Group seeks criminal probe of GOP
lawmaker
Yahoo News/USA Today
By Matt Kelley, USA TODAY
January 20, 2006
A liberal watchdog group called Thursday for a criminal investigation of a
multibillion-dollar hedge fund's political contributions to a California
congressman.
The Campaign for a Cleaner Congress (CCC) wrote the Justice Department's
Public Integrity Section asking for a bribery probe of Republican Rep. Jerry
Lewis (news, bio, voting record), chairman of the House Appropriations
Committee.
The group cited a report in Thursday's USA TODAY that the hedge fund,
Cerberus Capital Management, helped raise nearly $133,000 for Lewis' political
action committee in 2003 as Lewis shepherded through the House a defense
spending bill preserving funding for a Navy project critical to the firm.
A similar group, Citizens for Responsibility and Ethics in Washington, asked
for a federal criminal probe of Lewis on Jan. 9, citing his ties to lobbyist
and former representative Bill Lowery. A former Lewis staffer is a lobbyist at
Lowery's firm, which counts many top defense contractors among its clients.
Lewis issued a statement Thursday repeating his assertion that he never
discussed the Navy contract with Cerberus executives or their representatives.
He said he opposed a proposed $160 million cut in the Navy-Marine Corps
Intranet program because the Navy said it had fixed the system's problems.
"It is absolutely and unequivocally false to suggest that any decision on
funding for the Navy-Marine Corps Intranet was in any way based on a lobbyist's
request, or as a favor to someone who was donating campaign funds," Lewis
said.
Cerberus held a fundraising dinner for Lewis' political action committee in
July 2003, less than two months after the House Armed Services Committee voted
to cut the project's budget. At the time, Lewis headed the House Appropriations
defense subcommittee, which handles the annual Pentagon spending bill.
Lewis' committee preserved the $1.6 billion the Pentagon requested for the
computer project, as did the final defense spending bill Lewis helped shape in
a House-Senate committee.
Cerberus owns a subcontractor on the project, Netco Government Services,
which says it expects to take in nearly $1 billion from the program. Cerberus
also paid more than $140 million for a large stake in MCI, another major
subcontractor on the project.
Justice spokesman Bryan Sierra declined to comment. Cerberus did not respond
to requests for comment Thursday.
CCC spokesman Mike Casey said the Justice Department should look into
whether Cerberus' donations influenced Lewis. Only the department, Casey said,
"has the resources to find out how Cerberus approached Congressman Lewis, what
was said and what was promised."
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