Lobbying

Lockheed Martin goes to bat for oppressive regime

A top executive for the military contractor worked with lobbyists for Bahrain to publish Op-Ed defending the regime

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Lockheed Martin goes to bat for oppressive regime Bahrain's King Hamad bin Isa al-Khalifa and an F-16 (Credit: Reuters/xairforces.net)

A top executive at Lockheed Martin recently worked with lobbyists for Bahrain to place an Op-Ed defending the nation’s embattled regime in the Washington Times — but the newspaper did not reveal the role of the regime’s lobbyists to its readers. Hence they did not know that the pro-Bahrain opinion column they were reading was published at the behest of … Bahrain, an oil-rich kingdom of 1.2 million people that has been rocked by popular protests since early 2011.

The episode is a glimpse into the usually hidden world of how Washington’s Op-Ed pages, which are prized real estate for those with interests before the U.S. government, are shaped. It also shows how Lockheed gave an assist to a major client — Bahrain has bought hundreds of millions of dollars of weapons from the company over the years – as it faces widespread criticism for human rights abuses against pro-democracy protesters.

As Ken Silverstein reported in Salon last month, the kingdom is stepping up its Washington lobbying efforts. Here’s the latest example, as far as I can piece together from lobbying disclosures filed by Bahrain’s “strategic communications” firm, D.C.-based Sanitas International.

On Nov. 30, the Washington Times published an Op-Ed under the headline “Bahrain, a vital U.S. ally: Backing protesters would betray a friend and harm American security.” It was written by Vice Adm. Charles Moore (retired). Moore was formerly commander of the Navy’s Bahrain-based Fifth Fleet. From 1998 to 2002, Moore notes in his Op-Ed, he “had the opportunity to develop a personal relationship with His Majesty King Hamad bin Isa Al Khalifa, Bahrain’s leader, as well as many senior officials in his government.” Moore passed through the revolving door and is now regional president for Lockheed Martin for the Middle East and Africa.

Moore argues in the Op-Ed that while protesters in Bahrain have “legitimate grievances,”  the U.S. “needs Bahrain now more than ever to preserve regional peace and stability in what remains a dangerous and uncertain world.” He particularly focuses on using the large U.S. Navy presence in Bahrain as a counter to Iran, which Washington sees as a foe and which Bahrain claims is fomenting unrest among the country’s Shia majority.

The context for all of this is continuing protests in Bahrain against the Sunni ruling family. The regime has used “systematic” torture against its opponents over the past year, a human rights report found in November. And while the government has promised reform, violent suppression of protests has continued. The Obama administration has supported the regime through the crisis, though there has been some grumbling in Congress about a pending arms deal that would send more American weapons to Bahrain.

Bahrain, in response, has launched a major lobbying push to shore up its support in Washington. It hired former Howard-Dean-for-president campaign manager Joe Trippi and Sanitas International to “protect the Kingdom and their leadership from the constantly evolving media landscape and 3rd party attacks,” according to lobbying disclosures. Sanitas is paid $15,000 per month, plus expenses.

Which brings us back to that Washington Times Op-Ed by Lockheed Martin’s Moore. The column was placed in the Times by Sanitas, according to disclosure filings:

(Mastio is an editor at the Times and Fryer is a staffer at Sanitas.)

Sanitas is a registered foreign agent for the government of Bahrain, but readers were not informed of the firm’s role, so they were left with the false impression they were getting an independent opinion from a retired Navy vice admiral.

Moore’s Op-Ed was subsequently promoted on Twitter by a top official at Bahrain’s embassy in Washington and picked up by Bahrain’s government news agency.

To sum up: Bahrain paid a Washington lobbying firm to get an independent-seeming Op-Ed published in an American newspaper and then touted the Op-Ed in its official news agency.

Lockheed Martin did not respond to an inquiry about the nature of Moore’s relationship with Sanitas.

In the past decade or so, Lockheed has done hundreds of millions of dollars of business with Bahrain, including selling the nation 10 F-16 jets, hundreds of extended-range rockets, tactical surface-to-surface missiles, and a ballistic missile defense radar system. The company has also had an $87 million contract to do tech support for the U.S. military in Bahrain and elsewhere. So it’s clearly in Lockheed’s interest to keep the U.S.-Bahrain relationship healthy, and the company appears to be working directly with the regime to accomplish that goal.

Lockheed spokeswoman Jennifer Whitlow told Salon in a statement that Moore’s views are his own:

As stated in the opinion piece, the views expressed by Mr. Moore are his own as an individual, not as a representative of Lockheed Martin, and are based on his experience as former U.S. Navy 5th Fleet Commander.

