The Project On Government Oversight (POGO) Blog

Lobbyists Call for Lobbying Reform

By ANDREW WYNER

POGO recently sat down with Howard Marlowe, president of the American League of Lobbyists (ALL), to discuss ALL's  recommendations for reforming the Lobbying Disclosure Act of 1995 (LDA). ALL's proposed reforms would force more lobbyists to disclose their lobbying activities and attempt to close many loopholes that continue to plague lobbying registration.

While ALL's recommendations do not amend all faults with the LDA, POGO was happy to sit down and discuss the group’s suggestions. To be clear, POGO isn't opposed to the act of lobbying. In fact, we at POGO lobby within legal limits too. The problem is not the act of lobbying, it is the lack of disclosure and the nexus between lobbying and campaign contributions or government contracts or grants.

Primarily, ALL wants more lobbyists to register their lobbying activities to the Clerk of the House and the Secretary of the Senate, who jointly control lobbying registration. If the idea of a lobbyist association advocating tighter registration requirements sounds funny to you, you're not alone. The idea is that greater registration would both make the lobbying business more transparent and improve its reputation. 

The problem, as ALL puts it, is that lobbyists are getting a bad rap:

Rep. Wolf Tries to Stop Flock of Colleagues Going Through Lobbying Revolving Door

By LYDIA DENNETT 

Former elected officials lobbying for foreign dictators may be big business in DC, but one Member of Congress is trying to slow down the revolving door between the Hill and lobbying shops that work on behalf of interests outside the U.S.

Representative Frank Wolf (R-VA) recently introduced the Foreign Lobbying Reform Act (H.R. 4343), which would prohibit high-ranking government officials like the President, Vice President, Members of Congress, and ambassadors from lobbying on behalf of foreign governments for ten years after leaving office.

According to Rep. Wolf, “serving in Congress or as a United States ambassador is a high honor and people should not walk out of government one day and then trade on their service the next, especially for governments who do not share the same values as the United States.”

A Timeline of Gingrich Advisor Bud McFarlane's Foreign Entanglements

By BEN FREEMAN

Last week POGO reported that Bud McFarlane, an advisor to the Gingrich presidential campaign, had lobbied for both sides of the war in Sudan. McFarlane, who earlier in his career as a national security advisor for President Reagan was part of the Iran-Contra scandal, covertly lobbied for the Sudanese government in Khartoum mere months after lobbying for their rivals in southern Sudan.

The timeline below tracks McFarlane's role in the Iran-Contra Scandal, his work on behalf of Sudan, and his recent endorsement of Gingrich.

While it takes time to load, we promise it will be worth the wait—happy oversight!

Gingrich Advisor's Ties to Foreign Interests

By BEN FREEMAN and LYDIA DENNETT

Newt Gingrich has argued that he never was a "lobbyist" in Washington, DC, but that hasn't stopped him from turning to lobbyists for help in his presidential campaign, including at least four who have been registered to represent foreign governments. Now, an investigation by POGO has found that one of those advisers, Robert McFarlane, covertly lobbied for interests in southern Sudan and reportedly on behalf of the Sudanese government—without properly disclosing his activities to the U.S. government. At the time, Sudan faced U.S. sanctions, and special permission to lobby on behalf of Sudanese interests was required.

The Gingrich campaign could not be reached for comment. McFarlane did not respond to multiple requests for comment.

McFarlane’s work for Sudan was in apparent violation of U.S. sanctions, which were still in effect after the 2005 cease fire between Sudanese government forces and interests in southern Sudan, which had fought a decades-long civil war. His initially undisclosed work for southern Sudanese interests also raises serious conflict of interest questions about his subsequent work for the central Sudanese government in Khartoum—the other side in the civil war.

Robert “Bud” McFarlane has known Gingrich since the 1980s, when McFarlane served as national security advisor to President Ronald Reagan. The decades-old relationship recently culminated in McFarlane endorsing Gingrich, whose leadership is needed, according to McFarlane, because we’re going to face “the threat from Iran and others.”

This rationale for McFarlane’s support of Gingrich is ironic given McFarlane’s role in the Iran-Contra affair. In the wake of the scandal, he pleaded guilty to four misdemeanor counts of withholding information from Congress and was sentenced to two years of probation, 200 hours community service and a $20,000 fine. He was later pardoned by President George H.W. Bush. Although registered foreign agents have advised other presidential candidates, few, if any, conducted themselves like McFarlane, who lobbied on behalf of a country facing U.S. sanctions, and did not register until years after his lucrative contracts had expired.

Un-Do Influence: Time to Reclaim Washington from Powerful Special Interests

By JOE NEWMAN

It's well known that Big Pharma and the Food and Drug Administration have a, um, complicated relationship. On one hand, the FDA regulates the pharmaceutical and medical device industries to keep unsafe drugs and devices off the market, while at the same time having to depend on hundreds of millions of dollars each year in user fees from the companies it regulates.

