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Stabroek News

Campaign financing: Open books only part of the answer
published: Sunday | October 15, 2006


From left, Bob Ney and Ray Hadeed

Colin Steer, Associate Editor - Opinion

The Associated Press wire services last Friday quoted Republican party leaders as saying Ohio Congressman Rep. Bob Ney, who had earlier pleaded guilty in the Jack Abramoff influence-peddling investigation, would be expelled from the House of Representatives. That is, if he did not resign by the time they return to Washington after the November 7 congressional elections.

Appearing before Judge Ellen Segal Huvelle last Friday on charges of conspiracy and making false statements, Ney acknowledged taking trips, tickets, meals and campaign donations from Jack Abramoff in return for official actions on behalf of the lobbyist's clients.

Ney could be sentenced to as much as 10 years in prison, but the Justice Department recommended 27 months. Ney's lawyers plan to recommend him for a Bureau of Prisons alcohol treatment programme, which could cut dramatically the time he serves behind bars.

Ney is the latest in a string of once-influential men convicted in a scandal that so far has caught several lobbyists and two members of the Bush administration.

  • Abramoff, the Republican superlobbyist, admitted guilt in January. Two former aides to Republican Tom DeLay, the former House majority leader, also have pleaded guilty, as has Ney's former chief of staff.

  • Former White House official David Safavian, who was the Bush administration's top procurement official, was convicted of covering up his dealings with Abramoff. He is scheduled for sentencing on October 27.

  • Roger Stillwell, a former Interior Department official, pleaded guilty in August to a misdemeanour charge for not reporting that Abramoff had given him tickets to American football games and concerts.

    Abramoff's lobbying team had 485 contacts with the Bush White House in three years, according to a recent House report.

    Bribery of public officers

    The nabbing of these American officials was possible because of specific legislation dealing with the bribery of public officers and the acceptance thereof in the United States. In addition, they have a more vigorous investigative system that is not as easily compromised as Jamaica's.

    Despite some protests, the local culture does not generally frown on influence-peddling and outright bribery. Many of the same people who pontificate publicly about the ill-effects of pork-barrel politics expect to get something in return for their financial contributions and services rendered in election campaigns - whether at the national or intra-party level.

    Of note, in the Ney case, the Ohio Congressman also acknowledged making false statements on his financial disclosure forms by concealing that Abramoff and a foreign businessman were the true sources of gifts he had received.

    Ney had also agreed to push legislation helpful to Abramoff clients.

    The Bob Ney case offers several useful pointers to us here in Jamaica to consider. The declaration of assets by public officials - when they bother to do so - hardly ever tell the true story. Anecdotal evidence suggests that creative accountants know how to hide assets and income.

    Unlike the United States and other jurisdictions, there is no real independent local investigative agency with resources that can adequately follow the trail of dummy companies and under-the-table payments.

    So, the recent controversy over the Trafigura Beheer contribution to the People's National Party (PNP) has brought again to the fore many proposals on how to deal with election campaign financing and ways of cauterising institutionalised corruption.

    While some of our local legislators and commentators have been pushing for election campaign reform that would require political parties to publish a list of financial donors, few are addressing the flip side of the coin - that is the system of checks and balances to monitor the award of contracts and employment practices. We have had an abundance of evidence of procedures being by-passed in the name of expediency.

    Dummy companies

    People who want to buy influence can just as easily create dummy companies and funnel payments through accounts like Colin Campbell's CCOC Associates. A list of donors by itself proves nothing. Few donors would leave as public a trail as did Colin Campbell.

    Local businessman Ray Hadeed of the Serv-Wel group of companies is no stranger to contributing to the political parties in his nearly 50 years as a manufacturing entrepreneur. He has primarily been associated with the Jamaica Labour Party but has shared long-standing and deep friendships with politicians across the divide.

    He is all for open books and transparency in the donations. Hadeed contends that it is the nature of the beast that donors expect something in return for contributions.

    "To tackle the fears of corruption, there needs to be legislation in place putting a cap on the amount of money individuals, firms and their subsidiary companies are able to contribute to the parties," he says.

    But Hadeed also recognises that of equal importance is the system by which public jobs and contracts are awarded.

    The importance of separation of powers would take on greater meaning, he suggests.

    "There should be a joint select committee of Parliament to examine the awards of contracts, and this committee should be chaired by somebody from the Opposition. This way, everybody can see clearly who is applying for what and have a clear understanding of the process by which persons have been selected for the jobs and contracts awarded."

    As far as he is concerned, corruption is no more endemic to the public sector than to the private.

    "It is imperative that legislation to address these concerns be put on the fast track given the increasing fears of drug money being a determinant in the elevation of public officials," he says.

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