Latest Piece of the Puzzle
Just this morning, in researching information for Chapter 10 of "Outing Traffic.com," I came across yet another piece of key information related to former Commerce/Transportation Secretary Mineta's likely violation of the federal Ethics in Government Act. Here's an excerpt:
The good news was that both of Mr. Mineta's confirmation hearings had been conducted by the same Senate Commerce, Science, and Transportation Committee. So January 16, 2007 - just after returning to Austin -- I called that committee and asked Margaret Spring, the Committee's Assistant Staff Director, about the availability of much more detailed financial disclosures than the ones Mr. Mineta had filed with the OGE. Ms. Spring said that she was new on the job, but would check into it and get back to me. A couple days later she called to let me know that the OGE's "new entrant" reports were, in fact, the financial disclosures used in the confirmation process. Mason Alinger, one of our government's leading experts on the financial disclosure process, had apparently been mistaken.
The Library of Congress' excellent Thomas online archive lists both Mr. Mineta's July 17, 2000 Secretary of Commerce confirmation hearing (Nom. No. PN1140-106), as well as his January 24, 2001 Secretary of Transportation confirmation hearing (Nom. No. PN104-107). However, only the latter listing links to a hearing transcript. That transcript reads almost like a group testimonial to Mr. Mineta's past achievements (which are many), rather than an objective and rigorous questioning of the individual who would soon be CEO of a federal department with over 60,000 employees and an annual budget in the tens of billions of dollars.
Amazingly, even though Mr. Mineta served on the Board of Directors for NYSE listed Trimble Navigation just 6 months earlier and reported a capital gains income of up to $1 million from Trimble Stock options on the financial disclosure he filed with the OGE the day prior to the hearing, the word "Trimble" doesn't show up anywhere in this 116 page document. In section A, entitled "Biographical and Financial Information Requested of Department/Agency Nominees," Mr. Mineta lists well over a dozen business relationships, but there's nary a mention of Trimble. While Mr. Mineta could certainly claim that on January 24, 2001 he did not have an "official" business relationship with the company, many of the relationships he did provide (e.g., Santa Clara County Council) clearly appeared to be in his past. Perhaps he could argue that there "is no business relationship with Trimble Navigation," taking a cue what his former boss President Clinton had once said, "that depends on what 'is is'". However, it's clear that Mr. Mineta should have listed his recent business relationship with Trimble and let the Senate nomination panel decide whether or not it was relevant.
Mr. Mineta's response to item 3. in Section C ("Potential Conflicts of Interest") is even more telling:
His response:
Charitably speaking, that answer was either "disingenuous" or a "misrepresentation." Less charitably, it was an out-and-out deliberate failure to disclose vital information. He had failed to mention that he had recently served on the Board of Directors of a company that just 6 months earlier had awarded him a sufficient number of stock options that he had claimed a "capital gains income" on his OGE financial disclosure of up to one million dollars.
Not only did he fail to disclose that "potential conflict of interest," but location technology and GPS - Trimble Navigation's bread-and-butter business - was clearly impacted by federal policies and initiatives pursued by both the Commerce and Transportation Departments. (See the white paper, Mr. Mineta's Support for GPS and Location Technology as Secretary of Commerce/Transportation.) Just six months earlier the company had very likely given him substantial extra stock options beyond its published policy for compensating directors. The "potential conflict of interest" was both huge and obvious. Yet Mr. Mineta failed to disclose any of those details to the Senate Commerce, Science, and Transportation Committee, likely hoping that no one would notice, and no one did. Such details were not appropriate for a political "love-in."
The good news was that both of Mr. Mineta's confirmation hearings had been conducted by the same Senate Commerce, Science, and Transportation Committee. So January 16, 2007 - just after returning to Austin -- I called that committee and asked Margaret Spring, the Committee's Assistant Staff Director, about the availability of much more detailed financial disclosures than the ones Mr. Mineta had filed with the OGE. Ms. Spring said that she was new on the job, but would check into it and get back to me. A couple days later she called to let me know that the OGE's "new entrant" reports were, in fact, the financial disclosures used in the confirmation process. Mason Alinger, one of our government's leading experts on the financial disclosure process, had apparently been mistaken.
The Library of Congress' excellent Thomas online archive lists both Mr. Mineta's July 17, 2000 Secretary of Commerce confirmation hearing (Nom. No. PN1140-106), as well as his January 24, 2001 Secretary of Transportation confirmation hearing (Nom. No. PN104-107). However, only the latter listing links to a hearing transcript. That transcript reads almost like a group testimonial to Mr. Mineta's past achievements (which are many), rather than an objective and rigorous questioning of the individual who would soon be CEO of a federal department with over 60,000 employees and an annual budget in the tens of billions of dollars.
Amazingly, even though Mr. Mineta served on the Board of Directors for NYSE listed Trimble Navigation just 6 months earlier and reported a capital gains income of up to $1 million from Trimble Stock options on the financial disclosure he filed with the OGE the day prior to the hearing, the word "Trimble" doesn't show up anywhere in this 116 page document. In section A, entitled "Biographical and Financial Information Requested of Department/Agency Nominees," Mr. Mineta lists well over a dozen business relationships, but there's nary a mention of Trimble. While Mr. Mineta could certainly claim that on January 24, 2001 he did not have an "official" business relationship with the company, many of the relationships he did provide (e.g., Santa Clara County Council) clearly appeared to be in his past. Perhaps he could argue that there "is no business relationship with Trimble Navigation," taking a cue what his former boss President Clinton had once said, "that depends on what 'is is'". However, it's clear that Mr. Mineta should have listed his recent business relationship with Trimble and let the Senate nomination panel decide whether or not it was relevant.
Mr. Mineta's response to item 3. in Section C ("Potential Conflicts of Interest") is even more telling:
3. Describe any business relationship, dealing, or financial transactions which you have had during the last 10 years, whether for yourself, on behalf of a client, or acting as an agent, that in any way constitute or result in a possible conflict of interest in the position to which you have been nominated.
His response:
During the past 10 years, I have had no clients and only three employers. I do not anticipate any conflict of interest being created by any of my past activities. I will disqualify myself from participating in matters concerning Lockheed Martin or organizations with which I have served, as provided in ethics regulations.
Charitably speaking, that answer was either "disingenuous" or a "misrepresentation." Less charitably, it was an out-and-out deliberate failure to disclose vital information. He had failed to mention that he had recently served on the Board of Directors of a company that just 6 months earlier had awarded him a sufficient number of stock options that he had claimed a "capital gains income" on his OGE financial disclosure of up to one million dollars.
Not only did he fail to disclose that "potential conflict of interest," but location technology and GPS - Trimble Navigation's bread-and-butter business - was clearly impacted by federal policies and initiatives pursued by both the Commerce and Transportation Departments. (See the white paper, Mr. Mineta's Support for GPS and Location Technology as Secretary of Commerce/Transportation.) Just six months earlier the company had very likely given him substantial extra stock options beyond its published policy for compensating directors. The "potential conflict of interest" was both huge and obvious. Yet Mr. Mineta failed to disclose any of those details to the Senate Commerce, Science, and Transportation Committee, likely hoping that no one would notice, and no one did. Such details were not appropriate for a political "love-in."
posted by Jerry Werner | 1:03 PM
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