Alaska Republican senator renominated despite indictment
By Patrick Martin
2 September 2008

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One of the most powerful Republicans in the US Senate, Ted Stevens of
Alaska, won renomination in the state Republican primary August 26,
four weeks after he was indicted on charges of concealing lavish gifts
from an oil services company when he filed disclosure reports with the
Senate required under the Ethics in Government Act.

Stevens, 84, has been a US Senator since he was appointed to fill a
vacancy in 1968. He won renomination by 63 percent, but trails in the
polls against his Democratic opponent, Mark Begich, the mayor of
Anchorage.

The likely ouster of Stevens brings to at least five the number of US
Senate seats that the Democratic Party is expected to gain in the
November elections. Democratic candidates are heavily favored to win
three seats where Republican senators are retiring, in Virginia, New
Mexico and Colorado, while Democratic challengers are leading in the
polls against incumbent Republican senators in Alaska and New
Hampshire, and competitive in Oregon, Minnesota, Mississippi and North
Carolina. Only one Democratic seat, in Louisiana, is considered at
risk.

The case against Stevens is part of a broad corruption probe that has
targeted much of the Republican Party establishment in Alaska.
Governor Sarah Palin—now selected as the vice-presidential running
mate of John McCain—defeated the incumbent governor, Frank Murkowski,
in the Republican primary two years ago in large measure because of
Murkowski’s ties to the scandal. Palin was previously a political
unknown, the part-time mayor of the town of Wasilla, before Murkowski
appointed her to a position on the state’s powerful oil industry
regulatory authority.

The gifts received by Stevens included improvements worth several
hundred thousand dollars to his home in Girdwood, Alaska, kitchen
appliances and other furnishings as well as a new Land Rover. The
company, VECO Corp., repeatedly sent employees to Stevens’s house to
carry out repairs and construction, including jacking up the entire
house so that a new ground floor could be built. The company also
hired one of Stevens’s sons for a management position.

In return for these payoffs, Stevens was an ardent advocate of VECO’s
interests, both within Alaska and internationally. In 1999, he
earmarked $2.5 million in Labor Department funds to bring Russian
oilfield workers to Alaska for training, an effort to assist VECO
build up its oil and gas exploration work on Sakhalin Island in
Russia’s Far East. He also put pressure on the government of Pakistan,
which was in dispute with VECO over payments for oil pipeline work in
that country.

He has responded to the indictment by seeking to have the charges
suppressed, claiming that they violated the “speech and debate” clause
of the Constitution, which makes congressmen and senators immune from
executive branch prosecution for their legislative actions.

The indictment, however, does not relate to legislative acts, such as
the earmark for VECO, but to Stevens using his influence with the Bush
administration and the Alaska state government to further the
company’s interests. During the period in question Ben Stevens, the
senator’s oldest son, was the Republican leader of the Alaska state
senate.

VECO chairman Bill Allen pleaded guilty early this year on charges of
bribing state and local officials, including $250,000 in cash bribes
to Ben Stevens. He is expected to be a star witness against Ted
Stevens as well, although the senator is not actually charged with
bribery, but with failure to disclose (similar to the famous
prosecution of mobster Al Capone, on charges not of racketeering, but
for failure to pay income taxes on his illegal earnings).

Senator Stevens demanded an early trial and sought to have it held in
Alaska, in a transparent effort to rig the outcome, since every
sitting federal judge in Alaska owes his appointment to the senator. A
federal judge in the District of Columbia ruled against him, however,
and the trial is now set to begin in Washington September 24.

A second long-serving legislator, Congressman Don Young, was locked in
a tight primary contest, as he led his main challenger, Lieutenant
Governor Sean Parnell, by barely 100 votes out of more than 80,000
cast. Young has also been linked to the VECO scandal, which has
embroiled much of the state’s Republican establishment, but he has not
yet been indicted. Several thousand absentee ballots remain to be
counted and the second-place candidate will undoubtedly seek a
recount.

A VECO executive who pleaded guilty to bribery charges testified that
part of his job was to arrange annual fundraisers for Young. The
Democratic-controlled Congress also approved a resolution this year
asking the Justice Department to investigate a $10 million earmark
Young put into a 2005 highway appropriations bill, funding the
construction of a freeway interchange in Florida that benefited a
business crony. The construction of the interchange had been opposed
by local government officials in Florida, only to find it secretly
inserted into the bill by a congressman from Alaska.

