WASHINGTON-The House Commerce Committee said a law partner of Peter Knight, lobbyist for Portals developer Franklin Haney and former Clinton-Gore campaign manager, told the panel the $1 million Haney paid to Knight in April 1996 was a one-time performance fee.
According to the committee’s Dec. 4 letter to Knight, Bernie Wunder told committee investigators Haney
personally paid Knight, rather than the Washington, D.C., firm of Wunder, Knight, Levine, Thelen & Forey, a one-time performance fee of $1 million.
The committee reported that Wunder said it was by far the largest such fee anyone at the firm could ever remember receiving.
The view differs from that of Ken Vest, a Haney spokesman, who said the $1 million covered a variety of real-estate projects.
The $1 million check from Haney to Knight is a crucial element of the committee’s probe into the relocation of the Federal Communications Commission to the Portals.
Committee investigators are trying to determine whether the $1 million was a kickback to Knight. Federal law, according to the committee, “prohibits the employment or retainer of any person or firm on a commission, percentage, or contingent basis, for assistance in soliciting or securing a federal contract.”
At the same time, the committee is looking into whether the 20-year, $400 million Portals lease (which the FCC has paid rent on since July 1997 despite not being scheduled to move there until next May) is a bad deal for taxpayers that was made possible by political influence peddling.
Haney and Knight are friends with Vice President Gore, as is former FCC Chairman Reed Hundt. Gore, through a spokeswoman, denies any wrongdoing.
Hundt, who has been accused of muting his opposition to the Portals move once Knight became active on behalf of Haney, says there is nothing to investigate.
The FCC confirmed last week that Hundt had 11 meetings scheduled with Haney and Knight.
An agency source told RCR that only three of the meetings dealt with the Portals. Knight, in addition to his Portals work, represents telecommunications clients.
Committee investigators are deciding the next move with Haney, who failed to answer a series of questions on the Portals lease. Vest insists his client is cooperating with the probe and called allegations of misconduct “a political snipe hunt.”
Knight has been asked to respond to the committee’s queries by Dec. 17.
Senate Commerce Committee Chairman John McCain (R-Ariz.), meanwhile, has asked James Hinchman, comptroller general of the General Accounting Office, to investigate the FCC’s planned move to the Portals and to report back by Feb. 1 next year.
“Should GAO ultimately recommend against this move, I am prepared to pursue a variety of alternatives to mitigate any ensuing cost to the government,” said McCain.
