JW's Corruption Chronicles


Chinagate Haunts Democrats—Again!

Seven years after Judicial Watch uncovered the Clinton-Gore scheme to sell influence to the Communist Chinese in exchange for campaign contributions, Democrat presidential hopefuls are at it again. Campaign records filed with the Federal Election Commission reveal that George Chao-chi Chu contributed thousands of dollars to the 2004 presidential campaigns of John Kerry, Bob Graham and Dick Gephardt. Chu has high-level links to the Communist Chinese leadership in Beijing and has been linked to Chinagate figure John Huang. He contributed more than $500,000 to the Clinton-Gore re-election campaign in 1996. President Clinton appointed Chu to an advisory committee on trade with China in 2000.

 

Congressional Investigation Uncovers Clinton-Enron Connection

While the Bush administration has been criticized for its ties to energy interests, a recent Congressional investigation suggests it was the Clinton administration that first turned a blind eye to corruption at Enron Corp. In 1999, the IRS made a criminal referral to the Reno Justice Department to investigate possible bribes paid by Enron officials to Guatemalans close to the country’s former president in order to win a lucrative electric power contract. On May 21, 1999, the IRS district director in Houston sent a letter to Janet Reno indicating that Enron may have violated the Foreign Corrupt Practices Act, which forbids U.S. companies operating overseas to use bribes to win contracts. Reno declined to investigate. Now the Senate Finance Committee is attempting to find out why. (Judicial Watch is pursuing an independent lawsuit to attempt to get at the heart of Enron’s political and legal corruption.)

 

Lobbyists Seek Favor With Congressional Relatives

The suspicious relationship between Members of Congress and lobbyists has received much public attention in the last few years, fueling the fervor for campaign finance reform. However, another form of corruption, Congressional nepotism, has thus far flown underneath the radar screen. According to a recent article in the Washington Post, while the rules are clear with respect to the interactions between lawmakers and lobbyists, “there is not a single rule governing whether corporations, trade groups and others can hire you to lobby your relative – and his or her colleagues – on legislation vital to the clients.” The article goes on to note that dozens of senators and representatives are related to lobbyists from a variety of interests. Senator Harry Reid (D-Nevada), notes the newspaper, “supported several measures promoted by his son and son-in-law, both lobbyists for Nevada interests.” (JW has a lawsuit concerning the lobby of Linda Daschle, wife of Senator Tom Daschle.)

 

USPS Inspector General Quits Amid Controversy

USPS Inspector General Karla Corcoran “followed a pattern and practice of unprofessional conduct in the management of the USPS OIG, used questionable judgment in areas with her discretion, extravagantly expended USPS funds, and engaged in personnel practices which were either questionable, or not in accord with USPS policy,” concluded a report by the President’s Council on Integrity and Efficiency. As a result of the investigation, Ms. Corcoran resigned rather than face sanctions. Ms. Corcoran was accused of using flaky “team building” exercises at great cost to taxpayers. Meanwhile, postal officials allowed postal workers to be exposed to anthrax without any objection from Ms. Corcoran, the supposed Post Office “watchdog”.