BETA
This is a BETA experience. You may opt-out by clicking here

Breaking

Edit Story

Elaine Chao May Have Violated Ethics Rules As Transportation Secretary, Inspector General Says

This article is more than 3 years old.
Updated Mar 4, 2021, 03:00am EST

Topline

Former Transportation Secretary Elaine Chao may have violated ethics rules to help promote her family’s personal and business interests, a report from the department’s inspector general released Wednesday found—but the Justice Department declined to pursue charges against her in the closing days of the Trump administration. 

Key Facts

Chao wanted members of her family, which own U.S.-based shipping company Foremost Group, to participate in official events and high-level meetings during a 2017 trip to China that was eventually cancelled due to ethics concerns, the report found.

Chao used her public relations staff to help market her father’s biography and asked staff for help with personal tasks, such as “checking on repairs at a store for her father and having them send Christmas ornaments to her family,” a press release accompanying the report notes.

The inspector general found that Chao asked political appointees on her staff to check on the status of a work permit application for a student who was a recipient of a scholarship from her family’s philanthropic foundation.

The investigation found no evidence that Chao improperly steered grants to Kentucky, which is represented by her husband, Senate Minority Leader Mitch McConnel, or that Chao violated ethics rules by holding onto a stake in Vulcan Materials, a construction materials company where Chao was a board member before joining the Trump administration.

The IG referred the ethics violations to the Department of Justice and the U.S. Attorney’s Office for the District of Columbia in December, but both declined to pursue charges against Chao.

A spokesperson for Chao said in a statement that the report exonerates the former Secretary from baseless accusations meant top impugn her history-making career as the first Asian American woman appointed to a Cabinet position.

Key Background

 The inspector general’s findings come after Chao resigned from her position in January following the Capitol riot. At the time, she released a statement saying the attack left her “deeply troubled in a way that I simply cannot set aside.” Chao’s family owns the U.S-based shipping company Foremost Group, which is currently run by Chao’s younger sister, Angela, and has significant contracts in China, according to the New York Times. Foremost is a dry bulk shipper that transports coal and iron. Foremost has previously said Chao has “no interest, ownership or involvement in the company.”

Chief Critic

Peter DeFazio (D-OR), chairman of the House Committee on Transportation and Infrastructure, said in a statement that he’s disappointed the investigation wasn’t released while Chao was still in office. He added that he’s “even more disappointed” that the Justice Department declined to move forward with the case. “Public servants, especially those responsible for leading tens of thousands of other public servants, must know that they serve the public and not their family’s private commercial interests,” he said.

Meanwhile, transportation committee Republicans said the investigation was politically motivated. “The investigation, which is devoid of reporting any new developments, shows this was a complete waste of time and taxpayer resources – and provides yet another unfortunate reminder of the lengths to which partisans will go to attack the achievements of an ideological opponent,” Rep. Sam Graves (R-MO) said in a statement.

Follow me on TwitterSend me a secure tip