Monday, September 21, 2009

Corruption Watch: Updates on "Murthaville"...cue Jimmy Buffett

Wasted away again in Murthaville
looking for my lost barrell of pork...

I'm linking another story today on how John Murtha brings home the bacon to his district from the Washington Post and a searing expose earlier this month from the New Republic--"Murthaville, the City that Pork Built."

It's infuriating enough that Murtha (and other members of Congress on both sides of the aisle, of course) can exempt themselves and their beneficiaries from laws requiring competition in federal contracting (e.g., the Competition in Contracting Act), they have diverted billions to pet projects that frequently fill no military requirements.  As a result, taxpayer money that go to earmarked projects are misappropriated for no apparent benefit, other than to enrich corporate recipients.  From the Washington Post article:

"Plans are underway to move the Murtha Institute from its dormitory basement suite to a $53 million IUP athletic arena and conference center now under construction. Murtha secured a $3 million federal earmark for the building two years ago, and he sought another earmark this year before abruptly changing course as investigations of his defense appropriations and lobbying connections heated up. Murtha redirected some of that request to IUP research.

In a district that also boasts a regional airport named for Murtha and nearly a dozen other facilities bearing his name, the institute is another example of how the congressman has used federal money to revitalize this economically depressed former coal-mining region. In doing so, he has raised questions among watchdog groups and outside critics about using taxpayer money to fund projects that appear to mostly benefit Murtha loyalists.
"He who pays the most homage to Murtha is the one who gets the money," said Cathy Wentzel..."
 Once again, it's akin to a money laundering scheme disguised as lawmaking:
...In steel’s place, Murtha had become Johnstown’s economic engine, keeping it afloat with a steady stream of government cash that flowed to the city’s private businesses, its hospitals, even its airport--which, like so many things in Johnstown, now bore his name. Murtha was not just Johnstown’s congressman; he was its savior.

That night in August, Murtha would raise as much as $100,000 for his reelection bid. And, in the weeks to come, others who owed their good fortunes to Murtha would direct portions of those fortunes toward his campaign. Ultimately, he matched his Republican challenger in the fund-raising contest. And, although polls taken just a few days before the election showed a neck-and-neck race, Murtha used his war chest to mount a last-minute ad blitz that propelled him to a 16-point victory. For the time being, it appeared that Bill Kuchera and the rest of Johnstown’s business community had managed to save their savior, and themselves. 

“It’s like we were sitting here with four aces and we weren’t sure if we were going to bet it all or fold,” Bill Polacek, the CEO of a local defense firm, told the Johnstown Tribune-Democrat. “With that kind of hand, why would you let the opportunity pass you by?”
As I noted previously, it’s a simple formula:  public money goes OUT to defense contractors in the form of earmarks and (presto) “private” money comes back INTO the politicians' coffers in the form of “campaign contributions” from the same contractors and lobbyists beneficiaries (see previous post:  "Earmarks for Campaign Contributions 'Corrupt as Hell.'"

One such lobbyist firm is the now defunct PMA Group founded by Paul Magliocchetti, a former Murtha senior staffer.  Federal agents raided Magliocchetti's firm and home in November 2008, prompting PMA to close up shop earlier this year.  However, during PMA's existence, Murtha accepted over $2.3 million in campaign contributions from its clients and employees and "requested" tens of millions more according to the Citizens for Responsibility and Ethics in Washington (CREW).

Since Congress has demonstrated no ability to police itself, does DOJ have what it takes go up against this lengendary practitioner of pork-barrel politics?

I expect the noose to continue to tighten around the principle players in the PMA corruption probe as, with each federal indictment issued, the odds of an associate "rolling over" and "turning state's evidence" rises exponentially (read about the July indictment of former Murtha ally Richard Ianeri here).  Multiple defendants, each represented by separate law firms, will generally trip over themselves in a race to secure the best deal with federal prosecutors.  Trust me on this, if AUSAs (Assistant U.S. Attorneys at DOJ) are adept at anything, it's putting the prisoner's dilemma to work to get the bad guys to "come to Jesus." Sphere: Related Content

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