Mr. and Mrs. Tom Daschle respond to Human Events

Human Events, Jul 15, 2002 by Gizzi, John

HUMAN EVENTS Assistant Editor David Freddoso last week e-mailed inquiries to Senate Majority Leader Tom Daschle (D.-S.D.) and his wife, Linda Hall Daschle, asking how her tenure as a lobbyist-turned-federal-regulator differed from that of SEC Chairman Harvey Pitt. (See coverbox story.)

Neither of the Daschles directly answered the question. Here, for the record, is the complete set of questions and responses.

Questions from HE to Tom Daschle:

1. Senator Daschle said on "Face the Nation" that SEC Chairman Harvey Pitt is a "huge disappointment" as SEC chairman because he has a "cozy, permissive relationship" with the accounting industry. Mrs. Daschle, the Senator's wife, lobbied for the aviation industry before regulating it as acting FAA director. Does the Senator believe that this also prevented her from doing a good job while in government?

2. Senator Daschle went on to accuse Pitt and administration officials in general of "a lack of real sensitivity" to charges that they have permissive, cozy relationships with the industries they once worked in. In the meantime, some of Senator Daschle's very recent official acts have generated revenue for his wife's lobbying clients. For example, the reauthorization of the Export-Import Bank helped Boeing significantly, as that corporation receives 40% to 50% of the dollar value of the bank's loans and loan guarantees each year. Isn't Senator Daschle holding administration officials to a much higher standard than he is holding himself when it comes to relationships with industry?

3. In the same interview, Senator Daschle backed away from a question about Sen. Gramm's wife, her employment with Enron, and a possible conflict of interest for Sen. Gramm, who is blocking certain corporate reforms sought by Democrats. Would it be unfair to say that Sen. Daschle's own situation compromises him so that he can't effectively speak out about his colleagues' potentially corrupt business and family ties?

Responses from Tom Daschle to HE:

"I supported Mr. Pitt's nomination to the SEC and, in fact, the Senate confirmed his nomination by unanimous consent on August 1, 2001. The issue is not whether industry experts should devote themselves to public service. I believe they should. However, recent scandals in the accounting industry call into question whether someone who called for the SEC to be a 'kinder and gentler place for accountants' is the most appropriate person to oversee that very industry."

"You asked for my response to allegations which may be made against Senator Gramm. I believe when asked, and still do, that it is appropriate to allow Senator Gramm to speak for himself to these issues."

Questions from HE to Mrs. Daschle:

1. Sen. Daschle said on "Face the Nation" that SEC Chairman Harvey Pitt is a "huge disappointment" as SEC chairman because he has a "cozy, permissive -relationship" with the accounting industry. He also accused Pitt and administration officials in general of "a lack of real sensitivity" to charges that they have such relationships with the industries they once worked in. Do you agree with Sen. Daschle's remarks? I ask this because I will be pointing out in my article that you represented companies in the aviation industry before regulating that industry as deputy and acting FAA Director. If you believe that a comparison between your career and Pitt's is unfair, I would be happy to print your reasons for believing so-as much in their entirety as space permits.

2. Have you ever received or been offered a "success fee" or other outcome-based bonus for lobbying the House of Representatives successfully on behalf of a client?

Responses from Mrs. Daschle's Spokeswoman to HE:

"Mrs. Daschle has no comment on the suitability of Mr. Pitt to serve as SEC Chairman. She believes this is a matter for debate by the Congress and the President. As we have stated in an earlier response to your publication, Mrs. Daschle has always maintained a high ethical standard in both her public office tenure and in the private sector.

"It is striking that once again you focus only on alleged conflicts of interests involving Mrs. Daschle. Yet, you show no interest in the case of other spouses or close relatives, including children, of Members of Congress who have pursued careers involving public policy. A number of the family members, without established subject matter expertise, lobby the Congress and the Bush Administration on various issues. This situation appears to be widespread, and the persons affected include the Speaker of the House, the Senate Minority Leader, the White House Chief of Staff, to name a few. I have seen no coverage of these situations in your paper. Is the difference that their relative is not Senator Daschle, but instead a senior member of the Republican Party?

"And finally, Mrs. Daschle has not accepted and will not accept success fees for lobbying activities before the House of Representatives.

"Julie Goldberg"