The Los Angeles Times has written still another expose of Governor Schwarzenegger’s use of shadowy “non-profit organizations” funded by “undisclosed donors” to pay for his foreign trips- euphemistically called “trade missions” . The California State Protocol Foundation, one of the most notorious of these groups, is closely associated with the California Chamber of Commerce, and is widely thought to be a vehicle used to curry favor with the Governor by major corporations and others with business before the State.
By giving to this foundation, donors can avoid having their identities made public, because these charities are not governed by the disclosure rules that apply to campaign contributions. And they can donate unlimited amounts to the nonprofit, which is not subject to contribution ceilings the way campaign accounts are, the Times reported. In addition, The protocol organization is a 501(c)(3) nonprofit, also known as a public charity and donations to these groups are tax deductible- which may technically be legal but is a clear abuse of the purpose of non-profit organizations.
Governor Schwarzenegger stays in luxury hotels and flies in top-of-the-line private jets when he travels overseas. “That jet for those international jaunts is extremely expensive,” a source told the LA Times, “China was probably well north of $100,000.” The protocol foundation’s expenditures have exploded since Schwarzenegger began using it — from $55,000 in 2003 to $1.8 million in 2005 and $1.3 million last year. Nonprofit monitors say it is almost impossible to justify routine spending of charitable dollars on aircraft that can cost $6,000 to $10,000 an hour to lease.
A foundation spokesman told the Times that the returns are “sufficient to demonstrate how the foundation pursues its mission of relieving the taxpayers of the cost burden of certain government activities, especially those related to international trade and diplomacy.” That’s all well and good, but aren’t these trade missions supposed to be for the benefit of all California business- not just Schwarzenegger’s business associates and campaign contributors? Remember the guy who was going to be “the Governor for all the people” and who would “shun special interest money”. He now resides over a State government that has grown increasingly hostile to small business interests, and an administration that is almost completely closed to all ideas and input from ordinary citizens.
The times said that “most of Schwarzenegger’s foreign sojourns have been trade missions, though his critics say the trips really are little more than junkets designed to boost his international profile.” Count us now to be among them. While we were ecstatic when Schwarzenegger got elected, in the area of international business development his administration has become more and more corrupt. In fact, this abuse of non-profits to fund junkets is strikingly similar to the corruption scandal of lobbyist Jack Abramoff, now serving time in a Federal Penitentiary for his actions.
The California Governor’s economic development and international trade activities were not supposed to be focused on making Arnold Schwarzenegger the most successful and internationally known person in the world, they were supposed to be for all of us- and in that regard, he is failing miserably. Someone close to him needs to tell him he is on the wrong road- a very dangerous road.