Military

Michael Kinsley famouslly noted "the scandal isn't what's illegal, the scandal is what's legal.” Scandal refers to disgraceful, shameful, or degrading acts or conduct that brings about disgrace or offends the moral sensibilities of society. Corruption comes in many forms. Grand Corruption is the abuse of high-level power that benefits the few at the expense of the many, and causes serious and widespread harm to individuals and society. It often goes unpunished. Petty Corruption is the everyday abuse of entrusted power by public officials in their interactions with ordinary citizens, who often are trying to access basic goods or services.

"The Iron Triangle" by Gordon Adams, published in 1981, was the first systematic study of the relationship between government and defense contractors, examining in detail the political impact of the eight most powerful defense contractors. It details ways in which Boeing, General Dynamics, Grumman, McDonnell Douglas, Northrop, Rockwell International, and United Technologies influence government, from their basic contract activity, corporate structure, and research efforts, to their Washington offices, Political Action Committee campaign contributions, hiring of government personnel, and membership on federal advisory committees.

In approaching the Government, contractors take advantage of both their opportunities as members of the “big business” community and their unique role and special access as manufacturers of weapons that guarantee “national security.” While the defense industry holds many characteristics in common with other members of the “big business” community, contractors play a unique role in American society.

The intimacy between the public and the private sector is to some extent inevitable and not always damaging to the public interest. A flow of personnel—uniformed and civilian—links the Executive with the industry side of the “iron triangle.” Defense contractors regularly hire DoD civilian employees and retiring military officers who bring a wealth of professional experience and useful contacts to the company. Military retirees provide the industry with a pool of men and women who are knowledgeable in the ways of Government, aerospace technology, and procurement strategies.

Senator William Proxmire noted "The Iron Triangle . .. points out the closed nature of many defense spending discussions where contractors with distinct self-interests are virtually the only non-governmental participants.... [It] takes the first step toward improving our defense spending policies. It provides the detailed information so necessary for informed judgments about how our defense dollars should be spent."

A political action committee [PAC] contribution, in conjunction with other Government relations work can help cement the relationship between the industrial and the Congressional sides of the “iron triangle.”

Trade associations have for many years been an important channel for corporate Government relations in Washington. Created to promote industry-wide coordination on such items as common standards, their development was encouraged by the Federal Government. Trade associations are uniquely suited for such purposes—they carry the weight of the industry without speaking on behalf of the specific interests of any one company. Relations between trade associations and the Congress, traditional lobbying, are less clear. Only three of the associations surveyed—the Aerospace Industries Association, the Shipbuilders Council of America, and the National Council of Technical Service Industries, have registered lobbyists. The lack of registered lobbyists, however, reflects the inadequacy of the existing definition of lobbying rather than any lack of effort on the part of the trade associations.

Contractors, along with other corporations, put the public to work on their behalf. They spend large sums appealing to a huge constituency: employees, stockholders, suppliers and subcontractors, as well as citizens of communities where plants are located, for help in putting pressure on Executive and Congressional policy-makers. All defense-related advertising carries political weight. The readers of ads, the respondents to grass-roots efforts include contractors, military officers, even Government officials, as well as the general public. Such ads and campaigns are aimed, directly or indirectly at influencing legislators, legislation and appropriations. Geography is central to the grass-roots politics of the “iron triangle.” Struggles over weapons systems choices in Washington are played out in local communities. In addition to the general advertising that reaches all of their constituents, the corporations reach local communities through the media and through a direct appeal, mobilizing workers and their families to take the corporation’s message to Washington.

Some companies reported having created off-the-books accounts, or “slush funds,” to handle commissions and payments to foreign government officials. Some paid large sales commissions to agents overseas and later found that some of these had gone to foreign officials. Others have acknowledged making direct payments to foreign officials, both as “grease” to minor functionaries and gifts to high-level policy-makers. Federal agencies were sufficiently concerned to move to inhibit further concealment and questionable practices.