In fact, the piece does not state that Moore’s views are “his own as an individual”; he is identified as a Lockheed executive in his bio line.

Sanitas Partner Christopher Harvin sent along this statement confirming the firm’s role placing the Moore Op-Ed:

As commander of the U.S. 5th Fleet from 1998 to 2002, Admiral Moore holds a unique and valuable perspective of Bahrain’s historical role as the leading progressive force in the region and its prospects for continued reform. Through his relationship with the Kingdom of Bahrain, we assisted with the placement of Moore’s op-ed, which he wrote personally because of his knowledge of the region and his long standing relationship with the Kingdom of Bahrain and its leadership.”

David Mastio, deputy editorial page editor at the Washington Times, said in an email that the disclosures in the piece were adequate:

I don’t know further details on the relationship between the author and the PR firm [Sanitas].

When I published the piece, I was focused on making sure the author’s relationship to the subject was disclosed. The piece mentions the author’s personal ties to members of Bahrain’s government and his bio line mentions his Bahrain-related position with the U.S. government as well as his current employment with a major defense contractor.

I am satisfied that readers were informed of the author’s connections.

Justin Elliott

Justin Elliott is a reporter for ProPublica. You can follow him on Twitter @ElliottJustin

ALEC: We will stop being gun nuts now

Right-wing legislation drafting house refocuses on business issues following bad press and boycotts

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ALEC: We will stop being gun nuts nowGeorge W. Bush speaks to the American Legislative Exchange Council in Philadelphia in 2007. (Credit: Chris Greenberg)

The American Legislative Exchange Council, or ALEC, is a group that helps major industry players write their own legislation that Republicans then pass in state legislatures across the country. Traditionally, ALEC would draw up and promote bills limiting labor organizing rights and weakening workplace safety regulations and environmental protections, because those things anger the Market Gods. Fewer of those things means more money for ALEC’s funders! Recently, though, ALEC also began dabbling in things that wouldn’t make anyone any money but that happened to be right-wing political priorities.

ALEC is now shutting down its “Public Safety and Elections” task force. ALEC’s Public Safety and Elections task force’s goals were twofold: to improve “public safety” by making it easier for citizens to carry guns everywhere they go and to shoot certain people without fear of arrest or prosecution, and to improve elections by making it harder for politically undesirable types to exercise their right to vote. (Why were gun rights and voter disenfranchisement the purview of one task force? Those two issues really have very little in common besides being of supreme importance to paranoid white people.)

What happened is, people suddenly noticed that self-defense laws had recently become much more “robust” (slash-”insane”) in lots of states after this guy in Florida named George Zimmerman shot and killed an unarmed black teenager named Trayvon Martin and then somehow was not arrested. These new self-defense laws were widely blamed for the police reaction, or non-reaction, and while the NRA had predictably lobbied for them in the various states where they passed, it turned out that ALEC had been instrumental in drafting these laws and others like them that had nothing to do with being “pro-business” but everything to do with quietly remaking the nation into a right-wing paradise.

So major corporations began abandoning ALEC, because they hadn’t signed on for the full right-wing culture war. While Coca-Cola has a vested interest in, say, stopping public health initiatives, there’s no compelling profit-based reason for it to support the dismantling of gun control legislation. People do not get thirstier when they are carrying concealed firearms, as far as I know. Kraft does not, as a company, have any interest in making it more difficult for poor people to vote.

So! ALEC is giving up on the items of its agenda not directly related to helping giant corporations make as much money as possible without fear of lawsuits or union agitation. Because those are less “hot-button” issues.

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Alex Pareene

Alex Pareene writes about politics for Salon and is the author of "The Rude Guide to Mitt." Email him at apareene@salon.com and follow him on Twitter @pareene

The fracking trade-offs

The oil industry is muscling through pro-drilling legislation by tying it to appealing tax cuts and education bills

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The fracking trade-offsThe well head for for a gas well on Friday, Oct. 14, 2011 in Dimock, Pa. (Credit: AP/Alex Brandon)

Of all the political tactics used to protect business interests, none is as powerful as the layer ploy — the one in which an ugly corporate giveaway is hidden one layer beneath something popular. It’s the oldest trick in the book: Offer up Mom and apple pie, and few are likely to notice the noxious serving plate.

Whether it’s a lobbyist-written trade deal lurking beneath a bill extending unemployment benefits or a corporate subsidy undergirding a must-pass defense spending bill, this is the way some of the most corrupt policy has become law in recent years. It’s also the way oil and gas business allies are now advancing that industry’s interests in the face of proof that drilling may be endangering Americans’ health.

