Tag: Office of Government Ethics

Ethics Chief Accuses Reince Priebus of Making ‘Explicit Threat’ to Silence His Complaints About Trump

Outgoing Director of the Office of Government Ethics Walter Shaub Jr. accused White House Chief of Staff Reince Priebus of making a “fairly explicit threat” in an attempt to quell criticism of President Donald Trump’s refusal to divest from his businesses.

During a Sunday interview on ABC’s This Week, host George Stephanopoulos recalled that Priebus had warned Shaub to “be careful” speaking out after Trump announced that he would not sell his assets or place them in a blind trust as recent presidents have done.

“Did White House pressure have anything to do with your decision to resign?” Stephanopoulos asked.

“I think the fairly explicit threat from Reince Priebus really is emblematic of how the interactions with the White House have been since the beginning of this administration,” Shaub explained, adding that he was not “pushed out.”

“I really always thought the ethics rules were strong enough to protect the integrity of the government’s operations,” Shaub continued. “My recent experiences have convinced me that they need strengthening. And frankly, they convinced me that that I achieved that all I could possibly achieve in this job.”

[Raw Story]

Media

Trump White House Grants Waivers of Ethics Rules

President Donald Trump’s executive order on ethics has been waived at least 11 times since the administration came into office in January, according to records the White House posted online Wednesday night.

The waivers allow White House staffers to work on matters that could affect their former employers or clients or involve issues from which the aides would be normally be excluded because of past lobbying work.

About a week after taking office, Trump signed an executive order restricting the role of lobbyists in his administration and limiting the work government employees could do relating to former clients and former employers. However, the newly disclosed waivers show how often the White House has set those rules aside in order to allow key staffers to oversee issues they worked on in the private sector.

Counselor to the President Kellyanne Conway received a waiver that allows her to take part in “communications and meetings involving former clients which are political, advocacy, trade, or non-profit organizations,” the White House said. Conway’s polling firm, The Polling Company/WomanTrend had a variety of clients including the American Conservative Union, Catholic University, FreedomWorks and Americans for Prosperity.

Several waivers were broad in scope, but appear to affect some of the highest-profile White House aides. An undated waiver issued by White House Counsel Don McGahn allows White House aides to interact with news organizations despite prior ties the officials might have to those outlets.

Chief Strategist Stephen Bannon was executive chairman of the conservative website Breitbart before joining the Trump campaign last year. Under the waiver, he is free to engage with Breitbart even when some news organizations are excluded.

“The Administration has an interest in interacting with news organizations on issues of importance to the Administration. It is important that all appointees be able to communicate and meet with news organizations, and disqualification from such meetings or communications would limit the ability of the White House Office to effectively carry out Administration priorities,” McGahn wrote.

The media-focused waiver doesn’t allow officials who formerly worked at news organizations to become involved in business disputes or any government actions related to the companies.

Four former lobbyists were also granted waivers of provisions in a Trump executive order that would typically preclude ex-lobbyists for two years from doing government work in the subject area on which they previously lobbied.

The White House waived the rule for Trump energy policy adviser Michael Catanzaro, a former lobbyist for the oil and gas industry. He was given approval to work on “energy and environmental policy issues” including the Clean Power Plan, the Waters of the United States rule and other environmental regulations.

Tax policy adviser Shahira Knight, a former Fidelity executive, was approved to deal with tax, retirement and financial services issues even though she’d previously lobbied on those topics.

“The National Economic Council has been tasked with addressing issues relating to tax, retirement and financial services. The Administration has an interest in you working on matters in those areas due to your expertise and prior experience,” the waiver reads.

White House economic aide Andrew Olmem was cleared to work on a variety of finance-related issues despite his lobbying for several big insurance companies and banks.

Vice President Mike Pence’s chief of staff, Joshua Pitcock, also got a waiver. He’d worked as a lobbyist for the state of Indiana on various issues, but was given approval to deal with Indiana state officials in his current job and to work on issues he’d lobbied on for the state, including refugee policy, opioid abuse, trade and education policy and wide variety of other areas.

Six lawyers of the Jones Day law firm, including McGahn, were granted approval to take part in meetings with their former Jones Day colleagues relating to the firm’s ongoing legal representation of Trump, his campaign and related entities.

A White House spokesman stressed the “limited number” of waivers granted.

