Lobbyist Handling Senators' Finances
by Matt Margolis
No Agenda
February 6, 2006
William C. Oldaker, a 64 year old lobbyist, has been supervising the fundraising of the political action committees of a number of Democratic Senators... including Blanche Lincoln and Mark Pryor, both from Arkansas. Oldaker also "oversees the leadership PACs of Senate Democratic leader Harry Reid of Nevada; Sen. Max Baucus of Montana, ranking member of the Senate Finance Committee; and Democratic Sen. Edward Kennedy of Massachusetts."
It is a legal practice, albeit one that raises concerns amongst advocacy groups that focus on ethics issues.
"Those groups feel lobbyists’ strongest influence over a
member comes not from buying them a meal or a gift, but
from playing key roles in their fundraising efforts,
which are nonstop."
"I think it’s a little too cozy," said Melanie Sloan,
head of Citizens for Responsibility and Ethics in
Washington. "It’s not an uncommon practice, but it is a
concerning one."
The Center for Public Integrity has done a study of such practices, and "found that at least 39 members of Congress listed lobbyists as treasurers of their campaign committees or leadership PACs. Since 1998, at least 79 members have retained lobbyists as treasurers." In the study, Oldaker was identified "as the most notable representing Democrats. It listed him as serving as the treasurer of at least 24 campaign fundraising committees since 1998, including at least 10 leadership PACs."
Pryor and Lincoln both maintain there is nothing improper with the arrangements each of their PACs have with Oldaker, and claim he does not use his being a lobbyist to exert any influence. But this is something the experts find hard to accept.
<<< [Alex] Knott, of the Center for Public Integrity, and Bertram Levine, a Colgate University political scientist and lobbying expert, said others might find the denials hard to believe.
"There is no real reason you need to have a firm involved in lobbying doing your accounting work," said Levine, who was a lobbyist for Johnson & Johnson for 19 years.
"If you are a U.S. senator or a member of the House, you ought to know enough that this is going to smell, even if there is nothing wrong with it," he added.
Knott said he finds it interesting that while Oldaker contends to be only a bookkeeper, his main firm’s Web site brags of his connections to "numerous presidential and congressional campaigns as well as labor unions, trade associations, corporations and other political organizations on the establishment of and operation of PACs and related political activities."
"It’s very funny to say he lobbies Congress but does not lobby the [members] he has connections to," Knott said.
He added, "Lobbyists, for the most part, try to exploit their connections."
Knott said that while Oldaker may downplay his role, the fact remains that the treasurer of a fundraising committee has to "sign off" on all its transactions. >>>
This certainly damages the credibility of the Democratic Party as they try to push their lobbying reform plan... Imagine if this story revealed the same relationship between a lobbyist and a number of Republicans... the Democrats would be pointing to it and saying it's another example of the "culture of corruption," and calling for investigations in to the lobbyist's influence on those Senators.
UPDATE: Several of the aforementioned Senators are now cutting ties with Oldaker!!!!
<<< Minority Leader Harry Reid (Nev.), Democratic Policy Committee Chairman Byron Dorgan (N.D.) and Sen. Edward Kennedy (Mass.) are cutting ties to longtime appropriations lobbyist William Oldaker, who has served as treasurer for their leadership PACs. >>>
And to think some said that there was no conflict of interest...
<<< The moves come as heightened public scrutiny of lawmakers’ ties to lobbyists is prompting both camps to re-evaluate how they interact. With Members of Congress in both parties crafting reform proposals in the wake of the Jack Abramoff lobbying scandal, many are acting pre-emptively to limit contacts with K Streeters.
Some lawmakers have already given up cheap flights on corporate jets, banned staff from accepting free meals or gifts from lobbyists, canceled regular meetings with lobbyists or held off scheduling new fundraisers downtown.
Reid spokesman Jim Manley said the Minority Leader made the decision “to err on the side of caution.” >>>
Seems more like they got caught and are trying to minimize the fallout.
<<< “To go the extra mile, Sen. Reid has decided to make this shift,” Manley said. “This is something we’ve been looking at for a while now.” Reid has tapped Holly Giarraputo, assistant treasurer of the PAC since July 2004, to take over for Oldaker.
Dorgan last month bumped Oldaker from his leadership PAC, called the Great Plains Leadership Fund, replacing him with a Bismark, N.D., businessman named James Hauer.
“We wanted to have a North Dakotan in that role,” spokesman Barry Piatt said.
Oldaker did not return calls for comment. Recent filings showed the former Federal Elections Commission general counsel was maintaining ties to a number of other political committees. Since 1998, he has served as treasurer of 23 such funds and signed off on more than $2 million in donations, according to a recent study by the Center for Public Integrity. Meanwhile, he lobbies for two firms, the National Group and Oldaker, Biden and Belair, mostly seeking federal funds for a number of universities and hospitals. >>>
Apparently, other Democrats were guilty of having lobbyists as their PAC treasurers, including Rahm Emanuel.
<<< Rep. Rahm Emanuel (D-Ill.), the boss of the House Democratic political operation who is making ethics a centerpiece issue in the November elections, last month quietly switched campaign treasurers -- from a federal lobbyist who has for a long time served in that role to someone else.
Emanuel's move comes as GOP leaders who control Congress are seriously considering a crackdown on ethics rules in the wake of an unfolding GOP scandal triggered by the conviction of Republican lobbyist Jack Abramoff. Kathleen Connery, Emanuel's government spokesman, said the treasurer, William Singer, a lawyer and a lobbyist, has been replaced. Asked why, Connery replied, "It's obvious.''
The obvious, I surmise, is this: Emanuel saw the need to get his own ethics house in order. Singer is a former Chicago alderman whose friendship with Emanuel predates his election to Congress. Singer is also a fund-raiser for Senate Democrats.
With the ethics issue heating up, Singer told me he stepped down because "I respect him and want to help him and the best way to do that is not to serve in a meaningless job as treasurer.'' Singer said he will continue to raise money for Emanuel, one of the most prolific fund-raisers in Washington. >>>
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