Lobbyist deal may open can of worms

Jack Abramoff, the disgraced one-time Republican super-lobbyist, yesterday agreed to a deal with United States Government prosecutors, opening the way for what could be the biggest political influence peddling scandal in Washington for decades.

At a brief appearance in federal court, Abramoff pleaded guilty to three sets of charges covering fraud, conspiracy to commit bribery, and tax evasion. According to his lawyers, he is also pleading guilty to two separate fraud charges connected to the purchase in 2000 of a fleet of casino gambling boats in Florida. The convictions could send the lobbyist to jail for five years or more.

But that sentence may one day prove a mere footnote to a possible corruption scandal involving as many as 20 congressmen, senators and their aides - mostly Republicans but also some Democrats - believed to be under investigation by the Justice Department.

Under the plea bargain, Abramoff is expected to tell all about his dealings with the congressmen, and the gifts lavished upon them to win their support. The favours include millions of dollars in campaign contributions, all-expenses-paid foreign trips, meals, luxury boxes at sporting events, and generous funding of special interest groups linked to the lawmakers.

Congressional ethics rules bar legislators and aides from accepting such gifts paid for by lobbyists. But the indictment yesterday accuses Abramoff of "corruptly" offering gifts and other incentives "to influence others in the performance of their official duties".

Thus far congressmen caught up in the probe - among them the Ohio Republican Bob Ney, who went on a 2002 golfing trip to St Andrews courtesy of Abramoff - have denied all wrongdoing. But the ramifications of the case extend to the heart of the ruling establishment in Washington.

Abramoff soared to prominence because of his ties with the younger, hard-charging generation of Republicans led by the former House Speaker, Newt Gingrich, who seized control of Congress in the party's stunning mid-term election victory of 1994.

One of his closest allies was Tom DeLay, who was the powerful (and feared) House Majority leader, until he stepped down last September after being indicted for allegedly illegal fundraising in his home state of Texas.

DeLay, a vital Congressional 'enforcer' for President George W. Bush and his legislative agenda, was himself a guest on an Abramoff-organised golf junket to Scotland in 2000. The trip was partly paid for by donations from Indian tribes who had hired the lobbyist to protect their lucrative casino gambling operations.

Abramoff also arranged at least US$1 million of financing for a conservative pressure group, the US Family Network, closely linked to DeLay.

The lobbyist's downfall began with a Senate Committee investigation revealing that, in conjunction with his partner Michael Scanlon, he had charged the tribes over US$80 million for their services - a colossal sum. According to prosecutors, Abramoff reaped roughly US$20 million in hidden profits from the scheme.

The pressure mounted further on Abramoff when Scanlon - a one time press spokesman for DeLay - had agreed a plea deal of his own, admitting he conspired to bribe a member of Congress and other public officials. By his own claim all but penniless and facing a stiff jail term, Abramoff has evidently concluded his best hope of leniency lies in testifying against those who benefited from him.

The damage however stretches far beyond Capitol Hill, into government and the White House itself.

Last September David Safavian, a top official in the White House budget office, resigned after being indicted for lying and obstructing the federal investigation into Abramoff.

It also separately emerged that in 2003 Abramoff sought US$9 million from President Omar Bongo of Gabon to arrange a meeting with Bush. The two did meet the following year - though there has been no evidence it was thanks to Abramoff.

Yesterday, Scott McClellan, the White House spokesman, could not say whether the President had ever met the lobbyist.

- INDEPENDENT