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February 18, 2010

Disturbingly cozy ties between politicos and corp. lobbyists

By CREW Staff

We have all heard of intimate relationships between lobbyists and public servants before. But buying a house together?

As the New York Times recently reported, the Congressional Black Caucus (CBC) paid off the multi-million dollar mortgage on its town-house headquarters with generous contributions from major corporations, including the taxpayer-owned General Motors and Altria, the nation’s largest tobacco company.

The CBC avoided what’s left of the rules regulating corporate political contributions by funneling the money through a shadowy network of non-profits. These tax-shelters claim to provide scholarships to needy children, but have spent the bulk of their money on social events for politicos, including gala dinners with expensive catering tabs, plush golf-outings, and an annual gambling retreat.

As CREW followers know, this is only the tip of the iceberg.

The CBC’s behavior is notable only for its excess. Just last month, CREW filed ethics and IRS complaints against Rep. Steve Buyer (R-ID) for using a non-profit to skirt the tax-code and hobnob with corporate interests. (Days later, Rep. Buyer announced he would not seek reelection. CREW is awaiting a response to its complaints.)

The tactic is hardly confined to members of Congress. As the Los Angeles Times has reported, Gov. Arnold Schwarzenegger (R-CA) makes extensive use of corporate-funded non-profits to cover his international private-jet trips, pay for his luxury hotel accommodations, and even compensate his office staff. Meanwhile, right here in Washington, D.C., Doug Coe and his mysterious "Fellowship" used non-profit designation to dodge years of taxes on their infamous C Street house, their "Family" refuge for ethically-suspect Republican officials with fidelity issues.

We’ve long admired the CBC’s record of fighting for civil rights and the rule of just law. It’s a pity its current behavior isn’t living up to its storied past.