The Money Trail: Defense Firms 'Honor' Jim Moran

Feb. 9, 2010 — -- When Virginia Congressman James P. Moran Jr. recently received "Man of the Year" honors from a charity that trains dogs to clear land mines, some of his most loyal political patrons joined in the tribute.

Defense industry giant BAE Systems donated $50,000 to help underwrite the Marshall Legacy Institute event. Raytheon gave $25,000, EADS North America donated $5,000, and L-3 Communications pitched in another $10,000.

Industry officials said the corporate donations were intended to honor a well deserving charity. But the companies also have tens of millions worth of business before the powerful Defense Appropriations Subcommittee, where Moran holds significant sway – and where Moran earmarked $1.6 million for BAE in late 2008.

The practice of making charitable contributions in honor of high ranking public officials has become increasingly common in Washington, especially among military suppliers who profit from massive government contracts.

The uptick in giving came at a time when Moran, a Democrat, and several other members of the defense appropriations subcommittee were being investigated on allegations that they had traded military spending earmarks for campaign contributions. In December, the Office of Congressional Ethics told Moran and at least two other House members that its investigation was being closed, and it recommended the House ethics committee take no further action in its own probe.

"In many cases these are wonderful charities and many of these are innocent arrangements," said Scott Thomas, an attorney who advises corporate clients on disclosure rules. "But there probably are some circumstances where an organization looking to make a connection with a particular member of congress gives money for that reason – because they think it will help them get their foot in the door."

Lawmakers grew so concerned about the corrupting potential of contributions to pet charities, they began requiring donors to disclose their gifts, which is where filings about the land mine gala event surfaced last week.