Lieutenant Governor Parnell waged an extreme-right campaign against
Young, focusing on his role as a dispenser of pork-barrel spending in
his capacity as chairman of the House Appropriations Committee. Alaska
Governor Sarah Palin encouraged Parnell to challenge Young out of
concern that the incumbent would otherwise be defeated by Democrat
Ethan Berkowitz, a former state legislator. No such concerted effort
was made to replace Stevens, who was not indicted until after the
filing date for the primary.

The Republican Party has held all three of Alaska’s federal seats—two
in the Senate, one in the House of Representatives—for the last 28
years. Now, unless Stevens wins acquittal at his corruption trial, set
for September 24, it is widely expected that both Republican
candidates will be defeated on November 5.

The upheaval in the Republican Party in Alaska is only one element in
a far broader crisis, with numerous Republican senators and
congressmen retiring rather than seek reelection and Republican
congressional leaders admitting that the result of the fall voting
will be substantially increased Democratic majorities in both houses
of Congress.

The Democrats presently control the Senate by a 51-49 margin, thanks
to the support of two independents, one of whom, Joseph Lieberman of
Connecticut, is a fervent supporter of Republican presidential
candidate John McCain. The Democratic Party would have to gain nine
seats to reach the 60 votes required to shut off debate and end
filibusters.

In the Senate, where 35 seats (out of 100) are on the ballot November
5, the Republicans must defend 23 and the Democrats only 12, making
significant Democratic gains a virtual certainty. In the House of
Representatives, where all 435 seats are at stake in November, the
Democrats also have a built-in edge because more than two dozen
Republican incumbents are retiring, compared to only a handful of
Democrats.

In special elections during the spring to fill three vacancies,
Democratic candidates won seats long held by Republicans in rural
districts in Louisiana, Mississippi and Illinois, increasing their
margin to 236-199. This margin is now predicted to increase by 10 to
20 additional seats, with Republican congressmen in New England, New
York, Ohio and Michigan considered most at risk, because of widespread
popular anger over the war in Iraq, the economic crisis and the
overall record of the Bush administration.

The effective concession of the congressional elections by the
Republican Party forms an important part of the background to the
presidential campaign, since a victory by Senator Barack Obama would
give the Democratic Party control of both the legislative and
executive branches of the federal government for the first time since
1993-1994, and only the second time since 1980.

Congressional Democratic leaders have already begun to express alarm
at the prospect that a sweeping electoral victory could raise popular
expectations for action over such burning social issues as health
care, jobs, aid to blighted urban areas and education. They have been
at pains to reassure their big business backers that an increased
Democratic majority in the next Congress will be a reliable defender
of corporate interests and will engage in no significant social reform
effort.

An article in the Washington Post August 28 cited concern on the part
of the congressional Democratic leadership over their likely electoral
success: “Their enthusiasm is tempered by some Democrats’ caution
against overreaching for fear that an agenda geared too much to the
party’s most liberal elements could make the 2010 elections a repeat
of 1994, when Democrats were exiled from power on Capitol Hill for 12
years.”

The Post continued that, according to the Democratic congressional
leaders, the “lessons of 1993” were that the newly elected Clinton
administration was too ambitious, seeking to enact “tax increases,
universal health care ... and new gun controls. Democrats lost control
of Congress the next year in a wave of voter discontent and anger.”

The Democratic rout in 1994, however, was due not to some excess of
reformist zeal on the part of the Clinton administration—the most
conservative Democratic administration of the 20th century—but to its
failure to enact health care reform or in any way improve the
conditions of life for millions of working people.

In espousing such an absurd distortion of the history of the 1990s,
the congressional Democratic leadership is advertising in advance its
determination to play an even more reactionary role after January 20,
2009, regardless of whether Barack Obama or John McCain is inaugurated
as the next president.

The incoming Congress will be under Democratic Party control, and it
will be fully committed to the right-wing agenda of the American
ruling elite—extension of imperialist military operations in Iraq,
Afghanistan and elsewhere, a further transfer of resources from social
programs to the Pentagon, the defense of economic inequality and
corporate domination at home, and intensified attacks on democratic
rights.
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