Quantcast
Channel: The Center for Public Integrity Latest Stories
Viewing all 3299 articles
Browse latest View live

Donald Trump rewarding million-dollar donors with plum postings

$
0
0

Update, Dec. 9, 2016, 2:22 p.m.: This story has been updated.

Donald Trump routinelyblasts his political foes for “pay-to-play” politics and “crony capitalism and corruption.”

But Trump is now rewarding some of his biggest campaign bankrollers with unparalleled access, influence, prestige and power in his presidential administration-in-waiting, according to a Center for Public Integrity analysis of new campaign finance disclosures filed with the Federal Election Commission.

In all, 18 ultra-wealthy Americans — the majority are billionaires whose fortunes are greatly affected by government decisions — contributed at least $1 million to the Republican’s presidential campaign and political efforts supporting Trump’s bid, the Center for Public Integrity’s analysis shows.

At least one person on this list, former World Wrestling Entertainment executive Linda McMahon, is slated to serve in Trump’s Cabinet: Trump this week tapped McMahon to lead the federal government’s Small Business Administration. In addition to spending $6.2 million to support Trump’s presidential effort, she and husband Vince McMahon have together donated millions of dollars to Trump’s scandal-plagued charitable foundation.

Trump is also nominating six-figure contributors to cabinet-level positions: billionaire philanthropist Betsy DeVos as education secretary, restaurant mogul Andy Puzder as labor secretary and billionaire investor Wilbur Ross as commerce secretary. And four days before Election Day, Department of Housing and Urban Development secretary nominee Ben Carson’s old presidential campaign committee likewise gave a pro-Trump super PAC $100,000.

Another top backer, hedge fund manager Robert Mercer, gave $2 million to a pro-Trump super PAC he helped establish with his daughter, Rebekah Mercer, called “Make America Number 1.”

The father-daughter duo helped convince Trump to overhaul his campaign leadership in August and install operatives with close ties to the Mercer operation. They are now poised to play a leading role in a new organization designed to advance Trump’s legislative agenda. Rebekah Mercer is also a member of Trump’s presidential transition team executive committee.

In a sign of how much the Mercers have endeared themselves to the president-elect, Trump, on Saturday, made a surprise appearance at the Mercer’s “Villains and Heroes”-themed Christmas costume party on Long Island, New York.

Then there’s Silicon Valley investor Peter Thiel, who gave $1 million to the Mercer-led, pro-Trump “Make America Number 1” super PAC during the presidential campaign’s final days, new federal campaign finance disclosures show.

One of the few tech titans to openly speak about his support for Trump, Thiel is now on the executive council of Trump’s presidential transition team.

Joe Ricketts, the billionaire founder of online brokerage TD Ameritrade who initially funded an anti-Trump super PAC, also earned Trump’s favor after contributing $1 million in September to pro-Trump super PAC “Future45.”

Ricketts son, Todd Ricketts, helped run “Future45.” Todd Ricketts is now Trump’s nominee for deputy commerce secretary.

Trump has given his No. 1 and No. 2 overall financial backers— casino tycoon Sheldon Adelson, and his wife, Miriam Adelson — new jobs since winning the presidency: They’re finance vice-chairmen of Trump’s inaugural committee, which is working to raise tens of millions of dollars to pay for his inauguration. It’s an event that itself promises top donors posh perks and exclusive access to Trump and his administration.

Sheldon Adelson — the chairman and CEO of the Las Vegas Sands Corp. — waited until late October to put big dollars into backing Trump. But both he and Miriam Adelson ultimately invested $10.2 million each into pro-Trump groups. The Adelsons are strong supporters of Israel and opponents of online gambling.

During the Republican presidential primary, Trump had accused Adelson of attempting to use his wealth to control Sen. Marco Rubio, R-Fla., who was also seeking the GOP presidential nomination.

Representatives from Trump’s transition team did not respond to requests for comment.

Trump has promised to “drain the swamp” in Washington, D.C. — an allusion to what he says is a capital city controlled by corrupt, self-interested lobbyists, political operatives and businesspeople.

On one hand, Trump can argue that many of his top donors are not creatures of Washington, D.C., but rather, successful outsiders he trusts to reform the federal government, said Meredith McGehee, chief of policy, programs and strategy for campaign finance reform organization Issue One.

On the other hand, Trump offering top donors key postings and intimate access “raises the question of whether they bought their positions,” she said.

In the end, Trump was the biggest single bankroller of his campaign. He ultimately contributed $66.1 million of his own funds to his presidential campaign — about 19 percent of the $339 million he ultimately raised for the primary and general elections, federal disclosures show.

Like all candidates, Trump’s campaign was prohibited from raising more than $5,400 per donor — $2,700 for the primary and $2,700 for the general election.

But a host of super PACs ultimately sprang up to support the billionaire businessman and celebrity reality TV star. And thanks to the U.S. Supreme Court’s Citizens United v. FEC decision in 2010, and a related lower court ruling, these groups are allowed to accept donations of any amount from contributors.

Trump also operated two joint fundraising groups with the Republican National Committee that could collect six-figure checks, money which was split between the Trump campaign, RNC and several state Republican parties.

Not all of Trump’s top donors have received key posting in Trump’s administration or transition team — yet.

Take Robert McNair, CEO of the Houston Texans, who doubled down on Trump in the final weeks of the election. According to new campaign finance filings, McNair contributed $2 million to a pro-Trump group called “Great America PAC” on Oct. 21.

But another football mogul — Woody Johnson, owner of the New York Jets and a major Trump donor — is a member of Trump’s inaugural committee. Trump is also reportedly considering Johnson for nomination as the United States’ ambassador to the United Kingdom.

Modern presidents, both Democrats and Republicans, have regularly offered top donors ambassadorships. Trump has offered no indication he will change this practice. Trump also has yet to begin doling out most ambassador positions.

Two other top Trump donors — billionaire Diane Hendricks, the richest woman in Wisconsin, and billionaire Stephen Feinberg, CEO and founder of investment firm Cerberus Capital Management — served as economic advisers to Trump during the campaign. It’s not yet clear whether either will have a more formal role in Trump’s administration.

Bernard Marcus, the billionaire co-founder of Home Depot, donated $7 million to pro-Trump super PACs, ranking him just behind the Adelsons in overall contributions. Marcus says he has no interest in a formal role with the Trump administration, but has said he will be available if Trump wants his advice.

Former Goldman Sachs executive Steve Mnuchin doesn’t rank among Trump’s top donors.

But Mnuchin, who as Trump’s top campaign fundraiser was responsible for convincing so many wealthy individuals to give Trump money, is also enjoying the spoils of victory.

Trump has nominated Mnuchin as his U.S. Treasury secretary.

Update, Dec. 9, 2016, 2:22 p.m.: This story has been updated to reflect that 18, not 17, ultra-wealthy Americans donated at least $1 million to pro-Trump efforts. A newly filed campaign finance report by pro-Trump super PAC "Great America PAC" showed that billionaire Marvel Entertainment CEO Isaac Perlmutter contributed $5 million to the group, adding him to the list. The same report showed that billionaire Dallas banker Andy Beal contributed $2 million to Great America PAC on Nov. 1, which increased his total contributions in the table.

Chris Zubak-Skees contributed to this report.

A version of this story appears on NBC News.

President-elect Donald Trump gestures toward reporters as he arrives for a party at the home of Robert Mercer, one of his biggest campaign donors, on Dec. 3, 2016 in Head of the Harbor, New York.Michael Beckelhttps://www.publicintegrity.org/authors/michael-beckelDave Levinthalhttps://www.publicintegrity.org/authors/dave-levinthalCarrie Levinehttps://www.publicintegrity.org/authors/carrie-levinehttps://www.publicintegrity.org/2016/12/09/20516/donald-trump-rewarding-million-dollar-donors-plum-postings

Trump and immigration: tough talk masks a complex reality

$
0
0

During a Republican primary debate last February, Sen. Marco Rubio of Florida seized a moment. He asserted that even though Donald Trump the candidate was attacking undocumented immigrants, Trump the businessman had used 200 undocumented Polish workers to build Trump Towers, the president-elect’s gilded Gotham high-rise.

This foreign-worker imbroglio involving Trump — there are more — led to a court ruling in 1991 that Trump associates were in on a plan to stiff a laborers’ union out of pension benefits by underpaying the Poles. Trump professed not to know about the workers’ status, according to reports, and he appealed. Fifteen years later, though, after some of the Poles went public in news reports about wage and safety violations, Trump ended the protracted legal battle with a sealed settlement.

“He brings up something from 30 years ago,” Trump said at the debate, lashing back at Rubio. Trump said laws were different then. “It worked out very well,” he said with a shrug. “Everybody was happy.”

But millions of Americans who are married or otherwise related to other undocumented people are not at all happy today — and they can’t afford to shrug off the past like Trump. Employers who have stepped up over the years to admit that many employees are likely undocumented are also dismayed. They fear that Trump’s election means the end of a long quest for immigration reform that recognizes that most undocumented workers are not the “criminals” or “bad hombres” that Trump excoriated during the campaign. Instead, they’re the spouses and parents of U.S. citizens, longtime co-workers and neighbors and home and business owners — and their issues, problems and challenges are far more complex than Trump’s heated rhetoric would make it appear.

A chill in the air

“Our members are scared out of their wits,” said Kim Anderson, a Minnesotan who leads American Families United. The group represents U.S. citizens with undocumented spouses who are unable to legalize those spouses under current immigration laws without great risks. Members are now coming to grips with the possibility that their circumstances are about to get even worse.

On immigration, like on many other subjects, it’s sometimes hard to figure where the president-elect’s bluster ends and his actual position lies. Trump’s stinging words about Mexicans and Muslims during the campaign are old news, but not forgotten as he prepares to take power. He initiated his campaign by fixating on Mexicans who cross the border, calling them “rapists” before adding, after a pause, that "some, I assume, are good people." He tried softening his rhetoric in an Arizona speech by referring to “the great contributions of Mexican-American citizens to our two countries … and the close friendship between our two nations.” But Trump’s appointment of Steve Bannon as his chief White House strategist has inflamed tensions further because of Bannon’s talk-radio past and his Breitbart website, which features diatribes degrading immigrants and people of color.

For members of American Families United, the prospects their concerns will be heard feel thin.

A myth persists that if Americans marry undocumented people — who many have met at work — those spouses can easily transition to legal status. The reality is that Americans can no longer apply to get green cards for undocumented spouses without facing severe consequences if their husbands or wives originally entered the country illegally and were here for more than one year. Those spouses are automatically subject to being banished from the United States for 10 years, sometimes longer, even for life. This policy came about long before Trump; a Republican-controlled Congress tucked the punitive measures, known as bars, into the 1996 Illegal Immigration Reform and Immigrant Responsibility Act. Application of the bars was phased in, shocking a first wave of couples who were unaware of the changes.

More than 9 million people appear to live in “mixed status” families with an undocumented adult and at least one U.S.-born child, according to the Pew Research Center. As of 2014, Pew estimated, 66 percent of undocumented adults had been in the United States for more than 10 years— enough time to form families.

Because of the rules, some mixed-status families have already been forced into exile to stay intact. They’ve suffered financial strain and emotional trauma. Others, to keep jobs here, have had to live separately from spouses and children who are stuck abroad, as the Center for Public Integrity reported in 2012. Still others have chosen not even to try for green cards, and instead live every day worrying that a spouse could get picked up in a workplace raid or due to a traffic stop.

For years, these citizens have tried to persuade Congress unsuccessfully to reform these penalties— arguing that the bars have done nothing to deter illegal immigration and instead are a disproportionate punishment falling on Americans. Multiple bills with some bipartisan support have so far stalled in Congress. 

President Obama’s administration did make a slight change that’s aided some in this community; in 2013 he issued a regulatory tweak allowing spouses seeking green cards to apply for waivers from banishment without having to leave the country, as had been required. However, since many spouses had already been advised they would not qualify for the narrow criteria for a waiver, they were unable to benefit from the regulatory change.

“Our members have lived in this unknown fear for years that at any given moment their lives can be wrecked, irreversibly,” Alexander said. With Trump’s election, “that’s been ratcheted up by 10 times.”

Hard-line approach

Indeed, Trump’s position sounds uncompromising.

“For those here today illegally who are seeking legal status, they will have one route and only one route: to return home and apply for re-entry,” Trump said in his Arizona speech. “Our message to the world will be this: You cannot obtain legal status, or become a citizen of the United States, by illegally entering our country.”

Another group whose future now appears in peril: more than 700,000 so-called “Dreamers,” young people whose parents brought them here as children and whom President Obama and a number of Republican leaders have defended as Americans in all but documents. So-called DREAM Act legislation that would have provided Dreamers an earned path to legal status has failed repeatedly. So in 2012, Obama issued an executive order granting some Dreamers who registered with the government temporary protection from deportation and two-year work permits that must be renewed.

Obama has urged Trump to show compassion for Dreamers. “It is my strong belief that the majority of the American people would not want to see suddenly those kids have to start hiding again,” Obama said. But Trump has said he’ll “immediately terminate” Obama executive orders like the Dreamer policy. He’s also said that only after the border is controlled “will we be in a position to consider the appropriate disposition of those who remain.”

In an interview with TIME magazine this month, Trump suggested “we’re going to work something out” for Dreamers. They “got brought here at a very young age, they’ve worked here, they’ve gone to school here,” he said. “Some were good students. Some have wonderful jobs. And they’re in never-never land because they don’t know what’s going to happen.”

One of Congress’ hardliners, Rep. Steve King, R-Iowa, didn’t sound happy with the softer tone. He told CNN that “among these Dreamers are some awfully bad people,” and he added: “Will those children point to their parents and tell us, ‘You really need to enforce the law against my parents, because they knew what they were doing when they caused me to break the law?’ ”

A circle of immigration-restriction activists who favor a tough line — and who say they’ve advised the Trump campaign — have historically expressed little mercy for Dreamers.

When a version of the DREAM Act failed to pass in 2007, Roy Beck, the executive director of NumbersUSA, one of these groups, said he had no sympathy for the young people.

“I have no trouble looking at them in the eye, and saying, ‘Too bad. Life is hard,’ ” Beck told TheSacramento Bee. Beck, whose group has mobilized voters to oppose Dream Act proposals, told Reuters this fall that he met Trump in New York during the campaign.

NumbersUSA declares a policy of “no to immigrant bashing" on its website and contends its concern is over-population. But the Southern Poverty Law Center has labeled NumbersUSA a hate group — which Beck strongly protests — due to racially charged remarks expressed by a founder and Beck associate.

Chris Kobach, the controversial Kansas secretary of state, has also been among those counseling Trump on immigration matters. Before he held elected office, Kobach pressed several lawsuits to deprive Dreamers of the right to pay in-state tuition to attend public colleges where they grew up. His suits have failed in California, Nebraska and Kansas.

Kobach was also the architect of an Arizona law that required police there to demand proof of legal status for people suspected of being undocumented. The U.S. Supreme Court reviewed that law and upheld the power of police to investigate a person’s status under certain conditions. But as part of a civil-rights lawsuit settlement Arizona stopped requiring police to demand evidence of legal status or hold people for prolonged periods solely for that purpose.

Back in 2012, while advising GOP presidential candidate Mitt Romney, Kobach argued that within four years, if “attrition through enforcement were made the centerpiece of national immigration policy, you could see the illegal alien population cut in half.” The battle of Dreamers could shift to Congress again soon: GOP Sen. Lindsey Graham of South Carolina, a longtime supporter of legal status for Dreamers, plans to introduce another version of the Dream Act next year.

Unforeseen consequences

Regardless of what actually happens on the policy front, though, what Anderson of American Families United fears is more collateral damage.

She worries additional Americans will be driven into exile — like Margot Bruemmer. Originally from New Jersey, Bruemmer was a college English professor when she moved with her young children and undocumented husband in 2005 to Veracruz, Mexico. Bruemmer’s spouse learned at a green-card interview in Mexico that he was barred from entering the United State for at least 10 years. After 10 years, the couple re-applied for the green card. But he was rejected again. A devastated Bruemmer is facing a lifetime outside the United States to keep her family together.

“Begging and pleading by phone, email, and in person with senators and congressmen was in vain,” the mother of three children said in a message to friends.

Anderson questions what benefit there is for Americans “to deny life in the United States to Margot’s children.”

But Anderson conceded that mustering support for undocumented immigrants isn’t easy. A Gallup poll last July actually found that 84 percent of U.S. adults — and 76 percent of Republicans — favored allowing undocumented immigrants to earn legal status over time if they met certain requirements. Yet Anderson acknowledged the battle cry often rising above that sentiment: that the undocumented should “do it the right way,” and “get in line,” and shouldn’t be rewarded with legal status.

That rhetoric bumps up against a cold reality; the current immigration system doesn’t actually provide a way for most undocumented people to correct their status by getting in a line. Without a change in policy, many spouses of Americans or legal residents face the punitive bars blocking them from re-entering the United States. For many others, there is no line at all: Most visas for legal residency are based on marriage or other immediate family ties. Work visa categories and opportunities for employer sponsorship for green cards are extremely narrow — benefiting mostly people with so-called “extraordinary” skills, including professional athletes and models, which is what facilitated Trump’s wife Melania’s transition to the United States.

Even if a U.S. employer is eager to sponsor and “legalize” undocumented workers who’ve become trusted workers — in farming, for example, or elder care — it’s all but impossible because “unskilled” job visas are few and requests are backlogged for years. On top of that, at present, any history of crossing the border illegally or undocumented status can be disqualifying.

Americans frustrated by these barriers contrast their experiences with what they’ve heard about the future First Lady.

Melania Trump has said that she followed all visa rules when she arrived here about 20 years ago. But according to an Associated Press investigation, documents showed that Melania performed 10 modeling jobs valued at more than $20,000 while she was still on a visitor’s visa in 1996 that did not permit her to work. The jobs were performed, the AP reported, weeks before she was issued an H-1B non-immigrant temporary work visa in October 1996. Violating terms of a visa or presenting a misleading history involving a visa can result in denial of re-entry to the United States and denial of a permanent residency application. Melania obtained permanent residency in 2001, but hasn’t elaborated on how she made that transition. She became a U.S. citizen in 2006, a year after she and Trump married.

The contrast with businesses like agriculture appear stark to many — including Barry Bedwell, president of the California Agricultural Leadership Foundation. Agribusiness leans heavily Republican, but Bedwell counts himself among those dispirited by Trump’s rhetoric and worried about what comes next.

The long partnership between employers and the undocumented has been “allowed … to develop because it’s been mutually beneficial,” admitted Bedwell. Like many in agribusiness, he’s frustrated that conservatives in other parts of the country aren’t open to his point of view. But “now that we’ve moved past the campaign,” he said, “I’m hoping cooler heads will prevail.”

Bedwell is based in the Salinas Valley, and before that he was based in Fresno — two of the most productive agribusiness regions in the world. Tending and harvesting crops must be done at precise moments in time, so workers need to be available. California has much at stake in whatever the Trump Administration does here — and so do American consumers, given that the Golden State produces the majority of America’s fruits and vegetables and is the leading producer of milk — and relies heavily on undocumented laborers.

“What the agricultural community needs to do now,” Bedwell said, “is understand its vulnerabilities and play extreme defense.”

Troubling stalemate

For many, both recent history and the current situation seem counterproductive. President Bill Clinton’s administration began investing billions on fortifying the border in the mid-1990s, and President George W. Bush invested billions more. Smugglers’ fees began escalating and trips became more dangerous, so more and more workers stayed put.