The Government relations practices of military contractors are a key element in the closed network or "iron triangle" of defense policy. The ability of the public to play a more effective role in the policy process depends, first, on a more extensive flow of information about defense contracting and the Government relations practices of defense contractors. Future political activity (PAC) legislation could consider ways to widen reporting requirements to cover PAC contributions to state and local candidates and party campaign committees, and to other types of PAC spending such as political education within the firm and grass-roots campaigns. Wide disclosure of contracting and Government relations data should stimualte more active public discussion of the policies and weapons choices made within the "iron triangle.'

Randall (Duke) Cunningham, a Representative from California; born in Los Angeles, Los Angeles County, Calif., December 8, 1941; B.A., University of Missouri, Columbia, Mo., 1964; M.A., University of Missouri, Columbia, Mo., 1965; M.B.A., National University, San Diego, Calif., 1985; United States Navy, 1966-1987; teacher; lecturer; businessman; elected as a Republican to the One Hundred Second and to the seven succeeding Congresses until his resignation on December 1, 2005 (January 3, 1991-December 1, 2005).

In 1967, he earned a commission and pilot wings in the Navy, soon flying the McDonnell Douglas F-4 Phantom II. He flew a combat tour over Vietnam from USS America, and then completed the Navy’s "Top Gun" Fighter Weapons School. Cunningham returned to combat with USS Constellation's Fighter Squadron 96 (VF-96, the "Fighting Falcons") in 1971. Cunningham was the only American to shoot down three MiGs in one day. He would receive the Navy Cross for his heroism and superior airmanship on this day. "Duke" Cunningham was the first US ace of the Vietnam conflict.

Cunningham, who was elected to represent the 50th Congressional District in San Diego for eight terms, admitted that in return for these bribes he used his public office and took other official action to influence the appropriations of funds and the execution of government contracts in ways that would benefit two coconspirators, who were the majority owners of defense contracting companies.

Cunningham admitted that he received at least $2.4 million in bribes. These bribes were paid to Cunningham by several coconspirators through a variety of methods, including checks totaling over $1 million, cash, rugs, antiques, furniture, yacht club fees, boat repairs, moving costs, and vacation expenses. The bribery, fraud, and tax evasion conspiracy described in the Information included: the purchase of Cunningham’s home in Del Mar, California, at an artificially inflated price by a defense contractor; the subsequent payoff of the mortgage on Cunningham’s new, multi-million dollar home in Rancho Santa Fe by another defense contractor; a $200,000 down payment by a third coconspirator to enable Cunningham to purchase a condominium in Arlington, Virginia; the payment of the capital gains tax by the purchaser of Cunningham’s Del Mar home; the purchase and maintenance by a defense contractor of a yacht (the “DukeStir”) and a Rolls Royce for Cunningham; as well as payments by a defense contractor for a graduation party for Cunningham’s daughter, jewelry, home furnishings, and travel and hotel expenses.

Rick Gwin, Defense Criminal Investigative Service (DCIS), Western Field Office, stated, “This is one of the most blatant examples of corruption I have seen. Moreover, it's an elected official's betrayal of the trust of his constituents, the American people, and our soldiers, sailors, airmen and Marines. Let me make one thing very clear - the safety and welfare of our warfighters, the young men and women who must go in harm's way, are not for sale."T

Cunningham was sentenced in United States District Court in San Diego by the Honorable Larry A. Burns to serve 100 months in custody, followed by 3 years’ supervised release, based on his convictions for conspiring to commit Bribery, Honest Services Fraud, and Tax Evasion, and for a substantive count of Tax Evasion involving more than $1 million of unreported income. Cunningham also was ordered to pay $1,804,031.50 in restitution for back taxes, penalties and interest owed to the government. In addition, the Court ordered Cunningham to forfeit an additional $1,851,508 in U.S. currency, based upon cash payments he received during the conspiracy. A conditional pardon was granted by President Donald J. Trump on January 13, 2021.