Group Urges Probe Into House "Bid-Rigging," "Kickbacks"
    US Newswire

    Thursday 09 November 2006

    Washington - Earlier today, Citizens for Responsibility and Ethics in Washington (CREW) sent a letter to Attorney General Alberto Gonzales requesting an immediate investigation into whether a senior aide to Speaker of the House J. Dennis Hastert (R-Ill.) hindered a House Appropriations Committee investigation into mismanagement, bid-rigging and kickbacks in regard to Capitol Hill security upgrades.

    As reported by Congressional Quarterly and The Washington Post, former House Appropriations Committee investigators have claimed that Ted Van Der Meid, Speaker Hastert's chief counsel, prohibited investigators from visiting certain sites, engaged in screaming matches with investigators and told at least one aide not to talk to them, before ultimately shutting down the investigation altogether.

    The Appropriations Committee had authorized the committee's Surveys and Investigations team to focus on charges of waste and abuse in regard to Capitol Hill security upgrades. The upgrades were funded through the "black" budget of the House and Senate Defense Appropriations Subcommittees and are forecast to surpass $100 million. The office in charge of the upgrades was funded through the Department of Defense and overseen by the Capitol Police Board, but the Speaker's office took a lead role in overseeing the upgrades.

    The inquiry into the security contracts, which commenced in late 2003 or early 2004, was halted by the team's director, Robert Pearre, in the fall of 2005. At the time the probe was stopped, investigators were looking into allegations that security contractors had showered a Department of Defense employee with kickbacks in the form of football tickets, golf outings, golf clubs and meals. Unsuccessful bidders were the source of some of the allegations of problems with the security contracts. In addition to allegations of bid-rigging and kickbacks, there were also charges that many of the upgrades were inadequate.

    CREW's Executive Director Melanie Sloan said, "This entire situation is suspicious. Clearly, DOJ needs to look into the allegations of criminal misconduct in regard to the contracts. In addition, Mr. Van Der Meid's conduct is suspicious.

    "Why wouldn't the Speaker's office be interested in pursuing allegations of illegal activity in connection with the security upgrades?" asked Sloan. "As the highest official on Capitol Hill, wouldn't the Speaker be concerned about claims that the security upgrades were inadequate, endangering the lives of those who work on the Capitol Hill campus? The Department of Justice needs to get to the bottom of this mess."

    CREW requested that the Public Integrity Section investigate not only whether kickbacks, bribes and illegal gratuities were exchanged for contracts to upgrade Capitol Hill security, but also into why the Speaker's office, and Van Der Meid in particular, shut down the Appropriations Committee's probe into these issues.

    The letter and supporting exhibits are available on CREW's Web site, http://www.citizensforethics.org.

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