Trump argues that “lower-skilled” immigrants “compete directly against vulnerable American workers, and … draw much more out of the system than they will ever pay in.” But agribusiness companies have complained at times about worker shortages in the wake of extra border security, such as occasional deployments of the National Guard, and most economists argue that American consumers have benefited overall from immigrant labor, documented or not.

Stretching back to the 1990s, a coalition of business, labor and civil rights groups have unsuccessfully pursued reform. They didn’t always agree on everything. But versions of bills they generally backed would have legalized some of the current workforce for the sake of preventing disruption in the national food supply and other industries, and to promote community and family stability. Proposals would have also overhauled the system for vetting claims of worker shortages and then admitting workers to fill jobs that aren’t necessarily considered “extraordinary” — like modeling — but essential to the economy.

Proposals included trade-offs that were uncomfortable for some. Versions of farmworker-specific legislation would have phased-in a legalization of current workers, on condition they stayed in the fields for a period before leaving for other jobs. Farmers would be expected to increase use of a guest worker program whose inefficiencies they could help reform. For some labor advocates, these provisions were a bitter pill because unions fought to end the exploitative Bracero program in 1964 that had imported Mexican farmworkers without equal rights. But labor activists were also concerned that workers were dying crossing deserts for jobs, or were undocumented and less able to fight for better treatment.

Provisions in these failed immigration bills would have also poured billions of dollars more into additional border security. And in an unprecedented step, all versions of these bills would have also phased in mandatory employer use of the E-Verify system, an online system for authenticating ID documents.

To understand why employers — and labor activists — support such broad-based reforms, Bedwell and others say, Americans need a better understanding of what’s happened in the past.

E-Verify didn’t exist when Congress and President Ronald Reagan approved the last major immigration legislation 30 years ago — a bitterly contested measure known as the Simpson-Mazzoli Act. Before the 1986 reform, it wasn’t even illegal to hire undocumented workers. Into the 1970s, employers could sponsor undocumented immigrants for green cards with greater ease. Immigration judges, too, had greater latitude to review individual cases and grant legal status.

In 1986, in addition to an amnesty, Congress mandated that employers ask to see a prospective employee’s documents indicating legal status — and then record and keep that information on file. Not complying can result in a fine. But employers aren’t expected to be experts in detecting fake documents. And with rare exception, most escape responsibility for hiring undocumented workers because the legal burden of proving they “knowingly” hired workers is difficult to meet. So the employer sanctions that were part of the legislation proved largely ineffective. And even though border control spending exploded in the mid-1990s, workers willing to risk more perilous crossings kept coming, and employers kept hiring them to fill jobs — not just on farms, but in construction and services.

Now, though, mandating E-Verify would be a potential game changer for businesses — assuming the system’s not insignificant operational problems can be smoothed out. Trump has said his administration “will ensure that E-Verify is used to the fullest extent possible under existing law, and will work with Congress to strengthen and expand its use across the country.”

The U.S. Chamber of Commerce, which led the comprehensive-immigration-reform charge for years in Washington, has produced reams of documents featuring economists’ positive take on immigration. The group points to longitudinal studies finding that immigrants boost economic growth, tax revenues and on balance push up wages for the native-born, who assume more management roles.

But since Trump’s victory, the chamber has gone silent, and is regrouping for a new era. “We’re not going to speculate on anything related to the Trump administration’s policies at this time,” a spokeswoman said in an email. “We look forward to working with the new administration and the new Congress on issues of importance to the business community, which includes immigration reform.”

Swimming upstream

Even before Trump, reform advocates like the Chamber were up against a rising tide of skepticism regarding reform.

Congress grew cold after the 9/11 terrorist attacks, and conservative talk radio and TV programs began a drumbeat of attacks against legalizing immigrants; TV personalities such as Lou Dobbs spread outlandish claims about Mexican plots to “take over” the American Southwest. Ironically, Mexican President Vicente Fox — the most pro-U.S. Mexican president in modern times — was increasingly excoriated by Dobbs and others. As wars in Afghanistan and Iraq tarnished President Bush’s popularity, he lost his ability to muster GOP support for a reform he had pushed. An influx of Central Americans fleeing violent gangs also brought a backlash.

Immigrant advocates aren’t convinced that Trump’s pledges to get tough will result in a mass exodus of people, but they do think workers will feel pain far more than employers. Bruce Goldstein, president of the nonprofit Farmworker Justice in Washington, D.C, said, “I’m worried that the current undocumented workers will be pushed further into the margins of society where they will suffer more.”

Bill Hing, a veteran immigration attorney and professor at the University of San Francisco, said his phone is “ringing off the hook now” as clients seek “an educated guess” on what Trump might do. More workplace raids might occur to “make a splash,” Hing also predicted. But employers, especially agribusiness, he said, are sure to try to enlist GOP leaders like House Majority Leader Kevin McCarthy, of Bakersfield, California, to try to fend off what they view as disruptive enforcement.

“Americans,” Hing added, “forget that there is truth to the argument that undocumented immigrants do take jobs Americans don’t want to do.” The undocumented are also consumers; local economies would suffer if the population vanished suddenly.

Among Trump’s favorite campaign stump lines was his vow to build “a great and beautiful wall” that Mexico would be forced to pay for — a vow he’s waffled on at times. He also railed against Mexico for “stealing” American jobs because U.S. corporations have factories there.

Yet despite his “America first” rhetoric, Trump himself used Mexican and Asian factories to produce his clothing line. The Washington Post reported that construction workers on Trump’s new hotel in Washington, D.C., admitted just last year that they were undocumented. Trump denied hiring undocumented workers and said the company used E-Verify to conduct screening.

In Florida, The New York Times reported that nearly 300 U.S. citizens have applied since 2010 to work as cooks, housekeepers and wait staff at Trump’s luxury Mar-a-Lago Club — but that only 17 were hired. The U.S. Labor Department, which reviews whether a business has met requirements to try to hire Americans first, certified 685 H-2B guest worker visas for Mar-a-Lago between 2008 and 2015. CNN reported that over 15 years, Trump’s businesses have filed for more than 1,250 foreign workers for various positions. Trump seemed to prefer young, attractive Eastern European or South African people, former workers told CNN.

Trump batted away these findings during the campaign, claiming there were “very few qualified” workers during the “high season” in the Mar-a-Lago area — a claim disputed by services that match employees in the area. Some news reports found that the business did little to meet requirements to advertise for workers. Mar-a-Lago justified its requests for foreign workers by saying that not enough American applicants were willing to work split shifts or part time.

Trump began suggesting in the final days of his campaign he’d go after “criminal” undocumented people first, which is already an Obama administration policy. In a transition video he released to the public on Nov. 21, Trump announced that he plans to direct the U.S. Department of Labor to investigate “all abuses of visa programs that undercut the American worker”— exactly how some in Florida reportedly felt about Trump’s recruitment of European guest workers.

“The contradictions with him are enormous,” said Muzaffar Chishti, who researches migration and is the director of Migration Policy Institute’s office at the New York University School of Law. The Migration Policy Institute is a nonpartisan think tank in Washington, D.C.

When it comes to immigration and accountability, Chishti said, “employers have been able to shift the burden downstream for years now,” to subcontractors and workers. Based on Trump’s harsh but mercurial rhetoric, Chishti added, it’s hard to imagine how Trump’s vows to police practices he has reportedly engaged in will eventually play out.

Throughout history, Chishti noted, Americans have employed foreign-born workers, and turned against them in fits of xenophobia that include labeling newcomers as “criminal” or unable to assimilate.

 “America’s always been ambivalent about immigration,” he said, “for a nation of immigrants.”

Elisa Xitco, then 6, at her home near the Mexico-California border in 2012. Elisa's father, Chris Xitco, is an American who married Elisa's mom after they met at work.  Xitco filed to sponsor his wife for legal residency. But to Xitco's shock, his wife was instead forced out of the United States until at least 2018--a punishment enacted by Congress in 1996 and phased in over time against spouses who had crossed the border illegally. Bans on spouses that can range from 10 years to life are not automatically applied to foreigners who enter on visas and violate them. Chris belongs to American Families United, which has lobbied Congress in vain to lighten these penalties. With a Trump presidency, the group now fears spouses who've opted to not try to legalize will end up detained and deported.Susan Ferrisshttps://www.publicintegrity.org/authors/susan-ferrisshttps://www.publicintegrity.org/2016/12/12/20515/trump-and-immigration-tough-talk-masks-complex-reality

Data journalism pioneer David Donald dead at 64

$
0
0

Former Center for Public Integrity data editor David Donald, a pioneer and leader in the development of modern computer-assisted reporting worldwide, died Saturday at Reston Hospital Center in Virginia after a year-long battle with cancer. He was 64.

Donald was one of the early and most successful practitioners of data-based, investigative journalism that relied on computer analysis. He became a passionate Pied Piper for such reporting, crisscrossing the United States and indeed the globe, training dozens of other journalists who then helped spread and develop the craft even further. Donald was also known for his calming influence, his sage advice on matters both journalistic and personal, his dry wit, nutty professor appearance and love of a good glass — or two or three — of red wine.

“David was as kind as he was brilliant,” said Center CEO John Dunbar. “He was an evangelist for database investigative reporting and touched so many lives. I learned so much from him. He was my friend, and I will miss him.”

Donald joined the Center for Public Integrity as data editor in 2008 and worked with a variety of teams on some of the Center’s most ground-breaking projects — they included an investigation into the top subprime lenders behind the financial meltdown to the under-reporting of campus sexual assault to the methods Medicare providers used to overcharge the government.

Donald’s work with senior investigative reporter Fred Schulte on Medicare billing was twice (in 2012 and 2014) honored with the Philip Meyer Award, widely considered the most prestigious annual award in the world of computer-assisted reporting. Judges called the 2014 entry “superb,” adding that “despite the challenges of dealing with complex and voluminous government data the Center aptly dissected the shocking shortcomings” of the Medicare Advantage program.

Over the course of his career, Donald was also honored with the James K. Batten Award, the Dart Award, the Robert F. Kennedy Award and a Peabody Award.

Prior to joining the Center, Donald served as training director for Investigative Reporters and Editors; it was in that capacity that he spread what he considered the gospel of data-powered reporting, conducting training sessions both domestically and internationally.  

Former IRE executive director Brant Houston told the IRE news blog that Donald was a talented trainer “not only of how to use data in journalism, but of how to conduct oneself with kindness, grace, humor and civility in the often rough and irascible world of journalism.”

Donald left the Center for Public Integrity in 2014, and he most recently worked as data editor at the Investigative Reporting Workshop and as data journalist in residence at American University’s School of Communications.

Earlier in his career, Donald was research and project editor at the Savannah Morning News in Georgia. He also taught as an adjunct professor at Northwestern University’s Medill School of Journalism and at Savannah State University. Donald earned a bachelor’s degree in English from Miami University in Ohio and a master’s degree in journalism from Kent State University.

No funeral is planned. Preliminary planning is underway for an event to honor Donald’s life in January at the Investigative Reporting Workshop. The family has asked that donations in Donald’s memory  be sent to IRE, where a special fund will be established in his name to further data journalism.

David DonaldGordon Witkinhttps://www.publicintegrity.org/authors/gordon-witkinhttps://www.publicintegrity.org/2016/12/12/20531/data-journalism-pioneer-david-donald-dead-64

‘Get someone up here. We’re all dying.’

$
0
0

Editor's note: Al Jazeera English produced a film version of this story as part of its "Fault Lines" documentary series.

ANACORTES, Wash. — From 500 yards away, John Moore felt the concussion before he heard it.

Moore was midway through a 6 p.m.-to-6 a.m. shift as an operator at the Tesoro Corporation’s oil refinery in Anacortes, an island town 80 miles north of Seattle. It was 35 minutes after midnight on April 2, 2010.

Up the hill from Moore, in the Naphtha Hydrotreater unit, seven workers were restoring to service a bank of heat exchangers — radiator-like devices, containing flammable hydrocarbons, that had been gummed up by residue and cleaned. Most of the workers didn’t need to be there; it was, for them, a training exercise.

Moore was monitoring the job by radio. “They were maybe two-thirds of the way to putting the bank online when I heard a noise from outside,” he said. “I felt a tremendous vibration in my feet,” followed by the whooshing sound of “a match hitting a barbecue.”

Exchanger E-6600E, part of a bank that had kept running while the other one was down, had come apart and disgorged hydrogen and a component of crude oil called naphtha, which ignited. Moore called each of the seven workers on the radio and got no response. Thirty or 40 seconds later he heard the strained voice of the crew’s foreman, Lew Janz. “Lew said, ‘Get someone up here. We’re all dying.’”

Members of the refinery’s first-responder team raced to the unit. They sprayed water on flaming, mangled equipment and burning bodies, which reignited from the heat. Debris flew. The conflagration lasted until 4 a.m.

Three of the workers died at the scene. Two more succumbed to their injuries within hours. A sixth — Janz — survived 11 days, a seventh 22. The Washington State Department of Labor & Industries investigated and proposed a record fine against Tesoro, having found that it “disregarded a host of workplace safety regulations, continued to operate failing equipment for years, postponed maintenance [and] inadequately tested for potentially catastrophic damage.” The company has since settled lawsuits filed by the families of the seven workers but is still appealing the state citation.

In a written statement, Tesoro said that while it disagrees with the Department of Labor & Industries’ conclusions, this “does not alter our focus on continually learning from incidents and improving the safety of our operations.” Moore, now retired and in fragile health, takes a darker view. “They’ve fought everything tooth and nail,” he said, “and refused to take the blame for anything.”

There are 141 oil refineries in the United States. Where they are clustered — east and south of Houston, south of Los Angeles, northeast of San Francisco — they are prodigious sources of air pollution and inflict a sort of low-grade misery — rank odors, bright flares, loud noises — on their neighbors.

They also pose an existential threat, as evidenced by the more than 500 refinery accidents reported to the U.S. Environmental Protection Agency since 1994. The Anacortes disaster occurred five years after the BP refinery in Texas City, Texas, blew up, killing 15 workers and injuring 180. It came two years before a fire at the Chevron refinery in Richmond, California, sent a plume of pungent, black smoke over the Bay Area, and five years before an explosion at the ExxonMobil refinery in Torrance, California, nearly unleashed a ground-hugging cloud of deadly acid into a city of almost 150,000 people.

These episodes and others call into question the adequacy of EPA and U.S. Department of Labor rules that have been in place since the 1990s. The former is finishing an update, due out in early 2017, that critics say doesn’t do enough to safeguard the public; the latter is years away from floating a proposal to protect workers.

The U.S. Chemical Safety Board, an investigative body modeled on the National Transportation Safety Board, lists among its highest priorities upgrades to process safety— procedures that can help prevent industrial fires, explosions and chemical leaks. The board, which makes recommendations but has no regulatory authority, has investigated 15 refinery accidents in its 19-year history and just committed to an inquiry into a Nov. 22 fire at the ExxonMobil refinery in Baton Rouge, Louisiana, that injured six workers, four critically. It has issued 112 refinery-related recommendations, nearly half of which have not been adopted.

“Underlying so many problems in this industry is production pressure,” board member Rick Engler said. “Shutting down part or all of a major refining unit costs an enormous amount of money, so there are pressures not to do so from management.”

The board’s final report on Anacortes is an indictment of Tesoro’s safety ethos: The bank of heat exchangers on which Lew Janz, Daniel Aldridge, Matthew Bowen, Kathryn Powell, Darrin Hoines, Donna Van Dreumel and Matthew Gumbel were working had a “long history of frequent leaks and occasional fires” during startup, investigators found. Tesoro “did not monitor actual operating conditions” of two of the exchangers, including the badly degraded one that ruptured, “even though it would have been technically feasible to do so.”

Tesoro could have redesigned the exchangers and automated startup procedures — things it did after the fact — so the seven workers would not have been in peril, the board said.

Instead, Tesoro chose to tempt fate. It was a mindset former workers like Maria Redin had complained about for years.

“Very few people exercised their right to stop work because of peer pressure,” said Redin, who lives in Belcourt, North Dakota, and went by her married name, Maria Howling Wolf, in Anacortes. When she, an operator, would raise a concern, managers would “pat me on the head like a good little dog” and tell her not to worry.

Redin and her colleagues used to say they worked at “God’s favorite refinery,” a wry reference to the many close calls that somehow hadn’t ended badly. This run of luck expired at 12:35 a.m. on April 2, 2010, when Redin, who had just gone to bed, heard the explosion. “I automatically assumed it was the refinery,” she said. “You could see the fire from my house. I knew they were going to need help.”

Redin got dressed and drove her pickup truck to the main gate. Sent first to a break room where the seven workers’ belongings lay untouched, she next was dispatched to the bottom of the hill on which the Naphtha Hydrotreater unit was perched. Redin arrived by bicycle and went upstairs to an old control room. There she saw Matt Gumbel, a 34-year-old operator with whom she had worked. His eyelids had been burned off. His body smoldered.

“I didn’t even recognize him,” Redin said. “He was all swollen up and laying on the floor with a blanket over him. He was naked. He was cooked, literally cooked.”

Gumbel began talking. “He was telling me to tell his dad [Paul, who also worked at the refinery] he was fine. I said, ‘Matt, you’re not OK. You look like shit.’ He kind of laughed and said, ‘I know.’” The banter continued as paramedics tended to Gumbel and Redin held his hand. Eventually, it subsided. “I could tell he was going down,” Redin said.

‘High-risk, high-reward’

At the time of the accident in Anacortes, Dr. Michael Silverstein headed the Department of Labor & Industries’ Division of Occupational Safety and Health. “I went out there not too long after the explosion,” said Silverstein, who retired in 2012. He was struck by the sheer size of the 120,000-barrel-per-day refinery, built in 1955. “Even single units are monstrous,” he said. “I remember being stunned at the scope of the unit that had blown up.”

The Naphtha Hydrotreater unit’s purpose was to remove sulfur and other impurities from raw naphtha so it could be turned into high-octane gasoline stock. The cylindrical, tube-filled heat exchangers inside the unit were used to conserve energy: they preheated the feed as it made its way to the reactor and also cooled the reactor effluent.

The more Silverstein learned about what had happened at the refinery, the angrier he became. He was told about the troublesome heat-exchanger leaks during startup; workers routinely used steam lances to suppress flammable vapors. “It was unfathomable to me why Tesoro had decided to place workers in positions of known danger rather than making more expensive but definitive fixes to these leaking units,” Silverstein said.

He learned about a corrosion mechanism called high temperature hydrogen attack, or HTHA, which can cause tiny cracks in equipment, like the exchangers, subject to intense heat and pressure. He learned that the company hadn’t done the sorts of inspections required to find these micro-cracks, which can turn into bigger ones.

Silverstein was bothered in particular by a 1999 Tesoro document stating that it was “economically attractive” to push reactors and exchangers to their limits in older units. The document urged “very close control and monitoring of operating conditions, coupled with frequent inspection” under such circumstances.

The state’s investigation took six months, the maximum allowed by law. On Oct. 1, 2010, the Department of Labor & Industries cited Tesoro for 44 violations — 39 classified as “willful,” five as “serious” — and proposed a fine of just under $2.4 million. Tesoro gave notice of appeal three weeks later and subsequently filed a series of legal motions that sent the case into limbo for more than 4 ½ years. Finally, in July 2015, what would turn out to be ayearlong proceeding began before the state Board of Industrial Insurance Appeals. Over the course of that year, 102 witnesses gave testimony.

In his opening statement in Mount Vernon, a small city southeast of Anacortes, on July 21 of last year, Assistant Attorney General Brian Dew, representing the Department of Labor & Industries, outlined the state’s case. “Tesoro is in a high-risk, high-reward business, but with a twist,” he said. “They take the higher reward, but it’s the employees that are put at risk.”

