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Elaine Chao, Mitch McConnell and Questions of Conflict Elaine Chao, Mitch McConnell and Questions of Conflict
(about 13 hours later)
Self-dealing, nepotism, conflicts of interest: Donald Trump campaigned on ending that kind of corruption in Washington, then, once in office, threw open the doors of his administration to it.Self-dealing, nepotism, conflicts of interest: Donald Trump campaigned on ending that kind of corruption in Washington, then, once in office, threw open the doors of his administration to it.
Beyond appointing his own family to high office, retaining and promoting his businesses and profiting from foreign officials and corporate leaders who developed a sudden zest for his hotels and resorts, Mr. Trump chose to appoint top officials who traveled expensively on the taxpayer dime; who sent an aide to buy skin cream and tried to arrange a Chick-fil-A franchise for his wife; who rode into office on a horse and was driven out under a cloud of multiple ethics investigations.Beyond appointing his own family to high office, retaining and promoting his businesses and profiting from foreign officials and corporate leaders who developed a sudden zest for his hotels and resorts, Mr. Trump chose to appoint top officials who traveled expensively on the taxpayer dime; who sent an aide to buy skin cream and tried to arrange a Chick-fil-A franchise for his wife; who rode into office on a horse and was driven out under a cloud of multiple ethics investigations.
In recent months, yet another top official has drawn scrutiny over allegations of old-style conflicts of interest: Elaine Chao, the secretary of transportation and the wife of the Republican Senate majority leader, Mitch McConnell.In recent months, yet another top official has drawn scrutiny over allegations of old-style conflicts of interest: Elaine Chao, the secretary of transportation and the wife of the Republican Senate majority leader, Mitch McConnell.
On Friday, Representative Peter DeFazio, the Oregon Democrat who heads the House Transportation Committee, asked the Transportation Department’s in-house watchdog to look into whether Ms. Chao has been showing inappropriate favoritism to her husband’s Kentucky constituents.On Friday, Representative Peter DeFazio, the Oregon Democrat who heads the House Transportation Committee, asked the Transportation Department’s in-house watchdog to look into whether Ms. Chao has been showing inappropriate favoritism to her husband’s Kentucky constituents.
Mr. DeFazio expressed particular concern about reports by Politico that Ms. Chao had tapped a top staffer to serve as a special liaison for Kentucky grant requests and other issues related to the state — the agency has denied this — and that she has held a disproportionate number of meetings with officials from the state.Mr. DeFazio expressed particular concern about reports by Politico that Ms. Chao had tapped a top staffer to serve as a special liaison for Kentucky grant requests and other issues related to the state — the agency has denied this — and that she has held a disproportionate number of meetings with officials from the state.
According to an analysis by Politico, in her first 14 months as transportation secretary, one in four of the scheduled meetings with local officials on Ms. Chao’s calendar were with Kentuckians. (The two states next on the list, Indiana and Georgia, accounted for only 6 percent each.) Some of the meetings were set up at the request of McConnell staff members, who let his wife’s office know which officials were “friends” or “loyal supporters.”According to an analysis by Politico, in her first 14 months as transportation secretary, one in four of the scheduled meetings with local officials on Ms. Chao’s calendar were with Kentuckians. (The two states next on the list, Indiana and Georgia, accounted for only 6 percent each.) Some of the meetings were set up at the request of McConnell staff members, who let his wife’s office know which officials were “friends” or “loyal supporters.”
A spokesman for the department allowed that it may appear as though Ms. Chao meets with Kentucky folks a lot, but disputed that there was anything odd about this — or that the state has received more than its share of federal dollars.A spokesman for the department allowed that it may appear as though Ms. Chao meets with Kentucky folks a lot, but disputed that there was anything odd about this — or that the state has received more than its share of federal dollars.
Far from fretting about the appearance of preferential treatment, Mr. McConnell has embraced it. His re-election campaign tweeted out the Politico article about Ms. Chao’s meetings as proof that “Mitch McConnell is a Kentucky Asset.”Far from fretting about the appearance of preferential treatment, Mr. McConnell has embraced it. His re-election campaign tweeted out the Politico article about Ms. Chao’s meetings as proof that “Mitch McConnell is a Kentucky Asset.”
This is classic McConnell. The majority leader is not beloved by Kentucky voters. His dismal approval numbers back home frequently earn him the distinction as the Senate’s most unpopular member. He often responds to critics by touting his ability to bring home federal bacon.This is classic McConnell. The majority leader is not beloved by Kentucky voters. His dismal approval numbers back home frequently earn him the distinction as the Senate’s most unpopular member. He often responds to critics by touting his ability to bring home federal bacon.
