Report: Governor's Allies Won Big After Katrina

August 16, 2007 1:08 PM

Justin Rood Reports:

Reportgovernor_mn Hurricane Katrina was a disaster for hundreds of thousands of residents of the Gulf Coast. But for some family and friends of Mississippi governor and GOP power broker Haley Barbour, it was quite profitable, according to a new report by Bloomberg News.

In particular, Barbour's nephew and the governor's former lobbying firm saw turns of good fortune from work connected to rebuilding Mississippi after the catastrophic storm, the news service reports.

There is no evidence the governor or his nephew have violated the law.

"Katrina brought in a tide of money. Some benefited," said Keith Ashdown of Taxpayers for Common Sense, a Washington, D.C.-based nonprofit that watchdogs government spending. "It looks like the folks close to the governor did very well."

The governor's office declined to comment for this story.

Click Here for Full Blotter Coverage.

Nephew Henry Barbour, a state lobbyist and former campaign adviser to his uncle, saw his income more than double after the storm hit, Bloomberg's analysis found. Firms paid large fees for his services, and his uncle made him executive director of the Governor's Commission on Recovery, Rebuilding and Renewal.

Two of Henry Barbour's clients won business with the state for tasks recommended by Governor's Commission, the news service reported.

Henry Barbour told Bloomberg he had taken "a leave of absence" from lobbying while he served on the panel, for which he received no pay. During that time, his annual lobbying income grew from $183,000 to $379,000, Bloomberg reported. The federal government later recognized him and his fellow panelists with a "Gulf Guardian Award" for their efforts.

Finance company Government Consultants paid Henry Barbour's firm $65,000 from July 2005 through 2006, according to records reviewed by the news service. Bloomberg reported the company earned at least $400,000 in fees for issuing Katrina-related bonds for Mississippi -- issuances that were recommended by the Governor's Commission. The firm did not return a request for comment from ABCNews.com.

A Massachussetts-based engineering firm, Camp Dresser & McKee (CDM), paid Henry Barbour's firm $15,000 in lobbying fees, Bloomberg found. Later, the state chose it to work on a $3 million study of water management systems in six counties. Another client of Henry's firm, Waggoner Engineering, also worked on the project, according to Bloomberg.

Henry Barbour told Bloomberg he played no role with state bond issues, and his firm had decided not to accept new recovery-related clients after Katrina hit.  A phone message left with his firm Thursday was not returned.

Henry Barbour managed his uncle's gubernatorial campaign in 2003. Senior executives at both Government Consultants and CDM contributed thousands of dollars to the governor's re-election campaign in 2006, the news service found.

Former colleagues at the governor's old Washington, D.C. lobbying shop also benefited from the storm, Bloomberg revealed. Barbour Griffith & Rogers -- the firm retains the governor's name, although he no longer works there -- was paid $160,000 by a New York buyout firm to help it win a liquor license for the Hard Rock Casino in Biloxi, Miss., which it had just purchased.

"We encouraged" state panels "to expedite" the process, the lobbying firm's chief of staff Charlie Williams told Bloomberg. "And they did."

The buyout firm, Leucadia National, declined to comment to ABCNews.com. The lobbying firm did not immediately respond to a request for comment.

The firm's principals have said Barbour no longer receives money from the lobbying group, but Barbour said recently the firm pays him "retirement." Unlike previous Mississippi governors, Barbour has declined to release his personal income tax returns.

Do you have a tip for Brian Ross and the Investigative Team?

To Blotter Homepage

August 16, 2007 | Permalink | User Comments (11)

User Comments

I think refusing to comment is the mantra of modern day republicans and they appear to have adopted the code of OMERTA that made our american mafia so famous, beloved,and well respected. The DON in 2008...

Posted by: bushbaby | Aug 16, 2007 4:46:52 PM

What's wrong with expoliting any given situation in terms of getting business? Hypotheticals:

A fire burns the church on my block down, and I'm a contractor; OF COURSE I'm going to try to get the church's business in rebuilding...it's what I do.

A 200,000 acre wildfire is burning, and I own a helicoptor fleet; OF COURSE I'm going to offer my services to aid in the putting out of the fire.

My 110 twin towers are destroyed in a terrorist attack (or by the government, whichever story you believe); I have to pay somebody to rebuild...

In business, when opportunity knocks, open the door and welcome it in...

Posted by: Ozzy Ozbent | Aug 16, 2007 5:14:47 PM

Wow. Where's the companion story on the the governor of Louisiana. Oh, that's right, she's a Democrat and gets a perpetual pass from the liberal MSM.

Posted by: Dewey | Aug 17, 2007 11:27:56 AM

What Ozzy O. doesn't get is as Govenor
Barbour is not supposed to make a profit
from his job other than his salary.
And grafting out job "no bid" is a way
to reward or infuluence contributors. You Ozzy, would not get the jobs you listed unless you were connected to the Gov. in some way. Thats just WRONG.

Posted by: blackie | Aug 17, 2007 12:56:34 PM

Oh look, another corrupt politican caught and guess what, it is yet another Republican.

Will wonders never cease.

Posted by: Tammy stickers | Aug 18, 2007 11:02:59 PM

Maybe there IS NO STORY on the Governor of Louisiana. Maybe she is not a crook.
Maybe just the Republicans suck life blood out of injured people when they are down and Christian Democrats don't believe in kicking sand into the injured faces of hurt people.

It is testament to how guilty you are when you can't explain the wrongdoings of your party but instead point over the fence and claim that somebody else does the same thing.

Guess what? We don't do the same thing. We are honest people. YOU are crooks. Anyone that supports these criminals in office or would seek to defend their wrongdoing publicly, which is what these blogs are....

is not only UnAmerican but a traitor.