The exchanger that blew, E-6600E, and its twin, E-6600B, were made of carbon steel, a material known for its susceptibility to HTHA. Tesoro, Dew said, never inspected either for this condition. “As you see the evidence that’s offered in this case,” he told Industrial Appeals Judge Mark Jaffe, “you will see that this tragedy did not have to happen.”

Tesoro’s outside counsel, Peter Modlin of San Francisco, spoke next. The company “could not have foreseen the event giving rise to the April 2010 incident,” he said, and there was no evidence that it violated any regulations.

Modlin explained that Tesoro had acquired the refinery in 1998 from Shell Oil Company, which had installed the E-6600 heat exchangers 26 years earlier. Tesoro retained corrosion specialists who determined that the E and B exchangers weren’t vulnerable to HTHA, Modlin said; therefore, they weren’t inspected for it. The A and D exchangers, which ran hotter, were.

Modlin rebutted the allegations in the Labor & Industries citation and promised, “There will not be a shred of evidence presented by the department that Tesoro was indifferent to workers’ safety.”

The following 12 months brought a parade of witnesses, including the CEO of Tesoro, Gregory Goff, and his predecessor, Bruce Smith.

In a deposition, Smith, who retired on April 30, 2010, described how he helped turn a $250 million company that was near bankruptcy into a $7 billion powerhouse, a company that went from owning one refinery to seven. Smith recalled being awakened by a phone call the morning of the blast and driving to a crisis center that had been established at Tesoro headquarters in San Antonio. He and his wife arrived in Anacortes that evening and “immediately went to the hospital to meet with families,” he said.

Dew: “As far as you know, was anyone at Tesoro responsible for the April 2, 2010, explosion and fire?”

Smith: “No.”

Goff was in China, finishing his tenure at ConocoPhillips, at the time of the accident. Just as Smith professed no knowledge of what happened after his departure from Tesoro — “When I left, I left” — Goff said he couldn’t speculate on events prior to his arrival in May 2010. Testifying by telephone during one of the Mount Vernon hearings, Goff said he thought “the company responded extremely well” to the catastrophe and assured Dew that “a core value of everything we do is our commitment to environmental health and safety.”

In a deposition, the company’s former chief operating officer, Everett Lewis, said it was unfair to blame him or anyone else at Tesoro for the loss of life in Anacortes. “It was a set of circumstances that were set up earlier in the life of the refinery that really led to the incident,” Lewis testified. The heat exchangers, he said, were arranged by Shell in a way that increased the likelihood of “fouling” — clogging, which could cause the temperature to spike — and other problems. “That was easier to see after the fact,” Lewis said. “It was very difficult for anybody to recognize that in the course of regular operations.”

A Shell spokesman declined to comment.

Until exchanger E split open, Tesoro had assumed that it and its duplicate, exchanger B, weren’t subject to HTHA as long as they operated below the so-called Nelson curve for carbon steel — a set of temperature and pressure parameters developed by engineer George Nelson in 1949 and adopted by the oil industry’s primary trade group, the American Petroleum Institute — API — in 1970. Tesoro built in an additional safety factor, lawyer Modlin said.

It wasn’t enough. As the Chemical Safety Board noted in its final report on the accident, one part of exchanger E found to have been damaged by HTHA was running 120 degrees below the curve. A metallurgical analysis by a consultant found a crack in exchanger B, undetected by Tesoro, that was 48 inches long and one-third of an inch deep. “Had somebody crawled inside that shell,” one worker remarked at a public meeting held by the board, “they would’ve seen it with a flashlight.”

API itself warned in 2008 of a trend among refiners to “push equipment to the limits … for economic reasons …” and said “the concept of a simple boundary between safe and unsafe operating conditions” was flawed.

The same year, Tesoro began its own investigation of fires, leaks and temperature excursions within the Naphtha Hydrotreater Unit and the adjoining Catalytic Reformer Unit in Anacortes. A confidential report introduced as evidence in the appeal hearing documented 14 incidents in the two units from 2003 through 2007 and bemoaned “complacency in the workforce.”

For a time, the report said, one of Tesoro’s mechanical engineers was fully engaged in stopping the exchanger leaks, successfully pushing for repairs and changes in startup and shutdown procedures. After the engineer left the company, “it appears that the level of concern … did not get communicated to his replacement and no further progress was made.”

And so it happened that seven workers were stationed around the leak-prone bank of exchangers on the blustery night of April 1, 2010.

Patrick Neely was working as an operator in the blender unit, several hundred yards away. Just after midnight, “I was outside in the parking lot,” he testified in Mount Vernon. “Saw a fireball. Stepped around the building and thought an airplane had crashed into one of our cooling-water towers.”

Neely assembled with the other first responders. “We rolled out hoses and started cooling the vessel, right next to where the fire was originating from, just to keep it cool, so there was no other explosions,” he said. “At the same time there was a body in front of us, burning. We were trying to put the body out, with no luck.”

Shaken residents of Anacortes, a city of 16,000 whose business district lies about five miles northwest of the refinery, called 911. At least one thought there had been an earthquake.

In his closing argument on July 21 of this year, Dew, the assistant attorney general, said that from the time it acquired the Anacortes refinery until the night of the accident, Tesoro showed “systemic apathy” toward safety. Violating its own policy, it never performed internal inspections of the E and B heat exchangers to see if they were being weakened by HTHA, Dew said. It seemed uninterested in learning about the refinery’s idiosyncrasies before closing the purchase with Shell in 1998. “If you are buying a car, are you not going to look under the hood?” Dew asked. “Well, apparently that’s how Tesoro operates.”

Tesoro “was anything but indifferent to safety,” said Modlin, its lawyer. Every operator “had authority to stop work or even shut down a unit if he or she felt there was a hazard.” Incidents and near-misses were closely tracked.

Modlin said the state had not proved “plain indifference” on the company’s part, the foundation of the willful violations. “Mistakes,” he said, “are not enough to establish willfulness.”

Judge Jaffe has weighed the evidence against Tesoro for nearly five months. It’s unclear when he will rule. Either side can appeal his decision.

‘A quiet but deadly crisis’

In its written statement, Tesoro said that safety is “integral part of everything we do … and we strive for continuous improvement in our performance.

Steve Garey, who retired from the Anacortes refinery in 2015 after almost 25 years and served as president of the United Steelworkers local, said that while some positive changes were made after the 2010 accident, upper management at Tesoro remains “contemptuous” of its work force and is “hiding behind incredibly permissive process safety regulations.”

Those regulations grew out of a string of catastrophic events in the 1980s, among them a chemical leak at a Union Carbide pesticide plant in Bhopal, India, that killed thousands in December 1984, and a near-miss at a sister plant in Institute, West Virginia, eight months later. Mishaps occurred with alarming frequency in the United States throughout the decade. In May 1988, the Shell refinery in Norco, Louisiana, exploded, killing seven workers and injuring 42. In October 1989, the Phillips Petroleum chemical plant near Houston blew up, killing 23 and injuring 132.

By 1990 Congress had seen enough. In amendments to the Clean Air Act, it ordered the Labor Department’s Occupational Safety and Health Administration — OSHA — and the EPA to address what then-Rep. Henry Waxman, a California Democrat, years earlier had called “a quiet but deadly crisis.”

In 1992, OSHA came out with its Process Safety Management standard, which requires industries using “highly hazardous chemicals which may be toxic, reactive, flammable, or explosive” to identify and address vulnerabilities, train workers in emergency-response procedures and take other actions. Four years later the EPA published its Risk Management Program rule, which sets out similar requirements along with a directive that the companies most likely to hurt or kill large numbers of people prepare worst-case accident scenarios and update them every five years.

These scenarios — which must be viewed in person and can’t be photocopied or photographed because of what the EPA describes as security concerns — are decidedly grim. The one for the Tesoro refinery in Anacortes is less daunting than most: the refinery’s remote location on March’s Point, in Fidalgo Bay, means that only 33 members of the public would be in harm’s way in the event of a vapor-cloud explosion, the company estimates. Contrast this with, say, an all-out release of hydrofluoric acid from the PBF Energy refinery in Paulsboro, New Jersey, just south of Philadelphia, which, PBF calculates, would put 3.2 million people at risk of injury or death. Or a discharge of the same chemical, known as HF, from the Marathon Petroleum Corporation refinery in Texas City, near Houston, which would threaten 670,000.

A modified form of HF nearly escaped from the ExxonMobil (now PBF) refinery in the Los Angeles suburb of Torrance last year. At a public meeting there in January, Chemical Safety Board Chairwoman Vanessa Sutherland explained how an explosion in the refinery’s hydrocarbon-choked electrostatic precipitator, a pollution-control device, had sent airborne an 80,000-pound piece of debris, which narrowly missed a tank of modified HF 80 feet away. Had the tank been pierced, Sutherland said, there could have been a “catastrophic release of extremely toxic [acid] into the neighboring community.”

The Torrance scare came not quite two years after an explosion at a fertilizer storage and distribution business in the town of West, Texas, killed 15 — a dozen volunteer firefighters and three members of the public — and injured 260. The blast moved President Obama in August 2013 to issue Executive Order 13650, which called on the EPA, the Labor Department and other federal agencies to come up with preventive steps beyond those already mandated by law.

The EPA, which declined to make any of its officials available for interviews, has since proposed an updated version of its risk-management rule that could become final as early as January. It dictates additional hazard analyses and emergency-preparedness measures but in the view of the Chemical Safety Board and others — notably the Coalition to Prevent Chemical Disasters, with more than 100 member groups — doesn’t go far enough. For example, it requires only a fraction of the facilities that pose dangers to “consider” inherently safer technologies while pondering risks. This “permissive language,” the board said in a written comment to the EPA in May, means a company could “poorly perform the analysis and still satisfy the requirement.”

Who would be against safer technologies and other advances? Any number of corporations, trade associations and politicians. Among the 61,716 comments the EPA received were missives from the American Chemistry Council, which complained about the paperwork burden process analyses would impose on its members; the attorneys general of Texas and Louisiana, who said they feared new transparency provisions would encourage “those with nefarious motives”; and Sens. James Inhofe, David Vitter, John Barrasso and Shelley Moore Capito, all Republicans, who didn’t like the idea of third-party safety auditors prying into operations at their constituents’ plants.

The Labor Department is moving more slowly than the EPA. “We’re probably a couple of years away from a proposal” to revamp OSHA’s process-safety standard, said Jordan Barab, the department’s deputy assistant secretary for occupational safety and health. An overhaul is badly needed, said Kim Nibarger, who chairs the United Steelworkers national oil bargaining sector. “There’s no teeth to it,” he said. “If you develop a written plan, you’re basically in compliance with the standard. There’s no need to prove the plan is going to result in any improvements.”

After the BP-Texas City disaster in 2005, OSHA officials looked at inspection data and found that oil refineries accounted for more worker deaths than any other industry category covered by the standard. In 2007, the federal agency — along with many states that have their own versions of OSHA, such as Washington and California — launched a nationwide refinery inspection blitz that lasted four years. All told, 1,588 federal citations were issued, 70 percent of which involved process safety. A year before the Anacortes accident, the Washington State Department of Labor & Industries cited Tesoro for 17 serious violations as part of the program.

At this early stage, the Labor Department is considering a number of enhancements to its process-safety rule. It might, for example, extend coverage to oil and gas drilling, which are exempt at the moment. It might deal with reactive chemicals — substances that generate heat or toxic fumes when combined. It might broaden stop-work authority to include contract employees and force managers to sign off on safety recommendations they approve — or reject. It might make companies log near-misses.

An oil refiners trade group already has registered objections. In written comments, American Fuel & Petrochemical Manufacturers argued that the ideas under consideration “will not only fail to significantly reduce operational risks at covered facilities in our industry, but may actually undercut the safety benefits of the current [standard] … and will add significant, unnecessary and unjustified compliance costs to an already costly program.”

Given what appears to be a regulation-averse White House on the horizon and a Republican-controlled Congress, it’s hard to know how the EPA and OSHA efforts will play out. This much is clear: the industries that would be affected by any new rules have extraordinary influence. The American Petroleum Institute, for example, spent $69 million on lobbying from 2006 through 2015, according to the Center for Responsive Politics, the American Chemistry Council $77.4 million. During the 2016 election cycle, API’s political action committee gave $281,250 to federal candidates, 85 percent of which went to Republicans. The chemistry council’s PAC handed out $450,000, 73 percent to Republicans, while American Fuel & Petrochemical Manufacturers’ PAC gave $172,000, 95 percent to Republicans.

California is moving ahead on its own. In August 2013, a year after a corrosion-related fire at the Chevron refinery in Richmond, northeast of San Francisco, filled the skies with smoke and sent 15,000 people to hospitals and clinics, Democratic Gov. Jerry Brown convened an interagency refinery task force and asked it to find ways to amplify safety and emergency response.

That exercise spawned a 2016 proposal by the California Environmental Protection Agency and the California Department of Industrial Relations that would, among other things, make refiners adopt “inherently safer designs and systems”; give workers authority to shut down units for safety reasons; and require annual public reporting of safety metrics.

Stricter rules could have economic benefits as well as save lives. A state-commissioned study by the RAND Corporation found that while compliance costs for owners of California’s 19 refineries could be as high as $183 million a year, the average cost of the three major accidents that have taken place since 1999 was at least $220 million. An outage triggered by the explosion in Torrance last year cost California drivers nearly $2.4 billion, “which took the form of a prolonged $0.40 [per gallon] increase in gasoline prices,” researchers found. This shaved $6.9 billion off the state’s economy, according to the study.

Nonetheless, at the most recent public hearing on the proposal, in September, Big Oil pushed back, this time through the Western States Petroleum Association. The group produced its own consultant’s report, which claimed the RAND study was methodologically unsound and greatly underestimated industry costs. It asked, in written comments, why “less costly and less burdensome alternatives” to the proposed rules weren’t considered.

The two California agencies are still tinkering with a final regulation, which must be out by July 15 of next year; otherwise, the entire process will start over. Washington has formed an advisory committee and is mulling a similar initiative.

Meanwhile, problems keep turning up.

In August, the Chemical Safety Board issued an industrywide alert on high temperature hydrogen attack, the metal-weakening phenomenon that had lethal consequences in Anacortes. The board said the American Petroleum Institute’s updated operating limits for carbon-steel equipment did not take into account all the conditions that had led to the rupture of heat exchanger E. “The use of a [Nelson] curve not incorporating significant failure data could result in future catastrophic equipment ruptures,” the alert warned.

In short, the horror in Anacortes could be repeated. An API spokesman did not respond to requests for comment.

Painted toenails

April 2010 was a ghastly month for American workers. The Tesoro accident on the 2nd was followed on the 5th by the Upper Big Branch coal mine cave-in, which killed 29 miners in West Virginia, and on the 20th by the immolation of the Deepwater Horizon drilling rig in the Gulf of Mexico, which killed 11 workers and put 5 million barrels of crude into the sea.

The families of the seven who died in Anacortes settled civil lawsuits against Tesoro and Shell for a collective $39 million in 2014. But Tesoro’s appeal of the state fine — which amounts to less than two-tenths of one percent of the $1.54 billion in profits the company reported for 2015, or slightly more than 10 percent of the $23 million CEO Goff received in total compensation that year — has left an open wound.

“It’s disgusting,” said Estus “Ken” Powell, a retired farm-equipment salesman who lives in Mount Vernon. His daughter, Kathryn Denise, known as K.D., was 28 the day she died. Mechanically inclined and unintimidated by the dangerous, male-dominated environment, K.D. had gone to work at Tesoro in 2008. She’d volunteered to help restart the bank of heat exchangers on the night of the accident.

A 1:15 a.m. phone call from K.D.’s boyfriend, whose father worked at the refinery, sent her parents on a panicked excursion. They drove first to Island Hospital in Anacortes — where K.D., swelling rapidly from her burns, was wrapped in bandages from head to foot and induced into a coma — then to Harborview Medical Center in Seattle, a Level I trauma and burn center to which she was to be airlifted. Her parents got there before the helicopter.

K.D. died at 8:05 a.m. Her father was able to recognize her only by her painted toenails.

“It still hurts,” Powell said, sitting at his dining room table. “It hurts deeply.” His wife, Connie, stayed in a bedroom and would not join the conversation — still too upset, Powell explained.

The explosion and its aftermath afflict Matt Gumbel’s family as well. His father, Paul, was working at the refinery that night and helped fight the fire. A victim of post-traumatic stress disorder, he recoils at loud noises and is easily enraged. “I react badly to a lot of different things,” he said. “On occasion I just treat people like crap.”

Paul twice went back to work after his son’s death — “a mistake,” he said — and finally retired on disability in 2014. He seethes over the Tesoro appeal and assumes it has to do more with the company’s bottom line than any out-of-pocket costs. “Any time a corporation gets some kind of black mark against it, the stocks drop,” he said.

Matt’s mother, Shauna, explained how the grieving process had unfolded for her. “The first year it’s more robotic,” she said. “It’s like you’re looking through a window, watching life pass you by. The second year you’re no longer looking through that window. You’re actually living that.” Matt’s sister, Amy, now 38, had lost 105 pounds prior to his death; she regained all of the weight, having found no time to go to the gym or watch her diet. “Life just kind of stopped,” she said.

In its statement, Tesoro said it “learned much” from the accident. “Focusing on personal and process safety is an integral part of everything we do at Tesoro and we strive for continuous improvement in our performance,” the company said.

In 2014, however, four workers were burned by sulfuric acid in two consecutive months at Tesoro’s refinery in Martinez, California, east of San Francisco. The Chemical Safety Board later documented 13 cases in which others at the refinery had been sprayed with, and sometimes burned by, the acid from 2010 through 2013.

“The fact that these incidents continued for an extended period demonstrates a culture that does not effectively prioritize worker safety,” the board said. (Tesoro says it conducted “an extensive review of procedures, controls and training” in Martinez and made improvements after the 2014 accidents).

In September, Tesoro agreed to pay $325,000 to settle an EPA complaint alleging it had violated provisions of the risk-management rule in Anacortes, where flammable chemicals such as isobutene, pentane and hydrogen are handled. Some operating and emergency procedures were unclear or incomplete, the EPA said. A Tesoro spokeswoman did not respond to requests for comment; the company neither admitted nor denied fault in the settlement agreement.

Not quite three years ago, the Chemical Safety Board held the first of two public meetings in Anacortes. Emotions were raw. Ken Powell, Maria Redin and Steve Garey spoke. Technical experts discussed deficiencies in the Nelson curve and the metallurgical quirks of carbon steel.

It was Brian Hughes, however, who tied it all together.

Hughes, a root-cause analysis consultant out of Seattle, said he investigated failures in the oil, chemical and aerospace industries. These failures, he said, could often be traced to “a big financial motive to get things up and moving as fast as possible.”

Hughes talked about an acceptance of risk that is engendered on Wall Street and filters down through a company’s management ranks. Losses on one side of the ledger can be overcome by gains on the other. Hazards feel remote.

Workers like the seven who died in Anacortes are “at the sharp end” of this calculus, Hughes said, “and they aren’t able to diversify that away.”

The Tesoro oil refinery in Anacortes, Washington.Jim Morrishttps://www.publicintegrity.org/authors/jim-morrishttps://www.publicintegrity.org/2016/12/13/20523/get-someone-here-we-re-all-dying

Lobbying muscle may help tech titans trump Trump

$
0
0

The conventional wisdom in the nation’s capital is that President-elect Donald Trump is bad news for Silicon Valley technology giants and their policy agendas. And it’s easy to see why that’s the script.

Throughout his campaign, Trump teed off on internet companies. He theorized that Amazon.com founder Jeff Bezos bought The Washington Post in 2013 to influence federal policies and warned the largest online commerce retailer it would “have … problems” if he became president. Trump ridiculed Facebook Inc. founder Mark Zuckerberg’s pro-immigration stance. And Trump charged Google Inc. with favoring Hillary Clinton by prioritizing positive news stories about her in search results.

