Jack Abramoff CNMI Scandal - Contract Suspended and Renewed

Contract Suspended and Renewed

Abramoff's lobbying contract with the CNMI was suspended in late 1998 due to a January change in administration and financial problems. In December 1999, allegedly at the request of CNMI politician Benigno R. Fitial, Edwin A. Buckham and Michael Scanlon visited the CNMI intending to convince two legislators to support Fitial for speaker of the CNMI's 18-member House of Representatives. Scanlon was still a member of Tom DeLay's congressional staff, and was on unpaid leave at the time. Buckham and Scanlon extended promises to help deliver federal aid to the legislators' districts, and succeeded in convincing the two Democratic legislators to vote for Fitial, a member of the rival Covenant Party. After Fitial was elected speaker in January 2000, he wrote the governor insisting that the islands contract again with Abramoff at Preston Gates & Ellis.

In August 1999, Abramoff's firm, Greenberg Traurig (which, all told, received $4.04 million from 1998 to 2002 from the Commonwealth), hired Millennium Marketing (a division of the Ralph Reed-founded Century Strategies) to "sen out a mailer to Alabama conservative Christians asking them to call then-Rep. Bob Riley (R-Ala.) and tell him to vote against legislation that would have made the CNMI subject to federal minimum wage laws. "The radical left, the Big Labor Union Bosses, and Bill Clinton want to pass a law preventing Chinese from coming to work on the Marianas Islands," the mailer from Reed's firm said. The Chinese workers, it added, "are exposed to the teachings of Jesus Christ" while on the islands, and many "are converted to the Christian faith and return to China with Bibles in hand."

In February 1999, a congressional delegation visited the CNMI; it included Representative John Doolittle, who would get significantly more involved in 2001. Doolittle and Representative Joel Hefley write in June 1999, a "Dear Colleague" letter, saying that a May 1999 show on ABC's newsmagazine, 20/20, "The Shame of Saipan", had numerous inaccuracies, and that "Tom DeLay has consistently engaged government leaders in taking steps toward reform in the Mariana Islands to ensure and maintain a vibrant economy under local control."

By late July 2000, Abramoff and Preston Gates were hired again, for $100,000 a month.

In January 2001 Abramoff switched lobbying firms to Greenberg Traurig. "'Our standing with the new administration promises to be solid as several friends of the CNMI (islands) will soon be taking high-ranking positions in the Administration, including within the Interior Department,' Abramoff wrote in a January 2001 letter in which he persuaded the island government to follow him as a client to his new lobbying firm, Greenberg Traurig." In January 2006, CNMI Governor Benigno Fitial demanded that Preston Gates & Ellis and Greenberg Traurig return much of the money originally paid for lobbying services, claiming that "the positive benefits of those services have been undone by the wide scandal brought on by the criminal charges against Abramoff."

In August 2006, Roger Stillwell, formerly an employee of the Department of the Interior, pled guilty to a misdemeanor charge of failing to report gifts received from Abramoff during the period that Abramoff was lobbying the Interior on behalf of the Commonwealth of the Marianas Islands.

In April 2008, the US Senate campaign of Republican Bob Schaffer was rocked by reports of Schaffer's participation in a 1999 trip with his wife to the CNMI organized by Preston-Gates, and paid for by the Traditional Values Coalition. Schaffer later used his position on the House Resources Committee to attack reports of abuses on the islands.