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Washington: For Corruption Scandals, What Reforms?

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The indictment and conviction of top lobbyist Jack Abramoff and numerous other ongoing scandals have peeled the mask off Washington's pervasive culture of corruption and corporate influence-peddling, exposing close associates of Abramoff on the Hill and on K Street, including many members of Congress and influence-peddlers such as Grover Norquist and the K Street Project.

While various reform proposals are already being hotly debated, it's obvious that the very people at the center of the scandal cannot be expected to come up with or support the most effective solutions (as one Senator put it, that's like "asking John Gotti to clean up organized crime"). The strongest reforms will therefore require significant pressure from average citizens who feel disgusted by the systemic problems exposed by these scandals.

The Center for Corporate Policy supports two specific reforms: publicly funded elections and strong clean contracting reforms.

1) Clean Campaigns/Publicly Funded Elections.

Congress is currently dominated by corporations that hire an army of lobbyists including close to 250 former members of Congress and agency heads and more than 2,000 lobbyists who formerly worked in senior government positions. Over 17,000 companies lobby on the Hill. At the same time, corporations dominate the campaign finance game. The vast majority of the public feels completely shut out and disrespected as a result. In exchange for massive contributions, corporations routinely reap a huge variety of rewards that undermine the broader public interest.

Public financing of campaigns will do a great deal to help fix the problem. In fact, the state of Connecticut recently adopted this approach in reaction to a major scandal there. California is making progress toward clean elections (see Bill Moyers' speech for his 8-day money and politics tour of California), and states like Arizona and Maine have passed laws already. In addition, cities like Portland, OR have also jumped on the "clean money elections" bandwagon (also known as "voter-owned elections"). On January 20, two members of Congress -- Rep. Obey (D-WI) and Rep. Frank (D-MA)> -- announced they would support applying public funding to congressional elections. A related bill called the "Clean Money, Clean Elections Act" was introduced by Rep. John Tierney (D-MA) last June.

To learn more about publicly-funded campaigns, go here.

2) Clean up Contract Corruption and Cronyism:

* Public disclosure: put all contracts and subcontracts online for public scrutiny.
* Criminally prosecute contractors who cheat taxpayers; enact clear suspension and debarment standards for companies that break the law; require disclosure of violations by companies that bid on federal contracts (and a publicly-accessible database).
* Impose stiff criminal and civil penalties for wartime fraud on government contracting;
* Prohibit contractors with conflicts of interest from conducting oversight or writing contract requirements they could bid on;
* Mandate full disclosure of contract overcharges;
* Create tough penalties for improper no-bid contracts;
* Close the revolving door between federal contract officials and private contractors.

Background: Crooked federal officials have become a major impediment to cracking down on corruption in government contracting. David Safavian, an indicted close associate of Jack Abramoff, was the GSA official responsible for setting suspension and debarment standards for federal contractors. Safavian was arrested in 2005 for lying and obstructing a criminal investigation into Abramoff. Safavian is accused by the FBI of abusing his position as chief of staff for the General Services Administration. Safavian also attended the infamous golf trip with Mr. Abramoff and Republican Congressman Tom Delay of Texas, who is also under investigation for corrupt practices. At the time of his arrest, Safavian was the top White House procurement official involved in Hurricane Katrina relief efforts, another disaster mired in corruption and favoritism.

Republicans and Democrats: Where do they Stand

Reps David Dreier and Dennis Hastert outlined the Republicans' lobby reform proposal on January 17.

The Republican plan would a) ban privately-funded travel; b) include a stronger gift ban, preventing members and staff from personally benefitting from gifts from lobbyists; c) eliminate floor and gym access for former members who are registered lobbyists; d) expand post-employment lobbying ban to two years for members and senior staff; e) require any member convicted of a felony related to their official duties to forfeit their congressional pension; f) stronger and more frequent disclosure on the part of lobbyists and third parties; g) Make the ethics committee more user-friendly and require training for all members and staff.

For a transcript of Dreier and Hastert's remarks, go here.

The Democrats' reform package includes some of the same reforms, but also includes some that the Republicans' package does not, including a "Halliburton Reform" that would strengthen standards of suspension and debarment for contractors who cheat or defraud the government. (Note: specific legislation has not yet been drafted.)

To see the Democrats' full proposal go here.

Other reforms being discussed by both parties include:

* Tougher disclosure requirements Lobbyists should be required to file quarterly financial disclosures, rather than semiannual ones. All reports should be available for public scrutiny online (currently only reports filed with the Senate are available online). Require that they disclose precisely whom in government they lobbied. All contacts between lobbyists and elected or appointed officials each should be available within a few days on the Internet.

* Bar political fundraising in the District of Columbia.

* Close the Revolving Door: Extend the interval between a member's (or their staff's) departure from Congress and his emergence as a lobbyist from the current one year standard to two years. Revoke the floor privileges of former members of Congress, who can currently use congressional gyms or appear on the House or Senate floor if they are registered lobbyists.

* Ban privately-paid travel. The Washington Post reportedthat "lobbyists and ethics experts" say that even if Hastert's proposal is enacted, members of Congress and their staffs could still travel the world on an interest group's expense and eat steak on a lobbyist's account at the priciest restaurants in Washington. They would only be required to also take a campaign contribution when the lobbyist pays the bill.

* Ban the use of "earmarks" -- i.e. appropriations for specific projects that members can provide as favors. According to Taxpayers for Common Sense the recent transportation bill included 6,371 earmarks!

* Make the penalties for lobbying rules violations tougher. E.g. revoke the annual pension of any lawmaker convicted of a felony related to his or her official duties.

Congress Watch (Public Citizen) has put together a useful analysis of the various proposals and related legislation.

Although these and other reforms might stop some of the more egregious actions witnessed in recent years, there is an emerging consensus that they don't go nearly far enough to be considered significant, and are riddled with potential loopholes.

Related Articles:
USA Today: we need "more than baby steps"
"In Congress: 'We simply have too much power'" (USAToday, 1/9/06)
"Welcome to the Machine" by Nick Confessore, Washington Monthly, 2003
for the Washington Monthly.)