The situation is harrowing. In just the last year, the Environmental Protection Agency and Duke University have both uncovered evidence linking groundwater contamination to the controversial drilling practice known as hydrofracking. The incriminating findings are so clear that according to Pittsburgh’s CBS affiliate, fossil fuel firms in Pennsylvania acknowledge that the “natural gas exploration industry is partly responsible for rising levels of contaminants found in area drinking water.”

In response, many communities are trying to slow the drilling boom. That has created a serious problem for oil and gas companies, who want to drill as much and as quickly as possible. So their political allies are working to tie drilling to Mom-and-apple-pie initiatives as a means of crushing any opposition.

In Republican-controlled Ohio, where Columbia University scientists say drilling caused recent earthquakes, that means trying to lash oil and gas revenues to the GOP’s popular income tax cut orthodoxy. Indeed, this is the obvious objective of Ohio Gov. John Kasich’s recent proposal to institute a hydrofracking tax whose “fresh revenue (will) give a personal income tax cut to Ohioans,” according to the Cleveland Plain-Dealer.

To understand Kasich’s true motive is to appreciate that he is no tax-and-spend liberal or fossil-fuel hater. He’s the opposite: an anti-tax crusader who has taken $213,000 in campaign donations from the oil and gas industry, and who has tried to open up state parks to drilling. That record suggests his new tax moves are really designed to help drillers overcome any grass-roots opposition — in this case, by tying drilling’s expansion to alluring tax-cut policies. In the vernacular of political sloganeering, Kasich is basically saying, “Drilling for Tax Cuts.”

In Colorado, where 343 oil and gas spills occurred in 2011, the oil and gas industry’s mantra is a bit different: It’s “Drilling for Kids,” according to Democratic state Sen. Morgan Carroll. She has criticized the state land board for giving ConocoPhillips the drilling rights to a 26,000-acre parcel adjacent to Aurora, Colorado’s third-largest city. The massive swath of land is not just any old property; it’s an old Air Force base that’s home to a Superfund site and a major reservoir, and also filled with unexploded munitions and depleted uranium.

The idea of drilling on such a fragile and dangerous site seems ludicrous — but the governor-appointed land board has been able to push the deal forward and stymie tougher regulations by insisting that oil and gas exploration will help schoolchildren.

“They’ve been telling Democrats in the legislature that it’s really for the kids,” Carroll says. “They are able to make that argument because some of the money from the sale is earmarked for K-12 education.”

As the industry’s “drill, baby, drill!” mantra butts up against more science-based opposition, be on the lookout for this same layer ploy in every state. It’s at once enticing and deceptive — but when that platter of Mom and apple pie is inevitably served up, try to remember what the dish is made of.

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David Sirota

David Sirota is a best-selling author of the new book "Back to Our Future: How the 1980s Explain the World We Live In Now." He hosts the morning show on AM760 in Colorado. E-mail him at ds@davidsirota.com, follow him on Twitter @davidsirota or visit his website at www.davidsirota.com.

Romney aide lobbied for high-speed rail

Ron Kaufman is one of the lobbyists who advise Mitt Romney, who is attacking Newt Gingrich for his lobbying past

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Romney aide lobbied for high-speed railMitt Romney, right, makes a joke with advisor Ron Kaufman and a potted plant on his campaign charter plane in Feb., 2008. (Credit: AP/LM Otero)

The Romney campaign has made Newt Gingrich’s recent history as an unregistered “lobbyist” — particularly his work for conservative bête noire Freddie Mac — the key front in its attacks on him in Florida.

It’s no surprise that Romney is using the lobbyist card: Polls consistently show that the American public view lobbying as one of the worst professions when it comes to honesty and ethics. More surprising is that the Gingrich campaign has not turned the tables on Romney by looking at the recent lobbying work of several of Romney’s top aides.

I recently reported that informal Romney advisor Charlie Black, for example, lobbied for the DREAM Act, putting him directly at odds with Romney’s position on the immigration legislation.

Another Romney aide who has broken from conservative orthodoxy in his lobbying work is top advisor Ron Kaufman, who “has been traveling across the country with Romney, providing advice and conducting strategic meetings,” according to the Boston Globe.

Kaufman is currently listed on the website of international lobbying and public-relations firm Dutko Grayling as a senior advisor who is on leave. A longtime Republican operative, Kaufman worked on Ronald Reagan’s 1980 campaign and held high positions in the George. H.W. Bush White House. He was also an advisor to Romney’s 2007-08 campaign, a fact that sparked a famous argument between Romney and an AP reporter who challenged the candidate on his claim that lobbyists were not running his campaign.

