DeFazio asks IG to investigate reports of Chao’s conflicts of interest

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House Presser Peter DeFazio
In requesting an investigation of Secretary of Transportation Elaine Chao, Rep. Peter DeFazio cites newly-obtained information from a recent media report that suggested Chao used her office to give preferential treatment to organizations and projects in Kentucky where her husband, Senate Majority Leader Mitch McConnell is currently seeking re-election. (ASSOCIATED PRESS)

WASHINGTON — The chairman of the House Transportation and Infrastructure Committee is requesting an investigation into Secretary of Transportation Elaine Chao and her reported conflicts of interest.

Rep. Peter DeFazio, D-Ore., made the request in a letter to Department of Transportation Inspector General Calvin L. Scovel III.

The letter, sent October 11, cites newly-obtained information from a recent media report that suggested Chao used her office to give preferential treatment to organizations and projects in Kentucky where her husband, Senate Majority Leader Mitch McConnell, R-Ky., is currently seeking re-election.

Politico reported that 25% of Secretary Chao’s meetings with local officials between January 2017 and March 2018 were with individuals from Kentucky.

DeFazio said the report noted that requests for meetings with Chao are typically forwarded from McConnell’s office to Chao’s chief of staff, who previously worked on McConnell’s Senate campaign, DeFazio wrote.

The Office of the Secretary of Transportation took exception to DeFazio efforts.

DeFazio said the Politico report followed an earlier report that Chao had asked her chief of staff to serve as an intermediary between her office and McConnell’s office, and that he had helped advise the senator and local Kentucky officials on federal grants of particular significance to McConnell.

“These allegations were first raised by left wing advocacy groups and hashed out in the media, and the department has previously fully responded to them. They are politically motivated and intended to waste time. While the Department will always be cooperative and responsive to appropriate requests, DOT looks forward to a prompt and final resolution of these questions,” a DOT spokesman told The Trucker Tuesday.

“Allegations included the steering of discretionary grants to fund these projects,” DeFazio wrote.  “I would expect Secretary Chao to meet with individuals from her home state more regularly than other states, but the sheer volume of meetings with local officials from Kentucky when compared to meetings with local officials from the rest of the country creates an appearance of favoritism that is troubling.  Even more troubling is the fact that McConnell’s campaign touted the Politico article on social media saying, ‘Mitch McConnell is a Kentucky Asset.’”

DeFazio said news reports have also raised questions about Chao’s adherence to her federal ethics agreement in which she agreed to divest certain assets to prevent her personal finances from creating conflicts of interest.

In particular, it has been reported that the secretary retained stock in Vulcan Materials, a stone and asphalt producer, as opposed to accepting a cash payment for her stock options in the company, as provided for in her ethics agreement.

 

 

 

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