Funds from a Justice Department earmark to a Pennsylvania defense contractor actually were controlled by the office of the late Rep. John Murtha (D-Pa.), which decided which law enforcement agencies should get grants, the Justice Department’s Inspector General concludes in a new report.
In the report, the IG states that between September 2004 and September 2006, MountainTop Technologies Inc. received $3,454,668 to help improve the ability of law enforcement agencies in southwest Pennsylvania. The report states that MountainTop turned all decision-making power about distribution of that money over to Murtha’s congressional office.
Murtha, a long time key member of the House Appropriations Committee and chairman of its Defense Appropriations subcomittee, was known as a master of the earmark game. A former Murtha aide, Paul Magliocchetti, founded a powerhouse lobbying group that focused on delivering earmarks. He pleaded guilty to illegally funnelling some $386,000 to members of Congress. Newly released FBI documents indicate that Murtha was under investigation at the time of his death in February 2010.
The IG report is the latest nail in the coffin of the earmarking process The practice of members of Congress writing earmarks into appropriations bills has come under fire in recent years, with members promising a moratorium on congressionally directed projects. While many reports have surfaced about members earmarking funds to favored companies, the MountainTop case is particularly shocking because, not only did a lawmaker steer money to a favored company, the lawmaker’s office then controlled distribution of the earmarked funds.
The IG found that as part of the grant, “the 12th District Office directed MountainTop in how to distribute grant funds, including which law enforcement organizations would receive funds and the amount and timing of funds to be disbursed.”
The IG reported that MountainTop failed to review the local law enforcement agencies that received the grants and that money was not always deposited in the proper accounts.
The IG is recommending that the DOJ recoup $3,335,583 in grant expenditures, or about 97 percent of the total grant award.
In a respnse to the IG report, MountainTop officials said that they consulted with Murtha’s office because those employees had “unique knowledge” of local police departments. MountainTop officials dispute the IG’s conclusion that the company provided no oversight and disagrees with the recommendation that the company return 97 percent of the grant funds.
The Washington Post reported in 2009 that MountainTop had received at least $36 million in the past eight years in earmarks and military contracts, without competition with Murtha’s assistance and that the company was under investigation. . The firm, the newspaper said, hired the lobbying firm tha employed Murtha’s brother and employees made significant campaign contributions to Murtha.
