Category: Hire The Best People

Trump nominates Dow Chemicals lawyer to oversee EPA toxic waste program

U.S. President Donald Trump on Friday nominated a Dow Chemicals lawyer to head-up an Environmental Protection Agency unit that oversees hazardous waste disposal and chemical spills from toxic “Superfund” sites.

Trump named Peter Wright as assistant administrator for the Office of Land and Emergency Management (OLEM). Wright served as Dow’s managing counsel for environmental health and safety and provided the company legal support for Superfund and other remediation sites, according to the EPA.

“He has the expertise and experience necessary to implement our ambitious goals for cleaning up the nation’s contaminated lands quickly and thoroughly,” EPA Administrator Scott Pruitt said in a press release.

Pruitt has said that cleaning up Superfund sites would be a priority for the agency.

As head of OLEM, Wright would oversee the development of guidelines for the land disposal of hazardous waste and underground storage tanks and respond to abandoned and active hazardous waste sites, as well as accidental chemical releases through the Superfund program.

Dow Chemicals facilities are involved in dozens of Superfund projects.

Dow had accrued $219 million in accrued obligations for remediating Superfund sites, according to the company’s fourth quarter 2017 10-K filing.

Overall, Dow had accrued $1.3 billion in “probable environmental remediation and restoration costs,” according to the 10-K.

The EPA’s relationship with Dow had been under scrutiny after Pruitt last year announced the agency would decline to ban the pesticide chlorpyrifos, a chemical that EPA scientists and the American Academy of Pediatrics wanted to ban because of the risk it said it posed to children and farm workers.

[Reuters]

Qatar Refused to Invest in Kushner’s Firm. Weeks Later, Jared Backed a Blockade of Qatar.

Jared Kushner’s father met with Qatar’s minister of finance last April, to solicit an investment in the family’s distressed asset at 666 Fifth Avenue, according to a new report from the Intercept.

The Qataris shot him down.

Weeks later, Saudi Arabia and the United Arab Emirates organized a blockade of Qatar. The Gulf monarchies claimed that this act of aggression was a response to Donald Trump’s call for the Arab world to crack down on terrorists — after taking in the president’s majestic sermon in Riyadh, the Saudis simply couldn’t live with themselves if they didn’t take action to thwart Qatar’s covert financing of Islamist extremism.

In reality, the Saudis’ primary aim was to punish Doha for asserting its independence from Riyadh by, among other things, engaging with Iran and abetting Al Jazeera’s journalism. This was obvious to anyone familiar with the Saudis’ own affinity for (shamelessly) exporting jihadism — which is to say, anyone with a rudimentary understanding of Middle East politics.

And it was equally obvious that the United States had nothing to gain from a conflict between its Gulf allies. Qatar hosts one of America’s largest and most strategically important air bases in the Middle East. Any development that pushes Doha away from Riyadh pulls it toward Tehran. Thus, Secretary of State Rex Tillerson — and virtually every other arm of the U.S. government — scrambled to nip the blockade in the bud.

But Jared Kushner was (reportedly) an exception. Donald Trump was more than happy to endorse the idea that his speech had moved mountains, and commended the Saudis for punishing Qatar — first on Twitter, and then during a press conference in the Rose Garden. According to contemporary reports, his son-in-law was one of the only White House advisers to approve of this stance.

Perhaps, Kushner’s idiosyncratic view of the blockade had nothing to do with Qatar’s rejection of his father. Maybe the senior White House adviser simply wanted to tell Trump what the latter wished to hear. Alternatively, it’s at least conceivable that contemporary reports were wrong, and that Kushner played no significant role in Trump’s decision to support the blockade.

Regardless, the senior White House adviser is adamant that there was no relationship whatsoever between his family’s business dealings and the administration’s policy. “It is fantasy and part of a misinformation campaign for anyone to say or any media to report that Mr. Kushner took any action with respect to Qatar or any other country based on whether anyone in that country did or did not do business with his former company from which he disengaged before coming into the government,” Peter Mirijanian, a spokesperson for Mr. Kushner’s attorney, Abbe Lowell, said in a statement. “Mr. Kushner has not taken part in any business since then. This is nonsense.”

