The Democrats’ New Friends and Family Plan

August 29, 2010

The Democrats’ New Friends and Family Plan
Eddie Bernice Johnson Violates Rules by Steering Scholarship Funds to Relatives,

SPIN CYCLE: Pelosi Once Promised to ‘Drain the Swamp’ and Sweep Corruption out of Washington

“‘Drain the swamp’ means to turn this Congress into the most honest and open Congress in history. That’s my pledge — that is what I intend to do,’ Pelosi stated in an interview with NBC’s Brian Williams.” (Brian Williams, “Rep. Pelosi poised to make history”, NBC Nightly News with Brian Williams, 11/08/2006)

RINSE CYCLE: Texas Democrat Violates Rules By Awarding Scholarship Funds to Relatives:

Longtime Dallas congresswoman Eddie Bernice Johnson has awarded thousands of dollars in college scholarships to four relatives and a top aide’s two children since 2005, using foundation funds set aside for black lawmakers’ causes.

The recipients were ineligible under anti-nepotism rules of the Congressional Black Caucus Foundation, which provided the money. And all of the awards violated a foundation requirement that scholarship winners live or study in a caucus member’s district.

Johnson, a Democrat, denied any favoritism when asked about the scholarships last week. Two days later, she acknowledged in a statement released by her office that she had violated the rules but said she had done so “unknowingly” and would work with the foundation to “rectify the financial situation.”

Initially, she said, “I recognized the names when I saw them. And I knew that they had a need just like any other kid that would apply for one.” Had there been more “very worthy applicants in my district,” she added, “then I probably wouldn’t have given it” to the relatives.

Her handling of the scholarships puts a rare spotlight on the program and how it is overseen. Caucus members have great leeway in how they pick winners and how aggressively they publicize the awards. Some lawmakers promote the program online, for instance, while Johnson does not.

Philanthropy experts said such lax oversight of scholarship money doesn’t match the standards for charities.

The foundation’s general counsel, Amy Goldson, said Saturday that the scholarships Johnson awarded violated eligibility rules regarding relatives and residency and are “of great concern.”

The program “operates on an honor system,” so the foundation hadn’t known that money went to Johnson’s relatives, she said. But when a recipient fails to meet eligibility requirements or “misrepresents their eligibility, the scholarship funds must be returned.”

Further, Goldson said, the failure of a lawmaker or aides to follow eligibility rules “is a violation of the letter and spirit of [the Foundation’s] requirements.”

“It is inappropriate for a lawmaker to certify the award of a scholarship to a relative in a situation where the lawmaker or their staff is involved in the selection of the recipient,” she said.

Johnson awarded nine to 11 scholarships a year from 2005 to 2008, the most recent years for which information was available. Each of those years, three or four winners were related to her or her district director, Rod Givens. Johnson said she divided the available funds equally among recipients, and every qualified applicant got a scholarship.

The foundation asks applicants to certify that they aren’t related to those associated with the caucus or the foundation, but it does not specify which relationships that includes.

Scholarships have gone to two of the congresswoman’s grandsons, Kirk and David Johnson; to two of her great-nephews, Gregory and Preston Moore; and to Givens’ son and daughter. Givens did not respond to requests for comment, and none of the scholarship recipients could be reached. (Todd Gillman and Christy Hoppe, “Rep. Eddie Bernice Johnson Violated Rules, Steered Scholarships to Relatives,” Dallas Morning News, 8/29/10)

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