If you want to look at a big story the mainstream media continues to suppress, the entire contents of Hunter Biden’s infamous “Laptop from Hell” are now online.
And not only his laptop, but stuff from his iPhone as well.
There are the salacious photos you would expect (pics of his dick and what appear to be naked, under-aged girls, pics of a woman giving him a blowjob in-between puffs on her cigarette, etc., all censored).
Some of it is suggestive of Biden Family corruption, like the famous “Big Guy” memo.
Some of it is innocuous: Map snaps, pics of food, pics of sunsets, vacation photos, pictures of kids (presumably some his own, and presumably ones he’s not having sex with), etc.
Some of it is just weird. There seem to be dozens of pictures of a flashlight beam shining through what I assume are crack pipe fumes in a darkened room.
Arty
There’s no doubt this is a rich treasure trove for bloggers and investigative reporters with some free time to dig through. (Alas, that’s not me right now, because books.)
And those are just the ones with over 100 employees. There are much more with fewer (including Gordon Ramsay North America, which has a chain of restaurants, which has moved its headquarters to Irving, despite having no restaurants in Texas). (Hat tip: Ed Driscoll at Instapundit.)
For the past few years, Atlanta has been roiled by corruption scandals centering on the city’s decades-old program to favor minority-owned businesses in government contracting. The troubles started when Elvin “E. R.” Mitchell, Jr., a black contractor, began paying what became more than $1 million in bribes to city official and friend of the mayor Reverend Mitzi Bickers. Mitchell and his associates wanted to ensure that they could keep winning city-favored contracts and subcontracts for minorities, despite submitting bids higher than their competitors’. Mitchell also helped Bickers bribe officials in Jackson, Mississippi, so that she could secure minority-favored contracts on some of that city’s projects. Meantime, Larry Scott, head of Atlanta’s Office of Contract Compliance, which ensures that minority firms win contracts, started a side gig to help such businesses get favorable deals with the city—receiving over $220,000 in unreported income and partnering with the mayor’s brother and sister-in-law in the scheme. Mitchell, Bickers, Scott, and several other city officials have been sentenced on federal charges ranging from bribery to wire fraud.
Affirmative-action plans in schools or workplaces get the headlines, but the practice of favoring minorities in government contracts is almost as old, and even more far-reaching. Such favoritism—in the form of Disadvantaged Business Enterprises (DBE), or Minority and Women Owned Business Enterprises (MWBE) programs—exists across all levels of government and in states and cities of every political hue.
The subject of government contracting, or procurement, may not seem exciting, but its importance can’t be overstated. Nearly 10 percent of the U.S. economy goes through government contracts. The federal government spends over $600 billion yearly on contracts, making it the largest buyer of goods and services on the planet. State- and local-government spending on contracts totals about $1.3 trillion annually. Government contracts and purchases range from aircraft carriers and highway construction projects to office supplies and human-resources software. Favoritism to minority-owned companies pervades this vast universe.
Minority contracting was never a coherent way to make amends for the nation’s long, lamentable history of racism. Instead of righting historical wrongs, the policy has enriched a small subset of already-wealthy businesses, bred corruption and fraud, deepened racial divisions, and cost taxpayers countless billions of dollars—while doing nothing to help the truly disadvantaged. Indeed, minority residents of urban areas pay the highest price for lackluster and expensive services caused by such programs. One underappreciated reason for the unparalleled costs of American urban and infrastructure projects is that the government too often picks contractors based on their sex or race, not the quality or cost of their bids.
Snip.
Today, governments use several methods to favor minority contractors. At the federal level, Congress has stated that “not less than 5 percent” of all contracts should go to “disadvantaged” businesses. Regulations clarify a “presumption” that “Black Americans; Hispanic Americans; Native Americans,” and “Asian Americans” are disadvantaged. Government treats the goal as a floor, not a ceiling: in recent years, the true share of contracts going to disadvantaged firms has been around 10 percent, and politicians have urged the bureaucracy to push the total higher. The SBA then sets goals for individual agencies—recently demanding, for example, that the Department of Transportation offer 21 percent of all contracts to disadvantaged enterprises. It also requires that federal “prime contractors” (the lead contractor on a project) create subcontracting plans to maximize minority participation.
State and local governments set even higher goals for minority procurement but usually focus on encouraging large businesses to subcontract out to minorities. Chicago insists that 26 percent of all construction dollars go to minority companies and 6 percent to women-owned businesses. But a city-funded report noted that “almost all City funded construction projects require M/WBE” goals for subcontractors and that “project goals should exceed the ‘baseline’ goal.” Maryland has a target of 29 percent of contract dollars to minority firms. New York City and State have set a goal of 30 percent of all contracts going to MWBE, and the city itself goes into more detail, setting precise contracting goals for each race and business category (for instance, black-owned businesses should get 11.81 percent of all city professional-service contracts).