The government of Qatar, however, suspects otherwise. As NBC News reports:

Qatari government officials visiting the U.S. in late January and early February considered turning over to Mueller what they believe is evidence of efforts by their country’s Persian Gulf neighbors in coordination with Kushner to hurt their country, four people familiar with the matter said. The Qatari officials decided against cooperating with Mueller for now out of fear it would further strain the country’s relations with the White House, these people said.

It’s worth noting that the project the Qatari foreign minister refused to finance wasn’t just one more item in the Kushner family’s portfolio; it was Jared’s baby — his misbegotten, sickly, drowning baby.

In 2007, Jared Kushner decided that the real-estate market had nowhere to go but up. And so the 26-year-old mogul decided to plow $500 million of his family’s money — and $1.3 billion in borrowed capital — into purchasing 666 Fifth Avenue for twice the price it had previously sold for. Even if we’d somehow avoided a global financial crisis, this would have been a bad bet: Before the crash, when the building was almost fully occupied, it generated only about two-thirds of the revenue the Kushners needed to keep up with their debt payments.

After the crisis, however, things got really hairy. The Kushners were forced to sell off the building’s retail space to pay their non-mortgage debt on the building — and then to hand over nearly half of the office space to Vornado as part of a refinancing agreement with the real-estate giant.

The office space that the Kushners retained is worth less than its $1.2 billion mortgage — which is due early in 2019. If their company can’t find some new scheme for refinancing and redeveloping the property by then, Kushner will have cost his family a fortune.

And Jared really doesn’t want that to happen. In the months between his father-in-law’s election and inauguration, Kushner divided his time between organizing the transition, and seeking capital from (suddenly quite interested) investors aligned with foreign governments: During that period, Kushner attempted to secure a $400 million loan from the Chinese insurance firm Anbang, and a $500 million one from former Qatari prime minister and billionaire investor Sheikh Hamad bin Jassim al-Thani, also known as “HBJ.” Anbang pulled out once the deal attracted critical media scrutiny, and HBJ jumped ship when the Kushners failed to find a second major source of capital.

In those same weeks, Kushner met with Sergey Gorkov, head of the Kremlin-affiliated Vnesheconombank. The senior White House adviser has insisted that this meeting was strictly political; Gorkov maintains it was strictly business.

All of these interactions are currently being scrutinized by Special Counsel Robert Mueller.

They have also, apparently, been studied by top government officials in the United Arab Emirates, China, Israel, and Mexico — all of whom have privately discussed strategies for exploiting Jared Kushner’s business interests for geopolitical gain, according to a report from the Washington Post on Wednesday.

And if America’s allies and adversaries are looking for further (circumstantial) evidence that U.S. foreign policy might be for sale, the New York Times provided some this week, when it revealed that Kushner’s family company had won $500 million in financing last year from a pair of American firms right after their top executives had White House meetings with one Jared Kushner.

Maybe all of this looks worse than it is. But it looks like the president’s son-in-law worked to sour relations with a key U.S. ally in the Middle East — which has since drifted further into the orbit of a regime hostile to the United States — because it refused to bail out his family’s underwater real-estate investment.

Even if this is appearance is deceiving, why isn’t the mere semblance of such high corruption enough to bounce Kushner from the White House? Are Kushner’s personal skills really more valuable than his conflicts of interest are toxic? Is a real-estate heir who has no policy-making experience, background in geopolitics, or security clearance — but does have significant business interests in Israel — really such an ideal choice for brokering peace in the Middle East?

Kushner’s sole qualification for his senior White House position (beyond having been born and betrothed to the right people) is the business savvy that allowed him to avoid squandering his family’s enormous fortune — and if he doesn’t auction off American foreign policy for an emergency loan, he very well may have to delete that item from his résumé.

[New York Magazine]

Officials from four countries discussed exploiting Jared Kushner

Officials from at least four countries have discussed ways they could use Jared Kushner’s intricate business arrangements, lack of experience and financial woes to manipulate President Donald Trump’s son-in-law and senior White House adviser, The Washington Post reported Tuesday.

The paper reported that it is unclear, based on current and former US officials familiar with intelligence reports on the matter, that the countries — – Mexico, Israel, China and the United Arab Emirates — acted on the conversations.

The revelation is the latest in a series that call into question Kushner’s ability to work in the White House given his complex business ties.

