VICTORY DESCRIBES LOBBYIST PARTY AS PERSONAL
NTIA Dir. Nancy Victory said through spokesman Tues. that lobbyists who hosted party at her home in Oct. 2001 were “long-time personal friends” who paid for event out of their own pockets. Victory vetted party plans through Office of Gen. Counsel at Commerce Dept., which cleared “benefit” as gift that didn’t need to be reported, spokesman said. Several sources familiar with federal govt. ethics guidelines said that in virtually all instances, gifts involving corporate money must be reported.
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Hosts of party were Wiley, Rein & Fielding partner Peter Shields, SBC Senior Vp-Regulatory Compliance Priscilla Hill- Ardoin, Cingular Wireless Vp-Federal Relations Brian Fontes, Motorola Vp Richard Barth, CTIA lobbyist Chris Gutmann- McCabe, and Sue Crandall, according to copy of invitation released by AP, which over weekend reported party and fact it wasn’t made known on ethics forms. Invitation lists party as held at Great Falls, Va., home of Victory and husband Michael Senkowski, partner at Wiley Rein. Victory had been Wiley Rein partner before taking helm of NTIA in Aug. 2001. RSVP number listed on invitation belonged to Wiley Rein staffer.
“I vetted the event in advance with the Department of Commerce, Ethics Office and the Ethics Office has confirmed that the event was consistent with the ethics rules,” Victory said in statement. “My understanding is that the 6 hosts personally paid for food and beverages. The DoC’s Ethics Office has confirmed that, under the ethics rules, the benefit did not qualify as a reportable gift. The individuals invited, as well as the hosts, were there because of their personal relationship with me, not because of a company they may work for.”
Cingular’s Fontes said money he contributed to party was his and not Cingular’s. News reports drew connection between party and Victory letter to FCC 10 days later on spectrum cap. Fontes called such linkages “absurd.” Victory wrote to FCC Chmn. Powell in late Oct. urging FCC to enact “full and immediate” repeal of spectrum cap, saying retention of limits wouldn’t preserve competition but would more likely result in consumer harm. Wireless industry had lobbied FCC for rollback of cap. At time, FCC Wireless Bureau reportedly was circulating on 8th floor order that would phase out cap. Commission month later opted against “immediate” repeal of cap, instead lifting it completely as of Jan. 1, 2003, and temporarily raising it to 55 MHz from 45 MHz in all markets. “The spectrum cap is an FCC issue,” Fontes said: “NTIA can weigh in at the FCC on any issue.” He said that in case of 3G, wireless industry wanted 120 MHz, and instead Administration freed up 90 MHz for advanced wireless services. Fontes said he was personal friend of Victory.
Another source said that $480 contributed to party by SBC’s Hill-Ardoin was from personal funds, not company’s. Hill-Ardoin also is personal friend of Victory, source said. “Priscilla did not and has never lobbied Nancy Victory on spectrum,” SBC spokesman said. CTIA didn’t return call for comment. Motorola’s Barth couldn’t be reached for comment.
Several sources said party pointed to concerns over access to govt. officials, even if such party was in line with federal govt. ethics rules. Allowing lobbyist, regardless of personal relationship, to hold party speaks more to personal judgment, one source said. “There’s an important line between before you go into government and being in the government,” source said. “Congratulatory parties for incoming government officials are quite common” and often take place before someone is in office, source said. Another source said party originally was scheduled for Sept. but was postponed following Sept. 11 terrorist attacks.
Victory was advised verbally before party by Commerce Dept.’s asst. gen. counsel for administration that she could accept personal gift and it need not be reported, said govt. official familiar with ethics guidelines. Guidelines are part of Standard of Ethical Conduct for Employees of Executive Branch, developed by Office of Govt. Ethics, official said. Guidelines deal with what gifts may be accepted and what must be reported, official said. Of acceptable gifts, dollar threshold for what had to be reported in 2001 was $260, he said. Gifts aren’t acceptable from “prohibited source,” which would be company that had business before govt. official, source said. But even if gift was from so-called prohibited source, it could be accepted if it were based on personal relationship, such as long-time personal friend, and “circumstances show that the gift was motivated by a personal relationship,” official said. One of factors examined was whether gift came from corporate or personal funds, source said.