From The Philadelphia Inquirer, 5/5/04:
http://www.philly.com/mld/inquirer/news/front/8589975.htm?1c&ERIGHTS=-1818130917902477851philly::rivrvu@ix.netcom.com&KRD_RM=6posnmstmpruspnrsmmmmmmmmn|Harry|Y
Weldon ethics questioned over Russian firm
He lobbied Washington officials for a natural-gas company that had a
reputation for bad practices.
His daughter got business.
By Chris Mondics and Tina Moore
Inquirer Staff Writers
WASHINGTON -
When a huge Russian natural-gas firm with deep pockets and a troubled
image sought to expand its foothold in the rich American market, U.S.
Rep. Curt Weldon (R., Pa.) went to bat for the company in a big way.
He lobbied the U.S. Trade and Development Agency to approve a grant
for Itera International Energy Corp. to develop a sprawling gas field
in western Siberia, even after the government grew concerned over
allegations the company had engaged in questionable business deals.
He complained to Karl Rove, the top political adviser to President
Bush, and to Energy Secretary Spencer Abraham about Itera's treatment
at the hands of the government.
And he urged a high-profile Washington insider, former CIA director
James Woolsey, to lend his clout and credibility to Itera by advising
the firm on corporate ethics.
Taken by themselves, Weldon's actions tracked with his long history of
promoting ties between the United States and Russian energy firms.
But the Itera case raises two questions:
Why would a U.S. congressman throw so much support behind a company
that, in the opinion of many Western business experts, suffered from a
reputation for unethical business practices?
Was Congress' code of ethics breached when Weldon's 29-year-old
daughter and a Delaware County political ally of the congressman
received a $500,000 contract to do public-relations work for Itera at
the same time Weldon was lobbying hard for the company?
The Itera relationship with Curt Weldon and his daughter, Karen, came
at a time when the energy company wanted to burnish its image in the
West.
Angry Western investment firms had accused it of draining billions in
assets from another natural-gas company in which the firms had
invested.
"Itera had a fundamentally good beginning, and then it became
profoundly corrupt," said Anders Aslund, director of the Russian and
Eurasian Program at the Carnegie Endowment for International Peace,
adding that the company recently had improved its business practices.
Itera officials heatedly denied ever overstepping the bounds of
corporate ethics, saying the allegations of improper transactions came
from competitors.
"From day one, never in the past has Itera been involved in any
illegal activities, stripping assets; it was never done," said Lazar
Finker, Itera's vice president for governmental affairs.
Yet as accusations were swirling about Itera in 2002, Curt Weldon
became its champion in high places.
He is unapologetic.
He said the post-Soviet business landscape was noted for widespread
corruption.
"Bad? Bad is relative in Moscow," Weldon said. "Because, when
communism fell apart, all these assets of the people were given to
handpicked people" by former President Boris Yeltsin.
An ethics panel review
Now, Weldon's efforts on behalf of the company and two other
interests, a Russian military contractor and a Serbian family
foundation, have triggered a storm of protest from Washington-based
ethics groups and some constituents who assert that his actions
created the appearance he used his office to benefit his daughter's
business.
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Typical arrogant Repug sleaze.
Harry
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