Is AT&T $1 Million Contribution An Illegal Payoff?
Posted: Thu Apr 27, 2006 10:25 am
Is AT&T $1 Million Contribution An Illegal Payoff?
AT&T certainly knows how to spend its money wisely. It's donated $1 million to fund the pet project of a Congressman who has vowed to back a law letting AT&T and other telcos hijack the Internet. Is the contribution an illegal payoff?
The Chicago Sun Times reports that AT&T has donated $1 million to a community center founded by Rep. Bobby Rush (D-Ill.). Rush is a member of the Energy and Commerce Committee, which is writing telecom law that would give AT&T everything telcos want, from killing net neutrality, to letting telcos establish municipal video franchises without government oversight.
According to the Chicago Sun Times, the charitable arm of SBC and AT&T has given a total of $1 million to the Rebirth of Englewood Community Development Corporation, which Rush founded.
So what's wrong with AT&T giving money to a community group? In essence, it's little more than a payoff for services rendered, and is a clear conflict of interest.
Corporations have been using these kinds of payoffs as a way around laws governing campaign contributions. Rather than give the money directly to a pol, they give the money to a non-profit organization linked to the pol.
In the case of Rush, it's a clear conflict of interest. The Sun Times notes, "The chief of a congressional watchdog group says Rush's ongoing association with the Rebirth of Englewood Community Development Corporation and his role in shaping telecommunications law as a member of the Energy and Commerce Committee is a conflict of interest."
It add, "Using charitable giving as a backdoor way to curry favor with lawmakers is coming under increasing scrutiny, figuring in controversies associated with former Majority Leader Tom DeLay (R-Texas) and Rep. Alan Mollohan (D-W.Va.), who was forced to temporarily step aside as the ranking Democrat on the Ethics panel."
Consumer groups says it's a payoff as well.
"It is a clear conflict of interest for Rep. Rush to weigh in on this bill," Sheila Krumholz, the acting executive director of the nonpartisan Center for Responsive Politics, told the newspaper. "People can disagree about where to draw the line on contributions and abstaining from votes, but $1 million is definitely over that line."
Considering all the money that AT&T and others have been paying to its friends in Congress, don't be surprised when net neutrality bites the dust. If it's something you care about, get in touch with your Congressman right away.
Posted by Preston Gralla on Apr 26, 06 12:50 PM in Networking and Telecom
Sounds like it to me - Iceman
