Steve Peacock's U.S. Trade & Aid Monitor

Business Start-Up Grants to Accompany Obama Economic Improvement Project

The Obama Administration is unfolding its latest plan to address lackluster economic growth, an action it seeks to accomplish partly by reforming national trade policies and regulations.

National, that is, specific to the nation of the Philippines, where the U.S. Agency for International Development has launched yet another program to help improve the ability of that country’s business sector to compete internationally.

The Trade‐Related Assistance for Development (TRADE) project, as the endeavor is known, is the latest effort of the U.S.-Philippine “Partnership for Growth,” or PFG , according to a solicitation that U.S. Trade & Aid Monitor located during routine database research. USAID said in the document that separately it expects to award several multi‐year grants to private Philippine groups and business organizations “to promote business start‐ups and incubators.” It did not disclose the estimated cost of those grants. 

It described PFG as

a signature inter‐agency effort of President Barack Obama’s Presidential Policy Directive on Global Development... PFG will provide USG assistance and non‐assistance resources over the next five years to assist the Philippines overcome binding constraints to investment expansion and capital formation for increased employment and higher incomes.

The TRADE Project will hire contractors to “provide technical assistance, training, and other services to economic agencies of the Government of the Philippines (GPH) and the private sector,”

The estimated contract value for the five-year TRADE program—not including the cost of the previously mentioned business start-up and incubator projects—is $13.5 million.

Source document: Solicitation #SOL-492-12-000013

RELATED:

USAID to Spend Tens of Millions Promoting Filipino Tourism, Agribusiness

Federal Government to Audit Tens of Thousands of Schools for Tech Deployment

U.S. to Assess Education Program Progress -- in USAID-backed Filipino Muslim Schools

Sen. Menendez Responds (Sort Of) to HSBC Dirty Dollars Inquiry (Commentary)

Media scrutiny of the HSBC money-laundering scandal has died down, but I am not letting  Sen. Robert Menendez (D) -- who represents me here in New Jersey -- nor any other congressional recipients of the disgraced bank's political action committee's generosity off the hook.

Despite calling -- as a journalist -- the leadership of the House Financial Services and the Senate Banking committees, until today only one member responded.  And the spokesman for that one leader (one of the few who has not gotten or taken a penny from the HSBC PAC in fifteen years)  -- declined comment.The rest have remained steadfastly silent.

Today, however, Sen. Menendez had this to say in response to my questions, "In light of HSBC's dealing with Mexican drug lords and suspected Iranian terrorist supporters, what do you plan to do with the bank PAC donations you have received over the years?  Will you reject future offers?"

Dear  Mr. Peacock :

Thank you for contacting me regarding an issue with my re-election campaign.  

As you may know, I am currently up for re-election to the United States Senate, with the election taking place on November 6, 2012.  While I would like to respond to your inquiry, I am legally prohibited from discussing any activity related to a political organization, such as my re-election campaign, with official Senate resources.  As such, I would encourage you to contact my campaign with your inquiry.

Again, thank you for sharing your thoughts with me.  Please do not he sitate to contact me  if I may be of further assistance.  I invite you to visit my website http://menendez.senate.gov to learn  more about how I am standing up for New Jersey families in the United States Senate.

Sincerely,

Robert Menendez, United States Senator

He says he cannot comment, yet tells me to contact his campaign for a comment? How frustrating. I will not accuse Menendez, however, of using the upcoming re-election campaign as an excuse to continue his silence, as indeed I am aware there are such restrictions as he claimed. Still, if the Menendez campaign remains mute on the matter through November, the senator risks jeopardizing what's left of his integrity and reputation.

In the meantime, dear citizens, please sign the petition urging the HSBC PAC congressional recipients to diverst themselves of those tainted campaign contributions. Please take action now.

-- Steve Peacock

RELATED COVERAGE:

Scandal-Plagued HSBC Shopped Congress for Favors

Key Committee is Lawmaker’s Cash Cow (The Revered Review, Aug. 4, 2012)

Federal Lawmakers Silent on Tainted HSBC Funds (The Revered Review, July 27, 2012)

Scandal-Plagued HSBC Shopped Congress for Favors

The fallout from the HSBC money laundering scandal continues to reverberate around the globe, but U.S. Congress members apparently are in no hurry to return millions of dollars they have received from the scandal-plagued bank's political action committee.

U.S. Trade & Aid Monitor conducted an analysis of Federal Election Commission records specific to the company PAC's generosity toward Congress. The investigation centered upon two congressional panels with primary oversight of the industry: The Senate Committee on Banking, Housing & Urban Affairs, and the House Committee on Financial Services.