Disclosure filings suggest that Kaufman stopped his lobbying work at the end of 2010. But before that, Kaufman had a healthy lobbying business representing a range of corporate clients.

In 2010, for example, Kaufman and a few other Dutko lobbyists were paid $110,000 to lobby for U.S.-Japan High-Speed Rail Inc. That company, which is associated with Central Japan Railways (JRC), is trying to get Japanese-style bullet trains deployed in the United States.

Outside of the healthcare bill, there is perhaps no other Obama policy that Republicans despise more than his proposal to build a high-speed rail network. Indeed, opposition to Obama’s high-speed rail hopes seems to have killed any chances for construction of such a system any time soon.

Back in 2010, Kaufman and his colleagues were working to “create universal equal high speed rail standards that will lead to safe, efficient, and cost effective high speed rail solutions,” according to lobbying disclosures (.pdf). They also lobbied Congress on the since-killed project to build a section of a high-speed rail system in Florida.

Among Kaufman’s many other clients in recent years are Botox-maker Allergan and the In Situ Oil Sands Alliance, a Canadian group that lobbies in favor of the tar sands industry, which was dealt a blow recently when President Obama rejected the Keystone XL pipeline.

A Romney spokeswoman says that Kaufman is a volunteer for the campaign. He did not immediately respond to a request for comment.

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Justin Elliott

Justin Elliott is a reporter for ProPublica. You can follow him on Twitter @ElliottJustin

Romney attacks Newt as “lobbyist”

Even as he goes after Gingrich for working for Freddie Mac, Romney has surrounded himself with lobbyists

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Romney attacks Newt as Mitt Romney and Newt Gingrich (Credit: Reuters/Jim Young)

Part of the aggressive new Romney campaign offensive against Newt Gingrich is to attack Gingrich for having been a lobbyist. The irony of the strategy is that Mitt Romney has surrounded himself with multiple registered lobbyists at the highest level of his campaign.

“Over the last 15 years since he left the House, he talks about great bold movements and ideas,” Romney told a Florida crowd this week. “Well, what’s he been doing for 15 years? He’s been working as a lobbyist, yeah, he’s been working as a lobbyist and selling influence around Washington.”

In fact, Gingrich has never been a registered lobbyist — a distinction that Gingrich invoked in the Monday night debate — but his “strategic advice” work for Freddie Mac looked a lot like what can be colloquially described as lobbying, or at least something close to it.

And Gingrich’s work for healthcare companies in his post-congressional career looks even more like lobbying than the Freddie Mac consulting. The Times reported in November:

In a variety of instances, documents and interviews show, Mr. Gingrich arranged meetings between executives and officials, and salted his presentations to lawmakers with pitches for his clients, who pay as much as $200,000 a year to belong to his Center for Health Transformation.

When the center sponsored a “health transformation summit” at the Florida State Capitol in March 2006, lawmakers who attended Mr. Gingrich’s keynote speech inside the House chamber received a booklet promoting not just ideas but also the specific services of two dozen of his clients. Executives from some of those companies sat on panels for discussions that lawmakers were encouraged to attend after Mr. Gingrich’s address.

Romney is now suggesting that Gingrich did not register as a lobbyist when perhaps, by law, he should have.

But this line of attack is undermined by the fact that the Romney campaign is chock-full of people who have been lobbyists. They include:

  • Former Sen. Jim Talent, a Romney surrogate and co-chairman of a top Washington lobby shop, Mercury Public Affairs, which has recently worked for big banks and the coal industry. (We explored Talent’s recent background here.)
  • Charlie Black, an informal Romney advisor who is easily one of the best-known Republican lobbyists of his generation. Black has recently lobbied for Boeing, WalMart and the financial services industry.
  • Ron Kaufman, who, according to the Globe, has been traveling with the Romney campaign and providing strategic advice. He was formerly chairman of the Dutko Group Worldwide.
  • Former Rep. Vin Weber, a Romney policy advisor and also managing partner at Clark & Weinstock.

The lobbyist question is not a new one for Romney. Back in his first presidential run in 2007, he famously got into a verbal tussle with an Associated Press reporter who challenged Romney’s claim that lobbyists were not running his campaign. The must-see video of that exchange is here.