“The White House has voluntarily released the ethics waivers as part of the President’s commitment to the American people to be transparent,” the statement said. “The White House Counsel’s Office worked closely with all White House officials to avoid conflicts arising from their former places of employment or investment holdings. To the furthest extent possible, counsel worked with each staffer to recuse from conflicting conduct rather than being granted waivers, which has led to the limited number of waivers being issued.”

However, ethics watchdogs were quick to jump on the Trump team for ignoring its own rules.

“The ethics waivers the White House finally released reveal what we already suspected: that this administration is chock full of senior officials working on issues on which they lobbied, meeting with companies in which they have a financial interest, or working closely with former employers,” said Noah Bookbinder of Citizens for Responsibility and Ethics in Washington.

Bookbinder added: “No one has believed for months that this president or his administration had any interest in ethics, but these waivers make clear the remarkable extent to which they are comfortable mixing their own personal interests with the country’s. It’s no wonder they waited for the cover of night to release them.”

Robert Weissman, president of Public Citizen, said that the waivers showed that “for the Trump White House, even its own, highly touted ethics rules are no more than an inconvenience to be waived aside if they interfere with corporate business as usual.”

He said the waivers “vastly exceed the number issued in the early months of the Obama administration and — more importantly — authorize conflicts not permitted in the Obama administration, signify both the corporate takeover of the government and the Trump administration’s utter disregard for ethical standards.”

The complete number of waivers across the entire administration is not yet known because the data released by the White House on Wednesday included only staffers in the Executive Office of the President and the Vice President’s office.

Until last week, Trump aides had been largely noncommittal about releasing the waivers, particularly for White House staffers, although the documents were posted online under President Barack Obama. Trump’s team did say it would disclose waivers of a federal conflict of interest law, but staffers evaded questions about how those records could be requested.

Last month, the Office of Government Ethics said it was launching a “data call” for all ethics and conflict of interest waivers from all agencies including the White House. Office of Management and Budget Director Mick Mulvaney initially raised legal questions about the ethics office’s authority to gather the data, but last week the White House said the administration would comply with the request.

[Politico]

White House, Ethics Office Feud Escalates

An escalating feud between the White House and the Office of Government Ethics (OGE) has boiled over, with the Trump administration refusing to produce waivers it has granted to lobbyists that allow them to work in government agencies.

Walter Shaub, the office’s director, wants to review the waivers and make them public to ensure the Trump administration is adhering to publicly stated policies and an executive order signed by the president.

That would bring the Trump administration in line with practices followed under former President Barack Obama, who appointed Shaub to his current role.

Office of Management and Budget Director Mick Mulvaney is refusing to turn over the waivers. He wants time to consult with the Justice Department about the scope of Shaub’s authority.

In a letter to Shaub, which Mulvaney distributed widely throughout the government, the budget director called the request burdensome and questioned whether the OGE had the power to obtain the waivers. Republicans have in the past bristled at Shaub’s tactics and believe he is politicizing his office.

Shaub went public on Monday with the administration’s refusal to turn the waivers over.

In a blistering 10-page letter sent to Congress and Mulvaney — and subsequently tweeted out through the official OGE account — Shaub told Mulvaney that he has the authority to “institute corrective action proceedings” against individuals who “improperly prevent” ethics officials from doing their jobs.

“OGE declines your request to suspend its ethics inquiry and reiterates its expectation that agencies will fully comply with its directive by June 1, 2017,” Shaub wrote. “Public confidence in the integrity of government decision-making demands no less.”

It’s just the latest fight between the Trump administration and Shaub, whose five-year term will end early next year if he is not fired or doesn’t resign first.

Shortly after the election, Shaub used his office’s Twitter account to urge then-President-elect Donald Trump to divest himself from his business holdings. The tweets were written in Trump’s vernacular and viewed as mocking by many Republicans.

In January, after Trump announced he would hand his business empire over to his adult sons, Shaub publicly rebuked the president at a Washington forum for not putting his assets in a blind trust.

And in February, Shaub recommended disciplinary action for White House senior counselor Kellyanne Conway after she urged viewers to buy first daughter Ivanka Trump’s products during a television interview from the briefing room.

Republicans say Shaub is politicizing his position to make a name for himself as part of the Trump “resistance.”

“Walter Shaub has acted like a partisan candidate for office and not like the director of a government ethics office,” said conservative lawyer Charlie Spies. “He’s brought discredit to what the office does through totally inappropriate tweets and press conferences and clear bias against the Trump administration.

“There may be legitimate issues that need to be addressed, but those are totally overshadowed by Shaub’s grandstanding.”

