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Last Words
Victory party raises ethical questions
by RCR News / AP
20/01/2003
WASHINGTON The Associated Press on Monday reported wireless lobbyists helped bankroll a party for National Telecommunications and Information Administration head Nancy Victory in October 2001, less than two weeks before President Bush’s top telecom adviser urged federal regulators to lift the spectrum cap as mobile-phone carriers had been aggressively pushing for at the time.
The AP said Victory did not file a government ethics disclosure form listing the Oct. 21 party as a gift. But Victory, according to the AP story, said the party was approved beforehand by the Department of Commerce’s ethics office. Commerce houses NTIA. Victory told the AP she regards the lobbyists as friends and described as “ridiculous” any link between the Oct. 14, 2001, party and the spectrum-cap position staked out by her agency 10 days later and just weeks before the FCC ruled on the matter.
In its decision on spectrum caps—put in place in the mid-1990s to promote wireless competition—the FCC relaxed the rule, but decided not to repeal it until Jan. 1, 2003.
“My friends paid for this party out of their personal money,” Victory was quoted as telling the AP. However, the AP said a lobbyist for SBC Communications Inc.—co-owner of Cingular Wireless L.L.C.—is not sure whether the nearly $500 contributed to the party came from the company. Likewise, the story reported that lobbyists for Cingular and Motorola Inc. said they were not sure whether money they spent for the Victory party came from corporate funds.
Two ethics experts interviewed by AP said the party for the assistant commerce secretary—at a minimum—raises questions about the appearance of conflict of interest and may have even crossed legal boundaries.
Victory has had to remove herself from NTIA deliberations on ultra-wideband wireless issues because a big proponent of the technology—Time Domain Corp.—is represented by her former law firm—Wiley Rein & Fielding. The firm has ties to the Bush administration and employs as a partner Victory’s husband, communications lawyer Michael Senkowski.
Late Monday, RCR Wireless News obtained from NTIA the Victory statement given to the AP.
“Regarding the Oct.14, 2001, party at my home hosted by six longtime personal friends, who were identified on the invitation: I vetted the event in advance with the DOC ethics office and the ethics office has confirmed that the event was consistent with ethics rules. My understanding is that the six hosts personally paid for food and beverages. The DOC ethics office has confirmed that, under the ethics rules, the benefit to me did not qualify as a reportable gift. The individuals invited (as well as the hosts) were there because of their personal relationship with me, not because of a company they may work for. I do not have a list of those invited.”
Read the full article at RCR Wireless News
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