Oil Giants to Appear Before Congress

May 13, 2008 9:55 AM

Justin Rood Reports:

Call it the Price-Capades! The titans of the oil and gas world have agreed to sit under the bright lights for the Senate Judiciary Committee next Wednesday, and again for the House Judiciary Committee on Thursday.

The general theme of questioning: why are Americans being charged record-high prices at the pump -- at a time when petroleum companies are raking in record profits?

Stock up on popcorn and jujubes, it looks to be a good show. Headliners at both hearings are expected to include top executives from ExxonMobil (which recently reported a "disappointing" $11 billion profit last quarter), Chevron ($5.17 billion), Shell ($9 billion), ConocoPhillips ($4.14 billion) and BP America (whose parent company, BP PLC, reported a profit of $7.6 billion), according to committee staffers.

For those catching the Thursday show, watch for a guest-star appearance by Abdalla Salem El-Badri, secretary general of the Organization of the Petroleum Exporting Countries (OPEC).

Both chambers are entertaining anti-OPEC legislation -- so-called "NOPEC" bills -- which would allow the U.S. government to sue other countries they believed engaged in price-fixing and other anti-competitive behavior.

May 13, 2008 | Permalink | User Comments (0)

Bush Signs CNMI Immigration Bill into Law

May 08, 2008 3:55 PM

Justin Rood Reports:

President Bush signed into law today an obscure but important measure which, its supporters say, will help reduce sex trafficking and exploitation of guest workers in a U.S. territory.

Although under U.S. control, the Commonwealth of the Northern Mariana Islands has maintained lax immigration laws in contrast to the mainland.  With help from Congressional Republicans and now-imprisoned superlobbyist Jack Abramoff, CNMI for years successfully fought off legislation proposed to tighten security and improve working conditions on the islands.

The bill Bush signed today extends U.S. immigration laws to CNMI and establishes a guest worker program there.  It was opposed by CNMI's leader, Gov. Benigno R. Fitial.

ABC News "20/20" first revealed disturbing sweatshop conditions for workers in the factories on the CNMI island of Saipan in the late 1990s.

May 8, 2008 | Permalink | User Comments (2)

Embattled Official Defends Pricey Hand Towels

May 07, 2008 12:43 PM

Justin Rood Reports:

Amid the cloud of alleged criminality and political machinations kicked up by yesterday's raid on the office and home of presidential appointee Scott Bloch, one charge seemed incongruous: that Bloch had misspent four hundred taxpayer dollars on custom-made hand towels for his washroom, which bore the official seal of his office.

So whispered an anonymous source to the Washington Post, anyway.  But is it true?

Yes, the towels are quite real, and a legitimate expense, Bloch said through a spokesman Wednesday. Bloch has served since 2003 as the head of the Office of Special Counsel, charged with protecting the rights of government whistleblowers and investigating charges of improper political activity by government workers.

"Scott, as a presidentially-appointed, Senate-confirmed member of the administration gets an allowance for things," spokesman Jim Mitchell explained.  "He paid about $300 for some towels that had the OSC seal on it. He took a couple home, which he paid for himself."

Mitchell compared the towels to carpets in the Department of Justice headquarters which feature that agency’s seal.  He also observed that his boss could be thrifty – for instance, Bloch has always shunned the car and driver which comes as a perk of his position.

Asked if Bloch planned to step down, Mitchell said, "Not that I know of.  He hasn't mentioned anything like that today."

Mitchell confirmed that Bloch is scheduled to testify before a grand jury as part of the investigation which prompted yesterday's raid, believed to center on suspicions Bloch may have destroyed evidence during a separate investigation into his activities.  Bloch maintains his innocence.

May 7, 2008 | Permalink | User Comments (16)

Shock and Awe on M Street

May 07, 2008 11:09 AM

Justin Rood Reports:

"Swift" and "total" are two words which come to mind after reading the morning-after accounts of the federal raids on the home and workplace of Office of Special Counsel Scott Bloch.

Twenty agents from the FBI and the Office of Personnel Management Inspector General’s office descended on Bloch's office starting around 10:30 a.m.  Agents reportedly caught Bloch mid-phone call, served him a subpoena and interrogated him.

Senior OSC staffers sitting down to a morning meeting quickly found themselves talking to agents instead of each other.   Meanwhile, agents moved to shut down the office's computer networks and email system, effectively shuttering a federal office, in an effort that former law enforcement officials told the Washington Post was "unusual, if not unprecedented."

In Fairfax Co., Va., still more agents searched Bloch's home while his wife and children were there, reported govexec.com, which had some of the best details on yesterday's events.  Still more agents reportedly showed up at an OSC field office in Dallas.