Even Trump’s invitation to tech’s biggest executives to meet him in New York this week could result in a frosty encounter.

But dig a little deeper and a more complex tale emerges. In recent years, internet firms and their trade associations have spent lavishly to become some of the most powerful influencers in Washington, shaping a range of policies that extend from immigration to privacy to taxes. And that may be difficult to change. Companies such as Alphabet Inc. (Google’s parent), Facebook Inc., Amazon.com Inc., and their trade groups such as the Internet Association spent $50.9 million on lobbying in 2015, more than four times what they spent in 2009, according to data compiled by the Center for Responsive Politics and the Center for Public Integrity. Campaign contributions from these technology companies, many less than 10 years old, quintupled between 2009 and 2016.

The investments reflect lessons sometimes painfully learned. Just a few years ago, America’s technology companies held a bemused disdain for Washington, which they saw as an anachronism in the emerging digital culture. But times have changed, and so have the stakes— as digital devices and apps have advanced to collect more of consumers’ personal information.  So internet companies have turned their sights and pocketbooks on Congress and additionally have involved themselves on boards and committees that inform the agencies writing oversight rules.

In 2003, at the tender age of 5, Google hired its first two lobbyists, and spent a comparatively paltry $80,000. In retrospect, it almost seems quaint. In 2015 the company had 84 lobbyists, spending $16.7 million, coming in just short of the top 10 biggest spenders, according to the Center for Responsive Politics. Facebook, a relative newcomer in Washington, has ramped up its spending from a scant $208,000 in 2009 to nearly $10 million last year, with 31 lobbyists, according to CRP. More recently, Twitter and Uber have come to Washington spending millions more. Overall, internet companies, as the Center for Public Integrity defined them, now employ nearly 500 lobbyists in Washington — almost three times the number just five years ago — to weigh in on everything from privacy to patents to antitrust to security.

The digital companies, which additionally include Yahoo Inc., eBay Inc. and Netflix Inc., have also grown more comfortable in recent years with their newfound power, showing willingness to push back hard on bills or take other actions that may affect them, said a senior Senate staffer who works on consumer privacy issues.

The result: a veritable freeze for the past seven years in new laws or regulations covering such issues as consumer privacy, which for decades was an annual rite of passage in Congress. Same for securing data. Meanwhile, the emergent giants have succeeded in holding on to controversial policies they favor, like specialized immigration visas for programmers and other tech positions.

“This is an historic shift and it has consequences,” said Alvaro Bedoya, executive director of the Center on Privacy & Technology at Georgetown University, describing the growing influence of these firms.  “Internet companies wield an outsized influence, but it's not so much the power to pass new laws as it is the power to say ‘no.’”

Even for recent rulings that Republicans opposed — such as net neutrality, which blocked internet providers from creating faster lanes for those who can pay — internet companies may not lose all the hard-won ground they gained.

“Deals will be cut,” said Jeff Chester, executive director of the Center for Digital Democracy, a digital rights group in Washington, D.C, “This is a new political battleground here. In the initial start of the Trump administration, it’s going to be all about wheeling and dealing.”

Despite Trump’s animosity towards an industry that has favored Democrats, the digital titans are well placed to negotiate some compromises, even on immigrant visas for technology jobs, which Trump has both supported and opposed, and on net neutrality, in which internet providers and the online content producers are likely to work out some kind of compromise. And just three weeks after the election, Financial Innovation Now, a group formed by Google, Amazon, Apple Inc., Intuit Inc. and PayPal that’s pushing financial reforms for digital commerce, sent Trump a letter laying out possible changes to support online commerce.

“Your business experience, unique for any incoming President in history, offers a rare leadership opportunity that we believe sets the stage for modernizing some of our most antiquated financial rules,” wrote Brian Peters, executive director of Financial Innovation Now.

New lineup  

No internet company has ramped up its Washington presence more than Google, which moved into a new office just a few blocks from the Capitol in 2014, where employees have access to a video game room and nap capsules. Shortly after the office opened, Google held a party featuring peach cobbler milkshakes, meatball stations and “molecular” gin and tonics. In attendance were numerous politicians including Rep. Darrell Issa, R-Calif., who was a member of the House Judiciary’s subcommittee that oversees intellectual property and the internet, and Sen. Chuck Grassley, R-Iowa, who was a member of that chamber’s Judiciary Committee and sat on the panel governing antitrust, competition policy and consumer rights, all hot topics for the technology industry.

Since 2009, when President Barack Obama took office, Google has spent more than $90.7 million on lobbying, more than twice any of its closest rivals Facebook, Amazon.com and Yahoo. The company has retained 85 lobbyists this year, 10 of whom are in house, headed by Susan Molinari, a former GOP member of Congress from New York City. Among its outside lobbyists: two-time presidential candidate and former House Majority Leader Richard Gephardt and Tony Podesta, brother of Hillary Clinton campaign chairman John Podesta. Podesta’s bio boasts that he is “one of Washington’s ‘super lobbyists.’” Nearly three out of four of Google’s lobbyists have previously worked in Congress, the White House or in a government agency. Because Google’s business operations touch on almost every aspect of American lives, it lobbies on an array of issues, from patent and copyright law to taxes to immigration to driverless cars.

Google, along with other internet companies, has also learned that giving money to trade groups pays off in influencing policy, or stopping it. Google, Facebook and Amazon, along with 37 other internet companies that include the likes of eBay, Netflix and LinkedIn, fund the Internet Association, the self-proclaimed “voice of the internet economy” that was created in 2012 and already ranks among the largest internet lobby spenders. Other trade groups that lobby on the companies’ behalf: the Internet Commerce Coalition and the Interactive Advertising Bureau.

Internet firms have also joined the more established and influential trade groups in Washington. Google alone belongs to 43 trade groups and associations that lobby lawmakers and regulators on policies that include not only digital advertising, but wireless technology, cybersecurity and unmanned aerial vehicles. Among the 43 is the U.S. Chamber of Commerce, which perennially ranks as the biggest lobby spender in Washington.

It doesn’t stop there. Google lists on its website nearly 100 — just “some examples,” Google says — “third-party organizations” that it supports because their “work intersects in some way with technology and Internet policy.” These groups publish academic research (the left-leaning Brookings Institute, the conservative Heritage Foundation), are involved in advocacy (the Consumer Federation of America) and are powerful lobbyists in their own right (the AARP).

Google didn’t respond to repeated requests for comment. Facebook and Amazon declined to comment.

Flexing muscle

Internet companies’ rapid buildup of spending in Washington has affected a wide range of policies, including cybersecurity, taxes, immigration, transportation and, perhaps most dramatically, consumer privacy.

For literally four decades, lawmakers regularly passed bills that expanded privacy protections for consumers — about a law every two years on average. In 2009, as part of a massive economic recovery bill, lawmakers expanded the scope of who must protect Americans’ health information from disclosure, to include just about anyone who has access to the data, such as a claims processor or accounting firm hired by an insurance company.

But in the seven years since that 2009 measure, nothing. Not one major privacy bill has cleared Capitol Hill — this despite unprecedented growth in social networks, advanced technology such as wearable devices and in-home monitoring tools, as well as apps that collect ever-more personal information that companies could use to discriminate against Americans. Only two measures have passed and were signed into law: one that arguably weakens privacy protections governing video downloads and another that affirms the data collected by a car’s “black box” is the property of the vehicle’s owner — but provides no penalties for violating the law.

The post-2009 void has not been due to a lack of effort; some 92 consumer privacy bills have been proposed during the seven-year period since, according to the Center. But that period coincides with internet firms’ cascading investment in lobbying spending, along with a quintupling of campaign contributions from top internet executives and company PACs.

One bill that was no match for the internet lobby: the Location Privacy Protection Act, which Sen. Al Franken, D-Minn., one of Congress’ leading consumer-privacy proponents, first introduced in 2011 when he was chairman of the Judiciary Subcommittee on Privacy, Technology, and the Law. The bill’s aim seemed unobjectionable: outlaw so-called stalking apps, which allow someone, such as an abusive husband, to track the location of his estranged wife using the GPS coordinates emitted by her smartphone. But the bill also would have required internet companies to obtain permission from smartphone and tablet users to collect their location data and to share it with third parties, such as advertisers. Something consumers want, but internet companies and their trade groups didn’t like at all.

Lobbyists representing 54 companies and trade groups — including Google, Facebook, Yahoo, as well as trade groups such as the Interactive Advertising Bureau and the U.S. Chamber of Commerce — descended on the Hill. Calls were made, letters written, emails sent and meetings scheduled.

To encourage members of Congress to answer phone calls and emails, corporations contribute to lawmakers’ campaigns, current and former Hill staffers said. And internet companies have learned the game. The senator with by far the most campaign contributions from internet firms’ employees and their related political action committees is Charles Schumer, D-N.Y., who has been a member of the Judiciary Committee since he was first elected to the Senate in 1998. Schumer and his leadership PAC has received $278, 668 from contributions from employees with internet companies and their PACs since 2000, the second most among members of Congress. Rep. Zoe Lofgren, a Democrat who represents much of Silicon Valley, received more — $332,553—as did just-elected Ro Khanna, who also hails from Silicon Valley. The contributions include those from affiliated leadership PACs, which are associated with a single member of Congress but make contributions to candidates.

When the bill was considered by the full committee in December 2012, Schumer, who eventually voted in favor of the bill, nevertheless echoed concerns of the tech companies, saying it “still needs a lot of work to assuage the concerns of tech innovators.” Sen. Grassley, who also voted for the measure, said he had the same worries, saying the bill needed to address industry concerns that it would hurt the internet companies’ business model of collecting personal data. Grassley and his leadership PAC has received $60,950 in campaign contributions since 2000 from Silicon Valley employees, their PACs. The committee voted to advance the bill, but it never came up for a vote on the floor.

Two years later, when Franken reintroduced the bill and it was back in the Judiciary’s Subcommittee on Privacy, Technology, and the Law, first-term Sen. Jeff Flake, an Arizona Republican who had also represented the state in the House of Representatives, echoed the same concerns about harming the business model of collecting personal information.

“In our efforts to protect the privacy of Americans, which is extremely important, we got to be careful not to stifle innovation and dynamic sectors of the economy,” Flake said.

Flake has received $29,000 in contributions from the internet companies’ PACs, with most of it coming since he was elected senator and placed on the Judiciary Committee. Google, Facebook, Yahoo, eBay and Yelp Inc., which offers crowdsourced online reviews of local businesses, have all given to Flake.

The bill never came up for a vote.

All that money buys access. Typically, internet companies are relatively cordial in their opposition to a bill, say several current and former Capitol Hill staffers. Often it’s the related trade groups, which many of them belong to, that provide the muscle, they say. One of the most effective is the U.S. Chamber of Commerce, which counts Google and other internet companies as members. In 2012, R. Bruce Josten, the chamber’s top lobbyist, sent a letter to then-Judiciary Committee Chairman Patrick Leahy, D-Vt., and then-ranking member Grassley opposing the location bill. Josten said Franken’s bill would derail “the tremendous growth in wireless applications, services, and devices that has benefited both businesses and consumers.”

Large companies that typically are not considered digital enterprises also weighed in, using their associations. The National Business Coalition on E-Commerce and Privacy, which counts as members credit-tracker Experian as well as Bank of America and Charles Schwab & Co., came out hard against the legislation. In a letter sent to Leahy and Grassley two days before the location bill was reported out of subcommittee, the coalition called the measure “defective” and “counterproductive,” warning that it would threaten what was at the time “a very fragile economy.”

The Interactive Advertising Bureau, which counts Google and Facebook as members, as well as the Direct Marketing Association, which Facebook also belongs to, lobbied against the bill. About 10 consumer and trade groups, including the Center for Democracy and Technology, and the National Consumers League, supported the bill, but they didn’t or couldn’t lobby on behalf of the measure. The Location Privacy Protection Act didn’t stall because it lacked support, it got out lobbied.

“That’s how privacy bills die,” a former Hill staffer said.

In the end, proponents of the bill could count only two lobby groups that supported the legislation — the Consumers Union and the National Women’s Law Center. The two organizations, reported spending just $250,000 in their quarterly lobbying reports that mentioned the location privacy legislation. Of those identified as opposing the bill, 10 at least — including online advertising associations, internet trade groups such as NetChoice, the loyalty program marketer Affinion Group, and nontech organizations like the National Retail Federation and Bank of America — reported collectively spending nearly $155 million in quarterly reports that mentioned the bill, according to the Center’s analysis.

Franken has introduced the location bill in every Congress since then. Franken likely will try again in the new Congress.

Steady as she goes

Trump’s campaign saber-rattling aside, veteran Capitol Hill observers believe Internet companies will likely continue to have their way.  

Trump sees himself first and foremost a businessman, they say, having repeatedly boasted about his executive acumen on the campaign trail. Both Trump and Congress understand internet companies have been powering the U.S. economy for years. At one point this year, the five largest companies measured by market capitalization were all technology companies, for the first time, replacing big oil, which held three of the top five spots as recently as 2011.

So information is now the economy’s hottest commodity. And Trump, who incessantly talked about jobs, jobs and jobs on the stump, is unlikely to take actions that might retard the growth of an industry that has expanded at breakneck pace, privacy concerns aside, experts say. Revenue from selling targeted ads, for instance, is estimated to reach $33 billion by 2020, with advertising accounting for 90 percent plus of Google’s and Facebook’s revenue.

“Unfortunately, it feels like Congress and the incoming policymakers have prioritized businesses’ ability to make money and profits over consumers’ right to protect their own privacy,” said Claire Gartland, consumer protection counsel at the Electronic Privacy Information Center, which advocates for privacy and civil liberties protections.

During the Obama administration, a revolving door spun between Google and the federal government, with Google employees moving into top positions within the federal government or national political campaigns, and federal or campaign employees leaving to work for Google — with a total of 251 individuals moving one way or the other, according to the Campaign for Accountability, a government watchdog group. Google veteran Alan Davidson works as the director of digital economy at the Commerce Department and Megan Smith is the U.S. chief technology officer in the White House. Austin Schlick, general counsel at the FCC, joined Google as the company’s head of communications law, and Suzanne Michel left the FTC where she served as deputy director of the Office of Policy Planning to be a senior patent counsel at Google.

Internet companies such as Google are now evaluating their approach to the Trump administration and the Republican party, which includes possibly funneling more money to conservative groups and causes, according to a long-time tech lobbyist who requested anonymity. Just days after the election, Google posted a help-wanted ad for a “Manager for Conservative Outreach and Public Policy Partnerships,” who would act “as Google’s liaison to conservative, libertarian and free market groups,” Bloomberg reported. The new hire would also “work with partner organizations on shared projects to advance Google’s public policy goals,” according to the post.

Policy experts with Google ties are also working with Trump’s transition team. Joshua Wright, who conducted Google-supported research while a professor at George Mason University just outside Washington, D.C., is leading the team looking at the Federal Trade Commission, which oversees consumer protection and anti-competitive practices. Even top government executives with Google experience wouldn’t rule out working with Trump. Former 12-year Google veteran Smith and Michelle Lee, head of the U.S. Patent and Trademark Office and formerly in charge of Google’s patent strategy, bothtoldPolitico that they were open to a position in a Trump administration.

And even tech startups that have lobbied the government over workplace issues such as benefits might find a friend in Trump’s nomination for Labor Department secretary, anti-regulation crusader Andrew Puzder, who is a big fan of startups.

“Whatever kinship individuals at Google may have felt with this president and this administration, that will not stop them to build up a sphere of influence in the incoming administration,” said Anne Weismann, executive director of the Campaign for Accountability. “They have money and enormous power.”

Which is not to say there aren’t some nasty policy fights in the offing. There are. Republicans have been looking to kill the net neutrality rules the FCC passed in 2015 and defended successfully in court this year. Trump named to oversee the FCC transition net-neutrality-foesJeffrey Eisenach, a visiting scholar at the American Enterprise Institute, and Mark Jamison, head of the Public Utility Research Center at the University of Florida, who wrote, “Net neutrality in the U.S. is backfiring.”

Trump also met in late November with Rep. Marsha Blackburn, R-Tenn., who is vice chair of the Energy and Commerce Committee and a Trump surrogate during the campaign, to discuss numerous issues. Blackburn has led the charge against the FCC’s rules, calling them “a Trojan horse for government takeover of the Internet.”

But on issues internet firms care about writ large, Trump remains an enigma, just as he is on other policy fronts — changing positions and making it difficult to discern his intentions. For example, on so-called H-1B immigrant visas, which technology companies heavily rely on to hire programmers, engineers and other technologists — and the subject over which he took Zuckerberg to task — Trump has waffled. He said he would “end forever the use of H-1B as a cheap labor program” after he said “as far as the visas are concerned, if we need people, it’s fine.”

Like other policy issues, it’s likely the tech giants can carve out a compromise on the visas to their liking, said digital-rights advocate Chester.

That leaves lobbyists, government officials and privacy and security advocates confused — and apprehensive. But almost everyone comes back to this: Trump is a capitalist. And so he will aim to do what is right for corporations, whether they make widgets or search engines.

“I think the consumer is going to be the loser,” said Weismann of the Campaign for Accountability. “At his heart, Trump is a businessman, which will make it easier for corporations like Google and others to appeal to the bottom line as something to protect. That, he understands.”

A version of this piece ran in Fortune.com.

In this June 2014 photo, a man walks past a mural in an office on the Facebook campus in Menlo Park, Calif.Allan Holmeshttps://www.publicintegrity.org/authors/allan-holmesJared Bennetthttps://www.publicintegrity.org/authors/jared-bennetthttps://www.publicintegrity.org/2016/12/13/20538/lobbying-muscle-may-help-tech-titans-trump-trump

Federal Election Commission: a forgotten tool in Donald Trump’s ‘drain the swamp’ effort

$
0
0

Donald Trump panned “pay-to-play” politics, blasted "rigged" elections and vowed to "drain the swamp" that is Washington, D.C.

But Trump has so far forsaken the very government agency Congress created after Watergate to work as the nation’s campaign season Roto-Rooter.

The Federal Election Commission’s six commissioners, including the agency's three Republicans, say neither Trump nor his transition team has contacted them.

Trump, meanwhile, appointed Don McGahn, a former FEC chairman and preeminent enemy of campaign finance regulations, as his top White House lawyer. Representatives for the Trump transition declined to answer questions from the Center for Public Integrity about the FEC.

The developments together are evidence that the FEC — once a reasonably robust and bipartisan judge of political misdeeds — heads into 2017 even more marginalized than ever before by the very politicians it’s supposed to advise and police.

Making matters bleaker:

  • The FEC finds itself torn by internal strife between increasingly disgruntled employees and top agency managers
     
  • Its own inspector general in October stopped just short of declaring the FEC an operational disaster
     
  • While outward hostilities are less frequent, the agency’s commissioners continue to grapple with ideological impasses so pitched that at least two commissioners — Democrat Ann Ravel and Republican Caroline Hunter — barely speak to one another anymore
     
  • Every FEC commissioner but Ravel continues to serve despite his or her term having expired long ago, and some may soon quit the agency

Such FEC decreptitude also coincides with the body politic, having endured the most expensive and bruising presidential election in recent U.S. history, becoming overwhelmingly cynical and angry about how money affects elections.

Nearly nine in 10 Americans believe wealthy people will figure out new ways to influence politics, regardless of whether campaign finance laws are changed, according to a new Center for Public Integrity/Ipsos poll conducted in early December.

