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SHINSEKI CANCELS APPEARANCE AT
INAUGURATION GALA
AFTER LOBBYIST TIES REVEALED -- After learning of
"pay for
play" event sponsored by the State of Hawaii,
Shinseki bows out.
State societies' parties will help
lobbyists skirt rules. Above, a 2005 inaugural ball sponsored by
Texas State Society. (photo: Getty Images) |
So now the question is: Did Shinseki cancel
this appearance because he thought the concept was wrong or because the
Wall Street Journal blew the whistle? Stay tuned.
For more about Gen. Eric Shinseki, the man who
will be the next VA Secretary, use the VA Watchdog search engine... click
here...
http://www.yourvabenefits.org/sesse
arch.php?q=shinseki&op=and
Story here...
http://online.wsj.com
/article/SB123215275270792215.html
Story below:
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page.
Share story/email link.
-------------------------
Lobbyists Find Detour Around Latest Ethics Rules
By BRODY MULLINS and ELIZABETH WILLIAMSON
Lobbyists and corporations have found an opening in the latest
congressional-ethics law that allows them to pay for special access to
lawmakers and members of the incoming Obama administration during next
week's inaugural festivities.
President-elect Barack Obama was a vocal champion of rules enacted last
year that prohibit companies and lobbyists from buying anything worth more
than $10 for lawmakers. But well-heeled interests have found a way to
circumvent the ban by partnering with "state societies" that are throwing
parties to celebrate Mr. Obama's inauguration.
These Washington-based nonprofits, whose members include lawmakers,
congressional aides, lobbyists and executives from a given state, aren't
subject to the ethics law -- even though their social and charitable
activities are paid for with corporate money.
Mr. Obama's home state of Illinois, for example, is holding its own
inaugural ball on Monday, the night before Mr. Obama is sworn in. It is
offering executives of Motorola Inc., Exelon Corp., and the American Road
and Transportation Builders Association a chance to pay big money to dine
and pose for photos with Illinois lawmakers and incoming Transportation
Secretary Ray LaHood, who recently retired as congressman from the state.
The price: $5,000 to $55,000, event organizers said.
Hawaii, Mr. Obama's birthplace, has invited companies and lobbyists who
pay as much as $25,000 into a roped-off VIP lounge at its Tuesday night
affair, where they can mingle with influential policy makers. Among the
drawing cards: Hawaii Sen. Dan Inouye, the new
 chairman
of the Senate Appropriations Committee, and Gen. Eric Shinseki, a Hawaiian
tapped to lead the Veterans Affairs Department.
Takers so far include Lockheed Martin Corp., which gave $25,000 for access
to the party. Jeff Adams, a spokesman for Lockheed, said: "I can confirm
that Lockheed Martin is co-sponsoring some of the unofficial inaugural
events."
Gen. Shinseki and Mr. LaHood canceled their appearances at the galas after
The Wall Street Journal contacted the transition team about them. Obama
spokesman Tommy Vietor declined to comment on the balls.
State societies didn't seek an exemption to the ethics rules, but fall
under exceptions that permit lawmakers to attend corporate-sponsored
events if they are "widely attended" and considered part of a lawmaker's
"official duty." Lawmakers also can accept free attendance at charitable
events.
Most state-society members are residents who are living or working in
Washington. The attendance of these home-state constituents qualifies
lawmakers and the societies' events for ethics exemptions that permit
companies to pick up the tab for food, drinks and entertainment. Tickets
are free for members.
The ethics rules "don't affect us too much," said Mark Rhoads, a historian
with the National Conference of State Societies, which represents all the
state groups.
The inaugural balls can be boons to lawmakers. State societies bill their
galas as celebrations of their elected leaders. The events also offer
politicians a highly visible chance to mix with voters, corporate leaders
and campaign donors. In all, more than two-dozen state societies are
throwing inaugural balls paid for by corporations. Each sponsor gets
access to members of Congress and state politicians through VIP rooms or
smaller dinners beforehand.
"The bread and butter of being a sponsor is getting into that dinner,
because certainly members of Congress are invited to that dinner," said
Jenifer Sarver, historian for the Texas society.
The state balls aren't part of the formal inaugural celebrations. Mr.
Obama's Presidential Inaugural Committee is hosting 10 official balls on
Jan. 20, paid for by a mix of private donations and government funds. Mr.
Obama has banned donations from corporations and lobbyists.
The Illinois society gave more than a dozen companies and lobbying firms
that paid as much as $55,000 the option to have dinner with an "honored
guest" -- including No. 2 Senate Democrat Richard Durbin and other members
of its congressional delegation -- "on a first-come, first-served basis."
Mr. LaHood planned to speak at the event, before he canceled. Sen. Durbin
has the ball on his schedule but, an aide said, "If he makes it there he's
not going to spend more than a few minutes."
The American Road Transportation Builders sponsored the event for the
"positive connections" and because one of its lobbyists sits on the
Illinois society's board, said David Bauer, a senior vice president for
government affairs for the group. "It could be perceived as something that
it's not," meaning an effort to influence lawmakers, Mr. Bauer said.
A Motorola spokeswoman said that as an Illinois-based company and
state-society member, the telecommunications-equipment maker has served as
a sponsor since 1997. An Exelon spokesman said the energy company's
sponsorship "is an extension of its commitment to the development of sound
public policies concerning energy, the environment, and a number of other
issues at the federal, state, and local levels."
The Jan. 19 sold-out Illinois event at the Renaissance Washington D.C.
Hotel is one of next week's most elaborate balls. The society raised more
than $1 million from corporate sponsors, quadruple its 2005 take.
Write to Brody Mullins at
brody.mullins@wsj.com and Elizabeth Williamson at
elizabeth.williamson@wsj.com
-------------------------
posted by Larry Scott
Founder and Editor
VA Watchdog dot Org
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