The Saudi Lobby Juggernaut

How Saudi Money Keeps Washington at War in Yemen

If you were sleeping in 2010 when the Supreme Court — you know, the perfectly reasonable one that didn’t yet have Brett Kavanaugh on it — made political spending a form of free speech with its Citizens United case, you may not yet know that American politics is increasingly a possession of the 1%. For the first time in American history, there’s even a billionaire in the Oval Office showering tax perks on every other billionaire in sight.

During the last eight years, not so surprisingly, “outside spending” in election campaigns has headed for the stratosphere. According to Open Secrets, “During the 2016 election cycle, the top 20 individual donors (whose contributions were disclosed) gave more than $500 million combined to political organizations. The 20 largest organizational donors also gave a total of more than $500 million, and more than $1 billion came from the top 40 donors.”

Think about that for a moment, and also consider this: in the 2016 campaign season, hardline pro-Israeli casino magnate Sheldon Adelson and his wife, Miriam, gave millions of dollars to President Trump’s campaign and nearly $83 million in all to Republicans. Now, according to the New York Times, Adelson has a “direct line to the president,” a reality reflected in The Donald’s decision to move the U.S. embassy in Israel to Jerusalem. In addition, in this mid-term election season, the couple has already invested a staggering $55 million in efforts to keep Congress in Republican hands.

And don’t think of this new reality as a purely all-American one either. There are some distinctly un-American deep pockets out there on our planet that are also pouring money into this country’s politics in order to get their own direct lines buzzing to Washington.

At the top of that list are the royals of Saudi Arabia.

That includes, of course, Prince Mohammed bin Salman, now the power behind the throne in that country. He’s wooed President Trump with the promise of massive future Saudi arms deals and, earlier this year, reportedly bragged that he had the president’s son-in-law, Jared Kushner, a key adviser on the Middle East, “in his pocket.” And what a pocket that’s proven to be!

Given the disastrous Saudi war in Yemen that the prince launched in 2015 and that Washington has supported ever since, believe me, that’s no small thing. Today, Freeman offers an unprecedented look at just how a set of foreign Sheldon Adelsons have opened their deep, oil-rich pockets and put American politicians of all sorts in them. It’s a story that needs to be told.

~Tom Englehart

What is the Petrodollar?

One of the primary steps taken to end the Oil Crisis of 1973-74 was an alliance between the U.S. and Saudi Arabia.

In June 1974, the U.S. and Saudi Arabia signed a milestone agreement that laid the groundwork for the petrodollar system. The agreement was developed in close cooperation between U.S. Secretary of State Henry Kissinger and President Richard Nixon, and Prince Fand Ibn Abdel Aziz and King Faisal of Saudi Arabia. The partnership outlined the creation of four major working groups that were to foster cooperation between the two nations in several areas:

  • Industrialization
  • Education
  • Technology
  • Economic Council

The 1974 agreement made no official mention of the term “oil.” However, U.S. dignitaries were open about a desire for Saudi Arabia to increase output levels from the ongoing 8.6 million barrels per day. While not official historical doctrine, the 1974 U.S./ Saudi Arabia pact is widely accepted as the inception of the modern petrodollar system.

The Royal Touch: How Saudi Money Keeps Washington at War in Yemen 

By Ben Freeman TomDispatch Oct 4, 2018

It was May 2017. The Saudis were growing increasingly nervous. For more than two years they had been relying heavily on U.S. military support and bombs to defeat Houthi rebels in Yemen. Now, the Senate was considering a bipartisan resolution to cut off military aid and halt a big sale of American-made bombs to Saudi Arabia. Fortunately for them, despite mounting evidence that the U.S.-backed, supplied, and fueled air campaign in Yemen was targeting civilians, the Saudi government turned out to have just the weapon needed to keep those bombs and other kinds of aid coming their way: an army of lobbyists.

That year, their forces in Washington included members of more than two dozen lobbying and public relations firms. Key among them was Marc Lampkin, managing partner of the Washington office of Brownstein Hyatt Farber Schreck (BHFS), a company that would be paid nearly half a million dollars by the Saudi government in 2017. Records from the Foreign Agents Registration Act (FARA) show Lampkin contacted Senate offices more than 20 times about that resolution, speaking, for instance, with the legislative director for Senator Tim Scott (R-SC) on May 16, 2017. Perhaps coincidentally, Lampkin reported making a $2,000 contribution to the senator’s political action committee that very day. On June 13th, along with a majority of his fellow senators, Scott voted to allow the Saudis to get their bombs. A year later, the type of bomb authorized in that sale reportedly was used in air strikes killing civilians in Yemen.