Posted by: Yellowbird | Aug 19, 2007 2:40:39 PM

Christian Democrats? Definitely in the minority... THough they do exist I am sure. And, I imagine they are good people, like any true Christian (regardless of political affilition...)
And, yellowbird, you may be right to say that there is no LA governor story (probably not, politicians all having the same tendencies, whatever the party). But a New Orleans mayor story could easily be found... if he wasn't a democrat.

Posted by: ScottK | Aug 20, 2007 3:53:24 PM

"Christian Democrats? Definitely in the minority..."

Why do people say things like this? They know it isn't true? We know it isn't true. Are they trying to fool themselves or us? Either way, it is better to be quiet and be thought an idiot, than to speak and remove all doubt.

"But a New Orleans mayor story could easily be found... if he wasn't a democrat."
Oh, a smear without any proof. An allegation without merit. An attempt to change the subject by claiming that Republican corruption is OK because the poster can backhanded imply that some Democrat somewhere might have done something illegal (which the poster cannot specify).

Once again, a Republican exposes the moral abyss that is the Republican party.

Posted by: bobby stickers | Aug 21, 2007 1:00:35 PM

I am a victim of that horrible man made/ natural disaster. I happen to be a Christian (Southern Baptist) and a proud Democrat. I was a resident of the New Orleans area when the storm hit. I have lived with family on th Mississippi Gulf Coast since the storm. What kills me is that the life-long residents of the Ms. Gulf Coast do not get that their elected officials are making it so that only the rich will be able to afford to live there. It is about time that Haley Barbour and other crooked Republicans are being shown to be the actual criminals and opportunists that they are. The Republicans will not be able to use our disaster as they spun 911 during the last election. I live here in Ms. now and travel home often. The recovery process is just as slow in both states despite what anyone is reporting. The population difference in between the two areas affected is vast. I know residence from both areas that just want the chance to move home and continue their lives. Most hard working people can not afford the insurance to rebuild and thus are still living in a holding pattern. Shame on you Haley Barbour making money off of our pain and suffering. I know that the members of the Republican party have profited from no- bid contracts in the Middle East. My wise Grandfather that grew up during the Depression always told me, "Democrats are the working mans' party." I know personally that is the truth. I wish that if the storm had to have occurred that it would have been in 1995 instead. The working man would have been able to financially handle all of this crap. We had real take charge leadership not a inarticulate opportunist that just wants to go to war for all of the wrong reasons. Louisiana would have been in better shape if almost our National Guard and it's equipment would have been home during Hurricane season and not in Iraq. Despite still having a good deal of depression and anxiety from living through and continually dealing with this disaster, I feel great joy watching these pillars of the Republican party being exposed for who they truly are. It is like watching dominos fall. New Orleanians know what they already have with C. Ray Nagin. Senator David Vitter and Haley Barbour pulled the wool over the citizens of the areas eyes. My hope is that my fellow citizens will hold them accountable.

Posted by: Gina Robinson | Aug 22, 2007 12:32:10 PM

"Guess what? We don't do the same thing. We are honest people."

You have a lot to learn buddy. Lousianna is widely known as one of the most politically corrupt states in the country. And they got FAR more money than Mississippi.
There is corruption in both parties. That is the nature of power, and the more power you give government the more corruption there will be. But you are correct that you "dont do the same thing". Democrats are much MUCH more corrupt and much MUCH more dishonest.

When Republicans find a memeber is guilty of breaking the law they kick them out. Democrats never kick their memebers out, they defend them to the death. WIlliam Jefferson from Louisianna (speaking of corrupt LA politicians) was found with $90,000 dollars in his freezer. He claims he did nothing wrong, is still in congress and Democrats refuse to investigate him. He's been re-elected since then.

Dianne Feinstein steered tens of MILLIONS of dollars to companies her husband sat on the board of. She and her husband profiteered off the war by millions of dollars. Democrats refuse to investigate her.

Jim McDermott was found guilty in a court of law for his involvement in an illlegal wiretapping scandal, and ordered to pay enormous fines. He is still in congress and Democrats refuse to allow him to be brought before the ethics committee. Hes been re-elected since then.

Hillary Clintons campaign was found guilty of hiding millions in contributions so they could cheat in an election by holding that money for a last minute ad blitz that no one would know about until it was too late. All of which is illegal. They were found guilty in a court and ordered to pay a fine of hundreds of thousands of dollars. Not only is she still in the Senate, and not only was she never brought before the ethics commmittee, but she is your front runner as a presidential candidate.

And thats on top of the non-stop corruption that defined her and bill's tenure in the WHite House. Hillary fired everyone in the WH travel office so she could hire her political cronies, selling stays in the Lincoln bedroom, claimed she was unable to find Rose Hill Law Firm documents for 2 years and they ended up being in her residence (which was also against the law), using the FBI and IRS to go after political opponents, not only did Bill lie to a federal grand jury, and settled out of court in a civil sexual harrasment case rather than proving his so called innocence, but a federal prosecutor has said on the record that Hillary gave "false and misleading" testimony as well, they illegally campaigned from the White House, pardoned the biggest tax evader in history because his wife gave them big contributions to their campaign and to Bill's library, took illegal contributions from China in exchange for giving China missile technology (which they can now target the entire US mainland with), they STOLE the white house furniture and art on the way out!

Posted by: AmericanElephant | Aug 24, 2007 8:23:10 AM

Did any of you libs read the part that said "there is no evidence the governor or his nephew violated any law"? Where is the stories about the graft and corruption out of Louisiana, and don't say there isn't any. Louisiana was/is the most politically corrupt place in America!

Posted by: clawjockey | Aug 30, 2007 1:24:34 PM

Post a comment