The poll also indicates that more than seven in 10 Americans want the federal government to impose moderate or strict contribution limits on super PACs — technically independent political committees that may raise and spend unlimited amounts of money to advocate for or against candidates. They are not supposed to “coordinate” their spending with candidates’ campaigns.

Together, super PACs, politically active nonprofits and similar groups spent more than $743 million to influence the 2016 presidential election alone, the Center for Responsive Politics calculated. They include super PACs with close ties to Trump, Democrat Hillary Clinton and other also-ran presidential candidates such as Republicans Jeb Bush, Ted Cruz, John Kasich and Marco Rubio.

The FEC’s newly minted chairman, longtime commissioner Steven Walther, will attempt to orchestrate his agency’s discord into something modestly more symphonic, at least on a couple of imminent matters: overseeing the agency’s move to a new headquarters and completing an overhaul of its outmoded website.

He defended the agency’s relevance, particularly as a campaign finance data clearinghouse.

“People who complain about the FEC would complain a lot more if it wasn’t there,” said Walther, a Democratic appointee who identifies as an independent and also served as agency chairman in 2009. “Sure, people here have strong views and don’t always agree. I wouldn’t expect anything else, and we’ll do what we can to work together.”

Outgoing FEC Chairman Matthew Petersen last year vowed to dial down intra-commission acrimony, which at its worst prompted bizarre, public debates about men’s nipples and space aliens. He concurred that 2016 is proof “we can disagree without being disagreeable” and “operate in a collegial manner.”

But Walther acknowledged he’s all but powerless to break deadlocks on the agency’s thorniest issues, such as defining political “dark money” or determining what constitutes illegal political activity.

Take the case this year of a coal company allegedly coercing employees to attend political rallies and make contributions. The commission deadlocked 3-3 along ideological lines, as it has on a variety of issues, and the matter died on their desks. Or another 3-3 case where a North Carolina nonprofit organization that seemingly existed only to promote Sen. Thom Tillis, R-N.C., avoided registering as a political group and disclosing its funders despite protests from Democrats.

“Steve is an extremely gracious person who will make every effort to reach consensus,” said Ravel, who told the Center for Public Integrity that she will resign her seat no later than May, when her term expires. “But I can’t imagine anything changing at the agency except for it to become even more dysfunctional, the stalemates on significant matters to continue.”

In short, Democratic commissioners accuse their Republican colleagues of refusing to enforce some campaign finance rules at all. Republican commissioners argue that the Democrats regularly attempt to enforce campaign finance rules that simply don't exist.

Herein lies the root of the FEC’s existential problem: today’s commissioners frequently can’t agree on what the rules even are — something agency leaders from years past say wasn’t usually true.

First: repairing damage

Foremost on Walther’s immediate agenda is some internal housekeeping: walking floor-by-floor through the FEC’s nine-story building to speak face-to-face with the agency’s rank-and-file, who’ve been shaken this year by what many consider a gross breach of their trust.

At issue: FEC Inspector General Lynne McFarland accused one of the agency’s senior managers of misleading her into releasing confidential employee morale surveys that, in some cases, were highly critical of agency commissioners and managers.

The senior manager, Chief Compliance Officer Patricia Orrock, then shared the survey data with Staff Director Alec Palmer, Acting Deputy Staff Director Edward Holder and Human Resources Director Derrick Allen, as Petersen and Walther acknowledged in a Nov. 15 letter to National Treasury Employees Union President Anthony Reardon. The union represents FEC employees. Reardon called the situation“inexcusable.”

In the Nov. 15 letter, which the Center for Public Integrity obtained this month, Petersen and Walther told Reardon to “rest assured that if we become aware of any acts or threats, however subtle, of retaliation resulting from the information disclosed in the survey comments, or any protected activity in which an employee engages, we will ensure that appropriate measures are taken.”

They further described the situation as a “serious mistake” that “has resulted in an erosion of trust between FEC management and staff.” They vowed to “rectify, to the extent possible, any ill will that has been generated.”

Reardon, in an email, said his union “is reviewing the letter to determine next steps.” Orrock and Palmer did not respond to requests for comment.

In the meantime, the FEC’s commissioners must grapple with some of the lowest staff morale among federal government agencies. It’s a staff that, on balance, considers the agency’s commissioners bickering blowhards, top managers ineffectual, career prospects bleak and work environment dreary. That’s according to the agency’s own “Root Causes of Low Employee Morale Study” from July 2016.

Some FEC employees also believe the work they do — preparing cases, developing briefings, birddogging political committees — is largely for naught, lost in the swirl of commissioners’ ideological advocacy and posturing.

‘Abiding by the law as written’

Take Election 2016 itself.

Political neophytes could be forgiven for believing that the FEC would aggressively pursue law-breaking candidates and political committees, including the big-spending super PACs and “social welfare” nonprofits that have profoundly influenced campaigns since the Supreme Court’s Citizens United v. FEC decision in January 2010.

But no.

One measure of how the FEC’s law enforcement function has diminished is the fines it levies. During fiscal year 2016, the agency doled out about $788,000 in civil penalties, according to agency records. That’s the lowest amount in any presidential election year since 1992.

A single case — a surprising unanimous vote to fine three nonprofit groups once connected to conservative billionaire brothers David and Charles Koch — accounted for almost one-third of the FEC’s fines this year.

The 2016 fines also represent a fraction of the high-water mark the agency set a decade earlier, in 2006, when it hit dozens of political committees with a collective $5.92 million in fines.

That year, the average FEC fine for the most severe enforcement cases was about $179,500; the average such fine in 2016 was about $19,850, FEC records show.

Hunter, the incoming vice chairwoman, says fewer fines mean — at least in part — that political candidates and committees are doing a better job voluntarily complying with campaign laws. She credits an FEC staff that this year reviewed millions of pages of campaign finance documents and fielded 13,000 phone calls.

“People in politics don’t want to get it wrong,” Hunter said. “And the FEC has done a good job of abiding by the law as written.”

On the contrary, said Craig Holman of government reform organization Public Citizen.

“The FEC is now the weakest it’s ever been, and it’s completely dysfunctional on key issues,” he said.

Either way, justice for those who might skirt campaign laws is slow.

The most recent 15 enforcement cases the FEC resolved took, on average, 675 days to close, according to agency records. That’s roughly the gestation period of an elephant.

Some blame falls with the commissioners, who periodically hold up the most contentious cases for one reason or another. But delays also originate in the agency’s Office of General Counsel, which hasn’t had a permanent leader since July 2013, when General Counsel Anthony Herman resigned to re-enter private practice.

Of the 274 open complaints pending at the FEC in early December, 224 were awaiting action by the Office of General Counsel, commissioners confirmed. Another 21 were pending before commissioners themselves. The rest are under active investigation. The FEC will likely settled some and head to federal court on others in an effort to enforce provisions in the Federal Election Campaign Act or other federal election laws.

Commissioner Lee Goodman, a Republican, noted that the FEC typically experiences a higher-than-normal caseload volume during election years. Many of the complaints pending at the FEC will be closed without controversy because of flimsy evidence or clear lack of merit.

But financial and personnel limitations are also a major factor, said Daniel Petalas, who resigned in September as the FEC’s acting general counsel to join the D.C. office of law firm Garvey Schubert Barer.

“We had limited resources, and there’s only so much we can do at the supervisory level, even if the quality of the work product was, I feel, exceptional,” Petalas said. “There are all sorts of stresses on the staff … Your client is a six-headed hydra that’s always fighting with itself and often taking on the body itself.”

Such fighting also continued to chill political committees’ interest in asking the FEC for formal legal advice by requesting what’s called an “advisory opinion” from the commission.

The FEC this year has voted on just 22 such requests— tied with 2008 for the lowest number ever during a presidential election year. In 1976, the first presidential year after the FEC’s creation, it fielded 117 advisory opinion requests.

These days, most political committees are content avoiding the hassle and expense of going before the commission and taking their chances that the FEC, even if they break a law, couldn’t agree that they did.

Some room for agreement

Earlier this month, the FEC, as it does every year, sends what amounts to a Christmas wish list to Congress.

This year’s list was longer than others and previews priorities that, while modest in scope, constitute rare common ground among all commissioners.

Of particular note, the FEC wants the U.S. Senate to file its campaign finance disclosures electronically, saving taxpayers hundreds of thousands of dollars annually. They also want more power to sanction political committees that misrepresent themselves. The authority to pay top managers more money — key in attracting qualified candidates — is also essential, they argue.

The problem: Congress almost always ignores the FEC’s requests. So no matter how much commissioners themselves concur, they’re all but powerless to determine, structurally, how campaigns are funded and waged.

Commissioners are therefore resigned in 2017 to give up on blasting any regulatory home runs and will try, as Petersen and Walther both put it, to “hit singles.”

Petersen, for his part, wants to conduct a public hearing on how rapidly evolving technology is changing political campaigns. Such a hearing, if it occurs, would almost certainly reignite debate over political advertising on the internet — a flashpoint this year between Goodman and Ravel, in particular, and one that even led to Ravel receiving death threats.

Goodman says he’ll continue his push to relax regulations affecting how state and local political parties operate — something on which the commission’s Democrats have shown a willingness to work.

He also wants to address how the commission responds to requests under the Freedom of Information Act, saying the agency gives its staff too much power in determining what information is released — or withheld. “I do not believe the Commission complies with the Freedom of Information Act or its own regulations when it asserts exemptions and privileges to public requests for records,” Goodman said.

Democratic Commissioner Ellen Weintraub says the FEC is motivated to crack down on so-called “scam PACs” that, under the guise of supporting a candidate, generally exist to make money for the people associated with the political committee.

Commissioners — especially Walther — also cited the specter of foreign money seeping into U.S. elections as an area of shared interest.

Major changes ahead?

One commissioner — Ravel — says she’ll quit the agency by May, when her term expires.

She says she hasn’t decided what she’ll do next, but that it likely will involve working for a foundation or, perhaps, in the private sector. She’ll depart the FEC having largely seen her standing goal of revealing sources of secret money in politics stymied.

Goodman, in an interview, wouldn’t commit to staying at the FEC through 2017.

“I will make a decision early next year about my future plans,” he said.

The four other commissioners say they have no immediate plans to leave the commission, but Hunter and Petersen, in particular, could prove attractive prospects for other postings in what’s now Republican-dominated Washington, D.C.

And, save for Ravel, all of the FEC commissioners’ six-year terms have expired. But they continue to serve, because no law compels them to leave, and their authority remains the same. Come April, Weintraub will have served 10 years past her term’s expiration date, Walther eight years. Petersen’s term ended nearly six years ago, Hunter’s term four years ago.

“Congress has limited commissioners to one six-year term, and that was precisely because at the time many commissioners had been there for many years,” said Brad Smith, a former Republican FEC chairman who now leads the Center for Competitive Politics, which favors campaign deregulation. “Clearly, Congress did not want commissioners being there forever.”

A worst-case scenario in 2017?

The FEC can’t maintain the four commissioners needed by law to punish campaign scofflaws, issue formal guidance to political candidates and committees and conduct other high-level business.

This last happened at the FEC in 2008, and it prevented the agency from making many important decisions.

President Obama could yet nominate FEC commissioners before his term expires on Jan. 20.

But Obama last nominated FEC commissioners in mid-2013, when he floated Ravel and Goodman, and he has only nominatedthree commissioners overall during his nearly eight years in office.

Obama, meanwhile, has continued in recent weeks to nominate people to other governmental posts, including an under secretary at the Department of Veterans Affairs, an inspector general for the National Security Agency and a judge for the Superior Court of the District of Columbia.

White House spokeswoman Katie Hill declined to comment on whether Obama will nominate new FEC commissioners.

If Obama doesn’t make FEC nominations, the job falls to Trump, whose transition team is already struggling to fill thousands of other federal government jobs.

Were Trump to take it, it would be a “unique opportunity” for his administration to “clean the deck” and name a full slate of new commissioners, said Michael Toner, a former Republican FEC chairman and a current partner at law firm Wiley Rein.

The nation is also experiencing an era when federal courts — think the Citizens United decision, among other recent and pivotal cases — are most responsible for profound changes in election law.

McGahn, the former FEC chairman now serving as Trump’s White House counsel, will play a pivotal role in identifying a new Supreme Court nominee, meaning the high court’s next justice is likely to favor fewer, not more, campaign regulations.

“I would assume he would be very involved and influential in those discussions,” said Petersen, who has stayed in touch with McGahn since he resigned from the FEC in 2013. McGahn did not respond to requests for comment.

Ravel says McGahn’s role in the Trump administration is a “strong indication to me that [Trump] doesn’t consider campaign finance to be a very significant issue.”

Also expect Senate Majority Leader Mitch McConnell, R-Ky., to involve himself in all major campaign finance matters, as he has for years.

This includes legislation congressional members float — Sen. Ted Cruz, R-Texas, for one, wants to end limits on how much money donors may directly give political candidates — and the appointment of new FEC commissioner nominees, who the Senate must approve.

Weintraub, the FEC’s longest-serving commissioner, says Trump could surprise everyone and stick to his promises to “drain the swamp” in D.C., and set a higher standard for what’s legal and ethical during elections.

Campaign finance reform group Issue One— a bipartisan group that includes 150 former members of Congress— agrees. It’s prodding Trump to support an idea that Congress hasn’t yet seriously considered: turning the six-member FEC into a five-member body with a chairman who serves a 10-year term.

A five-member body could end what many view as its current “permanent gridlock,” said Issue One senior strategic adviser Tim Roemer, a Democrat who previously represented Indiana in the U.S. House of Representative and served as U.S. ambassador to India under Obama.

“It was a good idea to fix the FEC when Obama was president, and it’s still a good idea to fix the FEC now that Trump is president,” he said.

Weintraub, for her part, says she can’t envision Congress or Trump championing political disclosure or strengthening election laws.

“Get better? Good luck,” Weintraub said. “I’m hoping not to see things get worse.”

Michael Beckel contributed to this report

This article was co-published by TIME, Salon, Philly.com and Public Radio International.

 

 

Incoming Federal Election Commission Chairman Steven Walther chats with outgoing Chairman Matthew Petersen on Dec. 8, 2016, at the agency's headquarters in Washington, D.C.Dave Levinthalhttps://www.publicintegrity.org/authors/dave-levinthalhttps://www.publicintegrity.org/2016/12/15/20524/federal-election-commission-forgotten-tool-donald-trump-s-drain-swamp-effort

Key findings of investigation into harder-to-abuse opioids

$
0
0

The Associated Press and the Center for Public Integrity investigated how pharmaceutical companies are using their political clout to push a new form of opioids as their answer to the epidemic of prescription painkiller abuse. The pills are marketed as abuse-deterrents because they usually are difficult to crush and dissolve, but they also are lucrative for the industry. Some key findings:

  • Lawmakers in 35 states introduced more than 100 bills over the last two years dealing with the harder-to-abuse opioids. Roughly half included nearly identical language requiring insurers to cover the new formulations, and several of the sponsors said they received the wording from pharmaceutical lobbyists.

  • At least 21 bills related to abuse-deterrent drugs have become state law in the last five years, including five that require insurers to pay for the more expensive drugs.

  • Manufacturers of abuse-deterrent opioids have spent more than $20 million on federal lobbying efforts that included legislation promoting those drugs between 2012 and 2015.

  • Drugmakers also have tried to influence state attorneys general. Two of the biggest, Purdue Pharma and Pfizer, gave a total of $950,000 to the Republican and Democratic attorneys general associations in 2015 and 2016, more than in the previous four years combined.

  • Abuse-deterrent painkillers represented less than 5 percent of all opioids prescribed last year but generated more than $2.4 billion in sales _ roughly a quarter of the entire U.S. market for the drugs.

  • Converting the U.S. Department of Veterans Affairs medical system exclusively to the new formulations, according to one recent VA estimate, would increase its spending on prescription painkillers more than tenfold, to over $1.6 billion annually.

  • A federal bill passed this summer that includes a provision promoting abuse-deterrent opioids is expected to cost the federal government $75 million in lost Medicaid payments over 10 years. Makers of such harder-to-abuse drugs spent more than $1.7 million on lobbying efforts in 2016 that included that bill.

This story was co-published with The Associated Press.

OxyContin pills like these are a new type of opioid touted for being harder to abuse. Pharmaceutical companies are pushing for policies favorable to these new, lucrative painkillers as a response to an addiction epidemic although there is little evidence that they reduce the rate of overdoses or deaths.https://www.publicintegrity.org/2016/12/15/20550/key-findings-investigation-harder-abuse-opioids

Drugmakers set to gain as taxpayers foot new opioid costs

$
0
0

Critics say the answer pharmaceutical companies are pushing to address the ongoing opioid crisis boosts their profits while forcing taxpayers to shoulder the costs.

Some drugmakers aim to replace ubiquitous painkillers such as Vicodin and Percocet with harder-to-abuse formulations that are patent-protected and command higher prices — a plan that could cost government-funded health programs hundreds of millions of dollars in higher medication expenses.

A pending measure in Illinois, for example, would cost taxpayers $55 million annually to cover the higher-priced drugs for state Medicaid recipients, according to an initial state analysis. A proposal in Ohio was estimated to bring $167 million in higher costs.

And on the federal level, an industry-backed provision benefiting reformulated opioids tucked into a law this summer will cost the federal government $75 million in lost Medicaid payments over 10 years, according to an estimate by the Congressional Budget Office.

Proponents of the drugs say switching to the new formulations could save taxpayers money if addictions decline, though there is little evidence now that they reduce rates of either addiction or overdoses.

The prescription painkiller epidemic costs the U.S. economy $78.5 billion annually, according to a Centers for Disease Control and Prevention report this year.

“We have an enormous prescription-drug abuse problem in Illinois that’s costing a lot of money,” said Jonathan Pearl, chief of staff for Democratic Illinois Rep. Kelly Cassidy, who signed on to the industry-backed legislation requiring coverage of the new drugs. “This isn’t the only way to address it. It’s not a silver bullet, but it’s something.”

Still, industry critics worry that the focus on revamped painkillers is funnelling resources away from other measures needed to tame the nation’s drug epidemic. The drugs typically make it harder for users to crush them to snort or inject, but still can be abused.

“I’m frustrated that people would be burning a lot of public energy and resources on issues that are not key to stopping the epidemic,” said Dr. Gary Franklin, a University of Washington research professor who also is a vice president with Physicians for Responsible Opioid Prescribing, a group that advocates for reduced opioid prescribing.

Sweeping federal legislation passed this summer was designed to expand medication-based addiction treatment and overdose-reversal drugs through grants to state and local health providers. But lawmakers also included language long favored by drugmakers that exempts the companies from paying higher rebates worth $75 million over 10 years for reformulated opioids to Medicaid, the state-federal health plan for low-income Americans.

Industry advocates argued for months that reformulated opioids should not face the higher rebates, which they said discourage investment in abuse-deterrent technology — a stance the Obama administration eventually endorsed in its budget proposal.

Companies that make abuse-deterrent drugs, including Purdue Pharma, Pfizer and Endo, spent more than $1.7 million on lobbying efforts that included the opioid bill as it made its way through Congress.

Purdue spokesman Robert Josephson said his company supports public policies addressing the opioid epidemic, “including through appropriate and affordable patient access to opioid pain medicines with abuse-deterrent properties.”

Pfizer spokeswoman Sharon Castillo gave similar reasons for her company’s support of the measure. An Endo spokeswoman declined to comment on the legislation.

The language sought by industry was introduced by retiring Rep. Joe Pitts, R-Pa., who received more than $50,000 in political donations from makers of revamped opioids over the past decade.

Pitts did not grant repeated requests for an interview, but a spokeswoman offered a statement saying the amendment “would simply remove a penalty on manufacturers who do the right thing by creating an abuse-deterrent formulation.”