Little wonder that, for this and his other lobbying work, Lampkin earned a spot on the “Top Lobbyists 2017: Hired Guns” list compiled by the Washington publication the Hill.

Lampkin’s story was anything but exceptional when it comes to lobbyists working on behalf of the Kingdom of Saudi Arabia. It was, in fact, very much the norm. The Saudi government has hired lobbyists in profusion and they, in turn, have effectively helped convince members of Congress and the president to ignore blatant human rights violations and civilian casualties in Yemen.

According to a forthcoming report by the Foreign Influence Transparency Initiative program, which I direct, at the Center for International Policy, registered foreign agents working on behalf of interests in Saudi Arabia contacted Congressional representatives, the White House, the media, and figures at influential think tanks more than 2,500 times in 2017 alone. In the process, they also managed to contribute nearly $400,000 to the political coffers of senators and House members as they urged them to support the Saudis. Some of those contributions, like Lampkin’s, were given on the same day the requests were made to support those arms sales.

The role of Marc Lampkin is just a tiny sub-plot in the expansive and ongoing story of Saudi money in Washington. Think of it as a striking tale of pay-to-play politics that will undoubtedly be revving up again in the coming weeks as the Saudi lobby works to block new Congressional efforts to end U.S. involvement in the disastrous war in Yemen.

A Lobby to Contend With

The roots of that lobby’s rise to prominence in Washington lie in the aftermath of the terrorist attacks of September 11, 2001. As you may remember, with 15 of those 19 suicidal hijackers being citizens of Saudi Arabia, it was hardly surprising that American public opinion had soured on the Kingdom. In response, the worried Saudi royals spent around $100 million over the next decade to improve such public perceptions and retain their influence in the U.S. capital. That lobbying facelift proved a success until, in 2015, relations soured with the Obama administration over the Iran nuclear deal.

Once Donald Trump won the presidency, however, the Saudis saw an unparalleled opportunity and launched the equivalent of a full-court press, an aggressive campaign to woo the newly elected president and the Republican-led Congress, which, of course, cost real money.

As a result, the growth of Saudi lobbying operations would prove extraordinary. In 2016, according to FARA records, they reported spending just under $10 million on lobbying firms; in 2017, that number had nearly tripled to $27.3 million. And that’s just a baseline figure for a far larger operation to buy influence in Washington, since it doesn’t include considerable sums given to elite universities or think tanks like the Arab Gulf States Institute, the Middle East Institute, and the Center for Strategic and International Studies (to mention just a few of them).

This meteoric rise in spending allowed the Saudis to dramatically increase the number of lobbyists representing their interests on both sides of the aisle. Before President Trump even took office, the Saudi government signed a deal with the McKeon Group, a lobbying firm headed by Howard “Buck” McKeon, the recently retired Republican chairman of the House Armed Services Committee. His firm also represents Lockheed Martin, one of the top providers of military equipment to the Kingdom.

On the Democratic side, the Saudis inked a $140,000-per-month deal with the Podesta Group, headed by Tony Podesta, whose brother John, a long-time Democratic Party operative, was the former chairman of Hillary Clinton’s presidential campaign. Tony Podesta later dissolved his firm and has allegedly been investigated by Special Counsel Robert Mueller for serving as an unregistered foreign agent.

And keep in mind that all this new firepower was added to an already formidable arsenal of lobbying outfits and influential power brokers, including former Republican Senate Majority Leader Trent Lott, who, according to Lee Fang of the Intercept, was “deeply involved in the [Trump] White House hiring process,” and former Senator Norm Colemanchairman of the pro-Republican Super PAC American Action Network. All told, during 2017, Saudi Arabia inked 45 different contracts with FARA-registered firms and more than 100 individuals registered as Saudi foreign agents in the U.S. They proved to be extremely busy.

Such activity reveals a clear pattern: Saudi foreign agents are working tirelessly to shape perceptions of that country, its royals, its policies, and especially its grim war in Yemen, while simultaneously working to keep U.S. weapons and military support flowing into the Kingdom.

While the term “foreign agent” is often used as a synonym for lobbyist, part of the work performed by the Kingdom’s paid representatives here resembles public relations activity far more than straightforward lobbying. For example, in 2017, Saudi foreign agents reported contacting media outlets more than 500 times, including significant outreach to national ones like the New York Times, the Washington Post, the Wall Street Journal, and PBS, which has aired multiple documentaries about the Kingdom. Also included, however, were smaller papers like the Pittsburgh Post-Gazette and more specialized outlets, even ESPN, in hopes of encouraging positive stories.