Since 1997, the earliest available FEC electronic records, HSBC bestowed its greatest beneficence upon the House panel’s leadership.

The bank’s direct contributions to individual leaders amounted to hundreds of thousands; however, HSBC’s financial support of the American Bankers Association PAC, or BANKPAC – plus many dozens of other financial, insurance, and law firm PACs for which HSBC provides funding – in turn donated millions of dollars to a handful of key members.

The Monitor offered two basic questions for committee leadership to answer:

1. In light of the U.S. Senate’s allegations that HSBC laundered billions, for example, from murderous Mexican drug cartels and rogue nations such as Iran, do you intend to return any of the funds received from HSBC?
2. Will you accept or reject future offers from the HSBC North America PAC?

In the few instances where leaders obtained zero or minimal HSBC funds, WND inquired whether the member had rejected or simply never had been offered donations.

The spokesperson of only one congressional leader – who declined to be identified – returned an e-mail to the Monitor. In that instance, the congressman, who received a small amount from HSBC several years ago, said he would rather not comment on the situation.

As of this deadline, the Monitor’s questions otherwise continue to be met with a wall of silence.

HSBC’s biggest financial beneficiary on the committees is Chairman Spencer Bachus, R-Ala., who since 1997 raked in $45,500 directly from the HSBC PAC. It most recently cut a $1,000 check for the Bachus for Congress Committee in November.

HSBC in May likewise donated $2,500 to the Financial Services Roundtable, a PAC that has given Bachus $33,499 from 1997 onward, including a $5,000 check in February.

Subcommittee Vice Chairman Jeb Hensarling, R-Texas, has reaped $34,500 from HSBC since 2002, last receiving $1,000 in September 2011. BANKPAC, however, donated $52,000 to his campaign in that same period.

Ranking Minority Member Barney Frank, D-Mass., directly received $21,000 since 2002 from HSBC, which in turn gave $42,500 to BANKPAC – which in turn donated a total of $48,250 back to Frank.

The following is a run-down solely of direct HSBC PAC donations to the respective House Committee on Financial Services subcommittee leaders:

Insurance, Housing and Community Opportunity Subcommittee

• Chairman Judy Biggert, R-Ill.: $39,499 since 1998
• Vice Chairman Robert Hurt, R-Va.: Single $1,000 payment on May 18, 2011
• Ranking Minority Member Luis V. Gutierrez, D-Ill.: $3,500 since 1998

Financial Institutions and Consumer Credit Subcommittee

• Chairman Shelley Moore Capito, R-W.Va.: $10,000 from 2000-2004
• Vice Chairman James B. Renacci, R-Ohio: $0
• Ranking Minority Member Carolyn B. Maloney, D-N.Y.: $12,000 since 1997

Domestic Monetary Policy and Technology Subcommittee

• Chairman Ron Paul, R-Texas: Single $500 payment in 1998
• Vice Chairman Walter B. Jones, R-N.C.: $11,400 since 1999
• Ranking Minority Member Wm. Lacy Clay, D-Mo.: $10,500 since 1999

Capital Markets and Government Sponsored Enterprises Subcommittee

• Chairman Scott Garrett, R-N.J.: $24,500 since 2002
• Vice Chairman David Schweikert, R-Ariz.: $0
• Ranking Minority Member Maxine Waters, D-Calif.: $0

U.S. Senate Committee on Banking, Housing, and Urban Affairs leaders received significantly less than their House counterparts from HSBC. Chairman Tim Johnson, D-S.D., got $20,000 from the PAC since 1997.

While HSBC only gave $13,029 to Ranking Minority Member Richard Shelby since 1998, Shelby – who also serves as a senior member of the Senate Appropriations Committee – separately received millions during that period from a multitude of PACs in every imaginable industry sector.