Sen. Ron Wyden, D-Ore., made a last-ditch effort to kill the language in a House and Senate conference session.

A frequent critic of the pharmaceutical industry, despite receiving more than $40,000 from opioid drugmakers to his campaigns and his leadership PAC in the past decade, Wyden proposed eliminating the exemption and using the $75 million to fund addiction treatment for low-income pregnant women, who must forfeit their Medicaid prenatal coverage before seeking treatment.

“Colleagues, this is a pretty obvious choice,” Wyden said. “We’re either going to choose low-income, pregnant women — you do that by voting for my amendment — or you go with the companies who are getting a windfall here.”

His proposal was defeated. The law took effect in July.

Center for Public Integrity data reporter Ben Wieder and Associated Press reporter Geoff Mulvihill contributed to this article.

This story was co-published with The Associated Press.

Taxpayers could pay millions under new and proposed laws that favor higher-priced reformulated painkillers. Pharmaceutical companies are backing efforts to require insurance coverage of tamper-resistant drugs, saying they’re important to dealing with an opioid abuse epidemic. But industry critics worry that the measures could funnel resources away from other needed measures. Liz Essley Whytehttps://www.publicintegrity.org/authors/liz-essley-whyteMatthew Perronehttps://www.publicintegrity.org/authors/matthew-perronehttps://www.publicintegrity.org/2016/12/15/20549/drugmakers-set-gain-taxpayers-foot-new-opioid-costs

Drugmakers push profitable, but unproven, opioid solution

$
0
0

Editor's note: This is the latest installment of an ongoing series. The first parts explored the state political efforts surrounding opioids and how a loose coalition of drugmakers and industry-backed nonprofits shaped the federal response to the opioid crisis

Pilloried for their role in the epidemic of prescription painkiller abuse, drugmakers are aggressively pushing their remedy to the problem: a new generation of harder-to-manipulate opioids that have racked up billions in sales, even though there’s little proof they reduce rates of overdoses or deaths.

More than prescriptions are at stake. Critics worry the drugmakers’ nationwide lobbying campaign is distracting from more productive solutions and delaying crucial efforts to steer physicians away from prescription opioids — addictive pain medications involved in the deaths of more than 165,000 Americans since 2000.

“If we’ve learned one lesson from the last 20 years on opioids it’s that these products have very, very high inherent risks,” said Dr. Caleb Alexander, co-director of Johns Hopkins University’s Center for Drug Safety and Effectiveness. “My concern is that they’ll contribute to a perception that there is a safe opioid, and there’s no such thing as a fully safe opioid.”

The latest drugs — known as abuse-deterrent formulations, or ADFs — are generally harder to crush or dissolve, which the drugmakers tout as making them difficult to snort or inject. But they still are vulnerable to manipulation and potentially addictive when simply swallowed. National data from an industry-sponsored tracking system also show drug abusers quickly drop the reformulated drugs in favor of older painkillers or heroin.

In the last two years, pharmaceutical companies have made a concerted under-the-radar push for bills benefiting the anti-abuse opioids in statehouses and in Congress, where proposed legislation would require the Food and Drug Administration to replace older opioids with the new drugs.

The lobbying push features industry-funded advocacy groups and physicians, along with grieving family members, who rarely disclosed the drugmakers' ties during their testimony in support of the drugs.

Besides the tamper-resistant pills, ADF opioids are being rolled out in other forms, including injectable drugs and pills that irritate users when they’re snorted or contain substances that counteract highs.

Making painkillers harder to abuse is a common-sense step. But it’s also a multibillion-dollar sales opportunity, offering drugmakers the potential to wipe out lower-cost generic competitors and lock in sales of their higher-priced versions, which cost many times more than conventional pills. The big companies hold multiple patents on the reformulated drugs, shielding them from competition for years — in some cases decades.

Though abuse-deterrent painkillers represented less than 5 percent of all opioids prescribed last year, they generated more than $2.4 billion in sales, or roughly a quarter of the nearly $10 billion U.S. market for the drugs, according to QuintilesIMS. The field is dominated by Purdue Pharma’s OxyContin, patent-protected until 2030.

“We at Purdue make certain that prescribers and other stakeholders understand that opioids with abuse-deterrent properties won’t stop all prescription drug abuse, but they are an important part of the comprehensive approach needed to address this public health issue,” Purdue spokesman Robert Josephson said in a statement.

Like a spokeswoman for Pfizer Inc., Josephson also noted that some public health officials, including the Food and Drug Administration, have endorsed using ADFs.

“We need every tool that we can have in our toolbox,” said Kentucky state Rep. Addia Wuchner, a Republican who has worked on several bills to benefit reformulated opioids. “The extra steps are worth the effort in order to prevent this escalation of more addiction.”

The current industry campaign draws on the same 50-state strategy that painkiller manufacturers successfully deployed to help kill or weaken measures aimed at stemming the tide of prescription opioids, a playbook The Associated Press and Center for Public Integrity exposed in September.

The reporting detailed how opioid drugmakers and the nonprofits they help fund spent more than $880 million on lobbying and political contributions at the state and federal level over the past decade, eight times what the gun lobby reported for the same period. The money represents the drugmakers’ spending on all their legislative interests, including opioids.

The FDA has approved a handful of the reformulated drugs but has not yet concluded that any reduce rates of addiction, abuse or death, and the evidence gap has led to diverging views among health authorities.

Whereas FDA regulators emphasize the potential promise of reformulated painkillers, other government officials stress that they contain the same heroin-like ingredients as traditional opioids. An estimated 78 Americans die from heroin and prescription opioid overdoses every day.

“‘Abuse-deterrent’ sounds to people sometimes like ‘Oh, maybe it’s not addictive.’ But it’s no less addictive,” said Dr. Tom Frieden, head of the Centers for Disease Control and Prevention.

Survey results published this year in the Clinical Journal of Pain showed nearly half of U.S. physicians incorrectly believed that reformulated opioids are less addictive than their predecessors.

Many experts see a key role for ADFs in reducing the number of people who first begin abusing opioids, and some say the abuse-deterrent formulations should be the default painkiller for patients with histories of drug use, anxiety or depression. But even they worry that some drugmakers are overselling the technology. They stress that separate measures are needed for the majority of opioid abusers who ingest the pills orally.

“The way they’re handling the ADF is that this is the answer. And it’s not the answer — it’s part of the bigger puzzle,” said Theodore Cicero, a psychiatry professor at Washington University in St. Louis, who has authored several studies on the drugs.

‘You can’t put a price tag on anybody’s life’

Two years after the overdose that killed her 21-year-old son, Terri Bartlett traveled to Illinois’ state capital to champion an unlikely cause: revamped painkillers.

Bartlett’s son Michael became hooked on Vicodin and later graduated to heroin. In emotional testimony last year, she urged lawmakers to support a bill that would prioritize the new harder-to-crush pills, saying she believed her son would still be alive if abuse-deterrent formulations had been on the market then.

“You can’t put a price tag on anybody’s life,” she said.

Bartlett didn’t know then that she had been recruited into a wide-ranging lobbying campaign. A public relations firm hired by OxyContin-maker Purdue had helped recruit her to support the bill, along with local sheriffs and fire chiefs.

Her words, and similar testimony from parents of drug abusers elsewhere, reflect a tactic used by the drugmakers across the country. For instance, Purdue paid nearly $95,000 for similar lobbying efforts in New York, state records show.

And the industry’s fingerprints are easy to spot in other areas. Of more than 100 bills dealing with the drugs introduced in 35 states in 2015 and 2016, at least 49 featured nearly identical language requiring insurers to cover abuse-deterrent drugs, according to an analysis of data from Quorum, a legislative tracking service. Several of the bill sponsors said they received the wording from pharmaceutical lobbyists.

Since 2012, at least 21 bills related to the drugs have become law, including five that require insurers to pay for the more expensive drugs in Maine, Maryland, Massachusetts, Florida and West Virginia.

Wins in such states will give drugmakers momentum to successfully push for copycat laws elsewhere, noted Paul Kelly, a federal lobbyist who has worked on multistate lobbying campaigns for drugstores and major retailers.

“It’s like a foot in the door,” he said.

Drugmakers have found fierce opposition to their ADF legislation from insurers and employers who would be on the hook for the far pricier opioid variations.

The Illinois bill — and the 48 strikingly similar measures in other states — would require insurers to cover the drugs in the same way as other opioids, which the insurance companies argue would allow drugmakers to charge whatever they want for them.

“That is not the best use of our medical care resources,” Vernon Rowen, vice president of state government affairs for the insurance company Aetna, told Illinois lawmakers after Bartlett testified. “It totally eliminates our ability to negotiate discounts with manufacturers.”

New York Gov. Andrew Cuomo and New Jersey Gov. Chris Christie both vetoed such insurance mandates in the past year, citing the high costs and lack of evidence that the drugs help.

Federal health officials also have pushed back against requirements to cover the drugs, citing the “staggering” costs. For example, a 30-day supply of Pfizer’s abuse-deterrent Embeda, a combination drug containing morphine, costs $268, while a 30-day supply of a generic morphine costs roughly $38, according to data compiled by Truven Health Analytics, a company that tracks drug prices set by manufacturers.

The Department of Veterans Affairs’ Dr. Bernie Good estimated that converting the 8.8 million patient system exclusively to the new reformulations would increase opioid spending more than tenfold, to over $1.6 billion annually. Good, who co-directs the VA’s program for medication safety, said the vast majority of veterans are not at risk for snorting or injecting their medications.

“Would the excess money to pay for abuse-deterrent products — mostly to pay for it in cases where it wouldn’t be necessary — be better spent for drug treatment centers?” he asked at a recent federal meeting on the drugs.

Federal estimates say at least 2.2 million Americans are addicted to prescription opioids or heroin, yet only one in five actually receives treatment, according to a Surgeon General’s report published last month. That’s despite some $35 billion already spent annually on substance abuse programs by private and public health providers.

State lawmakers who support the abuse-deterrent bills often defend them as an important piece of solving the opioid puzzle, preventing more costly overdoses and hospitalizations.

And Fred Brason, executive director of Project Lazarus, a North Carolina-based group that promotes anti-addiction policies in several states, called the focus on the drugs’ cost too narrow.

“You’re already spending that money at the back end,” he said. “You’re spending it at the emergency department.” He also noted the costs of addiction treatment.

When critics raise alarms about higher costs and limited evidence, drugmakers can rely on groups they support financially to argue their side, including the National Association of Drug Diversion Investigators, the Academy of Integrative Pain Management and the Partnership for Drug-Free Kids. Representatives from those groups have testified in favor of abuse-deterrent legislation in at least seven states.

NADDI president Charlie Cichon acknowledged his group receives funds from several ADF-makers, but said it views the drugs as a proven part of the solution to the opioid crisis. “We’re not testifying for Purdue Pharma’s product or Endo’s product,” he said.

And Bob Twillman, executive director of the Academy, said, “Increased use of abuse-deterrent opioids makes it more likely that those patients who need opiates to treat their pain will be able to get them.”

The Partnership for Drug-Free Kids did not respond to multiple requests for comment.

Physicians with financial ties to drugmakers play similar roles. Dr. Gareth Shemesh, a pain specialist, testified in support of a Colorado bill last year brought to the sponsoring legislator by Pfizer. Shemesh had received more than $13,500 from Pfizer that year in speaking fees, travel and meals, and more than $5,000 from Purdue the year before. He did not respond to calls for comment, but Pfizer said he was not paid to testify and did not speak on behalf of any specific product.

Purdue and Pfizer also have ramped up contributions to the Republican and Democratic attorneys general associations, which raise unlimited funds to help elect AGs across the country. In 2015 and 2016, they gave a total of $950,000 — more than in the previous four years combined.

To date, 51 attorneys general from U.S. states and territories have signed at least one of two National Association of Attorneys General letters to the FDA, urging the agency to favor abuse-deterrent drugs.

The pro-ADF playbook even includes a bit of political theater. In at least seven states, lawmakers or advocates have pounded the reformulated pills with hammers to demonstrate how difficult they are to smash.

In Illinois, it was Democratic Rep. Sara Feigenholtz wielding the hammer on the same committee that heard Terri Bartlett’s testimony. The main sponsor of the bill prioritizing ADFs, Feigenholtz ranked second-highest among legislative recipients of money from Pfizer since the start of 2010, according to an analysis of data from the National Institute on Money in State Politics. The $6,200 she received during that period was more than she had received in the 14 previous years combined. Her bill passed the committee but later stalled in the Legislature and remains pending.

She did not return multiple requests for comment. Pfizer said its contributions to Feigenholtz go back 20 years and it would be “inaccurate and misleading” to suggest a tie to any one piece of legislation.

Bartlett said she doesn’t mind that Purdue was ultimately responsible for her invitation to testify, even though she didn’t know that at the time. She still supports the bill.

“I want to believe that in every pharmaceutical company there still remains some sort of humanity,” she said. “Saving life is expensive.”

‘An addict can find a way’    

The FDA has walked a careful line on the new drugs, promoting them as a promising approach to discouraging abuse while acknowledging their real-world benefits remain largely theoretical.

Earlier this year, the agency highlighted the drugs in its “opioids action plan,” issued after scathing criticism from some members of Congress that the FDA wasn’t doing enough to combat the epidemic.

Thus far, the agency has approved seven drugs with labeling suggesting they are “expected to” discourage abuse, based on studies conducted by pharmaceutical companies.

But the FDA has not yet concluded that any of the products have a “real-world impact” on measures like overdose or death, according to Dr. Douglas Throckmorton, an agency deputy director. He and other regulators predict, however, that the reformulations will eventually translate into public health results.

“We stand by those predictions,” Throckmorton said at a recent public meeting on the drugs. “We’re confident in the science, we’re confident in the assessments we conducted.”

Even some former FDA advisers who support expanded use of the drugs say they are only part of the solution. Dr. Lewis Nelson, who previously chaired an FDA panel on drug safety, notes that the drugs don’t deter the most common form of abuse: swallowing pills whole.

“Certainly, you might not eat one and get high,” he said. “You eat three and get high.”

At least one study found that while OxyContin’s reformulation coincided with many abusers switching to other drugs, other users still were able to defeat the pills’ technology and snort or inject the contents.

David Rook, a 40-year-old Henrico, Virginia, resident who now operates a recovery facility, was among them. Before entering treatment, he said, he would break down abuse-deterrent OxyContins and crush-resistant Opanas using water, lemon juice and a microwave.

“The truth is an addict can find a way to abuse a medication one way or the other,” he said.

A recent HIV outbreak in rural Indiana illustrates the sometimes unpredictable effect of ADFs on abusers’ behavior.

Approximately 210 people have tested positive for the virus in Scott County since 2014, a public health crisis linked to needle-sharing among abusers of Opana. Endo Pharmaceuticals received approval for a reformulated version of the drug in 2011, making it harder to crush. As a result, many abusers switched from snorting the drug to injecting it with syringes, leading to the spread of the blood-borne HIV virus, according to the state health commissioner and other officials.   

Endo spokeswoman Heather Zoumas Lubeski declined to comment on the outbreak, but issued a statement saying, “Patient safety has always been a top priority for Endo and we are committed to providing patients with approved products that are safe and effective when used as prescribed.”

The FDA declined to approve labeling claims for Opana’s anti-abuse features, noting that the drug still can easily be cooked and injected.

Pfizer, Purdue, Endo and Teva Pharmaceuticals Industries Ltd. spent more than $20 million between 2012 and 2015 on federal lobbying efforts that included support of a bill that would require the FDA to gradually replace current opioids with harder-to-abuse versions that become available. Teva declined comment.

Rep. William Keating, D-Mass., first introduced the bill in 2012 and tried again in 2013 and 2015. Like his colleagues at the state level, he employed the hammer-smashing routine to illustrate the medications’ crush-resistant properties.

Keating said the industry played no part in spurring the bill, even though the head of a nonprofit association funded by abuse-deterrent drugmakers spoke at the press conference introducing his legislation. He also received $2,500 in political contributions from makers of reformulated opioids in 2011 and 2012, a small fraction of his overall fundraising haul.

“My interest in this stems from when I was a district attorney and I got to see the lives that were lost,” Keating said in an interview.

While Keating’s bill has not received a vote in Congress, the FDA already has begun moving in the direction suggested by companies, mapping out a process for removing older opioids from the market when newer versions are shown to be more effective at thwarting abuse.

“You don’t have to pass a bill, necessarily, to change policy,” said Dan Cohen of the Abuse Deterrent Coalition, which represents smaller abuse-deterrent manufacturers.

The lack of real-world data on reformulated opioids is the main reason some federal officials haven’t embraced them.

The CDC did not recommend ADFs in its landmark opioid guidelines this year, the first-ever federal recommendations for doctors prescribing the drugs. Why? Frieden, the agency’s director, said his staff could not find any evidence showing the updated opioids actually reduce rates of addiction, overdoses or deaths.

Center for Public Integrity data reporter Ben Wieder contributed to this article.

This story was co-published with The Associated Press.

Terri Bartlett looks at a framed pictured of her deceased son Michael hanging on a wall of her McHenry, Ill., home. Two years after the overdose that killed her 21-year-old son, Bartlett traveled to Illinois’ state capital to champion an unlikely cause: revamped painkillers.  In emotional testimony last year, she urged lawmakers to support a bill that would prioritize the new harder-to-crush pills, saying she believed her son would still be alive if abuse-deterrent formulations had been on the market then.Matthew Perronehttps://www.publicintegrity.org/authors/matthew-perroneGeoff Mulvihillhttps://www.publicintegrity.org/authors/geoff-mulvihillLiz Essley Whytehttps://www.publicintegrity.org/authors/liz-essley-whytehttps://www.publicintegrity.org/2016/12/15/20544/drugmakers-push-profitable-unproven-opioid-solution

South Carolina legislator indicted in ethics probe

$
0
0

A prominent South Carolina legislator highlighted in a 2015 investigation by the Center for Public Integrity and The Post and Courier was indicted Wednesday on 30 counts of ethics violations.

Rep. Jim Merrill, R-Charleston, was suspended from office after news of the grand jury indictments, which stem from a broader and ongoing Statehouse corruption probe. He is accused of using his communications company to profit from groups with legislation at stake.

The joint reporting project, Capitol Gains, had highlighted how Merrill earned more than $215,000 since 2008 from fellow lawmakers through that company, Geechee Communications, for providing services the lawmakers described vaguely in campaign disclosures as “campaign expense,” “consulting” or “mail.”

Some of that money was paid when he served as House majority leader. Common Cause in South Carolina had said such transactions created greater opportunities for conflicts of interest to arise because the leader functions as the right hand of the powerful House speaker to mobilize votes.

In 2015 interviews, Merrill said he saw nothing improper about accepting business from fellow House members while serving as one of their leaders. In his view, the post carried very little power. And he said that most people tend to take their business to people they know. “My job just happens to be direct mail,” he said.  

The indictments address business allegedly conducted with trade associations and companies that had pending bills and various political groups, not lawmakers' campaigns. According to the charges, some of the business was not disclosed as it should have been in campaign filings.

Read more from The Post and Courier on Wednesday’s indictments.

Read the original series.

South Carolina State Capital in ColumbiaKytja Weirhttps://www.publicintegrity.org/authors/kytja-weirhttps://www.publicintegrity.org/2016/12/15/20558/south-carolina-legislator-indicted-ethics-probe

Tillerson directed offshore company used in Russia deals

$
0
0

Rex Tillerson, the ExxonMobil chieftain nominated by Donald Trump to be Secretary of State, was a director of an offshore company in the Bahamas that is at the heart of Exxon’s close business dealings with Russia.