Mr. McConnell is not the only member of Ms. Chao’s family raising eyebrows. The House Oversight and Reform Committee is investigating the secretary for possible conflicts of interest involving Foremost Group, a New York-based shipping company owned by her father and sisters. Much of the company’s business is centered in China, and the Chao family, The Times reported in June, enjoys “an extraordinary proximity to power in China for an American family, marked not only by board memberships in state companies, but also by multiple meetings with the country’s former top leader.”Mr. McConnell is not the only member of Ms. Chao’s family raising eyebrows. The House Oversight and Reform Committee is investigating the secretary for possible conflicts of interest involving Foremost Group, a New York-based shipping company owned by her father and sisters. Much of the company’s business is centered in China, and the Chao family, The Times reported in June, enjoys “an extraordinary proximity to power in China for an American family, marked not only by board memberships in state companies, but also by multiple meetings with the country’s former top leader.”
The Times noted, “Over the years, Ms. Chao has repeatedly used her connections and celebrity status in China to boost the profile of the company.” In 2017, Ms. Chao’s first official trip to China as a Trump cabinet officer was canceled after ethics concerns about her request to include family members in meetings with Chinese officials were referred to officials in the State and Transportation Departments. The Transportation Department gave no reason for the cancellation at the time, but an official later said the trip conflicted with a scheduled cabinet meeting.The Times noted, “Over the years, Ms. Chao has repeatedly used her connections and celebrity status in China to boost the profile of the company.” In 2017, Ms. Chao’s first official trip to China as a Trump cabinet officer was canceled after ethics concerns about her request to include family members in meetings with Chinese officials were referred to officials in the State and Transportation Departments. The Transportation Department gave no reason for the cancellation at the time, but an official later said the trip conflicted with a scheduled cabinet meeting.
In a Sept. 16 letter, the oversight committee chairman, Elijah Cummings, and Raja Krishnamoorthi, head of the subcommittee on economic and consumer policy, reminded Ms. Chao that federal regulations prohibit using one’s public office for “the private gain of friends, relatives, or persons with whom the employee is affiliated in a nongovernmental capacity.” In a Sept. 16 letter, the oversight committee chairman, Elijah Cummings, who died early Thursday, and Raja Krishnamoorthi, head of the subcommittee on economic and consumer policy, reminded Ms. Chao that federal regulations prohibit using one’s public office for “the private gain of friends, relatives, or persons with whom the employee is affiliated in a nongovernmental capacity.”
The committee is also investigating Ms. Chao’s failure last year to divest herself of stock in Vulcan Materials, a producer of construction materials on whose board she served. Before her confirmation in 2017, Ms. Chao signed an ethics agreement to sell her holdings by April 2018. She did not do so until June of this year, just days after The Wall Street Journal reported on the matter. The secretary’s office blames an error by Ms. Chao’s accountant for the lapse.The committee is also investigating Ms. Chao’s failure last year to divest herself of stock in Vulcan Materials, a producer of construction materials on whose board she served. Before her confirmation in 2017, Ms. Chao signed an ethics agreement to sell her holdings by April 2018. She did not do so until June of this year, just days after The Wall Street Journal reported on the matter. The secretary’s office blames an error by Ms. Chao’s accountant for the lapse.
The committee requested that Ms. Chao provide relevant documents and other information by the end of September. The department has for the most part supplied publicly available material, prompting committee Democrats to consider additional action to compel compliance. Ms. Chao’s office has denied any impropriety and said it will turn over information “on a rolling basis.”The committee requested that Ms. Chao provide relevant documents and other information by the end of September. The department has for the most part supplied publicly available material, prompting committee Democrats to consider additional action to compel compliance. Ms. Chao’s office has denied any impropriety and said it will turn over information “on a rolling basis.”
“These false allegations have been hashed over repeatedly in media reports and answered by the department,” said a spokesman. “They are obviously politically motivated.”“These false allegations have been hashed over repeatedly in media reports and answered by the department,” said a spokesman. “They are obviously politically motivated.”
Ms. Chao has no official affiliation with or stake in Foremost. But she and Mr. McConnell have benefited handsomely from her family’s good fortunes. In 2008, Ms. Chao’s father gave her and her husband somewhere between $5 and $25 million, according to disclosure reports. Her extended family has contributed more than $1 million to Mr. McConnell’s re-election campaigns.Ms. Chao has no official affiliation with or stake in Foremost. But she and Mr. McConnell have benefited handsomely from her family’s good fortunes. In 2008, Ms. Chao’s father gave her and her husband somewhere between $5 and $25 million, according to disclosure reports. Her extended family has contributed more than $1 million to Mr. McConnell’s re-election campaigns.
There is no evidence that Ms. Chao has broken any laws. But the potential for conflict of interest runs deep — in multiple directions. The secretary and the Senate leader have done little to avoid the appearance of unfair play, instead seeming to revel in their role as one of Washington’s pre-eminent power couples.There is no evidence that Ms. Chao has broken any laws. But the potential for conflict of interest runs deep — in multiple directions. The secretary and the Senate leader have done little to avoid the appearance of unfair play, instead seeming to revel in their role as one of Washington’s pre-eminent power couples.
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