Trump signed an executive order in January that indicated the new administration would follow practices established during the Obama administration. Lobbyists hired into the government would be prohibited from working with former clients or on issues they had been involved with unless they received a waiver.

The Trump administration’s refusal to comply with the request has raised suspicions among government watchdogs over how many waivers the Trump administration is handing out and to whom.

Democrats in Congress have said they’ll seek the waivers directly if the Trump administration doesn’t turn them over. Government watchdog groups are suing for the records.

Legal and ethics experts interviewed by The Hill were flabbergasted that the administration would break with precedent by refusing to comply with the request for the documents.

“The Trump administration is going to lose this fight,” said Richard Painter, the White House ethics lawyer for former President George W. Bush. “The Office of Government Ethics is not a political agency and Walter Shaub is not a political guy. Picking a fight with the OGE is the dumbest thing the administration can do at this juncture. Just give them the stupid waivers.”

Even some of Trump’s allies on Capitol Hill are standing with Shaub.

In 2009, Sen. Chuck Grassley (R-Iowa) wrote a letter to the OGE asking the Obama administration to “live up to its word” by being “open, transparent and accountable” about the government employees that received waivers.

“Senator Grassley stands by his letter from 2009 calling for greater government transparency of ethics waivers, and is grateful to see that, eight years later, the Office of Government Ethics now explicitly agrees with his assessment of its authority,” a Grassley spokesperson told The Hill. “He’s also been exploring the matter with Democrat colleagues in the last few weeks, and welcomes their newfound interest in improving this transparency.”

The controversy has raised questions about Shaub’s future eight months before his term ends.

The administration is frustrated by what it views as lifelong bureaucrats within the government that refuse to accept the legitimacy of the new regime.

Trump has already fired FBI Director James Comey and acting Attorney General Sally Yates.

And in a television appearance earlier this year, Trump’s chief of staff, Reince Priebus, warned Shaub to “be careful.”

Still, firing an ethics watchdog who is ostensibly fighting for greater transparency could backfire at a time when Trump is dealing with blowback for firing Comey, who was overseeing an investigation into whether Trump campaign officials colluded with Russia to influence the outcome of the 2016 presidential election.

“The outcry would be tremendous, and it would only raise further questions about what they’re hiding,” said Larry Noble, senior director at the Campaign Legal Center. “You can’t just keep firing everyone for looking into what you’re doing.”

[The Hill]

Ethics Agency Rejects White House Move To Block Ethics Waiver Disclosures

The Office of Government Ethics has rejected a White House attempt to block the agency’s compilation of federal ethics rules waivers granted to officials hired into the Trump administration from corporations and lobbying firms.

The White House action, a letter to OGE Director Walter M. Shaub Jr. from Office of Management and Budget Director Mick Mulvaney, was first reported by The New York Times. The newspaper had earlier published a detailed account of lobbyists turned appointees who were granted waivers and now oversee regulations they previously had lobbied against.

With an ethics waiver, a federal official is free to act on matters that normally would trigger concerns about conflicts of interest or other ethical problems. Federal regulations say the waivers generally should be made public on request. The Obama administration routinely posted waivers online. The Trump administration has issued an unknown number and released none.

Shaub notified the White House and federal agencies in April that OGE wanted to see all ethics waivers issued by President Trump’s administration. He set June 1 as the deadline. The broad request is known as a data call.

Mulvaney notified Shaub in a letter last week that the data call “appears to raise legal questions regarding the scope of OGE’s authorities.” He said he wanted the data call put on hold until it is reviewed by the Justice Department’s Office of Legal Counsel, which advises the executive branch on constitutional questions and limits of executive power. The move could block the request for waivers indefinitely.

Shaub told the White House late Monday that his agency would continue collecting the ethics waivers. In a nine-page response, Shaub said that the OGE “declines your request to suspend its ethics authority,” adding that “public confidence in the integrity of government decisionmaking demands no less.”

Under federal regulations, OGE is supposed to oversee all waiver decisions throughout the government.

“OGE has a right to review any waiver,” said former OGE Assistant Director Stuart Gilman. Referring to the data call, he said, “It’s not like somehow or other this is a special case.”

The ethics waivers are supposed to be public documents, but the administration so far has not released them. An anti-Trump legal group, American Oversight, sued eight federal departments and agencies on Monday, arguing that ethics waivers should be released under the Freedom of Information Act. American Oversight had previously filed FOIA requests.

