/PRNewswire-USNewswire/ -- Today the National Legal and Policy Center (NLPC) asked Neil M. Barofsky, the Special Inspector General for the Troubled Asset Relief Program (TARP), for a formal review of the sponsorship by Citigroup of a junket to the Caribbean by House Ways and Means Committee Chairman Charles Rangel (D-NY) and five other members of Congress, a trip that violated House Rules.
The request comes in the wake of Citigroup's decision to scrap the purchase of a $50 million executive jet, and continuing questions about Citigroup's management.
The purported purpose of the Congressional trip was to attend the Caribbean Multi-Cultural Business Conference. The event took place November 6-9, 2008 on the sunny Caribbean island of St. Maarten at the Sonesta Maho Bay Resort & Casino, after Congress had approved the $700 billion bailout package in October.
The "lead sponsor" was Citigroup which contributed $100,000. Citigroup was certainly aware that it would be a major recipient of bailout funds. It was also aware that its fortunes had become increasingly reliant on Congressional actions. Citigroup should have also been aware that corporate sponsorship of such an event was banned by House Rules adopted on March 1, 2007, in response to the Abramoff scandal and the infamous golf trip to Scotland.
Taxpayers are now Citigroup's largest shareholder after infusions of $45 billion.
NLPC President Peter Flaherty attended the St. Maarten's event in order to document potential violations of law and House Rules. The sessions were lightly attended. The primary purpose of attending for most participants appeared to be to take a vacation.
In addition to Rangel, the other members of Congress who attended were Donald Payne (D-NJ), Sheila Jackson-Lee (D-TX), Carolyn Cheeks Kilpatrick (D-MI), Bennie Thompson (D-MS) and Donna Christensen (D-VI).
The apparent violations of House Rules have already generated media attention. See "Shady Island 'House' Party: Pols's Trip to Caribbean Skirted Rules," New York Post, November 30, 2008, and "Caribbean Trip May Have Broken Rules," The Hill, January 28, 2009.
NLPC's Complaint reads, in part:
"When the TARP was presented to Congress, it was argued that the situation was dire, and that the failure of major financial institutions posed a systemic risk to our economy. The stated goal was to unfreeze credit so that banks can make loans to businesses and individuals. It was never contemplated that banks use their capital to buy influence on Capitol Hill by funding vacations for members of Congress."
Showing posts with label federal investigation. Show all posts
Showing posts with label federal investigation. Show all posts
Thursday, January 29, 2009
Thursday, January 22, 2009
No Policies From Obama to Stop Diversion of Federal Small Business Contracts to Fortune 500 Firms
/PRNewswire-USNewswire/ -- Since 2003, over a dozen federal investigations that have uncovered billions of dollars in federal contracts intended for small businesses actually wound up in the hands of Fortune 500 firms.
Any plans from President Barack Obama to adopt the recommendation of the Small Business Administration (SBA) Office of Inspector General to address the problem have been conspicuously absent from any of his stimulus plans or proposed policies.
President Obama has also ignored repeated pleas from small business groups around the country to adopt legislation and policies to stop Fortune 500 firms and thousands of other large businesses from commandeering up to $100 billion a year in federal small business contracts.
ABC, CBS and CNN have all released investigative stories on the issue, which found that firms such as Lockheed Martin, Wal-Mart, Microsoft, John Deere, Xerox, Dell Computer, Northrop Grumman and Home Depot all received millions of dollars in federal small business contracts.
Even some of the largest firms in Europe such as British Aerospace (BAE), Rolls-Royce and Dutch giant Buhrmann NV have received hundreds of millions a year in U.S. government contracts intended for small businesses.
Thousands of middle class firms have been forced to close their doors as they struggled in vain to compete with Fortune 500 firms for even the smallest government orders for goods and services specifically set aside for small businesses.
Small business advocates are concerned that President Obama will not only allow federal small business contracts to continue to be diverted to Fortune 500 firms, but that he will support a new federal policy that will create a new loophole in federal law allowing even more government small business contracts to be diverted to firms controlled by some of the nation's wealthiest investors.
The National Venture Capital Association (NVCA) has contributed millions of dollars to President Obama and key members of Congress, such as House Speaker Nancy Pelosi, to try and have federal law changed to allow some of the wealthiest investors in the country to masquerade as small businesses and take billions of dollars in federal contracts designated for legitimate small businesses.
President Obama's appointment of Karen Mills, a multi-millionaire venture capitalist, to the post of Administrator of the SBA is seen by small business groups as a confirmation that President Obama will attempt to create more loopholes in federal contracting law, which will divert more federal small business contracts away from middle class firms and into the hands of wealthy investors.
Any plans from President Barack Obama to adopt the recommendation of the Small Business Administration (SBA) Office of Inspector General to address the problem have been conspicuously absent from any of his stimulus plans or proposed policies.
President Obama has also ignored repeated pleas from small business groups around the country to adopt legislation and policies to stop Fortune 500 firms and thousands of other large businesses from commandeering up to $100 billion a year in federal small business contracts.
ABC, CBS and CNN have all released investigative stories on the issue, which found that firms such as Lockheed Martin, Wal-Mart, Microsoft, John Deere, Xerox, Dell Computer, Northrop Grumman and Home Depot all received millions of dollars in federal small business contracts.
Even some of the largest firms in Europe such as British Aerospace (BAE), Rolls-Royce and Dutch giant Buhrmann NV have received hundreds of millions a year in U.S. government contracts intended for small businesses.
Thousands of middle class firms have been forced to close their doors as they struggled in vain to compete with Fortune 500 firms for even the smallest government orders for goods and services specifically set aside for small businesses.
Small business advocates are concerned that President Obama will not only allow federal small business contracts to continue to be diverted to Fortune 500 firms, but that he will support a new federal policy that will create a new loophole in federal law allowing even more government small business contracts to be diverted to firms controlled by some of the nation's wealthiest investors.
The National Venture Capital Association (NVCA) has contributed millions of dollars to President Obama and key members of Congress, such as House Speaker Nancy Pelosi, to try and have federal law changed to allow some of the wealthiest investors in the country to masquerade as small businesses and take billions of dollars in federal contracts designated for legitimate small businesses.
President Obama's appointment of Karen Mills, a multi-millionaire venture capitalist, to the post of Administrator of the SBA is seen by small business groups as a confirmation that President Obama will attempt to create more loopholes in federal contracting law, which will divert more federal small business contracts away from middle class firms and into the hands of wealthy investors.
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