Reform groups in Washington are demanding that Congress strip $25 million in earmarks that Sen. Mitch McConnell, R-Ky., is pushing for a British defense contractor facing a criminal investigation by the U.S. Justice Department and an audit by the U.S. Defense Department.
“Public confidence in Congress continues to wane, and wasteful spending and corruption continue to be primary causes of public concern,” the National Legal and Policy Center and Taxpayers for Common Sense wrote Wednesday to the Senate and House appropriations committees.
Unless Congress removes McConnell’s earmarks for BAE Systems, a major McConnell campaign donor, it sends “the message that the way to success in getting taxpayers’ money is to put your facilities in key congressional districts, give campaign donations to those congressmen, and hope the Congress rewards you despite an ongoing federal investigation,” the groups wrote.
The Herald-Leader first reported on the earmarks Saturday.
McConnell defended his earmarks in an e-mail to the Herald-Leader this week, saying the money helps BAE to keep jobs in Kentucky.
BAE is based in Great Britain but has worldwide operations, including a Louisville factory that makes naval guns and employs 322. McConnell has taken at least $53,000 in campaign donations from BAE’s political-action committees and employees since his 2002 re-election. United Defense Industries, which BAE purchased two years ago, pledged $500,000 to a political-science foundation the senator created, the McConnell Center at the University of Louisville.
In June, BAE confirmed that the Justice Department is investigating possible corruption in its Saudi Arabian deals. According to British news reports, BAE set up a slush fund with hundreds of millions of dollars in a Washington, D.C., bank to bribe Saudi Prince Bandar bin Sultan to win weapons contracts. Bandar, who heads the Saudi National Security Council, has denied the allegation.
Audit on contracts pending
Also, State Department records show that American diplomats have worried in recent years about BAE allegedly bribing officials in several other countries. The Defense Department’s Office of Inspector General in August opened an audit into Army contracts awarded to BAE, to determine whether the rules were followed. That audit, prompted by tips to the Pentagon about BAE, is pending.
BAE has declined to comment. After disclosing the Justice Department probe, it launched an internal ethics review, and its chief executive officer announced his retirement earlier than expected.
McConnell, the Senate minority leader, put $25 million for three BAE naval weapons projects in the 2008 defense appropriations bill, which is expected to go to a conference committee next week to iron out differences between the Senate and House versions.
McConnell’s office did not return repeated calls for comment.
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But critics say McConnell is propping up a company that apparently can’t compete without him. While it sounds good for a senator to defend jobs, “we should be spending federal money where and as we need to, not to keep the lights on in someone’s district,” said David Williams, vice president of Citizens Against Government Waste, a Washington watchdog group.
“I want to know when Sen. McConnell became the secretary of defense,” Williams said. “The Pentagon has to sit down every year, draw up its priorities and budget its money accordingly. Who is Mitch McConnell to insist that we fund these projects?”
Dropping of earmarks urged
Apart from the controversy over earmarks, the Justice Department investigation of BAE should prompt McConnell to suspend his assistance for the company, said Ken Boehm, chairman of the National Legal and Policy Center, one of the reform groups that urged the appropriations committees to drop the earmarks.
Boehm’s group and Taxpayers for Common Sense, which joined it in signing the protest letter, are non-partisan, non-profit watchdogs that monitor federal spending for signs of waste, fraud and abuse. Boehm is a former Republican congressional aide.
Boehm said news of McConnell’s BAE earmarks have “created quite a buzz around Capitol Hill,” including a front-page story in yesterday’s Roll Call, a newspaper, which covers Congress. The appropriations panels have not responded to his letter yet — their attention this week is on other spending bills — but he said he’s hopeful common sense will prevail.
“This is really a questionable use of federal funds,” Boehm said. “I’d love to see a poll asking, ‘Do you want your tax money going to a company currently under … investigation?’ I bet you’d see a lot of people saying ‘No.’”