Tillerson was appointed in 1998 as a director of Exxon Neftegas, an ExxonMobil subsidiary involved in oil and gas operations in Russia, according to leaked documents from the Bahamas corporate registry received by the German newspaper Süddeutsche Zeitung and shared with ICIJ.

Tillerson was named president of Exxon Neftegas in the same year, but his position on the board of the Bahamas-based company has not been previously reported.  The Bahamas’ corporate tax rate is zero and it is known for financial secrecy, dubbed by The Economist this year as “the holdout” even among island havens for its reluctance to share tax data.

ExxonMobil said that it incorporates in the Bahamas because of the “simplicity and predictability” of the country’s laws for setting up companies.

“Incorporation of a company in the Bahamas does not decrease ExxonMobil’s tax liability in the country where the entity generates its income,” said Exxon spokesman Scott Silvestri.

The document highlights Tillerson’s business dealings with Russia, which have drawn new attention as he prepares to face confirmation hearings before the U.S. Senate. Under Tillerson’s leadership, Exxon Neftegas managed a major oil and gas project near the island of Sakhalin in Russia’s Far East. After Tillerson was promoted to CEO of ExxonMobil, the oil giant launched a partnership to search for new reserves in the Arctic with Rosneft, a Russian state-owned company.

As Trump prepares for his presidential inauguration, the connections to Russia of people who will likely serve in his administration have come under scrutiny. 

In 2013, Vladimir Putin awarded Tillerson with the Order of Friendship, a state decoration for foreigners whose work improves their countries’ relations with Moscow.

"I don’t know what Mr. Tillerson’s relationship with Vladimir Putin was, but I’ll tell you it is a matter of concern to me,” Sen. John McCain, a Republican who will cast an influential vote on Tillerson’s nomination, said last week.

The records also show Tillerson’s direct involvement in Exxon’s extensive network of companies based in the Bahamas. ExxonMobil created at least 67 companies based in the island tax haven, which were involved in operations spanning from Russia to Venezuela to Azerbaijan, according to ICIJ’s documents from the Bahamas corporate registry.

ExxonMobil is headquartered in Irving, Texas.

These far-flung corporate holdings raise questions about the scope of Tillerson’s financial interests. Federal ethics laws require cabinet officials to avoid conflicts of interest, traditionally by divesting their assets and resigning their positions in companies whose value could be affected by their actions in government.

“If he’s a director of corporate entities outside the U.S. including in jurisdictions that are more secretive, it could make it more difficult to ensure that he did divest fully,” said Alexandra Gillies, a specialist on the oil and gas sector governance at the Natural Resource Governance Institute. “It shows that there’s going to have to be a lot of scrutiny on that divestment process.”

Tillerson currently holds an estimated $228 million in Exxon stock, whose value stands to be affected by State Department policies on issues from climate change to sanctions against Russia.

Silvestri, the ExxonMobil spokesman, declined to comment on whether Tillerson would divest from his holdings with ExxonMobil. He noted that Tillerson is retiring from the company, but did not specify whether his retirement as ExxonMobil’s CEO also meant stepping down from board positions at ExxonMobil entities.

The Trump transition team did not respond to ICIJ’s inquiries about whether it was reviewing Tillerson’s offshore directorships and possible financial holdings, or whether it would require him to disclose and divest from these positions.

The document showing Tillerson’s directorship of Exxon Neftegas was among more than 12 million leaked files that were provided anonymously to Süddeutsche Zeitung and then shared with ICIJ, resulting in the Panama Papers and Bahamas Leaks investigations.

ExxonMobil chief Rex Tillerson.Sasha Chavkinhttps://www.publicintegrity.org/authors/sasha-chavkinhttps://www.publicintegrity.org/2016/12/18/20563/tillerson-directed-offshore-company-used-russia-deals

How Panama's revolving door helps shadowy industry defy reform

$
0
0

Panama’s leaders were defiant after the Panama Papers scandal broke open April 3 via hundreds of news stories circling the globe.

President Juan Carlos Varela’s chief of staff, Álvaro Alemán, called the disclosures about suspect dealings inside the country’s offshore financial industry a “campaign against Panama.”

“We will not allow Panama to be used as a scapegoat,” Alemán told a news conference.

Some of Panama’s anger was focused on the OECD, a Paris-based, multinational coalition that has been a key protagonist in the war over cross-border tax evasion. On April 4, the Organization for Economic Cooperation and Development’s secretary general, Angel Gurría, called out Panama as a “holdout” amid the world’s progress toward financial transparency.

Luis Miguel Hincapié, Panama’s deputy foreign minister, responded with a letter blasting Gurría for making “allegations and insinuations whose falsity is easily demonstrated.” He said the Panama Papers were being used to “distort the facts and tarnish the reputation of the country.”

As pressure grew from media and governments around the world, Panamanian officials shifted to a more conciliatory stance.

On April 19, President Varela announced Panama was willing to join an OECD-sponsored initiative that encourages members to share information with other nations trying to track offshore tax dodging. Hincapié headed to Paris in May to discuss the details.

The OECD praised the deal as a sign Panama was stepping up to join the fight against offshore-fueled corruption.

But in a country where top-drawer lawyers move freely between high government posts and law firms selling secrecy-cloaked shell companies, bringing lasting change to the offshore industry is a challenge. The revolving door between Panama’s government and its shadow economy has prompted some critics to refer to President Varela’s top advisers as his “offshore cabinet.”

Read the full story

Donald Trump's sons behind nonprofit selling access to president-elect

$
0
0

A new Texas nonprofit led by Donald Trump’s grown sons is offering access to the freshly-minted president during inauguration weekend — all in exchange for million-dollar donations to unnamed “conservation” charities, according to interviews and documents reviewed by the Center for Public Integrity.

And the donors’ identities may never be known.   

Prospective million-dollar donors to the “Opening Day 2017” event — slated for Jan. 21, the day after inauguration, at Washington, D.C.’s Walter E. Washington Convention Center — receive a “private reception and photo opportunity for 16 guests with President Donald J. Trump,” a “multi-day hunting and/or fishing excursion for 4 guests with Donald Trump, Jr. and/or Eric Trump, and team,” as well as tickets to other events and “autographed guitars by an Opening Day 2017 performer.”  

Website TMZ.com first published a brochure hyping the happening. The brochure says that “all net proceeds from the Opening Day event will be donated to conservation charities,” but it does not name the charities or detail how net proceeds will be calculated.

Who’s behind the get-together?

Walter Kinzie, chief executive officer of Texas event management company Encore Live, confirmed to the Center for Public Integrity that a nonprofit group called the Opening Day Foundation hired his firm to manage Opening Day 2017.

A Center for Public Integrity review of Texas incorporation records found the Opening Day Foundation was created less than a week ago, on Dec. 14. Unlike political committees, such nonprofits aren’t required by law to reveal their donors, allowing sponsors to write seven-figure checks for access to the president while staying anonymous, if they choose.

The paperwork for the Opening Day Foundation listed four directors: Donald Trump Jr., Eric Trump, Dallas investor Gentry Beach and Tom Hicks Jr., the son of a Dallas billionaire.

Beach and Hicks are reportedly close friends with Donald Trump Jr., and both men helped raise millions of dollars for Trump’s campaign.

“The event is being put on by the Opening Day Foundation,” Kinzie confirmed, adding: “There are a number of different individuals who are part of the foundation.”

Kinzie also said the information in the brochure posted by TMZ.com was not entirely accurate — he did not specify what was incorrect — and he added that the participation of Trump family members is not confirmed.

The Trump Organization, a spokeswoman for President-elect Trump and the presidential transition team did not immediately respond to requests for comment.

Hicks and Beach also did not immediately respond to phone messages requesting comment.

The brochure for “Opening Day 2017,” an event described as “honoring President Donald J. Trump,” offers sponsor packages ranging from $25,000 to $1 million. The event will “celebrate the great American tradition of outdoor sporting, shooting, fishing and conservation,” the brochure states.

Mike Ingram, an Arizona developer who is listed as one of the co-chairmen, said Beach approached him to help.

"I’m honored to do it," he said. "It’s not going to be a black tie event. It’s going to be boots and jeans and camouflage and it’s going to raise a lot of money to go to sportsman’s charities" and conservation charities, he said.

Ingram said he could not confirm the Trump family's participation.

“This is problematic on so many levels,” said Larry Noble, the general counsel of the Campaign Legal Center, a nonpartisan campaign reform organization. “This is Donald Trump and the Trump family using a brand new organization to raise $1 million contributions for a vague goal of giving money to conservation charities, which seems a way of basically just selling influence and selling the ability to meet with the president.”

Noble cautioned that the details of the event and its association with the new nonprofit listing the Trump brothers as directors are still unclear.

“It’s really hard to identify all the problems when they’re so vague,” he said.

The Trump family has recently endured criticism for appearing to sell access to Trump’s adult children, who serve on the executive committee of Trump’s presidential transition team and have functioned as key advisers since he began his campaign.

The family canceled an auction for coffee with Trump’s daughter Ivanka Trump last week after ethics experts said it was ethically questionable, according to the New York Times. The proceeds of the auction would have gone to the Eric Trump Foundation, an existing nonprofit whose mission is to support a children’s hospital.

 

 

Republican presidential candidate Donald Trump speaks to supporters in Florida on March 15, 2016.Carrie Levinehttps://www.publicintegrity.org/authors/carrie-levinehttps://www.publicintegrity.org/2016/12/19/20564/donald-trumps-sons-behind-nonprofit-selling-access-president-elect

Another nuclear weapons contractor pays millions to settle charges of illegally diverting federal funds

$
0
0

This article has been co-published with USA Today/Gannett.

A $67.5 million payment by a major nuclear weapons contractor to settle claims that it illegally spent federal funds is the latest in a series of settlements stemming from allegations that firms making bombs and cleaning up the resulting debris are using federal money improperly to win support for continued weapons-related work.

Altogether, the three companies that have made such settlement payments since 2013 are involved in the operation of six of the eight active sites in the Energy Department’s nuclear weapons program. Actions by the Energy Department’s contractors — including any misspending — have substantial impact, since contract work consumes roughly 90 percent of the department's total budget.

The lobbying activities at the heart of the latest settlement helped one of the contractors win a $45 million award for additional cleanup work. Although work on energy generation and consumption garners more public attention and President-elect Donald Trump has nominated an oil-state politician — former Texas governor Rick Perry — to become the department’s new top manager, such nuclear weapons-related work accounts for nearly two-thirds of all the department’s activities.

The latest case emerged from a civil lawsuit that accused two companies of performing substandard work at a nuclear weapons-related waste site and said one of them had improperly spent government funds to lobby for more. The companies declared on Nov. 23 they would settle the allegations by making payments, mostly to the federal government, for a total of $125 million, a massive amount for alleged Energy Department-related malfeasance.

The settlement involves work by Bechtel National Inc. and its parent Bechtel Corp., and URS Corp. and its subsidiary URS Energy and Construction Inc., which together have been trying to clean up the Hanford Nuclear Reservation near Richland, Washington. That’s where raw uranium was enriched into fuel for nuclear bombs during the Manhattan Project and the Cold War.

The firms have denied doing anything improper. But the settlement is part of an emerging pattern.

Lockheed Martin Corp., which operates one of three U.S. nuclear weapons laboratories – Sandia, agreed in August 2015 to pay $4.7 million to settle a complaint by the Justice Department that it used federal funds to lobby for a no-bid contract extension. Last Friday, it lost that effort when the Department of Energy selected a different contractor team, led by Honeywell International, to run Sandia for up to a decade, beginning next year. Meanwhile, Fluor Corp. paid $1.1 million in April 2013 to settle accusations that it used federal funds to lobby government agencies for more business at its Hanford training facility.

Worries about the mission being undermined

Besides overseeing the Hanford cleanup, Bechtel and URS (now owned by a company called AECOM) help operate the other two U.S. nuclear weapons labs — Los Alamos and Lawrence Livermore, which perform the bulk of U.S. nuclear weapons design work. Altogether, the firms that have reached the settlements since 2013 are involved with operations at Los Alamos and Sandia in New Mexico, Livermore in California, the Pantex Plant in Texas, the Savannah River Site in South Carolina, and the Y-12 National Security Complex in Tennessee.

The recent settlement “demonstrates that the Justice Department will work to ensure that public funds are used for the important purposes for which they are intended,” Benjamin C. Mizer, principal deputy assistant attorney general in charge of the Justice Department’s civil division, said in a written statement released on Nov. 23.

Money allocated by Congress for Hanford  “is intended to fund the Department of Energy’s important mission to clean up the contaminated Hanford nuclear site, and this mission is undermined if funds are wasted on goods or services that are not nuclear compliant or to further lobbying activities,” Mizer said.

Both Bechtel and AECOM in written statements said the settlements were made to avoid messy litigation and keep the waste plant project moving. “We have performed our work…ethically and professionally,” Bechtel National Inc. spokesman Fred deSousa said in a written statement, without going into details.

In its own written statement, AECOM — which acquired URS in 2014 — complained that the Department of Justice joined the whistleblowers’ “unwarranted lawsuit against URS” based on events that preceded AECOM’s acquisition of the company. “We take our responsibilities as a government contractor very seriously and have a demonstrated track record of serving our customers with honesty and integrity,” the company’s statement said.

The Justice Department’s involvement in the case originated in civil allegations of mismanagement and wrongdoing in Hanford’s Waste Treatment and Isolation Plant project, commonly called “WTP.” Under its contract with the Energy Department, Bechtel designed and is constructing machinery to convert nuclear-tainted wastes there into a stable, glassy substance suitable for safe disposal.

Three whistleblowers — Walt Tamosaitis, Donna Busche and Gary Brunson — filed a lawsuit on Feb. 4, 2013, accusing Bechtel and URS bosses of mismanagement and misappropriation of funds over a dozen years that together cost the government more than $1 billion. They also said safety lapses at the site, motivated by a desire to meet Energy Department deadlines and collect financial bonuses, were serious enough to risk a nuclear accident.

The whistleblowers’ complaint triggered an investigation by the Energy Department’s Office of Inspector General, which collected emails sent between Bechtel’s project leaders, the company’s top congressional lobbyist for nuclear projects, and Energy Department employees. The whistleblowers’ attorneys subsequently obtained the emails through the civil discovery process and incorporated them into an amended complaint. The Justice Department, in turn, used the complaint as the basis for its own investigation of Bechtel and URS.

Getting $45 million in new work

In the complaint, the whistleblowers said that when they originally lodged accusations of mismanagement — several years earlier — Bechtel project leaders launched a coordinated lobbying campaign to defend their work and also to collect new revenues for additional work on the waste treatment plant project. It then billed the department for the costs of this lobbying, the complaint said.

In January 2010, it said, a Bechtel manager on the WTP project sent the company’s top lobbyist for nuclear programs a letter meant to be delivered to key congressional staff to “determine their ‘anxiety’ level” about criticisms of the company’s performance. After his investigation, the lobbyist became convinced that there would be no immediate, adverse consequences, and the company decided to ask for $50 million on top of the $690 million already slated for the project, according to the complaint.

In an email sent by one Bechtel manager to another — along with a chart detailing the work that the company could say the additional revenue would finance — the manager said “in reality if we did not receive the additional $50m … most of these activities would still likely happen,” according to the whistleblowers’ complaint. The company subsequently got $45 million added to its contract.

The full emails detailing these actions have not been publicly released, by either the government or the plaintiffs, because the messages are part of an investigation that remains “open and ongoing,” according to Felicia Jones, spokeswoman for the Energy Department Office of Inspector General. She declined to say whether her colleagues consider the whistleblowers’ description of the emails accurate.

The Justice Department’s statement affirmed that it had “alleged that Bechtel National Inc. and Bechtel Corp. improperly claimed and received government funding for lobbying activities.” But Justice Department spokeswoman Nicole Nava declined to comment about the whistleblower’s account of specific emails.

Lobbying Congress for new work isn’t against the law. But billing the government for lobbying is, according to the federal Byrd Amendment, approved by Congress in 1989. Court records state that Bechtel will pay $67.5 million of the settlement, and AECOM will pay $57.5 million; the amount of money that will go to the whistleblowers — who are entitled to a portion of any funds they help the government recover — has not been determined yet.

Charles Curtis, who oversaw the Energy Department’s nuclear weapons work from 1994 to 1997 while serving as undersecretary and then deputy secretary, said he was not aware of any improperly-funded lobbying during his tenure. But he expressed surprise that multiple contractors within the past three years have been caught doing it. “These are for-profit enterprises. They can use their shareholders’ money for lobbying, but to use congressionally appropriated money [is] a diversion of funds,” Curtis said. “It’s not only unethical … it’s illegal.”

Three years ago, it was the Fluor Corporation and its subsidiary Fluor Hanford Inc., which at the time held the contract to manage the Hanford site, that agreed to pay $1.1 million to settle a separate complaint that its officials lobbied with government money from 2005 to 2010 to drum up business for a federally funded training facility there. Loydene Rambo, a Fluor employee, triggered the settlement by filing her own whistleblower suit, based on what she described as records of the lobbyists being paid with federal funds. She received a $200,000 reward, and Fluor denied any wrongdoing.

The Justice Department’s August 2015 settlement with Lockheed Martin Corporation, which runs Sandia, similarly followed improper billing of the government for a more complex and elaborate lobbying effort to extend its management contract, according to a special investigation report released by the Energy Department Office of Inspector General. Lockheed agreed to pay $4.7 million in 2015 to settle the Justice Department’s complaint about the billing. Like Fluor before it and Bechtel and URS since, Lockheed Martin in a written statement denied it had done anything wrong.

Asked by the Center about how the lobbying settlements have affected the department’s relationship with its nuclear weapons contractors, Energy Department spokeswoman Bridget Bartol said in an email that “the Department has taken and will continue to take vigorous action against any contractor who spends federal funds on improper lobbying activities.”

Bechtel remains the primary contractor on the WTP project, and Lockheed Martin still holds the contract to operate Sandia National Laboratories.

Cleanup of the Hanford site was authorized 25 years ago, and as of 2000 it was expected to cost $4.3 billion and be completed in 2011. The Department now estimates it may not be fully operational until 2037, according to pleadings filed in federal court by government lawyers defending the Energy Department in a lawsuit brought by the state of Washington to force an acceleration of the cleanup. If the job is funded at its current level of about $690 million a year until 2037, the cost would exceed $15 billion.

President-elect Donald Trump’s transition team is mindful of the project’s problems and growing price tag. A recent memo to top Energy Department officials from the transition team he appointed asked them to describe “your alternatives to the ever increasing WTP cost and schedule, whether technical or programmatic.”

A sign informs visitors of prohibited items on the Hanford Nuclear Reservation near Richland, Washington in July 2014.Patrick Malonehttps://www.publicintegrity.org/authors/patrick-malonehttps://www.publicintegrity.org/2016/12/21/20559/another-nuclear-weapons-contractor-pays-millions-settle-charges-illegally-diverting

How a trumped-up fundraiser with the first family imploded

$
0
0

A pay-to-play soiree offering the ultra-wealthy access to newly inaugurated President Donald Trump is unraveling — after the Center for Public Integrity on Monday revealed that Trump’s adult sons are registered directors of the new, Texas-based nonprofit organizing the event.

Since then, Eric Trump told the New York Times that he and his brother will not attend the Jan. 21 event in Washington, D.C., despite promotional material originally promising their participation as honorary co-chairmen — and a bonus hunting and fishing trip with one or both of the brothers.

Event organizers, meanwhile, distributed revised descriptions of the event that removed references to Donald Trump’s attendance. It also removed mention of the multi-day hunting and fishing trip for sponsors who ponied up $500,000 or more.

