NRCC Scandal: How Did It Happen?
Greg Walden had a problem.
The Oregon Republican lawmaker was serving as the head of the National Republican Congressional Committee's audit committee, and he had been badgering the NRCC's treasurer, Christopher Ward, to set up a meeting with the committee's accounting firm.
"I sought for several years to meet with the outside auditors," said Walden. "There was always some seemingly legitimate reason why that didn't happen."
Well, now we know the reason, and it appears to have been anything but legitimate.
Walden ran the audit committee for several years through 2006, during which time, the NRCC publicly disclosed Thursday, the campaign arm never actually had a real outside audit. Instead Ward -- who is now being investigated for allegedly transferring several hundred thousand dollars from the committee's coffers to his own accounts -- put together fake audits, complete with forged stationery from a real auditing firm.
For five years, Ward forged audits, and not a single member of Congress or any other NRCC staffer ever actually met with or talked to anyone from the outside firm that was supposedly reviewing the books. No one from the outside firm actually ever came to the NRCC offices to meet with anyone or pick up any papers. The NRCC never paid the outside firm a dime for its services supposedly rendered, and no one noticed that, either.
It was Walden's successor as audit committee chairman, Rep. Mike Conaway (R-Texas), a certified public accountant, who finally forced the issue in January when he similarly demanded a meeting with the auditors and then realized that the 2006 audit Ward had submitted was a fake.
But Walden had his concerns long before that. And he says he complained to other members of the NRCC's executive committee and the NRCC's chairman in 2006, Rep. Tom Reynolds (N.Y.), about his inability to get a meeting with the auditors. Those complaints filtered down to Ward himself, who told Walden, "I'm as mad as you are," and blamed the auditors themselves.
Walden said Ward always gave a reason for why the meeting couldn't happen: A different firm was doing the audit, we're waiting for the newest audit to be finished, the auditors are too busy, and so on.
"It frustrated me that I could not get it done," Walden said.
In the end, Walden felt that there was only so much he could do at a committee that he now believes was far too staff-driven. "It's always been that way," he said.
Current NRCC Chairman Tom Cole (Okla.), who took over the job after the 2006 election, says he is trying to change that culture, putting members more directly in charge of all aspects of the committee's operation.
"If you remember when I first got there, I was accused of being a micromanager," Cole said. "You don't hear that much anymore."
If there's a bright side to any of this, Cole said he at least takes pride that "our team found it, our team reported it and our team fixed it." And, Cole said, the committee has already spent upwards of $360,000 on legal and accounting fees to clean up the mess, a number that is sure to grow larger.
The NRCC is lucky that Conaway is a CPA. Though Walden had served before on the board of a bank, he was not a professional accountant. "I read the audit and it looked fine. There was no material issue," Walden recalled.
The NRCC has now put in stricter internal controls, not only requiring more member involvement but also ensuring that major financial transactions are not solely controlled by any one person. But even with tougher controls, members still must be able to trust their staff.
"You put your confidence and trust in the people you name as treasurer," said Rep. Steve LaTourette (R-Ohio). "I have a treasurer of my campaign, and if he tells me there's $300,000 in the bank, I believe there's $300,000 in the bank."
By Ben Pershing |
March 14, 2008; 7:00 AM ET
2008 Campaign
, Ethics and Rules
, GOP Leaders
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Posted by: Paul Silver | March 14, 2008 11:20 AM
maybe the republican should have oversight how you account of all the money going to Halliburton and the billion of dollars that vanished in Iraq . What a jerks!
Posted by: joseph | March 14, 2008 11:37 AM
Yes - if this fiscal responsibility had manifested itself 3 or 4 years sooner, they might still be in power.
Posted by: michael | March 14, 2008 11:43 AM
Republican? Theft? No way.
God-given rights are not thieveries.
Posted by: Kishor Gala | March 14, 2008 11:51 AM
Just like they promised. To run government like a business. Can there be a more corrupt and incompetent party? They steal from the tax payers, they even steal from each other. Too bad Walden didn't act sooner but, as he said: "It's always been that way".
Maybe Ward was paying for meth so his closeted gay evangelical pastor friends could perform with male prostitutes. I love the hypocracy of the "family values, business friendly (and don't forget strong on defense)Republicans.
May the Flying Spaghetti Monster save us!
Posted by: thebob.bob | March 14, 2008 12:19 PM
Just more proof that Republicans are an inherent failure.
Posted by: JustANibble | March 14, 2008 12:19 PM
Posted by: Bill in Santa Fe | March 14, 2008 12:35 PM
Once again we see the real reason Republicans say they are for smaller government, to keep the corruption hidden and the money and the power in the hands of a few Republicans and out of the hands of the people who elected them.
