Oil Slick of Corruption Spreads South
California Political Desk
September 06, 2006
DUBLIN, CA - The FBI brought in agents from all over the country, including Sacramento, to raid the offices of six Alaska legislators last week. They were looking for illegal dealings with an Alaska-based oil firm VECO that has long been a top Republican donor. But the money trail doesn't stop in Alaska.
Combined, Chief Executive Bill Allen, President Peter Leathard, Executive Vice President Roger Chan and Vice President Rick Smith have given more than $384,000 to presidential and congressional races in Alaska and other states since 1997, according to the Federal Election Commission.
Republican Senate candidate Mike McGavick of Washington State was one recipient of VECO largesse. But he returned $14,000 in contributions from VECO executives the day after the raid. VECO ranked tenth on the list of his campaign donors.
It appears the VECO donations came after Alaska Senator Stevens threw his support to McGavick in his race against Democratic Senator Maria Cantwell. This came after Cantwell stymied Steven's plans to open the Arctic National Wildlife Refuge to oil drilling. McGavick supports Stevens' plan.
But, while McGavick may have returned the money, Congressman Richard Pombo of Tracy has not. A month before the House Resources Committee, of which Pombo is chair, added a provision to open ANWR to a budget reconciliation bill, Rep. Pombo took almost the same amount from Alaskan donors for his political action committee-40% of which came from VECO executives.
VECO has made no secret of what it hopes to gain from their donations. "VECO is ready to assist efforts in every way possible to make new mega projects happen - specifically, an Alaskan gas pipeline and the opening of ANWR," the company said in a 2003 newsletter. In an October 2004 newsletter to VECO employees, executives wrote, "The right people in the White House, the U.S. Capitol and the Alaska State Legislature make a huge impact on oil and gas resource development and on the economy of Alaska." They cited opening the Arctic National Wildlife Refuge to drilling as one of their top priorities. "We try to get those people elected," VECO President Pete Leathard told Alexander's Gas and Oil Connections, an online newsletter covering the oil industry. "We put a lot of money into the effort," Leathard said.
Amy Menard, an Anchorage attorney representing the company, said, "VECO has always worked hard to promote a pro-business and pro-economic-development climate in those places where it does business."
And certainly VECO executives have been happy with the climate created by committee chair Pombo. They've shown their satisfaction by donating somewhere in the neighborhood of $17,000 dollars to the Tracy Republican since late 2004. And they weren't the only ones. Other Alaskan oil interests have shown their appreciation for his efforts. They also have donated many thousands.
Political pollster Marc Hellenthal, who said he was interviewed Friday afternoon by two FBI agents from Sacramento, said agents told him what they are looking for "goes back longer." Some Alaska press reports say VECO executives are also known for prowling the Capitol halls and even passing notes to lawmakers on the floor to influence votes.
Alaskan Democrats say the investigation points to what's wrong with the Legislature and the powerful influence of special interests. Eric Croft, D-Anchorage, calls it, "... just a culture of corruption," saying, "Lobbyists writing bills. Special interests, not only funding campaigns, but hiring legislators as consultants. A line between a consultant who does not do any work and a bribe is hard to define." Most likely this is a reference to $242,000 paid to Senator Steven's son Ben for consulting services to VECO.
Democratic congressional candidate Jerry McNerney, who is challenging Pombo for his seat stated, "I think all these questions underscore the need for stronger ethics rules in Congress, and reform of our campaign finance laws. A first start in that effort would be for Congressman Pombo to return the money that he received from VECO. It seems like every week there's some new scandal or rumor coming to light about Congressman Pombo's behavior. If we want people to believe in their government, we need a new direction in Congress. The people in the 11th district and the country expect and deserve the highest ethical behavior. They can expect that from me."
Jerry McNerney is a nationally recognized expert in wind engineering and renewable energy, with a PhD in mathematics. During his career in wind energy, McNerney's work contributed to saving the equivalent of approximately 30 million barrels of oil, or 8.3 million tons of carbon dioxide-the main greenhouse gas-as well as other harmful pollutants. The Democratic nominee for California's 11th Congressional District, Jerry has been married for 29 year and has three grown children.
