Ashcroft consulting deal reeks of cronyism

It should be obvious that taking hugely lucrative no-bid contracts from the agency you used to head is not the best way to comport yourself after a career in public service. John Ashcroft should know better, though he apparently doesn't.

Riches are raining down on the former attorney general's consulting firm, the Ashcroft Group, thanks to a former Justice Department associate. The group has been handed an 18-month contract worth between $28-million and $52-million by Christopher Christie, the top federal prosecutor in New Jersey - a man who used to work for Ashcroft. There was no competitive bidding for this well-compensated work and, according to the New York Times, Christie has been using his position to direct similar arrangements to other former department colleagues.

Ashcroft's contract has eye-popping numbers. For the sum of $750,000 per month plus between $150,000 and $250,000 per month in expenses, his consulting group will monitor an out-of-court settlement the Justice Department reached with Zimmer Holdings, a medical supply company in Indiana. That company was accused of paying kickbacks to doctors who used their knee and hip implants.

Zimmer Holdings was directed to contract with Ashcroft's firm by Christie, who defends the action as just finding the best man for the job. It is hard to believe that other firms wouldn't be as equally capable, and they would be without the appearance of cronyism or rewarding friends.

Ashcroft's firm negotiated its fees directly with Zimmer Holdings in a way that raises questions about whether they might be too generous in order to curry favor. The hourly billing rate for Ashcroft and his top staff is between $695 and $895. Nice work if you can get it.

In response to concerns raised about the Ashcroft Group contract by Democratic lawmakers in New Jersey, the department has opened an internal inquiry and new guidelines are expected to be promulgated that would remove the appearance of conflict in the awarding of future monitoring contracts.

Maybe Ashcroft thought this arrangement would never be disclosed, since the contracts of corporate monitors typically are not made public. But he has to know that since it has been, the deal looks slimy and so does he.

[Last modified January 10, 2008, 20:30:45]