Latest Twist in EBJ Scholarship Scandal Called “A Clear Example of Cronyism”

October 14, 2010

Latest Twist in EBJ Scholarship Scandal
Called “A Clear Example of Cronyism”
Even Her Own Lawyer is Now “Uncomfortable”

SPIN CYCLE: Speaker Pelosi Vowed that Democrats Would Lead the “Most Honest, Most Open, and Most Ethical Congress in History”:

“Our goal is to restore accountability, honesty and openness at all levels of government. To do so, we will create and enforce rules that demand the highest ethics from every public servant, sever unethical ties between lawmakers and lobbyists, and establish clear standards that prevent the trading of official business for gifts,” (Nancy Pelosi’s “A New Direction for America,” Page 21).

RINSE CYCLE: EBJ Gave a CBC Scholarship to the Daughter of the Head of Minority Contracting at DFW Airport, Where EBJ Owns a Large Share of a Concession:

Troubles involving Rep. Eddie Bernice Johnson’s scholarship awards spread Tuesday to Dallas/Fort Worth International Airport, where the head of minority contracting has been put on leave amid questions about college aid that Johnson gave his daughter.

Johnson, through a trust, owns a 25 percent stake in two Hudson News stores at D/FW. In 2007, she awarded $1,000 to the daughter of airport vice president Don O’Bannon, who oversees contracts with minority-owned businesses, including hers.

An ethics watchdog called the scholarship to O’Bannon’s daughter, now a senior at Dartmouth College, a clear example of cronyism. Also, the attorney for Johnson’s trust said the award makes him uncomfortable.

Johnson, a Dallas Democrat, and O’Bannon, a lawyer who has been at D/FW since 2002, declined to discuss the scholarship, given by legislators under a program run by the nonprofit Congressional Black Caucus Foundation using private donations.

“That matter is currently under review at the airport, and at this point I’m really not in a position to make a comment about it,” O’Bannon said by phone. “I’ll be more than happy to discuss it with you once the process is complete.”

Johnson spokeswoman Dena Craig said, “We aren’t commenting on the scholarships anymore.”

The action involving the D/FW official is the latest development since the The Dallas Morning News reported last month that Johnson violated the foundation’s nepotism and residency rules in awarding 23 scholarships from 2005 to 2009 to two grandsons, two great-nephews, and the son and daughter of her top Dallas aide.

One ethics watchdog who has tracked the Johnson scholarship case called the D/FW situation “outrageous,” even if the student was top-notch and lived in the district.

“If there’s a business connection, it’s clearly inappropriate,” said Melanie Sloan, executive director of Citizens for Responsibility and Ethics in Washington.
The scholarship program “was supposed to be about the kids, not their relationships,” she said. “Why would somebody do this over $1,000?”
Johnson’s interest in airport concessions has been an ongoing source of attention.

Her 15 percent interest in Hudson stores at Love Field became an issue during a recent City Hall fight over no-bid concessions contracts at that airport, which is owned by the city of Dallas. (Todd J. Gillman and Rudolph Bush, “D/FW Airport Official Put on Leave After Daughter Got Scholarship from Rep. Eddie Bernice Johnson,” The Dallas Morning News, 10/13/2010)

To read the full story, click here.

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