So, it's hardly a surprise that the agency has been riddled with one scandal after another involving conflicts of interest. Now comes the report that four members of an FDA joint committee that recently weighed the risks and benefits of the Yaz/Yasmin oral contraceptive had ties to Bayer (the drugmaker) or a related company. Be sure to read Adam Zagorin's story that raises questions about whether drug company influence might have put millions of women at risk.

We're Mad as Hell

Shining a light on these questionable situations is what our new campaign "Un-Do Influence" is all about. Our aim is to not only expose conflicts of interest, influence peddling and revolving door hires but to do something about it.

Happy Ending in the Foreign Funding Fight

By BEN FREEMAN

Fans of protecting American democracy from unlimited foreign money can rejoice, as Monday morning the Supreme Court affirmed a lower court decision to maintain a ban on political contributions by foreign nationals. Moreover, their affirmation is more than a dismissal of the case—it’s a precedent.  “In other words, by today’s order, the Supreme Court agreed that the lower court got it right,” as Rick Hasen wrote on his Election Law blog.

In the case, Bluman v. Federal Election Commission (FEC), the plaintiffs and those who supported them, like the Institute for Justice’s Paul Sherman, used the Citizens United decision that money equals speech in politics to argue that it was a violation of the first amendment to bar foreign nationals from making campaign contributions.

As I wrote on POGO’s blog and in the New York Times, these arguments ignore a number of Supreme court precedents, which unequivocally state that certain activities of foreign nationals can be restricted because “the right to govern is reserved to citizens.” Much more importantly, they ignore the threat legalization of foreign national contributions would pose to American democracy. Politicians respond disproportionately to the interests of those who finance their campaigns. Thus, Bluman and his advocates would have created a system with politicians beholden to those whose interests were as foreign as their money. American citizens, meanwhile, would have been left with a government that was not for, of, or by them.

But, with the Supreme Court standing up for American democracy and voters, this story has a happy ending. At a time when confidence in government is at historic lows, voters today can applaud a judicial branch that protected them from undue foreign influence.

Ben Freeman is a POGO National Security Fellow.

Follow @BenFreemanDC

Image via Kurt Magoon.

Do American Citizens Deserve Sovereignty?

By BEN FREEMAN, Ph.D.

In a deceptively titled op-ed in The Wall Street Journal, Paul Sherman asks, "Do Foreigners Deserve Free Speech Rights?" But, Sherman is not actually discussing free speech--he's advocating for allowing foreign governments, businesses, political parties, and individuals to dump unlimited money into U.S. politics.

Sherman's argument is in relation to a lawsuit filed by two foreign nationals, Benjamin Bluman and Asenath Steiman, against the Federal Election Commission (FEC), which challenges the ban on foreign national contributions. The case was dismissed by a U.S. District Court in August, but the plaintiffs appealed to the Supreme Court, which, on Monday, opted not to review the case.

According to Sherman this was ill-advised, because the Bluman/Steiman case is “well grounded in Supreme Court precedent.”

But, if you objectively review Supreme Court precedent, this claim is contentious at best.

Justice Department Records Show Dramatic Rise in FARA Enforcement

By JAKE WIENS

Over the past few years, the Justice Department has dramatically ramped up its enforcement of the Foreign Agents Registration Act (FARA), according to new records obtained by POGO under the Freedom of Information Act (FOIA). The records provide hard evidence in support of what many attorneys had suspected.   

Established in the 1930s, FARA requires that persons working to influence the U.S. government on behalf of a foreign government or foreign political party submit highly detailed disclosures of their activities to the Justice Department.

FARA registrants are required to furnish copies of their contracts, records of their interaction with government officials and journalists, and records of money received from clients and dispersed on their behalf—all of which are posted publicly by Justice in a searchable database. The disclosures are an invaluable tool for journalists and government watchdogs (POGO has used FARA disclosures in a number of investigations). 

POGO obtained records of Justice’s audits of firms’ compliance with FARA. The records do not cover investigations into whether a firm that has not registered with Justice should be registered. In other words, the audits are intended to ensure that those who have registered with Justice have disclosed all required records. The FARA Registration Unit in the Counterespionage Section of the National Security Division is responsible for administering and enforcing the statute.

The new records show that Justice audited 13 FARA registrants in FY 2008, 14 in FY 2009, 13 in FY 2010, and 11 through June of FY 2011. By comparison, Justice audited a total of 8 registrants between FY 2000 and FY 2007, and not a single registrant between FY 2004 and FY 2007.

Foreign Influence: Inappropriate for Lawmakers Tasked with Shrinking the Deficit

By BEN FREEMAN

Cross-posted on OtherWords.

In his presidential farewell address, George Washington offered this warning to the young nation: "Against the insidious wiles of foreign influence...the jealousy of a free people ought to be constantly awake; since history and experience prove that foreign influence is one of the most baneful foes of Republican Government."

A little more than 215 years later, foreign influence remains a threat to American democracy. As the dozen members of Congress in the Super Committee strive to agree on a plan to carve at least $1.2 trillion out of the federal budget, lobbyists representing foreign interests are trying to influence them.