And while all three Trump names are still prominently featured on the event’s promotional materials, the nonprofit behind the event, known as the Opening Day Foundation, on Tuesday amended its incorporation documents. Eric Trump and Donald Trump Jr. are no longer named as directors.

The hunting-themed “Opening Day 2017” affair (dress code: “camouflage and cufflinks”) is the latest in a series of potential conflicts to surface for the incoming administration, prompting additional questions about the rules Trump will put in place to avoid any appearance of influence-peddling, something he frequently decried on the campaign trail.

Here's how the Opening Day 2017 event sprung into existence — and fell apart almost as quickly:

The brochure for Opening Day 2017, listing sponsorship packages ranging from $25,000 to $1 million, first surfaced on website TMZ.com.

It offered big-dollar donors the chance to attend a “private reception and photo opportunity” with the freshly inaugurated Trump, as well as a “multi-day hunting and/or fishing excursion” with Donald Trump Jr. and/or Eric Trump “and team,” plus other event tickets and benefits.

The brochure didn’t spell out who was organizing it or who would benefit, saying only that net proceeds would be donated to unspecified “conservation charities.” Rather, interviews and documents reviewed by the Center for Public Integrity revealed the organizer was a new foundation called the Opening Day Foundation, incorporated in Texas on Dec. 14.

The paperwork for the Opening Day Foundation listed four directors: Donald Trump Jr., Eric Trump, Dallas investor Gentry Beach and Tom Hicks Jr., the son of a Dallas billionaire. Beach and Hicks are reportedly close friends with Donald Trump Jr., and both men helped raise millions of dollars for Trump’s campaign. Beach is also the godfather to one of Donald Trump Jr.’s children, according to the Dallas Morning News.

Trump officials — as well as Beach and Hicks — initially stayed silent, ignoring repeated requests for comment.

But on Tuesday, the Trump transition team issued a statement. It read: "The Opening Day event and details that have been reported are merely initial concepts that have not been approved or pursued by the Trump family. Donald Trump Jr. and Eric Trump are avid outdoorsmen and supporters of conservation efforts, which align with the goals of this event, however they are not involved in any capacity."

The nonprofit filings, Trump officials said, would be amended and the brothers’ names deleted. Anonymous transition officials told the Washington Post that the names of Donald Trump Jr. and Eric Trump had been included on the documents “without their permission.”

Mark Brinkerhoff, a spokesman for the Opening Day 2017 event, said Tuesday night in an interview with the Center for Public Integrity that Donald Trump Jr. and Eric Trump are invited to the event, but their participation isn’t confirmed.

The inauguration weekend event would be the first for the Opening Day Foundation, which Brinkerhoff said is currently seeking official recognition from the Internal Revenue Service to operate as a 501(c)(3) charity. This status would allow donors to deduct contributions on their taxes.

Such nonprofits also aren’t required by law to disclose their donors, meaning pro-Trump contributors to the Opening Day Foundation could ostensibly do so anonymously. Political committees such as candidates’ campaigns and super PACs, in contrast, must reveal their donors in periodic reports to the Federal Election Commission.

Brinkerhoff said the goal is for the Opening Day Foundation is to distribute proceeds to conservation charities — similar to what the United Way does for other charitable organizations.

The new documents outlining sponsorship opportunities said that until the IRS grants the Opening Day Foundation tax-exempt status, the Opening Day Foundation will operate as a “project of the Boone and Crockett Club Foundation Inc.,” a wildlife conservation group based in Montana.

A spokesman for the Boone and Crockett Club Foundation, however, told the Washington Post that the group has not decided whether to participate in the Opening Day 2017 fundraiser.

Asked Tuesday night about the Trump brothers’ involvement with the creation of the foundation, Brinkerhoff said he “didn’t know” whether they had agreed to have their names on the original nonprofit documents.

Ultimately, he said, “The foundation creators determined among themselves that the founders of the foundation will not include Eric or Donald Jr.”

In interviews with the Dallas Morning News and Washington Post this week, Hicks Jr. and Beach disagreed over who first had the idea to create the Opening Day Foundation.

Hicks attributed the idea to Donald Trump Jr. and Beach.

“One of the most important things for Don Jr. and Eric is conservation, and we wanted to help them organize a party to celebrate conservation,” Hicks told the WashingtonPost. “After the president-elect won, we got focused on this. Don Jr. and Gentry have been spearheading it.”

But Beach told the Dallas Morning News that he and Hicks thought of the idea for the foundation in early December.

Beach also said that after the nonprofit was registered, lawyers advised the foundation’s committee to remove the Trumps’ names.

“It became clear that we needed to go in a different direction. So we took Don Jr. and Eric out of the foundation completely,” Beach said.

In response to requests for comment from Beach and Hicks, Brinkerhoff issued a statement to the Center for Public Integrity: “The group is committed to and supportive of conservation causes, and excited to create positive change.”

Ethics experts say the incident — and others, including a canceled plan to raise money for charity by auctioning off coffee with Trump’s daughter, Ivanka, and Trump’s inauguration itself— highlights the need for Trump and his administration to set clear guidelines and rules governing conflicts of interest and pay-to-play issues.

“The whole thing adds up to an unprecedented assault on the constitution on ethics and on frankly on taste,” said Norman Eisen, who was a top ethics lawyer in the Obama White House, referring to the series of questions about potential conflicts of interest and ethics issues. “It’s like the appetizer at the corruption banquet. I’ve never seen anything like it.”

Donald Trump is flanked by his two sons, Donald Trump Jr., left, and Eric Trump, while speaking at a rally on Feb. 23, 2016, in Las Vegas.Carrie Levinehttps://www.publicintegrity.org/authors/carrie-levinehttps://www.publicintegrity.org/2016/12/21/20568/how-trumped-fundraiser-first-family-imploded

EPA issues controversial rule designed to improve safety at chemical facilities

$
0
0

More than three years after an official prompt from the President, the U.S. Environmental Protection Agency has finalized a long-awaited rule aimed at preventing disasters like the 2010 refinery explosion that killed seven workers in Anacortes, Washington.

That tragedy was the subject of a recent joint investigation into worker safety by the Center for Public Integrity and Al Jazeera English, which highlighted a culture of repeated safety lapses at the Tesoro refinery.

The new rule, which was signed by outgoing EPA Administrator Gina McCarthy on Wednesday, represents a significant set of changes to the agency’s Risk Management Program.

The program oversees some of the nation’s top stockpilers of hazardous chemicals, including a broad array of facilities ranging from paper mills to petrochemical plants. But the timing of the rule is potentially precarious—as it could be subject to undoing by the incoming Trump administration, which has expressed misgivings about the scope of federal regulations.

Even if the rule survives, some critics argue it doesn't go far enough in pushing companies to adopt safer technologies and processes.

 “This rule is a tragic flip flop by President Obama, who previously championed protecting communities by requiring safer chemical processes,” said Rick Hind of Greenpeace. “We believe history will not judge this flip flop kindly because of the millions of workers and community residents who will not be protected even if it is implemented.”

 

It was Obama who set the rulemaking in motion more than three years ago with an executive order urging the agency to take action, just three months after a fatal fertilizer explosion in West, Texas.

The changes ordered by the new rule focus on coordination of emergency response efforts as well as local preparedness, but leave it up to companies to decide whether or not to implement safer alternatives in their practices, such as a using a less toxic chemical or a less dangerous industrial process.

“They could have done a stronger rule and had it enforced out of the range of the Congressional Review Act,” Hind said, referring to a provision of law allowing an incoming administration to claw back any so-called “midnight rules” passed in the final weeks of a presidential term. “As terrorism has reared its ugly head once again, it’s amazing the administration didn’t prioritize this as also a security issue,” he added.

But Mathy Stanislaus, EPA's Assistant Administrator for the Office of Land and Emergency Management, stood behind the finalized rule, saying it was the culmination of years of work that carefully considered security and public safety, along with industry concerns.

“The timing really reflected the extensive engagement with all the stakeholders,” said Stanislaus. “We struck the right balance.”

Those advocating on behalf of industry saw things differently.

“They were so determined to get this rule out,” said Shannon Broome, who represents the Chemical Safety Advocacy Group, an industry coalition. “It was completely rushed.”

Broome said she was still parsing through the rule itself, which is several hundred pages, but said she was concerned about the speed with which the rule was finalized following the comment period. She pointed out the EPA also declined to meet with stakeholders after the comment period closed, which she found “troubling.”

The EPA received more than 60,000 comments on the rule before it was finalized.

 

The Tesoro oil refinery in Anacortes, Washington.Jie Jenny Zouhttps://www.publicintegrity.org/authors/jie-jenny-zouhttps://www.publicintegrity.org/2016/12/22/20571/epa-issues-controversial-rule-designed-improve-safety-chemical-facilities

The Center's best big business investigations from 2016

$
0
0

The Center for Public Integrity spent 2016 like we've spent every year since 1989: revealing abuses of power, corruption and betrayal of public trust by powerful public and private institutions.

Here are some of our best investigations involving powerful corperations and shady business practices from the past year.

Special interests outnumber state lawmakers 6-to-1


With the federal government in a seemingly undending state of gridlock, more and more companies are turning their attention — and influence — to state governments.

The number of registered lobbyists in Washington, D.C., is on the decline but for every state lawmaker active between 2010 and 2014 there were an average of six companies, trade associations, unions or other groups vying for their attention.

This influence yields results for everything from pharmacutical companies and big tobacco to newcomers like Uber.

Keep reading

Auto-title lenders are people, too


The Center for Public Integrity requested the annual reports from some of the country's largest auto-title lenders (which offer high-interest loans similar to payday loans) as part of our investigating auto-title lenders back in 2015. Similar documents are public records in other states, but TitleMax, Loan Max and and Fast Auto Loans fought back the Center's request in Virginia.

The companies argued before the Virginia State Corporation Commission that their annual reports were subject to the same privacy rights as an individual's personal financial information. The commission agreed.

Virginians, and costumers in other states where high interest lending is still legal, turn to auto-title lenders for fast cash put their car up for collateral and are saddled with interests rates up to 300 percent on terms that can be misleading or, critics say, downright abusive.

Keep reading


Rich people have access to high-speed internet; many poor people still don't


Anyone willing to pay for it can get access to fast internet, right? Not exactly.

Low income neighborhoods — those with median household incomes below $34,800 — are five times more likely not to have access to broadband internet than neighborhoods with a median income above $80,700.

In an increasingly connected economy, internet inequality is more than an inconvenience. For many households in the U.S. tools like online jobs, health care and education sites and banking services are out of reach.

“It would be like when you are in a hole, it would be that nice rope ladder being lowered down to you so you can get yourself out,” Curtis Brown Jr. told the Center for Public Integrity. “That’s exactly what it would feel like for us.”

Keep reading

Beware foreclosure "rescue" plans


Since 2010, more than 46,000 struggling homeowners have filed written complaints against law firms that promised foreclosure relief but instead bilked their clients out of over $100 million.

The scam grew out of a well-meaning government program called “loan modification.” Some purported law firms were little more than telemarketing companies using rubber-stamp approval from lawyers to put a new spin on an old scam targeting minorities and struggling borrowers.

“They take $3,000 from someone who only has that much, not from a population with a lot of wealth,” Michael Tanglis, of the Lawyers’ Committee for Civil Rights Under Law, told the Center back in July.

Keep reading


In 2009, federal officials hoped to stem an epidemic of home mortgage foreclosures under a program called loan modification. But tens of thousands of stressed homeowners who paid lawyers to help them reduce their mortgage payments through the government program lost money instead.The Center for Public Integrityhttps://www.publicintegrity.org/authors/center-public-integrityhttps://www.publicintegrity.org/2016/12/26/20572/centers-best-big-business-investigations-2016

By the numbers: Election 2016

$
0
0

304: Number of Electoral College Votes won by Republican President-elect Donald Trump

2.8 million: Number of votes by which Democrat Hillary Clinton beat Trump in the national popular vote

$2.17 billion: Estimated amount spent by the presidential candidates and groups supporting them in the 2016 White House race

$242 million: Amount by which Clinton's campaign out-raised that of Trump

$66.1 million: Amount Trump contributed to his 2016 presidential campaign from his own personal funds

$600 million: Amount Trump, in 2011, said he would personally spend on a presidential campaign

$30 million: Amount the National Rifle Association spent on ads aiding Trump in the presidential race

$1 million: Price of top-tier sponsorship package for a "sporting, shooting, fishing and conservation" charity event that promised access to Trump and his adult sons immediately after Trump's inauguration

2: Number of days it took for Trump and his sons to disavow the event after widespread criticism

$20.4 million: Amount billionaire casino magnate Sheldon Adelson and his wife, Miriam Adelson, combined to give to pro-Trump super PACs and other groups backing Trump

$6.2 million: Amount former World Wrestling Entertainment executive Linda McMahon, who Trump picked to serve in his Cabinet as the Small Business Administration administrator, donated to pro-Trump political groups ahead of the election

33: Number of states that will be led by a Republican governor in 2017

3-to-1: Factor by which Team Clinton outgunned Team Trump on the TV airwaves during the general election

11: Percentage of TV ads sponsored by Team Clinton in Nevada during the general election that were in Spanish

Oct. 29: Date on which Clinton first aired general election campaign ads in Wisconsin, a state she ultimately lost to Trump by about 22,000 votes

$769,500: Top amount a single individual donor contributed to the Hillary Victory Fund, a committee that benefited Clinton’s campaign, the Democratic National Committee and a host of state Democratic party committees

$47,300: Amount "James Bond" actor Daniel Craig donated in 2015 to a purportedly pro-Bernie Sanders super PAC founded by a man who was arrested by the FBI in 2016 for securities fraud

$250,000: Minimum contribution amount to Trump’s inaugural committee needed to secure tickets to an “elegant,” “candlelight dinner” in Washington, D.C., at which Donald and Melania Trump, as well as Vice President-elect Mike Pence and Karen Pence, are slated to make special appearances

$3.3 million: Combined amount that oil giant Chevron, the 14th-largest publicly traded company in America, donated during the 2015-2016 election cycle to two super PACs focused on helping Republicans maintain control of Congress

$3.1 trillion: Estimated market capitalization of companies represented at tech company meeting in December with Trump

$2,403,082: Amount Google, Facebook and Amazon employees together gave to Clinton’s presidential campaign

$36,511: Amount they gave to Trump’s campaign

8,000: Approximate square footage of space Trump's organization rented during the late 1990s and early 2000s to an Iranian bank linked to terrorism financing

96: Percentage of campaign donations made by identifiable journalists that went to Clinton (versus Trump) through August

30: Number of days Clinton said it would take her, as president, to propose a constitutional amendment overturning the Citizens United v. Federal Election Commission decision

$450,000: Combined amount of money two pro-Clinton super PACs were forced to return because of questions about the legality of the contributions

49: Number of donors to a pro-Trump super PAC that had their credit card information erroneously published by the group in a federal document

$14.7 million: Estimated amount pot proponents spent on state ballot measure TV ads to boost legal marijuana

$60: Price of ceramic marijuana pipes made by a Bernie Sanders supporter in Oregon, which featured his campaign’s logo

6: Minimum number of current U.S. Supreme Court justices who are millionaires

1: Minimum number of Democratic U.S. Senate candidates to whom Trump campaign finance chairman and Treasury Secretary nominee Steven Mnuchin donated to this year

Liz Essley Whyte, Chris Zubak-Skees and Allan Holmes contributed to this report

 

 

Donald Trump holds up one finger during a meeting with first responders at St. Johns County Sheriffs Department on Oct. 24, 2016, in St. Augustine, Fla.Michael Beckelhttps://www.publicintegrity.org/authors/michael-beckelDave Levinthalhttps://www.publicintegrity.org/authors/dave-levinthalhttps://www.publicintegrity.org/2016/12/27/20575/numbers-election-2016

The Center's best environment-related investigations from 2016

$
0
0

The Center for Public Integrity spent 2016 like we've spent every year since 1989: revealing abuses of power, corruption and betrayal of public trust by powerful public and private institutions.

Here are some of our best investigations from the past year that dealt with the environment and environmental health.

Science for sale


American courts and regulatory agencies depend on scientific research to protect people from harmful chemicals. What happens if that research can be influenced?

That's exactly what's happening in recent years as government-funded science is diminishing. In this investigation, environmental consulting firm Gradient Corporation was contracted to publish flawed science designed to sow doubt over the connection between asbestos and mesothelioma, the rare cancer it can cause.

"It just seems like you can just make up your own facts now,” one former EPA scientist told the Center.

Keep reading

No relief from coal ash


In Bokoshe, Oklahoma, coal ash is spotted in the grass, trees, cars and even furniture. It drifts in from a pit where a nearby power plant dumps its spent coal.

Residents started complaining about the ash, which contains harmful chemicals like arsenic and lead, to state regulators in 1998 and, eventually, the U.S. Environmental Protection Agency got involved. But the EPA's attempts to regulate coal ash have done little to help Bokoshe and many other towns across the country.

Keep reading

Super polluters


There are 22 facilities that ranked in the top 100 for both toxic-air pollution and greenhouse-gas emissions in 2014. There's a term for these power plants, factories and other facilities that are responsible for some of the worst pollution in the country: super polluters.

Southwest Indiana is home to four super polluters, and residents there point to air pollution as the cause of many health problems found among their neighbors.

Keep reading

Coal cars line up on a railroad track that feeds the AES Shady Point generation plant near Panama, Oklahoma.The Center for Public Integrityhttps://www.publicintegrity.org/authors/center-public-integrityhttps://www.publicintegrity.org/2016/12/28/20574/centers-best-environment-related-investigations-2016

The Center's best statehouse reporting from 2016

$
0
0

The Center for Public Integrity spent 2016 like we've spent every year since 1989: revealing abuses of power, corruption and betrayal of public trust by powerful public and private institutions.

Here are some of our best investigations involving state politics and the special interest groups trying to influence lawmakers in all 50 of the country's statehouses.

Politics of pain


The Center for Public Integrity teamed up with The Associated Press for this series examining the politics behind the nation’s opioid addiction epidemic.

It's an epidemic that has cost 165,000 Americans their lives and surrounds the prescription opiod manufacturers with controversy.

Drug companies have developed a 50-state strategy to combat laws that would stem the tide of prescription painkillers, complete with lobbying and campaign contributions adding up to more than $880 million nationwide from 2006 through 2016.

Keep reading

The most important regulators you've never heard of


Insurance commissioner doesn't sound like the most glamorous job in state government, but decisions made by these regulators can affect some of the country's largest companies. The insurance industry does its best to keep commissioners close through dinners and campaign contributions.

And it doesn't end there. As the Center's investigation revealed, half of the 109 insurance commissioners who have left their posts in the last decade have gone on to work for the insurance industry. Just two moved into consumer advocacy.

Keep reading

How a South Dakota ballot measure became a major money-in-politics battleground


South Dakota may have more cattle than people, but it attracted the attention of some major political groups this past election season. A ballot measure to bring ethics reform to state politics became a proxy battle between two national groups operating out of Virginia and Massachusetts.

The measure passed, along with several other liberal initiatives appearing on ballots across the country.

Keep reading

Insurance companies and their employees were among the top political donors to state commissioner candidates during the past decade in at least six of the 11 states that elect the regulators. The Center of Public Integrity found a pattern of coziness between the insurance industry and the state commissioners who regulate them, ranging from political donations to job offers. Here, a campaign worker puts up a poster for a 2014 insurance commissioner candidate in Los Angeles.The Center for Public Integrityhttps://www.publicintegrity.org/authors/center-public-integrityhttps://www.publicintegrity.org/2016/12/30/20573/centers-best-statehouse-reporting-2016
Viewing all 3299 articles
Browse latest View live




Latest Images