CNN reported earlier on Tuesday that Kushner has been stripped of his access to the nation’s top secrets after chief of staff John Kelly mandated changes to the security clearance system. Kushner had been working on a temporary clearance, but, under the new system, aides who previously had “top secret” interim clearances saw their access downgrade to the less sensitive “secret” designation.

[CNN]

Businesses Reportedly Gave Jared Kushner’s Co $500M Loans After White House Meetings

Jared Kushner has been the subject of controversy after his security clearance was downgraded by White House Chief of Staff John Kelly.

Now, according to a report from The New York Times, Kushner Companies, which is run by Kushner’s family, received $184 million from Apollo Global Management, whose founder, Joshua Harris, made “regular visits” to the White House in an advisory capacity.

Kushner resigned from Kushner Companies when he joined the Trump White House and put part of his stake into a trust, but he still has the majority of his interest in the company.

Additionally, the business received a $325 million loan from Citigroup after its CEO, Michael L. Corbat, met with Kushner. The two reportedly did not discuss Kushner Companies.

Government ethics experts told the Times that there is “little precedent” for CEOs whose businesses plan to make large loans to a company a White House official has a stake in meeting with said official.

Conflict of interest questions have plagued the Trump administration from the outset. This new report figures only to fuel critics.

[Mediaite]

Senior Trump adviser Stephen Miller appears to fall asleep during White House meet on school safety

Stephen Miller apparently finds school safety exhausting.

Photographers caught the senior White House adviser rubbing his eyes, yawning and nodding off during an hour-long Monday meeting called in response to the Florida high school shooting that left 17 people dead.

Miller, who has become one of President Trump’s most trusted advisers, appeared to be fully asleep in one of the photos.

The White House did not respond to a request for comment from the Daily News.

The 32-year-old adviser’s hard-right stance on immigration has landed him in trouble with both Democrats and Republicans, many of whom blame him for blocking bipartisan policy proposals.

Trump hosted the White House meet with 35 governors from across the country to discuss how the nation’s schools can become safer and less susceptible to gun violence.

Echoing talking points from the National Rifle Association, Trump has proposed arming teachers as a way to deter school shooters. Trump’s proposal has drawn condemnation from politicians on both sides of the aisle, who say more weapons in schools will exacerbate the problem.

During Monday’s sit-down, Trump lambasted a sheriff’s deputy who didn’t enter the Marjory Stoneman Douglas High School as 19-year-old gunman Nikolas Cruz walked through the corridors, methodically killing his former classmates and teachers with an AR-15 assault rifle. Contrary to the deputy, Trump said he would have rushed into the school even if he was unarmed.

“You don’t know until you test it, but I really believe I’d run in there even if I didn’t have a weapon,” Trump said. “And I think most of the people in this room would have done that, too.”

[New York Daily News]

Trump Reportedly Wants His Personal Pilot to Run the Federal Aviation Administration

Donald Trump reportedly wants his personal pilot to be the head of Federal Aviation Administration, as John Dunkin‘s has made it on a short list for the job.

With both his daughter and son-in-law in top White House positions, accusations of nepotism have plagued the Trump administration since its inception — and the latest example of just that comes via the president privately pushing Dunkin for FAA chief, reports Axios.

While the pilot, who flew Trump’s personal airplane throughout the 2016 presidential campaign, has not officially been told he has the position, administration officials are already arguing that Dunkin actually deserves the top FAA job based on his qualifications.

“He’s on the list because he’s the president’s pilot, but if he gets the job it won’t be because he’s the president’s pilot,” said one anonymous source regarding the position that oversees a multibillion dollar budget. Additionally, a different official in the administration argued that Dunkin has the correct amount of field experience.

However, another source who spoke to Axios described the situation by comparing it to a Seinfeld episode:

“One industry insider equated this to the Seinfeld episode when Cosmo Kramer used his golf caddy as a jury consultant. A senior administration official told me that comparison is completely unfair. The source confirmed Trump recommended Dunkin and that he’s sat for an interview for the post. That source said he was impressive.”

Competing FAA head candidates include GOP Rep. Sam Graves of Missouri and the current FAA Administrator Dan Elwell.

[Mediaite]

Senior HHS official placed on leave for promoting unfounded claims and conspiracy theories on social media

A top official at the Department of Health and Human Services has been placed on administrative leave after a CNN KFile inquiry while the agency investigates social media postings in which he pushed unfounded smears on social media.

