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Is Duke a Symptom?

This Duke Cunningham story, I'm guessing, will mostly focus on the corruption angle. Here you have a congressman on the Appropriation Committee's defense subcommittee taking bribes in exchange for helping a defense contractor win contracts. What a sleazeball, etc. For shame, etc. In an ideal world, though, the attention would focus on the much larger problem of the defense appropriations process in general, which makes this sort of thing inevitable.

Defense contractors literally live or die on the contracts that Congress decides to hand out. Most of them have grown up under the mini-command economy that is the annual defense appropriations bill, and wouldn't know how to survive in the free market. Not surprisingly, contractors tend to put a lot of effort into lobbying and influencing legislators. Between 1997 and 2004, the top 20 defense contractors made $46 million in campaign contributions, and spent $390 million on lobbyists—and were rewarded for their efforts with $560 billion in contracts. Then there's a permanent revolving door between government and the defense industry, which is laid out in gory detail by the Project on Government Oversight. A lot of money gets sloshed around. Under the circumstances, what happened with Cunningham was bad and illegal, but not completely out of step with the larger trend here.

Even more interesting than Cunningham, perhaps, is MZM Inc., the company that bribed the Duke. The Los Angeles Times reports that the company has received "$163 million in federal contracts, mostly for classified defense projects involving the gathering and analysis of intelligence." Just to be clear, a firm that bought a house for a corrupt Congressman is doing "classified" intelligence work. Okay, then.

Posted by Bradford Plumer on 11/28/05 at 12:53 PM | E-mail | Print



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Unbelieveable: MZM Inc. are performing the "classified" intelligence work on Capitol Hill.

The "Culture of Corruption" has never held truer.

Wake-up, Americans, wake-up please.

Posted by: Chrystie on 11/29/05 at 4:06 AM

Chrystie--To call this a culture of corruption unfortunately gives the government far too much credit. It is instead a culture of incompetency. Companies like MZM exist to provide skills and services government agencies cannot produce themselves. After 9/11 I tried out for every security-related agency I could find (I speak a language they were advertising for and I've worked alot in Central Asia) and I was truly dismayed at the level these people were working at.

For example, in one case, after passing all the physical fitness tests, psych exams, lie-detector tests, etc., my file was sent in for a background check. It took 26 months to complete, by which time all of the previous physicals, etc. had expired, meaning they all had to be done again--at cost of time and money to both of us. All of this for a job that paid 40% of what I could get on the market.

Enter guys like MZM, who can pay market rates, pay for their own background checks to be done in a timely manner, and avoid countless tons of other red tape. Who do you think is going to produce better results? For the same reason, we have private security guards pulling down $1000 a day in Iraq doing the jobs Army personnel should be doing (and in some cases, are doing).

So, Brad's right--the Duke is a symptom. If our bureaucrats actually did the jobs we pay them for, they wouldn't have to rely on the market to fill in the gaps and there wouldn't be so many lucrative contracts to bid and bribe for.

Posted by: Dustin on 11/29/05 at 7:02 AM

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