New reports indicate that the Biden administration has given out no-bid contracts to private companies in the hundreds of millions of dollars for the housing of illegal immigrants in response to the ongoing crisis at the border. Among the largest recipients is a logistics company with an executive who has donated over $34,000 to Democrats, and consulted for them. The company also owes $585,075 in unpaid taxes and the high-ranking executive is married to a former chief of staff for Vice President Kamala Harris’s husband.
While the news has been filled with the revelations of the IRS whistleblowers and the allegations against the Biden family of a massive international influence peddling and bribery scheme, a form of corruption that has gone largely unmarked in modern times seems to be on the rise: Political Patronage in Public Contracting.
According to reporting from The Washington Free Beacon, "Federal law prohibits agencies from awarding grants to companies with unpaid federal taxes. But Deployed Resources, a New York-based contractor that owes $585,075 in unpaid taxes, received $964 million in federal contracts this year to house illegal immigrants in North Carolina and Texas. That windfall comes as Deployed Resources cultivated ties to the Democratic Party."
The outlet further revealed that Tom Ziemba, an executive at Deployed Resources and the President of the firm's sister company Deployed Services, donated the formerly mentioned $34,000. It was Ziemba's ex-wife, Julie Mason, who served as the chief of staff for Vice President Kamala Harris’s husband Douglas Emhoff.
Pete McGinnis of the Functional Government Initiative, a government watchdog group told the Free Beacon,
"The federal government has numerous controls to ensure award recipients are lawful and ethical actors, but these appear to be disregarded amid the Biden administration’s humanitarian crisis at the border."
Documents obtained by the Free Beacon show that Deployed Resources received contracts from the Department of Homeland Security and Department of Health and Human Services that started in 2020 with $147 million and dramatically exploded to $944 million in 2022. Simultaneously the company has had liens filed against it by the IRS for unpaid taxes. The trouble is, federal law strictly prohibits the awarding of grants to companies that have unpaid federal taxes.
So in short, we have a company that has no legal business getting federal contracts due to unpaid taxes, and is run by a prominent Democrat donor, who happened to be married at one point to a high-level Democrat staffer to the vice president's husband, and somehow managed to land a massively lucrative contract anyhow.
In 2008, Reuters wrote about the "politics of patronage" in Malaysia, and the description of the phenomenon bears some similarities "whereby state contracts are given to businesses aligned with ruling-party interests, has nurtured a powerful political-business establishment whereby contracts are often awarded without open, competitive tenders." It's a political practice that when found in other countries is looked upon with disdain and such governments are often classified as "corrupt" or rife with "cronyism." But in the Biden administration, it seems to be business as usual.
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