Jon Cordova serves as the principal deputy assistant secretary for administration at HHS. A KFile review of Cordova’s social media accounts found that he pushed stories filled with baseless claims and conspiracy theories, including stories that claimed Gold Star father Khizr Khan is a “Muslim Brotherhood agent” and made baseless claims about Sen. Ted Cruz’s personal life.

“Mr. Cordova is currently on administrative leave while we look into this issue further,” a HHS spokesperson said in a statement.

Cordova did not respond to a request for comment.

Cordova joined HHS in February of 2017, initially as part of the Office of the White House Liaison. In his current role, Cordova oversees day-to-day operations for the Office of Human Relations, Office of the Chief Information Officer, Office of Security and Strategic Information, Equal Employment Opportunity Compliance and Operations Office and the Program Support Center, according to his biography posted on the HHS website.

Prior to joining HHS, Cordova served as a Trump delegate from California to the Republican National Convention and worked in communications for Donald Trump’s campaign in California.

During the 2016 presidential campaign, Cordova routinely promoted stories on social media that pushed fringe claims about Trump’s opponents that have no basis in fact.

In July 2016, Cordova shared a story that asserted without evidence that Khan, who spoke out against Trump at the 2016 Democratic National Convention, was a “Muslim Brotherhood agent” and “a Muslim plant working with the Hillary Clinton campaign.” He also shared another story that falsely claimed the Clinton Foundation paid Khan.

Cordova also shared unfounded and false stories that claimed Cruz, a Texas Republican frequented prostitutes, was involved in a sex scandal and was hiding various public records related to his birth and education.

In a post in 2013, Cordova called Democrats “the real racists” and said that 95% of blacks would not have voted for President Barack Obama if he were white.

In a December 2016 comment on Facebook on an article about a nonprofit selling access to President Trump during the inauguration, Cordova called Clinton “a slimy trailer trash huckster.”

Cordova also repeatedly shared fake or conspiratorial stories, including one that claimed that Clinton was photoshopping her rallies to make them look bigger, one with a fake quote from Clinton about Democratic voters, one that claimed NBA star Dwyane Wade endorsed Trump and one with a photoshopped picture of a black man holding a sign that read, “No mother should have to fear for her son’s life every time he robs a store.”

Cordova also struck a conspiratorial tone on his since-scrubbed Twitter account, of which only a few tweets are archived on several websites.

In one tweet, Cordova called for a boycott of Budweiser because the company supported “jihadis” over white immigration.

In another tweet, Cordova speculated the reason the identity of the shooter at Umpqua Community College in 2015 hadn’t been made public was because he was a Muslim. The shooter was not a Muslim.

In another tweet, Cordova compared MoveOn.org and the Black Lives Matter movement to Nazis.

[CNN]

EPA Head Says He Needs to Fly First Class Because People Are Mean to Him in Coach

The head of the Environmental Protection Agency has broken months of silence about his frequent premium-class flights at taxpayer expense, saying he needs to fly first class because of unpleasant interactions with other travelers.

EPA Administrator Scott Pruitt spoke about his flight costs on Tuesday in a pair of interviews in New Hampshire, following a first-class flight to meet with the state’s Republican governor and tour a toxic waste site.

Pruitt told the New Hampshire Union Leader he had some “incidents” on flights shortly after his appointment by President Donald Trump last year.

“We live in a very toxic environment politically, particularly around issues of the environment,” said Pruitt, who confirmed to the newspaper that he had flown first class from Washington to Boston before continuing on to New Hampshire. “We’ve reached the point where there’s not much civility in the marketplace and it’s created, you know, it’s created some issues and the (security) detail, the level of protection is determined by the level of threat.”

Pruitt is the first EPA administrator to have a 24-hour security detail that accompanies him at all times, even at the agency’s headquarters in Washington. He has also taken other security precautions, including the addition of a $25,000 soundproof “privacy booth” to prevent eavesdropping on his phone calls and spending $3,000 to have his office swept for hidden listening devices.

Pruitt said he was not involved in the decision for him to fly first class.

“There have been instances, unfortunately, during my time as administrator, as I’ve flown and spent time, of interaction that’s not been the best,” Pruitt told WMUR TV in Manchester, New Hampshire. “And, so, ingress and egress off the plane … that’s all decisions all made by our (security) detail team, by the chief of staff, by the administration. I don’t make any of those decisions. They place me on the plane where they think is best from a safety perspective.”