Agencies have various ways of meeting these benchmarks. Federal agencies can directly award contracts to minority firms, without a normal bidding process and through a no-bid deal, if they cost less than $5 million. This arrangement, of course, has caused abuse. After 9/11, the federal government, hoping to accelerate security purchases, expanded awards to “Alaska Native Corporations,” which had a special exemption that allowed them to get no-bid minority contracts of unlimited amounts. Federal contracts to these corporations increased 20-fold in the decade ending in 2009, when spending totaled almost $6 billion. The army’s infectious-disease center at Fort Detrick, in a no-bid deal, shifted the management of all its contracts to an Alaskan Native Corporation, whose most significant former venture was a failed cruise-ship line. Another such corporation won a port-scanning deal and then subcontracted it out to traditional defense companies; only 33 of the corporation’s 2,300 employees were Alaskan Natives. Though Native Americans are the smallest “disadvantaged” group assisted by the federal government, they get 2.7 percent of all federal contracts—more than twice the proportion of any other group.
Snip.
The City of Austin Disparity Study for 2022, conducted by Colette Holt & Associates, a large disparity-study firm started by a lawyer who had previously worked for Chicago’s city government, is typical. It approaches 300 pages and contains a recitation of every supposed ill that has befallen a minority business in the Texas capital. The report uses only anonymous quotes that make accusations against unnamed individuals about racism or sexism. “There is no requirement that anecdotal testimony be ‘verified’ or corroborated,” the report notes.
Try as they might, these studies have had little success proving racism or sexism in contracting. They typically use a “disparity ratio” to show the difference between the number of available minority firms and the number of government contracts going to these firms, though these ratios rarely account for the ability of different firms to perform government jobs. Yet studies conducted by Austin and Washington State found that MWBE firms were more likely to get contracts than were those owned by white men. A Missouri disparity study found that minority firms were more likely to get contracts than nonminority firms. A Chicago disparity study found that black and Hispanic firms were about twice as likely to get construction contracts, and Asian firms four times as likely, relative to their availability.
These reports’ surveys of minority firms find that most aren’t worried about discrimination. Of those MWBEs responding to a survey in Austin, 75 percent said that they had not experienced barriers to contracting based on race or gender. Over 85 percent agreed that they did not get different prices or terms because of their race or gender. Disparity studies ignore such data and argue that the minority of minorities who report unspecified discrimination need assistance.
When studies admit that there is no discrimination in contracting, politicians refuse to abide by them. Miami-Dade County made the mistake of employing a legitimate accounting firm, KPMG, for a disparity study, which determined that companies owned by blacks and Hispanics were not underused. The Miami mayor rejected the study. Los Angeles’s city council rejected a study that found that black firms did not suffer discrimination in contracting. The occasional lawsuit will surface, challenging these disparity studies when they provide no evidence of discrimination. But in such cases, governments will simply look for another minority contractor to conduct another study calling for more minority contracting.
Minority-contracting programs are a magnet for fraud. No-bid contracts represent an obvious avenue, but the most common kind of MWBE fraud is simple: contractors with subpar bids either lie about being run by minorities or lie about involving other minority businesses in the contract. The Wedtech scandal in the 1980s involved such fraud; though John Mariotta, a Puerto Rican immigrant, had started the company, it was partially run by Fred Neuberger, a Romanian Jew who escaped the Holocaust in Europe but did not count as “disadvantaged” for the purposes of the 8(a) program. Similar issues arose with the recent Atlanta scandals: while contractor Charles Richards was white and won many “prime” contracts, he promised to subcontract work to Mitchell’s minority firm, and then paid Mitchell without asking his firm to do any work. A 2016 Department of Transportation presentation stated that more than one-third of its contracting-fraud cases involved minority contracting and that, over the preceding five years, cases involving minority-contracting fraud had led to $245 million in financial penalties and 425 months of incarceration for offenders.
These cases tend to follow a certain playbook. A minority-owned front company wins the government contract, takes a small cut, and issues a pass-through contract to a white-owned firm. The largest such case in American history involved Schuylkill Products, a Pennsylvania firm that manufactured concrete bridge beams but had used a Filipino-owned front company for 15 years to win more than $130 million in contracts. The federal investigation led to several prison sentences in 2014. Front-company and pass-through fraud has dogged construction work at Chicago’s O’Hare airport and New York casinos. According to the New York State inspector general, the minority firms in the casino-fraud case did little more than submit invoices. A former Dallas councilman, meantime, went to prison for his role in setting up minority front companies for government contracts. Sometimes, the fraud is even more direct: in Seattle, the owner of a company that was paid to clean up homeless camps falsely identified as black on city forms. She also happened to be a city employee.
