Capitol Hill's dirty secrets laid bare in lobby scandal

It is called K Street: a line of sparkling office blocks and fancy restaurants north of the White House. It is the heart of the lobbying industry in Washington, servicing clients and politicians from all over the US and one of the most powerful stretches of road in the world. It also might be one of the most corrupt: how corrupt was revealed last week when a scandal exploded through the halls of power exposing the ugly role of lobbying in US politics and threatening to bring down some of the biggest names in public life. The man at the center is Jack Abramoff, Washington's lobbyist extraordinaire, who pleaded guilty on Jan. 3 to fraud, tax evasion and conspiracy to bribe public officials. The plea means he will be naming names in an influence-peddling scandal that runs all the way to the White House. But the fact remains that Abramoff was one man. The real story is that he represents how much of Washington works. That system is fueled by two things: money and lobbyists. There are believed to be more than 30,000 lobbyists in Washington, outnumbering elected federal politicians by almost 60 to one. The money they deal in tops $2 billion a year. Such numbers shock many on both sides of the party divide. The US constitution is often praised for its checks and balances between the president, Congress and the Supreme Court. But where money equals power, no one predicted the unofficial fourth branch of US government: K Street. Washington is a town where even the dead make campaign contributions. Anti-lobbying campaigners have unearthed more than 100 cases where dead people are still paying politicians via their wills. On the federal forms detailing the contributions the donor's occupations are marked "deceased." Over the past 14 years, dead people have donated more than $1.3 million to campaigns. Few politicians escape the lobbyists' influence. Both Bush and Democratic challenger John Kerry spent around a quarter of a billion dollars each fighting last year's presidential race. But the figures lower down the political ladder are huge too. One study estimated the average senator in Washington needs to spend about $20 million to defend a seat successfully. Politicians need money and only corporations and wealthy individuals can provide it. Between 1998 and 2004 lobbyists, overwhelmingly representing corporate clients, spent $13 billion to promote their clients' desires. Studies show the investment is well worth it. Drug-makers are the biggest lobby, spending $681 million from 1998 to 2004 to woo officials. They employ 3,000 lobbyists. The investment paid off in 2003 with the passing of a bill to provide taxpayer-funded drug prescriptions for the elderly. Many critics lambasted it as a giveaway to the pharmaceutical industry. One study predicted drug firms would reap $139 billion in extra profits from the legislation. Watchdogs have revealed how lobbyists have positioned themselves as organizers for politicians' fundraising efforts. An investigation by the Center for Public Integrity (CPI) anti-lobbying group found lobbyists were treasurers for 800 political action committees which funnel funding to politicians to help them get elected. It also found lobbyists were treasurers of 68 politicians' campaign committees, which had raised half a billion dollars in cash since 1998. Some hope the Abramoff case will finally spur change to the way these laws are made. "It took the Watergate scandal to create our nation's campaign finance laws... maybe the Abramoff scandal will lead to more transparency," said the CPI's executive director, Roberta Baskin. Seven members of Congress have been indicted, have pleaded guilty or are under investigation for lobbying-related charges of conspiracy, securities fraud or improper campaign donations. They include San Diego Republican Randy 'Duke' Cunningham. He took $2.4 million in bribes for trying to influence lucrative defense deals. Among his perks were use of a yacht and a Rolls-Royce. He even got his daughter's graduation party paid for and included a defense company as part of a mortgage on his house. At the heart of Washington's lobbying industry is the "revolving door": lobbyists take up powerful positions in government at the same time as politicians end their careers by getting lobbying jobs to cash in on their political contacts. Some of the highest officials in the White House are former lobbyists. Andy Card, one of Bush's most trusted advisors and the president's chief of staff, is a former lobbyist for the auto industry. In all, 12 ex-lobbyists work in the White House. Going the other way, federal officials and politicians head to K Street. Since 1998 more than 2,200 former federal employees have become lobbyists, including 273 former White House staffers and 250 ex-members of Congress or heads of government departments. Many believe only legislation will bring meaningful reform. But that has been tried before. For reformers, the salutary tale of Congressman Dick Zimmer stands out. Zimmer became an anti-lobbyist hero in 1995 when he tried to push through the Revolving Door Act to curb the ability of those leaving office to cash in on their contacts and flock to the lobbying industry. But the bill was defeated and six years later Zimmer himself left politics. He became a lobbyist. K Street had won again.