Since last summer, all 12 of the panel's members have been contacted by at least one foreign lobbyist. All but two members—Sen. Jon Kyl (R-AZ) and Rep. Jeb Hensarling (R-TX)—have received campaign contributions from foreign lobbyists, according to Department of Justice records.

The Price of Free Trade: How Lobbyists Helped Salvage Three Floundering Free Trade Agreements

South Korean Ambassador Han Duk-Soo and U.S. Trade Representative Ron Kirk

By BEN FREEMAN

The U.S. Congress passed free trade agreements with Colombia, South Korea, and Panama on Wednesday. But this was not diplomacy as usual--this was pay-to-play diplomacy.

These three foreign governments spent at least $15 million on lobbying and public relations in their efforts to promote passage of their respective free trade agreements, as The Hill reported last week. Coupled with a sizeable effort by pro free-trade U.S. multinational businesses and the U.S. Chamber of Commerce, this resulted in lopsided House and Senate votes in favor of passing all three agreements.

With such a powerful and well-financed campaign, passage of the agreements may, in hindsight, seem like a foregone conclusion. However, just a year and a half ago, the deals were stagnating. For instance, some Members of Congress were concerned that if the agreement with South Korea wasn’t modified, the U.S. would risk unintentionally importing goods from North Korea.

To turn the tide in the fight, the South Korean government and the Korea International Trade Association (KITA) hired D.C.’s largest lobbying firm, Patton Boggs. According to Department of Justice (DOJ) records filed under the Foreign Agents Registration Act, Patton Boggs believed that through the firm’s connections and influence they could limit modifications to the agreement:

Super Committee: Under the (Foreign) Influence?

By BEN FREEMAN, LYDIA DENNETT, and DAHNA BLACK

Every year foreign governments spend hundreds of millions of dollars hiring lobbying and public relations firms to increase their influence in the United States. Lobbyists working on behalf of these foreign governments (foreign lobbyists) contact policymakers thousands of times annually, and the members of the “Super Committee” are no exception. Through lobbyists, foreign governments safeguard their interests in Washington. This is critically important now as some of the proposals currently being considered, such as cuts to foreign aid and U.S. subsidies to the security of foreign nations, would affect foreign interests. Foreign lobbyists have taken note and are already beginning their efforts to shape the work of the Super Committee.

For instance, lobbyists for South Korea have muscled in on Super Committee action. The top foreign lobbying firm in the U.S., Patton Boggs, LLP, was hired in February 2010 on behalf of both the non-profit Korean International Trade Association and the Embassy of South Korea to advocate for passage of the U.S.-Korea free trade agreement. They targeted committee co-chair Senator Patty Murray (D-WA) in a September 14, 2011 letter at least partly on the basis of her work on the Super Committee. The letter from Patton Boggs’ senior partner Thomas Hale Boggs, Jr., to Murray states:

Ambassador Han would like to discuss the status of the pending US-Korea Free Trade Agreement (KORUS FTA), including in the context of the ongoing deficit reduction discussions in which you play a crucial role…The Ambassador is anxious to discuss these matters, as well as to update you on KORUS's benefits for the United States, particularly the State of Washington.

Senator Murray’s office confirmed that her office met with lobbysts with Patton Boggs on September 29, according to an article by Janie Lorber of Roll Call. Lorber noted that the Super Committee “itself is not expected to address the pending deals in its budget reduction proposal, but Murray, who has supported past free-trade deals, could have access to information about how the timing of the debt deliberations could affect passage of the free-trade agreements.”

Foreign Lobbyists Have Lobbied Current Super Committee Members in the Past

Murray’s meeting with foreign lobbyists is not unique: in the past year, all twelve members of the Super Committee have been contacted by at least one foreign lobbyist. Over that same period, all but two members, Senator Jon Kyl (R-AZ) and Representative Jeb Hensarling (R-TX), have received campaign contributions from foreign lobbyists, according to Foreign Agents Registration Act (FARA) records.

Wikileaks Cable: Kuwait Lobbied State Dept. on Behalf of Contractor that Bungled U.S. Embassy in Baghdad

 
By JAKE WIENS

A newly released cable by the anti-secrecy group Wikileaks shows that the government of Kuwait repeatedly lobbied the State Department on behalf of First Kuwaiti General Trading & Contracting Company (First Kuwaiti), the company responsible for bungling the construction of the U.S. Embassy in Baghdad.

The cable, sent in May 2008, includes the text of a diplomatic note from the Kuwaiti Ministry of Foreign Affairs to the Secretary of State. The diplomatic note cites Kuwait’s strong relationship with the U.S. Government, including its “critical support to the war in Iraq,” before raising concerns about the “unfounded allegations” that had been voiced by Members of Congress and the press involving First Kuwaiti.

The diplomatic note called on the State Department for assistance in rehabilitating First Kuwaiti’s “public reputation and resolving completely all pending investigations of the company as soon as possible.”