the 2014 legislative session, a top Republican House leader, Rep. Eric Turner, privately lobbied his fellow Republicans — who control both chambers — to scuttle a proposed ban on nursing home construction that would have hurt his family’s business. A House investigation cleared him of wrongdoing, but he was later stripped of leadership roles and stepped down after being re-elected. Department of Transportation official Troy Woodruff took advantage of an ethics law loophole that allowed him to skirt a one-year cooling-off period and become an independent contractor for an Indianapolis firm he’d regulated. And former state education superintendent Tony Bennett only had to pay a $5,000 fine for questionable campaign practices, including the use of state staff and computers, even though the state’s inspector general condemned his actions as wire fraud and misuse of state resources. Bennett wasn’t charged.

Ultimately, legislators approved an ethics reform law, effective in July. But even during the reform debate, two lawmakers floated proposals that drew conflict of interest charges and sharp criticism.

To be blunt, the vaunted “reforms” were more atmospheric than effective. Indiana earned F’s in numerous categories, including public access to information, political financing, state budget process, judicial accountability, ethics entities and civil service oversight. The only B’s were earned by the state pension systems (B+) and internal auditing practices (B-).

Ironically, Indiana’s score was better in 2012. Before “reform,” we earned a C-.

Knowledgable observers cite many reasons we consistently  fail to clean up our act: lax enforcement of guidelines, a culture of quid pro quo, and most of all, a gerrymandered state where 80% of the legislative seats are uncompetitive, making it highly unlikely that unethical behavior will be punished at the ballot box.

That’s what happens when lawmakers choose their voters, rather than the other way around….

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Deplorable Hoosier Ethics

Same old, same old.

The headline on a recent editorial from the Fort Wayne Journal Gazette pretty well sums it up– State Sinks Further into Ethics Morass. 

The editorial asked the 64-Thousand-Dollar question: “How low will the bar have to slip before Indiana lawmakers finally demand tougher ethics laws?”

Troy Woodruff and Inspector General David Thomas have lowered it another notch. Woodruff, the former chief of staff for the Indiana Department of Transportation, won’t face criminal or civil charges related to state land deals benefiting his own family members, thanks to a ruling from Thomas.

The inspector general simply concluded Woodruff’s conduct “gives rise to the appearance of impropriety” and “diminishes public trust.”

And how.

Woodruff’s “appearance of impropriety” (it appeared improper because it was improper) is just the latest in a sorry string of episodes in which Indiana elected and appointed officials have abused the public trust, using their positions to enrich themselves or their families.

A couple of years ago, it was Eric Turner, twisting arms behind the scenes to protect his family’s lucrative nursing home business; more recently, an employee of the Bureau of Motor Vehicles negotiated a cushy contract between the Bureau and a private vendor, and then–what a coincidence!–left the BMV for a high-level job with that vendor. (After the BMV story became front-page news, Governor Pence cancelled the contract and ordered an “ethics investigation” of the transaction. I think this is what is meant by “locking the barn door after the horse is stolen…”)

Rep. Robert Behning, who chairs the House Education Committee, formed an education lobbying company. The House Ethics Committee is “looking into” whether or not he violated the rules.

Even Indiana’s Inspector General– who seems more interested in downplaying and minimizing ethics violations than punishing them– found former Secretary of Education Tony Bennett in violation of the state ethics code.

In Woodruff’s case, as the Journal Gazette reported,

After Woodruff’s legislative defeat, he and his wife both were awarded state jobs. His mother also was hired by INDOT. His wife remains a highway department employee; Troy Woodruff left last week to go into business for himself – taking with him with years of taxpayer-supported job-training and invaluable state connections.

Statehouse observers have long whispered that the violations that get reported are just the tip of the iceberg–that backscratching and conflicts of interest are widely accepted as the way business is done in Indiana government. They note that with the exodus of experienced statehouse reporters and the diminished news coverage of state government, only the most rash and egregious behavior ever gets reported.

I’ll give the last word to the Journal Gazette.

Lawmakers ignore the repeated absolution of ethical lapses at their own risk. Voters can’t continue to overlook conflicts allowing lawmakers’ friends and allies to grow richer even as their own communities suffer from dwindling state support. They eventually will cry foul over the Statehouse’s low ethical threshold.

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