Pruitt was asked about the issue following a Washington Post report on Sunday that detailed some of his travel expenses, including a $1,641.43 first-class seat for a short flight in June from Washington to New York City. Pruitt’s ticket cost six times what EPA paid for his aides seated in coach.

The Associated Press reported in July and again in December that spending on commercial airline tickets purchased for Pruitt indicated he was flying in premium-class seats. EPA’s press office has repeatedly refused to comment on whether Pruitt was flying first class.

Federal regulations allow government travelers to fly business class or first class when no cheaper options are “reasonably available” or if there are exceptional security circumstances. However, past federal audits have found that those rules have been routinely violated by high-ranking government officials under both Republican and Democratic administrations.

[TIME]

Kellyanne Conway’s ‘opioid cabinet’ sidelines drug czar’s experts

President Donald Trump’s war on opioids is beginning to look more like a war on his drug policy office.

White House counselor Kellyanne Conway has taken control of the opioids agenda, quietly freezing out drug policy professionals and relying instead on political staff to address a lethal crisis claiming about 175 lives a day. The main response so far has been to call for a border wall and to promise a “just say no” campaign.

Trump is expected to propose massive cuts this month to the “drug czar” office, just as he attempted in last year’s budget before backing off. He hasn’t named a permanent director for the office, and the chief of staff was sacked in December. For months, the office’s top political appointee was a 24-year-old Trump campaign staffer with no relevant qualifications. Its senior leadership consists of a skeleton crew of three political appointees, down from nine a year ago.

“It’s fair to say the ONDCP has pretty much been systematically excluded from key decisions about opioids and the strategy moving forward,” said a former Trump administration staffer, using shorthand for the Office of National Drug Control Policy, which has steered federal drug policy since the Reagan years.

The office’s acting director, Rich Baum, who had served in the office for decades before Trump tapped him as the temporary leader, has not been invited to Conway’s opioid cabinet meetings, according to his close associates. His schedule, obtained under a Freedom of Information Act request, included no mention of the meetings. Two political appointees from Baum’s office, neither of whom are drug policy experts, attend on the office’s behalf, alongside officials from across the federal government, from HHS to Defense. A White House spokesperson declined to disclose who attends the meetings, and Baum did not respond to a request for comment, although the White House later forwarded an email in which Baum stressed the office’s central role in developing national drug strategy.

The upheaval in the drug policy office illustrates the Trump administration’s inconsistency in creating a real vision on the opioids crisis. Trump declared a public health emergency at a televised White House event and talked frequently about the devastating human toll of overdoses and addiction. But critics say he hasn’t followed through with a consistent, comprehensive response.

He has endorsed anti-drug messaging and tougher law enforcement. But he ignored many of the recommendations from former New Jersey Gov. Chris Christie’s presidential commission about public health approaches to addiction, access to treatment, and education for doctors who prescribe opioids. And he hasn’t maintained a public focus. In Ohio just this week, it was first lady Melania Trump who attended an opioid event at a children’s hospital. The president toured a manufacturing plant and gave a speech on tax cuts.

Much of the White House messaging bolsters the president’s call for a border wall, depicting the opioid epidemic as an imported crisis, not one that is largely home-grown and complex, fueled by both legal but addictive painkillers and lethal street drugs like heroin and fentanyl.

“I don’t know what the agency is doing. I really don’t,” said Regina LaBelle, who was the drug office’s chief of staff in the Obama administration. “They aren’t at the level of visibility you’d think they’d be at by now.”

Conway touts her opioids effort as policy-driven, telling POLITICO recently that her circle of advisers help “formalize and centralize strategy, coordinate policy, scheduling and public awareness” across government agencies.

That’s exactly what the drug czar has traditionally done.

Conway’s role has also caused confusion on the Hill. For instance, the Senate HELP Committee’s staff has been in touch with both Conway and the White House domestic policy officials, according to chairman Lamar Alexander’s office. But lawmakers who have been leaders on opioid policy and who are accustomed to working with the drug czar office, haven’t seen outreach from Conway or her cabinet.

