Big Money for Congressional Black Caucus

The New York Times continues a critical examination of the Congressional Black Caucus and related organizations. As we have mentioned, Mississippi's own Bennie Thompson is involved in multiple ethics investigations related to his actions connected to these groups. Thompson serves as Chairman of the Board of the Congressional Black Caucus Institute.

When the Congressional Black Caucus wanted to pay off the mortgage on its foundation’s stately 1930s redbrick headquarters on Embassy Row, it turned to a familiar roster of friends: corporate backers like Wal-Mart, AT&T, General Motors, Coca-Cola and Altria, the nation’s largest tobacco company.

Soon enough, in 2008, a jazz band was playing at what amounted to a mortgage-burning party for the $4 million town house.

Most political groups in Washington would have been barred by law from accepting that kind of direct aid from corporations. But by taking advantage of political finance laws, the caucus has built a fund-raising juggernaut unlike anything else in town.

It has a traditional political fund-raising arm subject to federal rules. But it also has a network of nonprofit groups and charities that allow it to collect unlimited amounts of money from corporations and labor unions.

From 2004 to 2008, the Congressional Black Caucus’s political and charitable wings took in at least $55 million in corporate and union contributions, according to an analysis by The New York Times.

The caucus says its nonprofit groups are intended to help disadvantaged African-Americans by providing scholarships and internships to students, researching policy and holding seminars on topics like healthy living.

But the bulk of the money has been spent on elaborate conventions that have become a high point of the Washington social season, as well as the headquarters building, golf outings by members of Congress and an annual visit to a Mississippi casino resort.

In 2008, the Congressional Black Caucus Foundation spent more on the caterer for its signature legislative dinner and conference — nearly $700,000 for an event one organizer called “Hollywood on the Potomac” — than it gave out in scholarships.

At the galas, lobbyists and executives who give to caucus charities get to mingle with lawmakers. They also get seats on committees the caucus has set up to help members of Congress decide what positions to take on the issues of the day. Indeed, the nonprofit groups and the political wing are so deeply connected it is sometimes hard to tell where one ends and the other begins.

“The claim that this is a truly philanthropic motive is bogus — it’s beyond credulity,” said Meredith McGehee, policy director at the Campaign Legal Center in Washington, a nonpartisan group that monitors campaign finance and ethics issues. “Members of Congress should not be allowed to have these links. They provide another pocket, and a very deep pocket, for special-interest money that is intended to benefit and influence officeholders.”

But caucus members have attracted increasing scrutiny from ethics investigators.

All eight open House investigations involve caucus members, and most center on accusations of improper ties to private businesses.

Elsie L. Scott, chief executive of the Congressional Black Caucus Foundation, acknowledged that the companies want to influence members. In fact, the fund-raising brochures make clear that the bigger the donation, the greater the access, like a private reception that includes members of Congress for those who give more than $100,000.

“They are trying to get the attention of the C.B.C. members,” Ms. Scott said. “And I don’t think there is anything wrong with that. They’re in business, and they want to deal with people who have influence and power.”

In 2007, it retained Zahra Buck, a former aide [salary here] to Representative Bennie Thompson, Democrat of Mississippi and a caucus member, to help expand a lobbying campaign.

Remember that this is not the first Thompson aide to benefit from this big money. The website TPMMUckraker reported in December that another Thompson staffer had been paid by lobbyists to conduct events honoring Thompson, while still a federal employee being paid by taxpayer dollars to work for Thompson.

Everyone, Republicans and Democrats alike, use big money to advance their agendas. But not everyone represents a district so poor as Thompson does, or pretends to humbly stand up for the poor against corporate interests like Thompson does, and then milks the corporate interests like Thompson seems to be doing.