Inspector General Report Reveals Elaine Chao Violated Federal Ethics Laws
By Michelle Edwards March 4, 2021
A report released Wednesday by the Department of Transportation Office of Inspector General revealed that former Secretary of Transportation Elaine Chao, Senator Mitch McConnell’s wife, repeatedly used her office staff for personal tasks and to promote the reputation of her family’s shipping business, the Foremost Group, which is responsible for “orders at one of China’s biggest state-funded shipyards, and had secured long-term charters with a Chinese state-owned steel maker.”
Ethical questions over how Chao and her family conduct business are nothing new. In 2018, The Paradise Papers revealed that, over a five-year period, millions of dollars were silently funneled to a Chao family foundation through two offshore firms with a New York address not incorporated anywhere in the United States. However, two entities with the same names are incorporated in the Marshall Islands, known as one of the world’s most secretive offshore havens for firms attempting to avoid taxes, and are preferred by the New York-based Foremost Group. At the time, the Foremost Group and a spokesperson for the Department of Transportation declined to comment on where the two donating firms are incorporated.
In 2019, recent shipping data showed that more than 70 percent of Foremost’s freight (mostly iron ore) goes to China. The cargo helps support China’s industrial movement, which produces steel products, a topic of dispute in the deepening trade war between the U.S. and the Chinese Communist Party (CCP). Foremost represents itself as a modest international business whose focus on China is no different than any other dry bulk carrier has in a market controlled by Chinese manufacturing.
In December, the department’s watchdog asked the Justice Department to criminally investigate Elaine Chao over concerns that she misused her office while transportation secretary under President Donald Trump. Two Justice Department divisions declined to pursue any charges. However, the IG determined that Chao, who resigned from her cabinet position on Jan. 7, used her staff and office for personal tasks and to promote the Foremost Group in a blatant violation of federal ethics rules.
The IG’s report discloses that Chao engaged in four kinds of ethics violations. Rep. Carolyn Maloney (D-N.Y.), chair of the House Committee on Oversight and Reform, said in a statement late Wednesday that the IG’s report and relevant documents “demonstrate that Secretary Chao used her official position and taxpayer resources for the benefit of herself and her family.” Maloney added, “Secretary Chao’s flagrant abuse of her office provides further evidence that additional ethics and transparency reforms are needed.”
Moar:
https://uncoverdc.com/2021/03/04/inspector-general-report-reveals-elaine-chao-violated-federal-ethics-laws/