The Kingdom’s image in the U.S. clearly concerned those agents. Still, the lion’s share of their activity was focused on security issues of importance to that country’s royals. For example, Saudi agents contacted officials at the State Department, which oversees most commercial arms transfers and sales, nearly 100 times in 2017, according to FARA filings. Above all, however, their focus was on Congress, especially members with seniority on key committees. As a result, at some point between late 2016 and the end of 2017, Saudi lobbyists contacted more than 200 of them, including every single Senator.

The ones most often dealt with were, not surprisingly, those with the greatest leverage over U.S. relations with Saudi Arabia. For example, the office of Senator Lindsey Graham (R-SC), who sits on both the appropriations and armed services committees, was the most contacted, while that of Senator Chris Coons (D-DE) was the top Democratic one. (He sits on the appropriations and foreign relations committees.)

Following the Money from Saudi Arabia to Campaign Coffers

Just as there’s a clear pattern when it comes to contacting congressional representatives who might help their Saudi clients, so there’s a clear pattern to the lobbying money flowing to those same members of Congress.

The FARA documents that record all foreign-agent political activity also list campaign contributions reported by those agents. Just as we did for political activities, the Foreign Influence Transparency Initiative program conducted an analysis of all campaign contributions reported in those 2017 filings by firms that represented Saudi interests.

And here’s what we found: more than a third of the members of Congress contacted by such a firm also received a campaign contribution from a foreign agent at that firm. In total, according to their 2017 FARA filings, foreign agents at firms representing Saudi clients made $390,496 in campaign contributions to congressional figures they, or another agent at their firm, contacted on behalf of their Saudi clients.

This flow of money is best exemplified by the 11 separate occasions we uncovered in which a firm reported contacting a congressional representative on behalf of Saudi clients on the same day someone at the same firm made a campaign contribution to the same senator or House member.

In other words, there are 10 other cases just like Marc Lampkin’s, involving foreign agents at Squire Patton Boggs, DLA Piper, and Hogan Lovells. For instance, Hogan Lovells reported meeting with Senator Bob Corker (R-TN) on behalf of the Royal Embassy of Saudi Arabia on April 26, 2017, and that day an agent at the firm made a $2,700 contribution to “Bob Corker for Senate 2018.” (Corker would later decide not to seek reelection.)

While some might argue that contributions like these look a lot like bribery, they turn out to be perfectly legal. No law bars such an act, and while it’s true that foreign nationals and foreign governments are prohibited from making contributions to political campaigns, there’s a simple work-around for that, one the Saudis obviously made use of big time. Any foreign power hoping to line the pockets of American politicians just has to hire a local lobbyist to do it for them.

As Jimmy Williams, a former lobbyist, wrote: “Today, most lobbyists are engaged in a system of bribery, but it’s the legal kind.”

The Saudi Lobby Today

Fast forward to late 2018 and that very same lobby is now fighting vigorously to defeat a House measure that would end U.S. support for the Saudi war in Yemen. They’re flooding congressional offices with their requests, in effect asking Congress to ignore the more than 10,000 civilians who have died in Yemen, the U.S. bombs that have been the cause of many of those deaths, and a civil war that has led to a resurgence of al-Qaeda in the Arabian Peninsula, or AQAP. They’ll probably mention Secretary of State Mike Pompeo’s recent “certification” that the Saudis are now supposedly taking the necessary steps to prevent more civilian casualties there.

What they’re not likely to mention is that his decision was reportedly driven by the head of the legislative affairs team at the State Department who just happens to be a former foreign agent with BGR Government Affairs, one of 35 FARA registrants working for Saudi Arabia at this moment. Such lobbyists and publicists are using the deep pockets of the Saudi royals to spread their propaganda, highlighting the charitable work that government is doing in Yemen. What they fail to emphasize, of course, are the Saudi blockade of the country and the American-backed, armed, and fueled air strikes that are killing civilians at weddingsfuneralsschool bus trips, and other civilian events. All of this is, in addition, helping to create a grotesque famine, a potential disaster of the most extreme sort and the very reason such humanitarian assistance is needed.

In the end, even if the facts aren’t on their side, the dollars are. Since September 2001, that reality has proven remarkably convincing in Washington, as copious dollars flowed from Saudi Arabia to U.S. military contractors (who are making billions selling weapons to that country), to lobbying firms, and via those firms directly into Congressional coffers.

Is this really how U.S. foreign policy should be determined?

Kingdom of Saudi Arabia Gave $10-25 Million to Clinton Foundation

Ben Freeman is the director of the Foreign Influence Transparency Initiative at the Center for International Policy (CIP).

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