Posted by: Danney | March 14, 2008 12:47 PM
So exactly where are Hillary's tax returns? And why won't Bill release the details of the pardons? Neither party has the market on stupidity cornered!
Posted by: Marc | March 14, 2008 12:52 PM
I'm sure the money was sent to fund some covert aspect of the Global War on Terror that has saved American lives.
Posted by: aleks | March 14, 2008 01:00 PM
From Today's NY Times:
'Mr. Ward was named treasurer of the national Republican committee in 2003 after serving for several years as an assistant treasurer. He had also been a partner in a political consulting firm, Political Compliance Services, that worked in 2004 on behalf of Swift Boat Veterans for Truth, the group behind advertisements attacking the military record of Senator John Kerry of Massachusetts, the Democratic presidential nominee.'
This just gets better and better. Go GOP.Give us back the White House and more seats in Congress.
Posted by: PatrickNYC1 | March 14, 2008 01:15 PM
There is plenty of money to be stolen but not enough for so many wars,
Posted by: Audrey | March 14, 2008 01:23 PM
A BIG POLITICAL DISASTER AWAITS THE DEMOCRATS:
I am a young White Female who is very politically active. I am currently an independent voter but with the trend of things right now; I must make this very bold prediction. If the Democratic Party allows the Clintons to have their way and steal this party's Presidential nomination due to their dirty and gutter politics that they are famous for, not only will they loose the November Presidential Election to the Republicans by a very large margin, but they will also loose the Senate and a bunch of other Congressional seats.
Let me give you my very substantial reasons and analysis:
1- Hillary Clinton is a very Polarizing figure that only the hard core Democrats will vote for in a General Election. This will give John McCain enough room to sweep out the Independents, and Conservative Democrats who wants nothing to do with the Clintons, and also the Young Democrats brought in by the Obama Movement.
2- The Bill Clinton factor: Bill Clinton ended his last term in the most disgraceful manner. The first President in modern time to be impeached by the United States Congress for having sex with a young Intern by the name of MONICA LOWENSKI about the same age then as that currently of his daughter Chelsea in the Oval Office( the highest and most respectable office in the land).
3- The entire eight years of the Clinton Administration was dogged by countless scandals ranging from Jennifer Flowers to Paula Jones, from white-water to Monica. This was evidenced by the number of their friends and close associates, and supporters who have to serve jail time.
4- Hillary Clinton is yet to explain her role in death of Vince Foster (a major player in the white- water scandal) who allegedly committed suicide and the missing memos involved in the scandal mysteriously surfaced in the Office of the First Lady (Hillary Clinton).
5- Unlike all of the contestants in this Presidential race, Hillary Clinton is yet to release her INCOME TAX RETURNS. What is the secret behind this is this White- water deal or a dubious contributor behind the scene?
6- The Clintons are yet to release the names of their big time players and contributors to his Presidential Library. We all know that it contains the names of Foreign Governments and Individuals. If by any chance Hillary happens to get elected into the White House, we all know that Bill Clinton will play the role as FIRST VICE PRESIDENT AND CHIEF ADVISER. This gives direct access to influence a lot of the decisions involving his foreign Government Clients, and contributors.
7- The Clinton Foundation works directly with Foreign Governments especially in the areas of Financing, Health and Development. As the first Husband, First Vice-president and Adviser in Chief, he will have to pay back all of those favors, especially when it comes to decisions that will conflict with our U.S. Foreign Policies. This is a big set up for a compromise. We all know that when it comes to Reckless- Bill, it is like a kid in a candy store.
8- Never in the history of this nation where former Presidents sits quietly in their retirement homes and serve as Honorable Statesmen, have we seen a former President involved in dirty gutter politics fighting to return to the White House, the very scene of the crime.
9- Today as we all have seen, one of Hillary strongest supporters the now disgraced New York Governor Eliot Spitzer, has just taken a page from the Clintons play-book (SEX SCANDAL). As a disgrace to all women voters, just like Hillary his wife is standing by her man. At least she is not as delusional as Hillary to blame it on Republican Right Wing Conspiracy. You know that the Republicans are going to bring this up, and there goes the votes from Women and Strong Conservatives.
The Republicans are just waiting with trucks load of dirt on the Clintons that will make the Democrats to not only loose the November Presidential race but also major Congressional and Senate seats.
Is this not the Hillary Clinton who as First Lady had all of the opportunities in the world to have reformed the America's Health Care System when she was appointed by her Husband Bill, to head that project, but chose to play politics and started attacking Congressional Republicans. This became a big disaster, as the Republicans led by Newt Gingrich, swept both houses of Congress from under the Democrats. That was almost fifteen years ago, and the Democrats have since not been able to recover.
