Rep. Eddie Bernice Johnson violated rules, steered scholarships to relatives
Longtime Dallas congresswoman Eddie Bernice Johnson has awarded thousands of dollars in college scholarships to four relatives and a top aide's two children since 2005, using foundation funds set aside for black lawmakers' causes.
Eddie Bernice Johnson The recipients were ineligible under anti-nepotism rules of the Congressional Black Caucus Foundation, which provided the money. And all of the awards violated a foundation requirement that scholarship winners live or study in a caucus member's district.
Johnson, a Democrat, denied any favoritism when asked about the scholarships last week. Two days later, she acknowledged in a statement released by her office that she had violated the rules but said she had done so "unknowingly" and would work with the foundation to "rectify the financial situation."
Initially, she said, "I recognized the names when I saw them. And I knew that they had a need just like any other kid that would apply for one." Had there been more "very worthy applicants in my district," she added, "then I probably wouldn't have given it" to the relatives.
Her handling of the scholarships puts a rare spotlight on the program and how it is overseen. Caucus members have great leeway in how they pick winners and how aggressively they publicize the awards. Some lawmakers promote the program online, for instance, while Johnson does not.
Philanthropy experts said such lax oversight of scholarship money doesn't match the standards for charities.
The foundation – which is supported by private and corporate donations, not taxpayer money – provides $10,000 annually for each member of the Congressional Black Caucus to award in scholarships. Each gets to decide how many ways to split the money and whether to create a judging panel, choose personally or delegate the task.
Johnson, a former chairwoman of the caucus who has served on the board that oversees the foundation, said she wasn't fully aware of the program rules and emphasized that she didn't "personally benefit."
In her interview with The Dallas Morning News, on Wednesday, Johnson said "hundreds of kids got scholarships since I have been here." Her district covers much of southern Dallas County, including many of the area's less affluent precincts.
"The most that any kid normally gets is from $1,000 to $1,200. ... If it was a secret or if I was trying to hide it, I wouldn't have done it," she said.
The foundation's general counsel, Amy Goldson, said Saturday that the scholarships Johnson awarded violated eligibility rules regarding relatives and residency and are "of great concern."
The program "operates on an honor system," so the foundation hadn't known that money went to Johnson's relatives, she said. But when a recipient fails to meet eligibility requirements or "misrepresents their eligibility, the scholarship funds must be returned."
Further, Goldson said, the failure of a lawmaker or aides to follow eligibility rules "is a violation of the letter and spirit of [the Foundation's] requirements."
"It is inappropriate for a lawmaker to certify the award of a scholarship to a relative in a situation where the lawmaker or their staff is involved in the selection of the recipient," she said.
Apart from the residency requirements, the scholarship rules state that students must have a 2.5-grade-point average, but there are no explicit judging criteria.
Johnson awarded nine to 11 scholarships a year from 2005 to 2008, the most recent years for which information was available. Each of those years, three or four winners were related to her or her district director, Rod Givens. Johnson said she divided the available funds equally among recipients, and every qualified applicant got a scholarship.
The foundation asks applicants to certify that they aren't related to those associated with the caucus or the foundation, but it does not specify which relationships that includes.
Scholarships have gone to two of the congresswoman's grandsons, Kirk and David Johnson; to two of her great-nephews, Gregory and Preston Moore; and to Givens' son and daughter. Givens did not respond to requests for comment, and none of the scholarship recipients could be reached.
'Not ... proper'
Daniel Borochoff, president of the American Institute of Philanthropy, said that, ideally, scholarship and grant decisions should be made by disinterested arbiters, preferably on the basis of excellence or need.
Johnson's system "is not an appropriate or proper way to distribute scholarship funds," he said.
"It's totally fine if the congressman or -woman wants to reach inside their own pocket and give, but to use money that people got tax deductions on to then benefit their family – it would just be setting up nonprofit organizations to get tax benefits to put their kids through college. It would wreck the whole system if that kind of thing were allowed," Borochoff said.
He said a scholarship with so few criteria for recipients would normally attract dozens if not hundreds of applicants if it were well publicized.
"There should be outrage because there are probably students who are more deserving and more needy of the funds," Borochoff said.
The combined scholarship total for the six students over four years was less than $20,000, based on Johnson's accounting of the scholarships. That appears to be less than half the total Johnson awarded over that time. Of 43 scholarships her office awarded between 2005 and 2008, 15 went to relatives of Johnson or Givens, according to foundation annual reports.
Johnson, in the interview Wednesday, dismissed concerns about the propriety of giving to her relatives or her staffers.
"We look at the kids that apply, look at their qualifications, and if they have the application there with all the ingredients, we try to help," she said. "I doubt if there is anybody in my district going to question me giving $1,000 to a kid to help him with college."
The congresswoman, 74, who is expected to handily win a 10th term this fall over a relatively unknown Republican, said flatly that there was no favoritism for her aide's children or for her grandsons or great-nephews.
"Same application. Same requirements," she said.
Rules clear, lawyer says
The Congressional Black Caucus consists of one U.S. senator and 41 House members – among them Johnson and two other Texans, Reps. Sheila Jackson Lee and Al Green, both of Houston. All are Democrats.
The foundation is a separate, nonprofit charitable organization whose board at any time includes only a few caucus members.
The foundation, which awarded $716,000 to 556 students last year, has been criticized for spending less on scholarships than on galas and conferences that allow lobbyists to rub elbows with influential lawmakers. Fundraising for the caucus itself and its members is tightly regulated, but the closely related foundation faces few restrictions.
In 2002, Johnson chaired the caucus and served on its board.
She continued to serve on the foundation board through 2005 – a year when both great-nephews and grandson Kirk Johnson received scholarships through her office, despite a rule explicitly forbidding awards to relatives of foundation board members.
Goldson, the foundation attorney, said the rules make clear that applicants cannot be related to any member of the black caucus, the foundation's staff, directors, members of its corporate advisory council or any sponsor, a list that includes scores of major companies. "Any misrepresentation will result in disqualification of the application," she said.
Each caucus member who participates in the foundation's scholarship program is responsible for publicizing the competition locally. Some do so more aggressively than others. Many list the opportunity on their official U.S. House websites, often under a tab dedicated to "students."
Johnson's website makes no mention of the scholarships.
"This has been going on long before there was any websites," she said. "We send information to the high schools. I haven't known anybody who didn't know about it, to tell you the truth."
Counselors at four southern Dallas high schools didn't return calls last week to discuss the matter.
http://www.dallasnews.com/sharedcontent/dw...ss.2c049bb.html
Overtime Sports - Sports Sim Leagues and More -> Viewing Profile
No Information
No Information
No Information
No Information
No Information
Message: 
