Government Integrity Project

Hillary Aide Cheryl Mills Double-Dipped While State Dept. Chief of Staff

Alana Goodman of the Washington Free Beacon details today how Cheryl Mills, one of Hillary Clinton’s longtime underlings, apparently collected a paycheck from New York University at the same time she was serving as Chief of Staff of the State Department. According to the article:

After joining the State Department in the beginning of 2009, Mills continued to serve as general counsel for New York University for several months. She also sat on the board of the “NYU in Abu Dhabi Corporation,” the fundraising arm for the university’s UAE satellite campus. The school is bankrolled by the Abu Dhabi government and has been criticized by NYU professors and human rights activists for alleged labor abuses.

Will the UAW Bury GM in Upcoming Negotiations?

Earlier this month, the Wall Street Journal reported that the United Auto Workers union (UAW) was drawing up contingency plans to strike if upcoming negotiations with General Motors, Ford and Fiat Chrysler Automobiles do not satisfy UAW officials. The UAW is leveraging the good timing of the negotiations, which are occurring at the same time as the auto industry’s cyclical top.

FCC Seeks to Expand 'Obamaphone' Boondoggle to the Internet

Access to reliable, high-speed Internet is almost given in today’s America.  But should it be subsidized?  The Federal Communications Commission thinks it should, now more than ever.  On May 28, FCC Chairman Tom Wheeler announced a proposal to expand the agency’s Lifeline program to include broadband Internet.  Costing about $2 billion annually in recent years, Lifeline defrays the cost of landline or mobile phone service for low-income subscribers.  Carriers and consumers share in the cost; Internet service providers soon may join them.  Funding has risen so much under Obama that the program often is called 'Obamaphone.'  Given the rampant fraud, the main issue would seem less the proper funding level than the program's very existence.

Chrysler/GM Merger Proposal Confirms Folly of Auto Bailout

The Wall Street Journal recently reported that Fiat Chrysler Automobiles CEO, Sergio Marchionne, has been pressing for a merger with General Motors. Marchionne has been appealing to hedge funds and activist investors in a move that seems to verge on desperation. The main takeaways from the appeal are that the government bailouts of GM and Chrysler were not a long-term fix for the industry and that Mr. Marchionne is one of the few experts on the industry who is honest enough to admit it.

Elon Musk Defends His Companies' Subsidies

Elon MuskAlt-energy/transport-tech CEO Elon Musk and his trio of companies (Tesla, SolarCity and SpaceX) didn’t cooperate with the Los Angeles Times on its article that tabulated his businesses’ whopping sum of corporate welfare ($4.9 billion), and he was predictably miffed by the (accurate) portrayal.

So he went about trying to fix things on CNBC and with the Times on Monday, but not by denying the conclusions reached by reporter Jerry Hirsch, but instead by essentially pointing at fossil fuel industries and saying “they do it more.”

Taxpayer Subsidies Keep Elon Musk's Companies Afloat

Well, somebody did it, and it was the mainstream media. Congratulations to the Los Angeles Times for taking the time to research and estimate the total amount of U.S. public (local, state, and federal) subsidies for companies owned or run by South African-born Canadian-American Elon Musk.

The total amount calculated by reporter Jerry Hirsch for taxpayer-backed incentives – of many different forms, including tax credits and rebates provided to customers – was $4.9 billion. The corporate beneficiaries have been Tesla Motors and SpaceX, where Musk is CEO, and SolarCity Corp., where he is chairman. The sum does not include SpaceX’s contracts with the government to carry out programs for NASA and the U.S. Air Force.

Will Criminal Charges Bring Justice for GM Victims?

The New York Times reports that the Justice Department has concluded that there was criminal wrongdoing by General Motors as the company covered-up a deadly ignition switch defect for years. That defect has now been blamed for causing the deaths of at least 107 motorists. While many observers may have been able to come to the conclusion that GM was guilty long before the Justice Department’s recent epiphany, the bigger question now is, what’s next?

Corrupt Congressman Claims Congress Needs a Raise

Rep. Alcee Hastings (D-FL), former federal judge who was impeached in 1988 for perjury and accepting bribes, on Monday asserted that members of Congress are not paid enough. He told the House Rules Committee:

Members deserve to be paid, staff deserves to be paid and the cost of living here is causing serious problems for people who are not wealthy to serve in this institution.

Reaction was immediate. From an article by Lachlan Markay in the Washington Free Beacon:

Sharpton Daughter Sues NYC for $5 Million over Sprained Ankle

“The apple doesn’t fall far from the tree,” goes the adage.  In Al Sharpton’s family, the words are doubly true.  This past weekend, Dominique Sharpton, the eldest of Reverend Al’s two adult daughters, announced she has sued the City of New York for $5 million over a sprained ankle she sustained last October while tripping over uneven pavement in the middle of a Lower Manhattan street.  She claims that she was “severely injured, bruised and wounded” and “still suffers and will continue to suffer for some time physical pain and bodily injuries.”  Yet given the outsized award sought, and her seemingly healthy condition only a couple months later, this may be an attempt to game our liability system; i.e., a hoax.  And there is another issue:  Is dad looking for a cut? 

WSJ Editorial Wrong About Menendez Indictment

It’s been almost a month since the Wall Street Journal ran an editorial titled “The Menendez Indictment.”  We responded in a letter to the editor that has not been published. It’s a safe bet it never will be, so we post it here.

The Journal got to the point in its opening paragraph:

Ill-defined federal laws now reach into virtually every sphere of human behavior, and thus prosecutors can destroy almost anyone they choose. The recent indictment of Senator Robert Menendez on 14 counts of corruption and “honest services” fraud is a troubling case in point that deserves more than a little skepticism.

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