“I haven’t talked to Kellyanne at all and I’m from the worst state for this,” said Sen. Shelley Moore Capito, a Republican from West Virginia, which has the country’s highest overdose death rate. “I’m uncertain of her role.” The office of Sen. Rob Portman (R-Ohio), another leader on opioid policy, echoed that — although Portman’s wife, Jane, and Conway were both at the event with Melania Trump this week.

Some drug abuse experts and Hill allies find a silver lining, noting that Conway’s high rank brings White House muscle and attention.

“If I want technical advice, I’m going to work with Baum,” said Rep. Tom MacArthur (R-NJ), a co-chair of the Bipartisan Heroin Task Force. “If I want to get a message to the president, Kellyanne is somebody that I know I can talk to.”

“It’s a really good sign that one of the president’s top advisers has been assigned to such an important topic,” said Jessica Hulsey Nickel, president and CEO of the Addiction Policy Forum.

Baum’s email called the drug office the “lead Federal entity in charge of crafting, publishing and overseeing the implementation of President Trump’s National Drug Control Strategy,” which multiple agencies review. He called Conway’s opioids cabinet an “interagency coordinating apparatus for public-facing opioids-related initiatives” and said that it was not overseeing national policy. But several administration officials did say her cabinet was indeed focused on a variety of policies.

Whatever Conway’s ties to the president, her career has been in polling and politics, not public health, substance abuse, or law enforcement.

Some of her “cabinet” participants do have a broad, general health policy background. But they don’t match the experience and expertise of the drug office’s professional staff. In her circle is Lance Leggitt, the deputy director of the White House’s Domestic Policy Council who was also chief of staff to former HHS Secretary Tom Price. Another top Price aide, Nina Schaefer, recently returned to the Heritage Foundation. The conservative think tank then touted her as having managed “the development of the HHS response to the opioid abuse crisis,” but when POLITICO recently tried to contact her, she said through a spokesperson she was not an expert on the topic.

Among the people working on the public education campaign that Trump promised is Andrew Giuliani, Rudy Giuliani’s 32-year-old son, who is a White House public liaison and has no background in drug policy, multiple administration sources told POLITICO. Nor has Conway spent her career in the anti-opioid trenches.

“Kellyanne Conway is not an expert in this field,” said Andrew Kessler, the founder of Slingshot Solutions, a consulting group that’s worked on substance abuse with many federal agencies. “She may be a political operative and a good political operative,” he added. “But look. When you appoint a secretary of Labor, you want someone with a labor background. When you appoint a secretary of Defense, you want someone with a defense background. The opioid epidemic needs leadership that ‘speaks’ the language of drug policy.”

The set-up befuddles other experts who’ve worked on substance abuse for prior administrations. Fresh ideas are fine, they say. But the drug office has a purpose.

“The whole reason we created ONDCP in 1988 was to be a coordinating force with power in the government and to bring together 20 agencies, many reluctant to be involved in drug control,” said Bob Weiner, who served in that office in both the George W. Bush and Clinton White Houses. “This is exactly when the agency should get maximum support from the White House,” he added.

An ONDCP spokesperson told POLITICO the office “works closely with other federal agencies and White House offices, including Kellyanne Conway’s office, to combat the opioid crisis” but declined to say whether the office’s career experts have attended any of her “opioids cabinet” sessions. The drug office is still crafting the annual drug control strategy, outside the Conway group, administration officials said.

A senior White House official confirmed that officials considered kicking off the media campaign with a big splash during the Super Bowl, but that fell through. Beyond that, many experts on drug policy and substance abuse say messaging alone won’t solve the problem anyway. People with addiction need treatment, and many people get addicted in the first place to painkillers their doctors have prescribed. An ad campaign won’t solve that.

One big test for the drug office will come when Trump releases his budget Monday, which is expected to slash the office’s budget, turning much of its work over to HHS and the Department of Justice. Both departments are developing their own opioid approaches; in past administrations, the drug czar would have coordinated. Lawmakers are already sounding the alarms over the budget plan.

A bipartisan group of senators last week wrote a letter to White House budget director Mick Mulvaney, urging him to reconsider and maintain the office’s programs that “prevent and fight against the scourge of drug abuse.”

Pushback to a similar proposal last year led the Trump administration to reverse the decision and maintain the office’s budget. Lawmakers hope that there will be a similar outcome this time — along with a smarter utilization of the drug policy office.