Combined, Chief Executive Bill Allen, President Peter Leathard, Executive Vice President Roger Chan and Vice President Rick Smith have given more than $384,000 to presidential and congressional races in Alaska and other states since 1997, according to the Federal Election Commission.
Republican Senate candidate Mike McGavick of Washington State was one recipient of VECO largesse. But he returned $14,000 in contributions from VECO executives the day after the raid. VECO ranked tenth on the list of his campaign donors.
It appears the VECO donations came after Alaska Senator Stevens threw his support to McGavick in his race against Democratic Senator Maria Cantwell. This came after Cantwell stymied Steven's plans to open the Arctic National Wildlife Refuge to oil drilling. McGavick supports Stevens' plan.
But, while McGavick may have returned the money, Congressman Richard Pombo of Tracy has not. A month before the House Resources Committee, of which Pombo is chair, added a provision to open ANWR to a budget reconciliation bill, Rep. Pombo took almost the same amount from Alaskan donors for his political action committee-40% of which came from VECO executives.
VECO has made no secret of what it hopes to gain from their donations. "VECO is ready to assist efforts in every way possible to make new mega projects happen - specifically, an Alaskan gas pipeline and the opening of ANWR," the company said in a 2003 newsletter. In an October 2004 newsletter to VECO employees, executives wrote, "The right people in the White House, the U.S. Capitol and the Alaska State Legislature make a huge impact on oil and gas resource development and on the economy of Alaska." They cited opening the Arctic National Wildlife Refuge to drilling as one of their top priorities. "We try to get those people elected," VECO President Pete Leathard told Alexander's Gas and Oil Connections, an online newsletter covering the oil industry. "We put a lot of money into the effort," Leathard said.
Amy Menard, an Anchorage attorney representing the company, said, "VECO has always worked hard to promote a pro-business and pro-economic-development climate in those places where it does business."
And certainly VECO executives have been happy with the climate created by committee chair Pombo. They've shown their satisfaction by donating somewhere in the neighborhood of $17,000 dollars to the Tracy Republican since late 2004. And they weren't the only ones. Other Alaskan oil interests have shown their appreciation for his efforts. They also have donated many thousands.
Political pollster Marc Hellenthal, who said he was interviewed Friday afternoon by two FBI agents from Sacramento, said agents told him what they are looking for "goes back longer." Some Alaska press reports say VECO executives are also known for prowling the Capitol halls and even passing notes to lawmakers on the floor to influence votes.
Alaskan Democrats say the investigation points to what's wrong with the Legislature and the powerful influence of special interests. Eric Croft, D-Anchorage, calls it, "... just a culture of corruption," saying, "Lobbyists writing bills. Special interests, not only funding campaigns, but hiring legislators as consultants. A line between a consultant who does not do any work and a bribe is hard to define." Most likely this is a reference to $242,000 paid to Senator Steven's son Ben for consulting services to VECO.
Democratic congressional candidate Jerry McNerney, who is challenging Pombo for his seat stated, "I think all these questions underscore the need for stronger ethics rules in Congress, and reform of our campaign finance laws. A first start in that effort would be for Congressman Pombo to return the money that he received from VECO. It seems like every week there's some new scandal or rumor coming to light about Congressman Pombo's behavior. If we want people to believe in their government, we need a new direction in Congress. The people in the 11th district and the country expect and deserve the highest ethical behavior. They can expect that from me."
Jerry McNerney is a nationally recognized expert in wind engineering and renewable energy, with a PhD in mathematics. During his career in wind energy, McNerney's work contributed to saving the equivalent of approximately 30 million barrels of oil, or 8.3 million tons of carbon dioxide-the main greenhouse gas-as well as other harmful pollutants. The Democratic nominee for California's 11th Congressional District, Jerry has been married for 29 year and has three grown children.
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