Wilbur Ross proves bad behavior is new norm

Navigator Holdings

20/06/2018 19:34

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Gina Chon
    WASHINGTON, June 20 (Reuters Breakingviews) - Bad behavior
is the new norm in Washington – and Wilbur Ross is the latest
example. Lawmakers hammered the U.S. commerce secretary about
the effect of steel tariffs – but barely mentioned his sale of a
company’s stock days ahead of a negative news story. Congress,
occupied with trade battles, is sadly growing numb to shady
conduct. 
    Senators from both sides of the aisle on Wednesday inundated
Ross with tales of businesses and farmers hurt by the escalating
tariffs on goods from Europe and Asia, and the retaliation they
have incurred. No one asked him about his shares in Navigator
Holdings  NVGS.N . Yet they had good reason to do so.
    Ross took a short position in the shipping company worth
between $100,001 and $250,000 on Oct. 31, five days after the
New York Times contacted him about an article linking Navigator
indirectly to Russian President Vladimir Putin, and before the
story was published. Ross had a small shareholding in the
company, and the position was closed on Nov. 16, according to a
government financial disclosure released Monday. 
    Democrat Ron Wyden was the only lawmaker who mentioned the
share sale at all, when he cited near-daily news reports about
White House officials violating ethics rules or coming into
“questionable windfalls.” Ross has said the share sale was part
of a broader divestment of his Navigator stake. In any case,
Wyden too focused his questions mostly on goods tariffs. 
    President Donald Trump’s administration is filled with
officials who have had engaged in behavior that is, even where
not against the rules, unbecoming of holders of high office,
including Trump himself. Scott Pruitt, administrator of the
Environmental Protection Agency, faces multiple investigations
into allegations that he abused his position. Trump’s hotel in
Washington raked in more than $40 million in revenue in 2017 as
business and political groups booked events there. 
    The sheer volume of the stories have lessened their impact.
Moreover, lawmakers feel they have bigger things to worry about
given constituent alarm over trade spats. But holding officials
accountable is still part of their job, and when those at the
top play fast and loose, it may not be long before those lower
down do too. That’s why calling bad conduct out still matters,
even if doing so doesn’t stop it.
    On Twitter https://twitter.com/GinaChon
         
    CONTEXT NEWS 
    - U.S. Commerce Secretary Wilbur Ross defended tariffs
imposed by the Donald Trump administration on goods from China,
the European Union, Canada and Mexico, during a hearing before
the Senate Finance Committee on June 20.
    - Ross was not asked about shares he sold in Navigator
Holdings a few days before the New York Times reported on the
company’s links to a firm partly owned by a relative of Russian
President Vladimir Putin.
    - Ross took a short position worth between $100,001 and
$250,000 on Oct. 31, five days after the New York Times says it
contacted him about the article. He closed the position on Nov.
16, according to a government financial disclosure released on
June 18. The story was published on Nov. 5.
    - Ross said the stock sale was not related to the story and
was instead part of divesting the Navigator stake, which he
committed to as part of becoming commerce secretary.    
    - For previous columns by the author, Reuters customers can
click on  CHON/ 
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 (Editing by John Foley and Ben Kellerman)
 ((gina.chon@thomsonreuters.com; Reuters Messaging:
gina.chon.thomsonreuters.com@reuters.net))