Watch Dogs, Winter 2007
January 3, 2008
by: Ben Giovine

Government WasteWatch, Winter, 2007

Fake FEMA Press Conference Promotions

On October 23, 2007, Federal Emergency Management Agency (FEMA) conducted a fake news conference regarding the response to the California wildfires. The “reporters” at the press conference were FEMA employees and the softball questions lobbed at FEMA officials would make even Larry King blush. The news of FEMA’s fake press conference spread like the wildfires themselves and raised questions about the leadership of this embattled agency. Homeland Security Secretary Michael Chertoff called it “one of the dumbest and most inappropriate things I’ve seen since I’ve been in government.”

About one month after the October 23 FEMA faux-news conference, the agency announced that two of the staffers posing as journalists are not receiving a pink slip and were instead promoted. Cindy Taylor, Deputy Director of Public Affairs, was to become head of a new private sector office, and Mike Widomski would move up to replace Taylor as Deputy Director of Public Affairs. If FEMA can’t manage its staff, no wonder there are ongoing questions about the agency’s ability to manage emergencies.

Bike Lockers

The Air Transport Association (ATA), a trade organization representing leading U.S. passenger and cargo airlines, called on Congress to reassess its proposal to increase airport taxes in September. While airport delays are reaching record levels, the ATA says the Federal Aviation Agency needs to modernize the air traffic control system and create a fairer funding structure. In a press release, ATA President and CEO James C. May said that if Congress acted responsibly, “We can address today’s airport delay problems and do it much more cost-effectively for passengers…”

Instead of focusing on the delay issues at hand, Congress continues to fund the Airport and Airway Trust Fund (AATF). Currently, passengers pay 92 percent of the AATF but drive only 66 percent of costs. The remaining $2 billion is federally subsidized. Furthermore, Congress’s proposal to raise the airport tax by 56 percent from $4.50 to $7.00, is only throwing money at a situation that cannot fix itself. The proceeds from this tax are being directed toward programs including airport bicycle lockers, and hot dog stands. Clearly, Congress should not peddle this problem to the American public.

CFC Charity Fraud

When the government tries to play Santa Claus, bad things happen. The Combined Federal Campaign (CFC) allows certain charitable organizations exclusive access to federal workplaces to solicit contributions from employees. In 2006, federal workers gave more than $271 million to more than 20,000 charities. However, some of that money went to tax-delinquent charities.

Administered by the Office of Personnel Management, the CFC has given money to 1,280 organizations who collectively owe $36 million in back taxes, some dating back to 1988. Some of the charities also receive substantial federal grants: government agencies awarded $1.6 billion in federal grants to at least 170 of the tax-delinquent charities in 2005.

A July 2006 report by the Government Accountability Office (GAO) said of one charity, “Rather than fulfill their role as trustees … the directors and senior officers diverted the money for charity-related expenses, including their own salaries, some of which were in excess of $100,000.” Another charity purchased an exclusive boat for the board of directors. The GAO targeted 15 charities for full investigation and found every organization to be involved in “abusive and potentially criminal activity.”