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Justin Elliott

Justin Elliott is a reporter for ProPublica. You can follow him on Twitter @ElliottJustin

The Wall Streeters Obama loves most

The president may call them "fat cats" in public, but far too many of his closest advisors are former bankers

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The Wall Streeters Obama loves mostPresident Barack Obama speaks about the resignation of White House Chief of Staff Bill Daley, right, Monday, Jan. 9, 2012 (Credit: AP Photo/Susan Walsh)

We’ve already made our choice for the best headline of the year, so far:

“Citigroup Replaces JPMorgan as White House Chief of Staff.”

When we saw it on the website Gawker.com we had to smile — but the smile didn’t last long.  There’s simply too much truth in that headline; it says a lot about how Wall Street and Washington have colluded to create the winner-take-all economy that rewards the very few at the expense of everyone else.

The story behind it is that Jack Lew is President Obama’s new chief of staff — arguably the most powerful office in the White House that isn’t shaped like an oval. He used to work for the giant banking conglomerate Citigroup. His predecessor as chief of staff is Bill Daley, who used to work at the giant banking conglomerate JPMorgan Chase, where he was maestro of the bank’s global lobbying and chief liaison to the White House.

Daley replaced Obama’s first chief of staff, Rahm Emanuel, who once worked  as a rainmaker for the investment bank now known as Wasserstein & Company, where in less than three years he was paid a reported eighteen and a half million dollars.

The new guy, Jack Lew – said by those who know to be a skilled and principled public servant – ran hedge funds and private equity at Citigroup, which means he’s a member of the Wall Street gang, too.  His last job was as head of President Obama’s Office of Management and Budget, where he replaced Peter Orzag, who now works as vice chairman for global banking at – hold onto your deposit slip — Citigroup.

Still with us? It’s startling the number of high-ranking Obama officials who have spun through the revolving door between the White House and the sacred halls of investment banking. Sure, you can argue that it makes sense that the chief executive of the nation would look to other executives for the expertise you need to build back from the disastrous collapse of the banks in the final year of the Bush Administration.

Remember — it was Bush and Cheney with their cronies in big business who helped walk us right into the blast furnace of financial meltdown, then rushed to save the banks with taxpayer money. That little fact seems to have been overlooked in the current primaries.

All this brings back memories of Hank Paulson, doesn’t it? Hank Paulson, the $700-million man who became secretary of the treasury for President Bush. Paulson had been head of Goldman Sachs, the rich investment bank.  As his successor at Goldman Sachs, Paulson chose Lloyd Blankfein. Several times, according to Bloomberg News, Rolling Stone,and Paulson’s own memoir, the treasury secretary made sure Blankfein and Goldman got privileged inside information.

But Bush and Cheney aren’t the only ones to have a soft spot for financiers. President Obama may call bankers “fat cats” and stir the rabble against them with populist rhetoric when it serves his interest, but after the fiscal fiasco, he allowed the culprits to escape virtually scot-free. When he’s in New York he dines with them frequently and eagerly accepts their big contributions.  Like his predecessors, his administration also has provided them with billions of taxpayer dollars – low-cost money that they used for high-yielding investments to make big profits. The largest banks are bigger than they were when he took office and earned more in the first two-and-a-half years of his term than they did during the entire eight years of the Bush administration. That’s confirmed by industry data.

And get this. It turns out, according to The New York Times, that as President Obama’s inner circle has been shrinking, his “rare new best friend” is Robert Wolf. They play basketball, golf and talk economics when Wolf is not raising money for the president’s campaign.

Robert Wolf runs the U.S. branch of the giant Swiss bank UBS, which participated in schemes to help rich Americans evade their taxes. During hearings in 2009, Michigan’s Senator Carl Levin, chairman of the permanent subcommittee on investigations, described some of the tricks used by UBS: “Swiss bankers aided and abetted violations of U.S. tax law by traveling to this country with client code names, encrypted computers, counter- surveillance training, and all the rest of it, to enable U.S. residents to hide assets and money in Swiss accounts.

“The bankers then returned to Switzerland and treated their conduct as blameless since Swiss law says tax evasion is no crime. The Swiss bank before us deliberately entered United States, actively sought U.S. clients and secretly helped those U.S. clients defraud the United States of America.”

And so it goes, the revolving door between government service and big money in the private sector spinning so fast it becomes an irresistible force hurling politics and high finance together so completely it’s impossible to tell one from the other.

Bill Moyers is managing editor of the new weekly public affairs program, "Moyers & Company," airing on public television. Check local airtimes or comment at www.BillMoyers.com.

Michael Winship is senior writing fellow at Demos and a senior writer of the new series, Moyers & Company, airing on public television.

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