The following is a run-down solely of direct HSBC PAC donations to the respective Senate Committee on Banking, Housing, and Urban Affairs subcommittee leaders:

Economic Policy Subcommittee

• Chairman Jon Tester, D-Mont.: $1,000 in 2009
• Ranking Minority Member David Vitter, R-La.: $3,000 since 2009

Housing, Transportation, and Community Development Subcommittee

• Chairman Robert Menendez, D-N.J.: $9,000 since 2006
• Ranking Minority Member Jim DeMint, R-S.C.: $1,000 in 2008

Financial Institutions and Consumer Protection Subcommittee

• Chairman Sherrod Brown, D-Ohio: $0
• Ranking Minority Member Bob Corker, R-Tenn.: $4,000 in 2008

Security and International Trade and Finance Subcommittee

• Chairman Mark R. Warner, D-Va.: $8,500 since 1999
• Ranking Minority Member Mike Johanns, R-Neb.: $0

Securities, Insurance, and Investment Subcommittee

• Chairman Jack Reed, D-R.I.: $3,000 since 2010
• Mike Crapo, R-Idaho: $16,000 since 2003

A spokesperson for the Center for Responsive Politics expressed concern about such linkages between industries such as the banking sector and members of Congress with jurisdiction over them.

Viveca Novak, CRP editorial and communications director, cautioned, however, against making a direct connection between contributions received and the perception of congressional favors granted.

“It creates at least the appearance of a conflict of interest when lawmakers running for re-election rely on contributions from the very companies they are supposed to be overseeing,” she said.

“Is this why Congress has such difficulty passing legislation that addresses some of the questionable practices of banks and others? There’s not a straight line between cause and effect, but there are grounds for raising questions about a link.”

Alluding to the Monitor’s questioning of House and Senate committee members about what their plans are for the campaign contributions, Novak said CRP is not taking a position “on what should be done with the donations already given.”

A similar version of this article first was published via WND.com on July 29.

RELATED COVERAGE:

Federal Lawmakers Silent on Tainted HSBC Funds (The Revered Review, July 27, 2012)

Key Committee is Lawmaker’s Cash Cow (The Revered Review, Aug. 4, 2012)

WND: Scandal-plagued HSBC shopped Congress for favors

Check out Scandal-plagued HSBC shopped Congress for favors -- No officials offer to return bank's blood money," my latest from WND.  The WND piece sheds light on the big picture of HSBC's effortful attempts to influence of Congress over the years, which took place while the bank largely turned a blind eye to drug-cartel and terrorist money flowing through its vaults. A separate article I wrote for The Revered Review -- Federal Lawmakers Silent on Tainted HSBC Funds -- Will Sen. Menendez, Rep. Garrett return "blood money"?" -- hits closer to home for me, as it centers upon my elected officials here in New Jersey, and how they likewise raked in dollars from HSBC while leading congressional subcomittees tasked with overseing the banking industry.

Federal Project Seeks to Strengthen Pension Systems

The Obama administration is embarking upon a project to ensure that pension systems across the nation are “fiscally sound and sustainable.”  And elderly citizens of the nation of Armenia likely will be delighted to hear the news.

The U.S. Agency for International Development (USAID) yesterday issued a presolicitation notice alerting interested contractors about the initiative, a “technical assistance” endeavor that will assist the Government of Armenia in making its new multi-pillar pension system “fiscally sound and sustainable.”

The intended outcome of the effort is “an increase in the percentage of economically active citizens who contribute to the pension resources,” according to the notice.

USAID also will help the Armenians to create an Integrated Social Services system (ISS), which will enable the Armenian Ministry of Labor and Social Affairs, in conjunction with “the private sector and civil society, to implement the pension reform and to improve social services policy, benefits, and delivery systems.”

“Also, these activities will ensure that the pension system is well-managed, regulated, and supervised according to international standards and best practices,” the notice continued.

USAID did not disclose the project’s estimated cost.

U.S. Crafting New Economic Recovery Plan

The damage caused by the global financial crisis requires additional federal intervention, according to the Obama Administration, which is launching a new program to “foster growth and stability at a time of increasing economic turmoil.” This particular endeavor, however, will focus its efforts on improving conditions in Eastern Europe, the Western Balkans, and the “newly independent states,” or NIS, of the former Soviet Union.

The U.S. Agency for International Development (USAID) is designing this Europe & Eurasia (E&E) regional project in order to “promote trade, investment and regulatory integration; enhance regional competitiveness, and support financial sector stability.”

The agency did not disclose an estimated cost of the program, which remains under development. It is conducting market research of potential contractors capable of carrying out services in the region. USAID may—or may not—release a more detailed solicitation at a later date.

If indeed it executes this project, USAID will target thirteen nations where USAID already has established a presence, “including the Western Balkans (Albania, Bosnia, Kosovo, Macedonia, Montenegro, and Serbia), Western NIS (Ukraine, Moldova, Belarus), Russia, and the Caucasus (Georgia, Armenia and Azerbaijan).