Here are the facts as to how much damage the Clintons have caused the Democratic Party. Not only did they go on to loose Congress to the Republicans, but it cost them heavily in two back to back winnable Presidential Elections. Just as Americans, especially the Democrats are about to get over the Clintons Disasters and fatigue as they now try to bring in new Political Talents to lead the Party and America into a new direction. In the wake of a new world order, and Globalized Economy, in order for America to continue to take its rightful stand as the World Super Power, the Clintons surfaced again for another Presidential run with the hope that Americans are still under amnesia.
To the Democratic Super Delegates, We realized that you were once given some responsible jobs in the Clinton Administration, and as such you have to pay back and prove your loyalty. Please understand that Hillary Clinton does not stand a chance in this world, when it comes to the Republican Propaganda Machine. If they could damage the credential of a highly decorated Vietnam War Veteran like Senator John Kerry, just imaging what they have ready for the Ever Controversial and Polarizing Hillary Clinton. Please in the interest of your Democratic Party; do throw this election away to the Republicans by sending Hillary Clinton as your Presidential Candidate. By so doing, you just kissed the energized youth votes in this country good bye.
To our Senior Americans, this is a direct appeal to you. You have had several opportunities to make decisions in order to influence the direction of this nation.
Today things are a little different and we the young people see it this way. We are in the middle of a senseless war, and economic recession. We are the ones who are returning to you in body bags. Thanks to the like of Hillary Clinton, who as a U.S. Senator, did not read the intelligence memo, but yet voted to send us to die in a far away land. Our future since the history of this nation has never been so uncertain. We want to compete with the new emerging World Powers in areas such as economy, Technology, Health, and Education, and stay ahead, but we cannot do these if we continue the same old path. War is not and will never be the answer. The Clintons are from the past. In fact we want to thank both Bill and Hillary for their contributions to America, BUT WE HAVE TO MOVE FORWARD THROUGH CHANGE.
To the Press/Media: We are in the middle of a severe economic recession, fighting a senseless war, lack of basic health care for millions, increased unemployment, increase in the price of food, and gasoline, yet you are dwelling on these Democrats and their madness. If they cannot find a candidate and start addressing our serious issues, not only are we determine to reelect a Republican for President, but we will make then to loose all of the Congressional seats that they are seeking in this November Election.
I am saying this to express how disappointed I am with the ABC Network who spent the entire week talking about Hillary and Obama's Pastors and supporters, and what they are saying about racism and hate.
Posted by: MONICA | March 14, 2008 01:31 PM
What, no honor among thieves?
Posted by: LiberalTarian | March 14, 2008 04:20 PM
Poor Monica, she drank the Kool-Aid.
Posted by: omgbob | March 14, 2008 04:44 PM
Drank it? She drowned in it.
Posted by: Stonhinged | March 14, 2008 05:28 PM
Is anyone asking what he did with the money? Were there dealings with congressional Republicans?
Posted by: Georgia | March 14, 2008 06:49 PM
I think the RNCC needs a Sarbannes Oxley (Auditing for the 21st Century) course.
Many of us knew how imperfect Repubs can be (Foley, Craig, DeLay, Hastert, etc.), now here is more proof. If you need more proof, send your comments to: 1600 Pennsylvania Avenue, Washington, DC
No, Dem's aren't perfect though we do not profess to be nor to be of a better faith, a superior morality, and inherently correct 24/7/365.
Posted by: Marc Feldstein | March 14, 2008 10:00 PM
The next time they come asking for money, tell them to get it from Chris Ward.
http://osi-speaks.blogspot.com/2008/03/next-time-they-come-asking-for-money.html#links
Posted by: KYJurisDoctor | March 15, 2008 01:11 PM
2008 Presidential Election Weekly Poll
New Vids! and New Polls Posted Weekly!
Give Us Ideas For Polls!
Posted by: votenic | March 17, 2008 10:57 PM
I am still waiting for the full disclosure of what happened with "White Water" & just how much money Cill & Illaryh Blinton got away with. A friend was one of the investigators on that case & was stonewalled.
Posted by: G.Wayne Hild | March 18, 2008 08:10 PM
Maybe Dr. Ron Paul appears as a better candidate who states up front what his intentions are. I think that we should give him a closer look with his libertarian leanings & his reputation as Dr. NO as a republican who is only tolerated by his party. Have a look at what he is all about at http://ronpaul.ning.com/ Maybe he is someone who deserves a chance at cleaning up the Washington mess. I do not believe any other candidate even comes close to what Paul wants to accomplish...
Posted by: G. Wayne Hild | March 18, 2008 08:31 PM
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It is nice to see Republican's enthusiastic about oversight and audits.