Bloch is thought to be under criminal investigation for allegedly obstructing justice by possibly destroying evidence on his computer that was sought by OPM IG investigators. Bloch has confirmed he erased data on his computer but said it was to get rid of a virus.

But the raids appear to have targeted documents and information on a number of topics and issues, leading some to suggest that Bloch's troubles with the feds could multiply.

OSC sources told reporters that the grand jury subpoenas served by agents requested access to computers and emails from Bloch to other employees, Bloch's expense reports and credit card receipts, "information regarding his use of storage facilities or safety deposit boxes," and "material related to testimony he has delivered at congressional hearings."

The subpoenas also requested access to documents from closed OSC investigations into former GSA administrator Lurita Doan and Secretary of State Condoleezza Rice, who was National Security Adviser to Bush at the time of the OSC investigation.

In 2004 Bloch concluded that allegations Rice had improperly used federal funds to appear at Bush-Cheney campaign events were unfounded. In 2007, he concluded Doan had violated federal laws barring officials from using federal resources for partisan political activity, charges Doan denied.

An apparently new allegation against Bloch rose to the surface in the Washington Post's coverage, intimating wasteful spending by the Bush appointee. "Some staff members had complained that Bloch used agency funds to buy for his office restroom $400 hand towels decorated with a special OSC seal," the paper reported.

Then again -- for a man under federal criminal investigation, clean hands can be priceless.

May 7, 2008 | Permalink | User Comments (2)

WEWS Cleveland: Natural Gas Boom Has Hidden Danger

May 02, 2008 1:49 PM

From The Blotter:

Our affiliate in Cleveland, Ohio is reporting on the hidden dangers of natural gas wells being drilled in residential neighborhoods.

NewsChannel5 Chief Investigator Duane Pohlman interviews an elderly couple who lost their home after a massive natural gas explosion, which was traced to a new well located just down the road from their home.

Rick and Thelma Payne, pictured, were asleep at their home when they were shaken out of their bed.

"The bed went up and came down and crashed," Thelma said. "It was terrifying that night, and it's been terrifying ever since."

While regulations have recently been tightened, the changes have done little to address concerns about where new natural gas wells are located. Under the current guidelines, wells can be drilled as close as 100 feet from an occupied home or apartment.

Read WEWS's Full Report.

May 2, 2008 | Permalink | User Comments (4)

Lobbyists Making Even More Money Than Ever

May 02, 2008 1:04 PM

Justin Rood Reports:

As the construction industry sheds thousands of jobs and retail stores shutter across the country, one industry is still booming bigger than ever: Lobbying.

Washington's influence-peddlers are on track to rake in close to $4 billion this year, according to an analysis of new lobbyist filings by Congressional Quarterly.

That's about $1 billion more than they reported for 2007.  But experts say the boost may be due to tightened reporting requirements from last year’s ethics reform law.

It was widely believed that in years past lobbyists, per the old rules, reported merely the money they made for their interactions with lawmakers' offices.  They were not required to report fees they billed clients for monitoring legislation, handling public relations or other tasks.

But new, tough penalties for noncompliance are pushing many lobbyists to report fees they hadn’t in the past, to avoid any scrutiny, experts told CQ.

Still, spending on lobbying is thought to be increasing this year, as it has every year since records were first kept in 1998.

May 2, 2008 | Permalink | User Comments (0)

Thanks to You, the Blotter Marks Second Year With More Success

May 02, 2008 12:41 PM

From The Blotter:

Thanks to our readers, the Blotter has marked its second year by breaking dozens of stories and logging millions more page views.

Since our first anniversary, the Blotter has logged more than 46 million page views, up 10 million from its inaugural year...and that's because of you, our readers. Since it first appeared on ABCNews.com, it has logged more than 82 million page views.

You were incensed to read about female contractors in Iraq who said they were gang-raped or sexually assaulted by their coworkers or soldiers. Our coverage led to two congressional hearings on rape and sexual assault in Iraq and Afghanistan as well as a Senate measure that would require military contractors to report sex crimes committed by or against their employees and provide employee victims with assistance and protection.

Democratic presidential candidate Barack Obama's relationship with the fiery preacher, the Rev. Jeremiah Wright, tipped off a heated debate among our readers, many of whom commented on the story. The Blotter was the first to post the videos of Wright's controversial sermons, and numerous media outlets picked them up from here. The Blotter was also the first to post video of Sen. Hillary Clinton's days on the board of Wal-Mart.

When New York Gov. Eliot Spitzer fell from grace, you, our readers, helped to make the Blotter the No. 1 go-to source for developments in the investigation into his downfall, giving us more than nine million page views in March.