Target has repeatedly boasted about efforts to support the Gay, Lesbian, and Straight Education Network, also known as GLSEN, an entity which helps teachers place LGBTQ books in school libraries and hide their students’ so-called gender transitions from parents.
Conservatives have launched a boycott against Target after the retail behemoth marketed a female swimsuit as “tuck-friendly” and with “extra crotch coverage,” as well as hired an artist who creates Satanic items to make various designs for the company. Links between the company and GLSEN, which supports “affirming learning environments for LGBTQ youth” and activates “supportive educators,” resurfaced amid the backlash against Target.
The retail behemoth boasted last year about donating more than $2.1 million to GLSEN over the past decade, lauding the group’s mission to create “affirming, accessible, and antiracist spaces for LGBTQIA+ students.” Target also actively promotes GLSEN on its online store.
Strangely enough, having a DA who will prosecute criminal and not lawful citizens defending themselves makes a difference. “San Francisco District Attorney Brooke Jenkins follows the law and the evidence and does not make decisions based on what may be politically expedient.”
Speaking of Soros-plagued cities: “Citywide Youth Curfew Begins In Baltimore As Mayor Strives To Restore Law And Order.”I doubt Mayor Brandon Scott’s policy will make that much of a difference, though maybe with Soros-tool Marilyn Mosby out of office and awaiting trial on federal perjury charges, maybe there’s a chance of Baltimore improving. But remember:
Of course. “Just Stop Oil’s Hollywood Patron Has Holiday Home in Ireland That he Jets Off to ‘When the Going Gets Tough.'” “Oscar winner Adam McKay, whose films include The Big Short and Don’t Look Up, is one of a group of multi-millionaires behind the Climate Emergency Fund. The Beverly Hills-based fund raises cash from its mega rich supporters and distributes it to ‘disruptive’ activists, including handing almost £1million to help Just Stop Oil wreak havoc in the U.K.” Being a Democrat means never having to apologize for your hypocrisy.
The Georgia Bureau of Investigation (GBI) and the Atlanta Police Department (APD) arrested Marlon Scott Kautz, age 39, of Atlanta, Savannah D. Patterson, age 30, of Savannah, Ga., and Adele Maclean, age 42, of Atlanta, on Wednesday on charges of money laundering and charity fraud in association with fundraising efforts for the domestic terrorists who are currently in jail.
“The GBI, along with the Atlanta Police Department, have arrested three people on charges stemming from the ongoing investigation of individuals responsible for numerous criminal acts at the future site of the Atlanta Public Safety Training Center and other metro Atlanta locations,” reads the GBI’s press release.
The trio ran a non-profit called Network for Strong Communities, which worked with another group called the Atlanta Solidarity Fund, which, at least on paper, was a bail fund for the thugs who attacked the training center property and other areas in Atlanta.
Given that, it might be time to take a look at Worth It or Woke for honest movie reviews.
Dwight has a good look at the Battleship Texas, and (for Memorial Day) seaman Christen Christensen, who was killed in combat during the bombardment of a German shore battery off Cherbourg.
Don’t let JinJin eat poop off San Francisco’s street, or they may end up tripping balls.
I have an in-process post titled “League of the Boned” in embryonic form, which was going to be about how each country in the League has been screwed by deficit spending, high interest rates and endemic corruption. But there so much boning to write about, and so many members of the League, that I thought it best to split it up into individual posts.
First up is Turkey, not because it’s the most boned, but the one whose immediate boning is made more acute by recent events, namely Recep Tayyip Erdogan’s reelection.
Recep Tayyip Erdogan’s supporters are celebrating after Turkey’s long-time president won Sunday’s vote, securing another five years in power.
“The entire nation of 85 million won,” he told cheering crowds outside his enormous palace on the edge of Ankara.
But his call for unity sounded hollow as he ridiculed his opponent Kemal Kilicdaroglu – and took aim at a jailed Kurdish leader and the LGBT community.
The opposition leader denounced “the most unfair election in recent years”.
Mr Kilicdaroglu said the president’s political party had mobilised all the means of the state against him and he did not explicitly admit defeat.
International observers said on Monday that, as with the first round on 14 May, media bias and limits to freedom of expression had “created an unlevel playing field, and contributed to an unjustified advantage” for Mr Erdogan.
