Day: April 27, 2006

Scandal Probe Uncovers GOP Pols Consorting with Call Girls on Lobbyists’ Dime at – Wait for It – the Watergate

Jon Ponder

At long last, sex has reared its ugly head out of the morass of Republican scandals plaguing the capitol — and I do mean ugly:

Word is, a House committee chairman or two may be involved. Even the speculation about this will send the media into hyperdrive.

Federal prosecutors are investigating whether two contractors implicated in the bribery of former Rep. Randall “Duke” Cunningham supplied him with prostitutes and free use of a limousine and hotel suites, pursuing evidence that could broaden their long-running inquiry.

Besides scrutinizing the prostitution scheme for evidence that might implicate contractor Brent Wilkes, investigators are focusing on whether any other members of Congress, or their staffs, may also have used the same free services, though it isn’t clear whether investigators have turned up anything to implicate others.

In recent weeks, Federal Bureau of Investigation agents have fanned out across Washington, interviewing women from escort services, potential witnesses and others who may have been involved in the arrangement.

Regular citizens out there don’t focus on dry-as-toast political scandals about bribery and leaking classified information. But when sex is involved, the cable newsers go nuts and it gets their attention.

Word is, a House committee chairman or two may be involved. Even the speculation about this will send the media into hyperdrive.

More bad news for the GOP.

SBA Nom Preston a Crony of a Bush Crony

Buck Banks

Who? George Bush’s lightning-quick nomination of Steven Preston to replace retiring Hector Barreto as head the Small Business Administration may have many folks wondering who the heck he is and why Bush picked him. But “Businessweek” notes that the self-described “committed Republican” from Chicago can expect a rough time in his confirmation hearings.

What’s the connection? Preston’s a crony of a Bush crony, of course.

Preston worked at ServiceMaster while Claire Buchan, currently the chief of staff for Commerce Secretary Carlos Gutierrez, was a vice-president for communications at the company. Buchan held a variety of jobs in the Reagan Administration and the first Bush Administration, moving to ServiceMaster when Bill Clinton was elected.

“While ServiceMaster is a large company, it’s comprised of many smaller franchises that are mom and pop businesses. So I think he [Steven Preston] really has the right combination of small- and big-business experience,” says Buchan. Before coming to ServiceMaster, Preston was senior vice-president and treasurer of First Data Corp., and an investment banker at Lehman Brothers.

‘If the Democrats fail to take over Congress in the fall, it is likely that Bush will close the [SBA] before the end of his presidency.’

In other words, Preston is not and never has been an entrepreneur or small-business operator. And, according to “Businessweek,” franchiser ServiceMaster has been an enemy of small business for a number of years.

Indeed, the American Small Business League has come out strongly against Preston’s nomination:

“We don’t need another unqualified SBA Administrator,” stated Lloyd Chapman, President of the American Small Business League. “Hector Barreto’s dismal track record is a clear indication of what happens when you appoint someone that has no qualifications to run an important Federal agency. I’m afraid this nomination signals a continuation of the Bush administration’s intention to continue to dismantle the agency.

“I predict that we will not see Mr. Preston do anything to address the eleven Federal investigations that have found billions of dollars in small business contracts have been diverted to large firms as a result of fraud, abuse, and lack of oversight. If Preston is approved, he will likely foster policies that will act as barriers to small firms doing business with the Federal government and continue to allow awards to Fortune 1000 companies to be reported as small business contracts.”

Chapman added, “Republicans since Ronald Reagan have been trying to close the SBA and abolish Federal small business contracting programs. If the Democrats fail to take over Congress in the fall, it is likely that Bush will close the agency before the end of his presidency. It’s time for small business owners to band together and fight to keep these programs. We’re talking about $119 billion in Federal prime contracts and subcontracts – and once it’s gone, we will never get it back.”

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