This past October, the Blotter also picked up another award in addition to the four it garnered in its first year, which included the Peabody Award, the Walter Cronkite Award from the USC Annenberg School of Journalism, the Investigative Reporters and Editors Online Reporting Award and the National Headliner Online Journalism Award. This year, the Online News Association recognized the Blotter for excellence in investigative journalism among large sites for our coverage of the Mark Foley Investigation.

In what was described as a "watershed" event for investigative reporting on the Web, the Blotter broke the story in September 2006 on then-Representative Foley's sexually explicit instant messages to underage former congressional pages. We broke the story after receiving online tips from our readers. Former pages read the first story and responded online, providing us with the messages that would lead to Foley's resignation and an investigation of the entire House Republican leadership.

Just as we did with that investigation, we continue to value your input and encourage you to continue to send us your investigative tips.

We are grateful to see a growing number of people around the world checking in to see what's on the Blotter –- and we look forward to continuing to deliver the best in investigative news.

May 2, 2008 | Permalink | User Comments (1)

White House Ousts Top Official Accused of Political Favoritism

April 30, 2008 10:13 AM

Justin Rood Reports:

Embattled administration official Lurita Doan resigned Tuesday evening,  acknowledging that her move came at the request of the White House.

"Early this evening I was asked to submit my resignation, and I have just done so," Doan wrote in an email to her staff which was obtained by several outlets, including Federal Computer week, which was the first to report Doan's ouster.

The White House, which reportedly summoned Doan to a meeting Tuesday afternoon, is said to be planning an announcement of Doan’s departure Wednesday.

Around Washington, heads are scratching over the timing of Doan’s apparent dismissal from the top spot of the Government Services Administration – a massive agency which contracts for billions in goods and services for other agencies, from paper clips to office space and auto leases.

"The President is grateful for her service and wishes her and her family the best," said White House spokeswoman Emily Lawrimore in an e-mailed statement Wednesday, responding to an inquiry about the timing of Doan's departure and whether it had been prompted by the White House.

Doan had appeared to weather investigations by both Congress and the Office of Special Counsel (OSC), a Justice Department division charged with probing allegations of improper political activity by government employees. 

Last May, OSC confirmed Doan asked other GSA employees to think how their agency could help "our candidates," following a 2006 PowerPoint presentation by the White House political office on Republicans in tight congressional races.

In an email to reporters at Government Executive early Wednesday morning, Doan appeared to defend her actions. "I would rather get fired for something I believe in, and a cause I was willing to fight for, rather than to believe in nothing worth being fired for," Doan wrote, according to the magazine.

April 30, 2008 | Permalink | User Comments (7)

Second Trial for Boeing Whistleblower

April 29, 2008 2:28 PM

Justin Rood Reports:

Prosecutors will try for a second time to convict a former Boeing Co. employee who shared with reporters internal company documents reportedly showing quality control and inspection problems.

King County, Wash. prosecutors have charged Eastman with 16 counts of computer trespass, and could face up to three years if convicted.  The first trial for Gerald Eastman ended in a mistrial earlier this month.

Eastman inspected airplanes for the Washington-based aviation giant, and assisted newspapers with stories about air safety.  He has admitted to sharing documents with reporters over a period of three years. But he said he did so to expose what he said was corruption at Boeing.

Eastman also reportedly shared his concerns with Boeing management, the Federal Aviation Administration and his U.S. senators.

The prosecutors' office did not respond to a request for comment.  Whistleblower advocates in Washington, D.C. decried the decision to retry Eastman.

"The charges against Eastman are a message to all potential whistle-blowers at Boeing," said Nick Schwellenbach of the group Project on Government Oversight: "We'll try to send you to jail if you disclose information to the press."

Photo courtesy of Andy Rogers, Seattle Post-Intelligencer.

April 29, 2008 | Permalink | User Comments (6)

Undercover Investigation: One-Stop Shopping for Steroids

April 29, 2008 10:27 AM

From The Blotter:

A four-month undercover investigation by ABC News affiliate KNXV in Phoenix, Ariz., reveals that local medical clinics are all too willing to improperly prescribe steroids. 

Even though steroids can only be prescribed to treat legitimate medical conditions, the ABC15 investigation found that doctors at the Revolution Medical Centers were quick to give the drugs to an undercover patient who said he was only looking to increase his size and strength.

According to the report, the patient not only received a prescription for steroids from clinic doctors, he also was shown how to inject the drugs for maximum effect. The undercover patient was able to buy a bag of steroids and supplies for about $2,000 at a clinic pharmacy, where a representative told him refills could be shipped overnight "wherever you're at."

Read and Watch KNVX's Full Report.

In a letter to KNXV, Revolution Medical Centers denied engaging in any illegal conduct.

April 29, 2008 | Permalink | User Comments (0)