“What we haven’t seen is the kind of coordination of critical programs that ONDCP has traditionally done,” said Sen. Maggie Hassan, a Democrat from New Hampshire, another state with one of the highest overdose death rates in the country.

Trump officials say it was the Obama administration that began undermining the drug policy office, demoting the director from the Cabinet, shrinking the staff and stressing the health aspects more than a law enforcement-focused “war on drugs.” They say the emergency requires a new approach.

Bob Dupont, who served as the second White House drug czar under President Gerald Ford, before the formal drug policy office was created, and still informally advises the Justice Department on drug policy, believes the White House will eventually realize it needs the expertise that ONDCP has to offer.

The West Wing doesn’t “have the staff or capability” to carry out drug policy work like ONDCP does, Dupont told POLITICO. “I don’t think swashbuckling your approach is going to last very long.”

[Politico]

Trump’s top health official traded tobacco stock while leading anti-smoking efforts

The Trump administration’s top public health official bought shares in a tobacco company one month into her leadership of the agency charged with reducing tobacco use — the leading cause of preventable disease and death and an issue she had long championed.

The stock was one of about a dozen new investments that Brenda Fitzgerald, director of the Centers for Disease Control and Prevention, made after she took over the agency’s top job, according to documents obtained by POLITICO. Fitzgerald has since come under congressional scrutiny for slow walking divestment from older holdings that government officials said posed potential conflicts of interest.

Buying shares of tobacco companies raises even more flags than Fitzgerald’s trading in drug and food companies because it stands in such stark contrast to the CDC’s mission to persuade smokers to quit and keep children from becoming addicted. Critics say her trading behavior broke with ethical norms for public health officials and was, at best, sloppy. At worst, they say, it was legally problematic if she didn’t recuse herself from government activities that could have affected her investments.

“You don’t buy tobacco stocks when you are the head of the CDC. It’s ridiculous; it gives a terrible appearance,” said Richard Painter, who served as George W. Bush’s chief ethics lawyer from 2005 to 2007. He described the move as “tone deaf,” given the CDC’s role in leading anti-smoking efforts.

Even if Fitzgerald, a medical doctor and former Georgia Department of Public Health commissioner, met all of the legal requirements, “it stinks to high heaven,” Painter said.

A Health and Human Services Department spokesman confirmed “the potentially conflicting” stock purchases, saying they were handled by her financial manager and that she subsequently sold them.

“Like all presidential personnel, Dr. Fitzgerald’s financial holdings were reviewed by the HHS Ethics Office, and she was instructed to divest of certain holdings that may pose a conflict of interest. During the divestiture process, her financial account manager purchased some potentially conflicting stock holdings. These additional purchases did not change the scope of Dr. Fitzgerald’s recusal obligations, and Dr. Fitzgerald has since also divested of these newly acquired potentially conflicting publicly traded stock holdings.”

After assuming the CDC leadership on July 7, Fitzgerald bought tens of thousands of dollars in new stock holdings in at least a dozen companies later that month as well as in August and September, according to records obtained under the Stock Act, which requires disclosures of transactions over $1,000. Purchases included between $1,001 and $15,000 of Japan Tobacco, one of the largest such companies in the world, which sells four tobacco brands in the U.S. through a subsidiary.

The purchases also include between $1,001 and $15,000 each in Merck & Co., Bayer and health insurance company Humana, as well as between $15,001 and $50,000 in US Food Holding Co., according to financial disclosure documents.

On Aug. 9, one day after purchasing stock in global giant Japan Tobacco, she toured the CDC’s Tobacco Laboratory, which researches how the chemicals in tobacco harm human health, according to financial forms obtained from HHS’ Office of Government Ethics and calendars obtained through a Freedom of Information Act request.

The records confirm that Fitzgerald sold the shares of tobacco on Oct. 26 and all of her stock holdings above $1,000 by Nov. 21, more than four months after she became CDC director.

Fitzgerald, who declined to be interviewed for this story, has made tobacco efforts a focus of her public health career, despite owning stock in the industry. She listed tobacco cessation as one of her primary priorities while still serving in the Georgia position in February 2017. Prior to accepting the CDC position, she owned stock in five other tobacco companies: Reynolds American, British American Tobacco, Imperial Brands, Philip Morris International, and Altria Group Inc. — all legal under Georgia’s ethics rules. HHS did not respond to questions about why she invested in tobacco companies while working to reduce tobacco consumption.