President Erdogan ended with just over 52% of the vote, based on near-complete unofficial results. Almost half the electorate in this deeply polarised country did not back his authoritarian vision of Turkey.
Ultimately, Mr Kilicdaroglu was no match for the well-drilled Erdogan campaign, even if he took the president to a run-off second round for the first time since the post was made directly elected in 2014.
But he barely dented his rival’s first-round lead, falling more than two million votes behind.
Snip.
The president admitted that tackling inflation was Turkey’s most urgent issue.
The question is whether he is prepared to take the necessary measures to do so. At an annual rate of almost 44%, inflation seeps into everyone’s lives.
The cost of food, rent and other everyday goods has soared, exacerbated by Mr Erdogan’s refusal to observe orthodox economic policy and raise interest rates.
The Turkish lira has hit record lows against the dollar and the central bank has struggled to meet surging demand for foreign currency.
“If they continue with low interest rates, as Erdogan has signalled, the only other option is stricter capital controls,” warns Selva Demiralp, professor of economics at Koc university in Istanbul.
Tiny problem: Strict capital controls tend not to work. By the standards of the Middle East, Turkey is fairly open and fairly modern, and getting around currency controls is one of the use cases that cryptocurrencies are ideal for.
Indeed, the currency problem is so severe that Turkey’s foreign currency reserves just turned negative.
The Turkish central bank’s net forex reserves dropped into negative territory for the first time since 2002, standing at $-151.3 million on May 19, as the bank – following Erdogan’s strict orders – scrambled to counter demand for hard currencies (USD, gold, crypto) ahead of Sunday’s runoff vote.
Forex demand in Turkey surged to record levels ahead of May 14 on companies’ and individuals’ expectations that the lira, which lost 44% in 2021 and 30% in 2022, will plunge after the vote (spoiler alert: those fears have been justified).
As we discussed last week, the central bank’s forex reserves have sagged in recent years due to costly market interventions and other efforts to cool forex demand. The bank’s net reserves dropped by $2.48 billion in the week to May 19, to their lowest level since February 2002. They have dropped $27.7 billion since the end of 2022, and were at negative $3 billion as of May 19. The net forex reserves would be even more negative if outstanding swaps, courtesy of foreign central banks and which stood at $33.50 billion on Wednesday, are deducted (as they should be since the CBRT will have to repay these at some point).
And while the endgame here is clear to all, few are willing to say it out loud for fear of retaliation by the Erdogan regime (no really, he has been known to throw people in jail for recommending a Turkish lira short); yet one bank which decided to double down on Goldman’s dire view of how it all plays out is Morgan Stanley, which in a note last week (available to pro subscribers in the usual place), wrote that the turkish lira plummeting to 28 by the end of the year, is likely in the cards (in our view, that’s a rather optimistic take since the lira is about to become the new Bolivar where soon new zeroes are added daily if not hourly).
This is, I think, a bit of an exaggeration, since Turkey is a much bigger and more important country (and economy) than Venezuela, and while they’ve done several terribly stupid things with their economy, they haven’t gone full socialist starvation scenario on it.
The biggest concern when Erdogan came to party was his Islamist roots, and how he dismantled Turkey’s own peculiar systems of checks and balances, namely that anytime the government would move too far in an Islamist direction, the military would step in, depose the current government, rule for a while, and then step down once things had calmed down again. That doesn’t look very much like classic western democracy, but it served well enough for Turkey, partially insulating it from the wild swings between different despots common in the rest of the Islamic world.
The bad news is that Erdogan demolished those checks and balances in his drive to centralize power in his own hands, purging the military of anyone he thought might possibly oppose him. The good news is that, after all that, he turned out to mostly be a typical Middle Eastern strongman rather than a fervent jihadi. The bad news is that he’s also a complete economic ignoramus, and his stupidity is making Turkey’s economic problems much worse.
Here Patrick Boyle explains just how stupid:
On Erdogan’s idea that low-interest rates can cure inflation: “The official annual inflation rate in Turkey was 43.7% as of April. This is actually down from the 80% inflation rate that Turkey saw the prior year. There is no guarantee that this slowdown will persist. There is in fact widespread suspicion that the official numbers understate an inflation rate that according to independent experts is actually closer to 100%.”
The February earthquakes didn’t help.
“Another term for President Erdoğan would likely imply a continuation of the current policies with a heightened risk of persistent very high inflation and severe currency pressures.”
“The high inflation, along with government largess and efforts to prop up the currency are threatening economic growth and could push the country into a deep recession.”
The Lira is trading near record lows against the dollar.
“Net foreign assets, a proxy for the size of Turkey’s foreign currency holdings, have declined to minus $13 billion dollars from $1.4 billion dollars a year ago, according to central bank data.”