(RELATED: U.S.-Financed Pipeline Benefiting UAE Royal Family Moves Forward)

According to a Sources Sought Notice that U.S. Trade & Aid Monitor located via routine database research:

Despite the tremendous progress made over the years, many of these countries are still struggling to regain the living standards that they enjoyed under communism and to integrate themselves into the ever more competitive world economy.  Furthermore, the region has been disproportionately adversely affected by the 2008-2009 global economic crisis and, now, by the ongoing Eurozone financial crisis… Several countries in the region have unemployment rates above 20%, labor productivity remains well below the EU standards, and export growth rates have stagnated. 

The four “principal technical areas” for which contractors may provide services include:

            1. Regional Trade Facilitation;  

            2. Private Sector Competitiveness and Enterprise Development;

            3. Business Enabling Environment (meaning, support of “legal and regulatory reform and rule of law issues”); and:

            4. Financial Sector Stability, Growth & Inclusion.

USAID will accept capability statements from interested providers until June 11 at 2 p.m.

Source document: Solicitation #M-OAA-GRO-LMA-12-1002

FOR ADDITIONAL REPORTING ON THE U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT, SEE THE MONITOR'S USAID PAGE.

FOR FURTHER REGIONAL COVERAGE, SEE THE MONITOR'S EUROPE PAGE.

OTHER NATION-SPECIFIC MONITOR PAGES ARE EMBEDDED WITHIN THE ABOVE ARTICLE.

Financial Analyst to be Deployed to Audit USAID/Afghanistan

An analyst tasked with auditing governmental and nongovernmental financial documents is being sought by the U.S. Agency for International Development (USAID) to fill a contractor post in Afghanistan. The selected contractor will, among duties, review "activity approval" documents as well as "contracts, grants and cooperative agreements..." according to a Personnel Service Contractor/Third Country National notice released today. 

The contractor would be housed in the heavily guarded Embassy compound, but USAID said conditions have gotten better for workers. For instance:

Life in Kabul, the capital of Afghanistan has somewhat improved since the establishment of the government, and great strides have been made to regularize the availability of services, utilities, and supplies of common consumer items. Living conditions, however, are still difficult but this is an historical opportunity to work closely with a dedicated team to assist the Afghans to bring about peace and stability to their war-torn country.

Source document: Solicitation #SOL-306-12-000047-OFM.

Obama Administration Launching Business Competitiveness Project

Improving "private sector competitiveness" as well as increasing access to financing will help drive "sustainable economic growth" while reducing poverty, according to the Obama Administration. Consequently, it is launching the Finance and Business Services (FaBS) Project to achieve such goals -- in Ethiopia.

The U.S. must step in to help because of the global economic downturn and the restrictive economic policies enacted in response to those changes, according to Solicitation #SOL-663-12-000013:

Despite impressive growth over the past 5-7 years, Ethiopia’s private sector continues to struggle as a result of an inefficient business climate as well as a number of firm/industry bottlenecks.  Particularly during the past two years, with the economy showing strains associated with the global downturn, escalation of prices for major import products and resultant restrictive monetary policy by government designed to help contain the impact of the global crisis and associated inflation, the prospects for private sector growth appear to have stalled according to some, or to have diminished according to others.  With credit growth continuing to decline, an already challenged business environment has become even more challenging during the past couple of years.

The U.S. Agency for International Development will carry out the 2-5-year program with private contractor assistance at an estimated cost -- if all options are exercised -- of $22 million.

U.S. Debt Facts You Need to Know About -- CBS MoneyWatch

A must-read: "12 Scary Debt Facts for 2012."

U.S. Treasury Seeks Help in Mending Economy -- But Whose Economy?

As congressional and White House budget battles rage on along the littered landscape of national financial woes, the U.S. Dept. of the Treasury this week reached to the private sector for help in overseeing the following five areas of activity: (1) economic crimes; (2) government debt issuance and management; (3) budget and financial accountability; (4) banking and financial services, and: (5) revenue policy and revenue administration.

Ironically, this outsourced assistance will not target these problem areas here in the United States; on the contrary, Treasury is looking for help in monitoring these issues in nations such as Afghanistan, Haiti, Iraq, and Pakistan, U.S. Trade & Aid Monitor has discovered.

According to a personal services contract solicitation (#A11-105) dated July 21, the person filling the "Program Officer/Coordinator of Post-Conflict Countries" position will “provide administrative and management support” to advisers that Treasury’s Office of Technical Assistance has deployed or will deploy worldwide to a total of thirty countries,

The salary range for this slot is $62,467 to $115,742, depending on experience and education. Treasury is accepting applications until August 1.