The Trump administration and OGE are fighting on other fronts, as well:

— OGE earlier this month announced a new certification document for Cabinet secretaries and other top-ranking appointees to show they are fulfilling the ethics agreements they signed before being confirmed by the Senate. Ethics agreements typically commit a nominee to avoid ethics violations through a blind trust, divestiture, recusal or similar action.

The document must be signed by the official. As with tax returns and other federal documents, false statements run the risk of penalties. There was no previous oversight of compliance.

— The White House has raised a conflict-of-interest question to challenge newly appointed special counsel Robert Mueller, who will oversee the FBI’s investigation of Russian interference in the 2016 election.

The issue is that other lawyers at Mueller’s former law firm represent presidential daughter Ivanka Trump; her husband, Jared Kushner; and onetime Trump campaign manager Paul Manafort. Mueller never worked for those clients, but under ethics law he still could require a waiver for his new job. It’s worth noting that while the White House suggests conflicts for Mueller, it obtained an ethics agreement for EPA Administrator Scott Pruitt. He needed it because, in his previous job as Oklahoma attorney general, he was a plaintiff in several lawsuits challenging EPA regulations.

— Last winter, Shaub used Twitter to exhort Trump into putting his hundreds of corporations into a blind trust. Trump instead put them into a revocable trust, where he can draw money from his businesses whenever he wants.

[NPR]

Trump Lawyer Asked to Submit Financial Disclosure Without His Signature

President Trump allegedly sought to submit federal ethics forms that detail his wealth without signing them, according to a report from the Associated Press.

Trump’s lawyer, Sheri Dillon, reportedly told the Office of Government Ethics (OGE) that he should not have to sign the financial disclosure report because he was submitting it voluntarily, an accounting of letters obtained by the outlet. The signature verifies that the forms are accurate.

The head of the ethics agency, Walter Shaub, responded that he would not accept the forms without Trump’s signature, a standard part of the reporting process.

The OGE would process the forms, Shaub wrote in a letter earlier this month, “on the condition that the President is committed to certifying that the contents of his report are true, complete and correct. … When we met on April 27, 2017, you requested that he be excused from providing this certification.”

The Associated Press received the correspondence through a Freedom of Information Act request.

Following the report, a person with familiar with the matter told The Hill that Trump’s lawyer had asked if the trustees of Trump’s revokable trust should be the ones signing the documents “given that the president is prevented from having direct, contemporaneous knowledge about the changes in the compensation and values of the assets and liabilities contained in the trust.”

Wealthy officials and lawmakers often put their assets into trusts and sign the disclosures because they are making a good faith verification that the forms are correct to the best of their knowledge, even if they aren’t aware of the actual values.

Trump’s oldest son, Donald Trump Jr., and Trump Organization chief financial officer, Allen H. Weisselberg, manage the trust. Trump is still fairly close to the trust, according to a New York Times review in February, and still gets reports about profits or losses as a whole. He can also remove the trustees at any time.

Trump has resisted calls to set up a blind trust for his assets, saying that he is not required by law to do so.

The OGE is an independent agency that, among other things, writes guidance on ethics rules for the executive branch and collects the personal financial disclosures from officials.

The financial reports are required for many senior officials, but the commander in chief is not obligated to submit one. Previous presidents, however, have opted to file them annually.

“Refusing to sign your OGE financial disclosure form is like refusing to take the oath before testimony,” Richard Painter, the former chief White House ethics lawyer for President George W. Bush, tweeted on Friday.

Painter has been an outspoken critic of the Trump administration and its ethics policies.

Earlier this week, the White House announced that Trump would voluntarily submit a disclosure report “in due time,” which confirmed another AP story.

The reports do not offer a specific evaluation of wealth for government officials, instead placing assets and liabilities in broad ranges. For example, one category offers a range of $1 million to $5 million.

Over the last 40 years, presidents have also routinely disclosed their tax filings, something Trump has as yet declined to do. At one point during the presidential campaign, he said that he would “absolutely” release the returns.

“I have very big returns, as you know, and I have everything all approved and very beautiful and we’ll be working that over in the next period of time,” Trump told NBC’s Chuck Todd in January. “Absolutely.”

By the following month, he started backtracking on releasing the returns, saying that the IRS was auditing him and that the reports would reveal no relevant information.

Tax returns “have [zero] to do w/ someone’s net worth,” Trump tweeted on Feb. 25. He had already released financial disclosures required for presidential candidates, which he said are “great.”

The tax returns would provide more information about Trump’s sources of income, his charitable giving and how much taxes he has paid, among other things.

[The Hill]