Tuesday, October 18, 2016

Chelsea Clinton: Foundation an Ethical Mess



Vincent J. Curtis

18 Oct 2016


The headline yesterday morning on the Fox News Website screamed, “TAKE THE MONEY!  Staff kept Hillary in the dark over raking in foreign funds.”  Of course they did.

That is why the tangled web of Clinton charities was organized and run as it was: to rake in money for the Clintons, sow confusion, and give them deniability.  The WikiLeaks dump has given us and inside look at the Foundation.

Chelsea Clinton must never had had the birds and the bees talk with her parents.  She, apparently, had always assumed that they were on the up and up.  So when she was appointed to a board of one of the Clinton Foundation charities, she was shocked to discover the unethical practices that were employed for raising money.  The money raisers were hustling access and influence in return for cash, and were blatantly throwing around the Clinton name to get it.  Chelsea was told that one of her father’s staffers had “called Members of the House and Members of Parliament, ‘on behalf of President Clinton’ for Teneo clients.”  She was alarmed all the conflicts of interest and outside incomes.  She was worried at the potential effect these practices could have on her father’s good name (!), and believed he would be horrified if he knew.

Therefore, she called for a governance review to try to clean up the practices.  It was Chelsea’s efforts in this regard that led Doug Band to complain to John Podesta about the problems Chelsea was causing at the Foundation, saying that she was an entitled and power-hungry young woman, to intimate that she was responsible for a suicide attempt of a financial officer, to call her “a spoiled brat” and an irrational ingrate “who runs to daddy to change a decision or inject herself into the process.”  Band said that “she was acting like a spoiled brat kid who has nothing else to do but create issues to justify what she’s doing because she, as she has said, hasn’t found her way and has a lack of focus in her life.”  Band went so far as to suggest that Chelsea was the cause of Bruce Lindsay’s stroke.

To understand how the Foundation worked, B.C. (before Chelsea), you need follow the careers of Doug Band and Declan Kelly who, with Paul Keary, formed Teneo Corporation; and look at how Teneo Corporation operates.  Justin Cooper (of server fame) was an early Teneo official.

Podesta took over as temporary CEO of the Clinton Foundation in late 2011, and found an organization (if something so labyrinthine could be called organized) run by Bill’s old cronies and with a $2 billion pot of money.  Chelsea was appointed to the board of one of the tentacles and began to apply what she had learned at McKinsey & Co. Consulting.  She was the one who insisted on a governance review by the New York law firm Simpson Thacher, and in particular by lawyer Victoria Bjorklund. This move was seen as a vote of no-confidence in Doug Band.

After conducting the governance review, Simpson Thacher found that many people at the Foundation were unaware of the foundation’s policies related to conflicts of interest and outside employment.  The employees of the Foundation themselves told Simpson Thacher that the Foundation needed more Board and management oversight, more strategic and budgetary planning, and had to address potential conflicts of interest.

Simpson Thacher recommended that the Board hold more frequent meetings, to add directors who knew what they were doing, to establish an audit committee, to appoint a Board Chair (!) to work with the CEO, and to involve the Board in strategic planning and to review the effectiveness of existing programs and initiatives.  They further recommended that the Foundation hire a full time COO based in New York, hold regular staff meetings and management training, and have management work with the Board on strategic and budgetary planning.  All these were deficiencies that existed in the Foundation, B.C.

Simpson Thacher took the Foundation to task over conflicts of interest and the failure to train in, and enforce, conflict of interest guidelines.

As a result of these recommendations, Doug Band, Declan Kelly, Paul Keary moved full time to Teneo, and Justin Cooper joined them.  Other personal moved from the Foundation to Bill Clinton’s personal (and taxpayer paid) staff full time.

Most people who worked at the Foundation, including Chelsea, can be forgiven if they thought the whole operation was on the up and up. They couldn’t see that the confusion and mismanagement of the various interconnected charities under the Clinton umbrella was deliberate, for it concealed how the money was siphoned off and where it went.  It didn’t occur to them that the Foundation administrative overhead was so large that little was left for actual charitable work, but it did create a lot of happy people who spoke highly of the Foundation’s “work”.  Bubba deliberately chose not to look into the inner workings of the Foundation.  Bubba had hired hustlers who knew how to raise money, and so long as he was living in style he didn’t want to know the details.

In the middle of all this the name of Cheryl Mills keeps popping up.  John Podesta kept her fully informed of the upheaval at the Foundation in 2011 and 2012.  In the midst of the governance review, Mills sent Podesta, Band, and Justin Cooper a draft “Infrastructure Model” for the Foundation.  It outlined proposed structures for handling Bill Clinton’s personal, political, and foundational business, and these, if adopted, would have moved Band and Cooper out of line authority, and proposed that they be hired as consultants, on an as-needed basis, instead.  At the time, Mills was employed by the State Department and worked directly for Hillary Clinton.  Bill Clinton, meanwhile, served as an advisor to Teneo from July 2011, until he resigned on January 1st, 2012, and became a client instead.  The proven money raisers, thus, weren’t left out in the cold.

Another name that pops up is Huma Abedin, who moved over to Teneo when it became viable.

The Clinton Foundation began as an organization to pay for Bill’s legal bills during the Lewinsky scandal.  Then it morphed into a fund-raising vessel for his presidential library.  Then began the Clinton Global Initiative.  Bill used, or hired, big-money fund-raisers to keep this going, and Hillary used many of them for fundraising for her 2008 campaign.  The fund-raising hustlers figured out just how much money could be had by selling the Clinton name and access to the Clintons, and the main ones carried this knowledge over to Teneo.  Bubba didn’t want to know how it was done, just that it kept him living in style.  Bubba didn’t care if the hustlers did well for themselves, or not, or precisely how.

If Hillary thinks she is innocent of wrong-doing, it is because she willfully remained ignorant of the wrong-doing done in her name and for the financial benefit of her family.  Nevertheless, her closest aides, Cheryl Mills and Huma Abedin, as well as daughter Chelsea, kept her fully informed of the needs of the Foundation during her tenure as Secretary of State.  It would have been a conflict of interest for her to support Foundation business; she just did the things Mills and Abedin said she needed to do in certain areas.  She didn’t need to be told that these things were for to the benefit of the Foundation.  She simply provided a quo and trusted her aides that a quid existed somewhere.  Hence, as shown in the book Clinton Cash, Russian oligarchs got control of twenty percent of America’s uranium production and the Clinton Foundation got $135 million from a Canadian donor.  There is no visible quid pro quo in this transaction, but the laws of physics require that there must be.

A magician has a number of assistants who help make his magic act work; and if you pay attention to the magician, as you are supposed to, you only see magical things, you can’t see how the trick actually works.  The Clinton Foundation supported Bill and Hillary with many magical assistants.
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