“It’s stunning,” said Matthew Myers, president of the Campaign for Tobacco-Free Kids. “It sends two messages, both of which are deeply disturbing. First, it undermines the credibility of a public official when they argue that tobacco is the No. 1 preventable cause of disease. Second, and perhaps even worse, it indicates a public official is willing to put their personal profit above the ethics of investing in a company whose products cause so much harm.”

“It gives you a window, I think, into her value system,” said Kathleen Clark, a professor of law focusing on government ethics at Washington University in St. Louis. “It doesn’t make her a criminal, but it does raise the question of what are her commitments? What are her values, and are they consistent with this government agency that is dedicated to the public health? Frankly, she loses some credibility.”

While holding the newly purchased tobacco, drug company and food stock, along with other financial holdings in various health companies, Fitzgerald participated in meetings related to the opioid crisis, hurricane response efforts, cancer and obesity, stroke prevention, polio, Zika and Ebola, according to a copy of her schedule between Aug. 1 and Oct. 27.

Merck, whose stock Fitzgerald purchased on Aug. 9, has been working on developing an Ebola vaccine and also makes HIV medications. Bayer, whose stock she purchased on Aug. 10, has in the past partnered with the CDC Foundation, which works closely with the CDC, to prevent the spread of the Zika virus.

“If she participated in meetings in which she has financial conflicts of interest, that is not fine in my book,” said Craig Holman, a lobbyist at the liberal watchdog group Public Citizen. Because some of the meetings took place before Fitzgerald had an ethics agreement, Holman said she “could have an easy avenue for excusing herself,” by saying she didn’t understand it was a conflict, or arguing she didn’t make decisions in those meetings. “But that is not how the law should be applied,” he added. “Even if you could claim you didn’t speak up at those meetings, your presence poses a conflict of interest.”

But it could have been possible for Fitzgerald to participate in briefings on topics like tobacco or Ebola without violating government ethics policy, depending on her role, said a former government ethics official. For example, if Fitzgerald was just in listening mode and not making any substantive comments or decisions, she would likely be within the rules, the official said.

Fitzgerald has already been criticized by some lawmakers for her inability to offload two financial holdings, which date to before she became CDC director and left her unable to perform some tasks, such as testifying in front of lawmakers. An HHS spokesperson said she is actively working to address her remaining recusal obligations related to the two companies, adding that both have “complex transfer restrictions.”

HHS officials said Fitzgerald’s lengthy divestment process was due to her complicated stock portfolio. They declined to say whether she had any ethics training. She didn’t enter into a formal ethics agreement with HHS until two months after taking office.

“It’s a little concerning it took two months to get her ethics agreement signed and an additional month for her to dump conflicting stock,” said Scott Amey, general counsel at the Project on Government Oversight, a watchdog group.

The Health and Human Services Department declined to respond to detailed questions about Fitzgerald’s investments, including whether she herself approved the transactions and what activities and decisions she recused herself from due to her holdings.

Normally, senior government officials commence the process of outlining their conflicts of interest before they assume a job, so that they can quickly divest within days of taking office, a former HHS senior legal counsel told POLITICO.

HHS lawyers usually advise employees to avoid purchasing new stock during an interim period, particularly in areas where they would likely need to divest. Fitzgerald’s ethics agreement, dated Sept. 7, identified nearly all the companies in which she bought stocks on the job as conflicts of interest.

But officials are liable for their actions, regardless of whether they have an ethics agreement in place or have been warned by ethics officials that a financial holding is a conflict, multiple former government ethics officials told POLITICO.

One reason Fitzgerald’s divestment may have taken so long is that the Office of Government Ethics has little ability to force government officials to speedily address financial conflicts, unless they are undergoing a Senate confirmation process, said Walter Shaub, who directed the U.S. Office of Government Ethics under Barack Obama from 2013 to 2017. The CDC director is not a Senate-confirmable post.

“There is a lot less transparency around the non-Senate confirmed individuals … and the ethics process lags, even though the rules still apply,” said Max Stier, president of the Partnership for Public Service, a government oversight group. “Those folks put themselves at risk by not getting clearance and understanding the rules.”

[Politico]

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