“Those figures include billions of dollars in funds borrowed from the domestic banking system through swaps. Pressure on international reserves has been ‘significant in recent weeks’ as the government made efforts to prop up the economy ahead of Sunday’s elections.”
“Turkey’s foreign currency and gold reserves tumbled $17 billion dollars in the six weeks leading up to the first round of the election according to the FT, a decline of 15 percent.”
“Turkey had a painful experience of high and chronic inflation from 1975 through to 2004 caused by political instability, poor institutions, high public sector budget deficits and depreciation of the Turkish Lira which culminated in a severe financial crisis in 2000-2001.”
“The establishment of an independent central bank in 2001, which focused mainly on fighting inflation along with tight fiscal policies implemented at the same time brought inflation under control.”
“During his election campaign, Erdogan showed no intention of changing his policies, doubling down on his claims that low interest rates would help the economy grow by providing cheap credit to increase Turkish manufacturing and exports. ‘You will see as the interest rates go down, so will inflation’ he told supporters in Istanbul in April.”
With the cost-of-living crisis on many voters’ minds, Erdogan launched a range of expensive policies in the lead up to the election aimed at reducing the immediate impact of inflation on voters. He raised the minimum wage repeatedly, announced a free month of natural gas for consumers, reduced electricity prices increased civil servant salaries and changed government policies to allow millions of Turks to receive early government pensions. Just days before the first round of the election He gave a 45% pay rise to 700,000 Turkish public sector workers, saying he would “not let anyone be crushed by inflation”.
So he combated inflation by guaranteeing there would be more inflation, just like Joe Biden.
Boyle thinks Turkeys problems can be solved by adopting sane economic policies. “For a country in crisis, Turkey’s problems are not that difficult to solve – it is not a total basket case economy like some other emerging markets. The country mostly just needs a sensible interest rate policy and an independent central bank. Turkey has a lot of positives, it has a diversified economy, growth is good, it has good demographics and an educated workforce.”
This is true, but it was also true before Erdogan got into power and screwed things up. Peter Zeihan thinks that Turkey has the right mix of geography and demographics to be a future regional power. But there’s an awful difficult present to get through before that happens…
Californians continue to flee the no-longer golden state, and many of them end up in Texas. ABC7 News in the bay area interviewed eight who fled as to why California dreaming has become a nightmare.
Some takeaways:
“In the span of two years, California’s population has dropped by more than a half million people.”
“I was assaulted twice on the BART.”
“I’ve never had a house this large in my life.”
“It is definitely a lower cost of living in Texas.”
“The home that I once remembered and knew back in the 1980s and the 1990s, a lot of that’s gone now.”
“Home prices are lower [in Texas], and there’s plenty of job opportunities.”
The former mayor of Ventura, CA moved to Texas in 2014. “One of the things I greatly fear about Venture and elsewhere in coastal California is that it’s not a place for everybody anymore, and especially not a place for young families. It’s a place basically where older, affluent people now live. And I think something has really been lost there.”
“Home prices in Texas cost less than half of homes in California. U.S. Census Bureau numbers show that the middle and lower classes are leaving California at a higher rate than the wealthy.”
“Many who have left in recent years say they simply couldn’t afford to stay.”
A mother with six kids says it’s simply impossible to afford a house large enough in California. “I feel like the California Dream was the American Dream in my grandparents’ and parents’ era. That’s just not possible for our generation to live that American Dream in that state anymore. It’s so expensive that you’re struggling every month just to get by and pay your rent and your mortgage and put food on the table.”
Food truck owner: “The reason why I left California, honestly, is just the cost. The cost of living, the cost of running a business, regulations.”
Mention of the Move to Texas Facebook group for Californians looking to get the hell out of their failing state.
“Some people are moving to Texas because of their conservative values.”
” It seems that the environment, politically in California, has just been a one-party rule. Republicans have done absolutely nothing to change anything in any way, it seems to me. They’ve been cowardly about it.”
“It’s very sad in Contra Costa County. You can’t even be conservative. You kinda have to hide if you’re conservative almost.”
Man whose family moved to California from South Korea in the 1970s: “Unfortunately my parent’s grocery stores were burned down in the L.A. riots, two of them, near Koreatown. And so that was, you know, quite a traumatic experience for my family.”
“I definitely think [California] is mismanaged. We moved primarily because of the crime. And, for me, it was not only the crime but also, you know, the amount of homelessness, needles. I was assaulted twice on the BART. Those particular assaults I really do think it had to do with the same kind of violence that I saw in the Bay Area towards Asian Americans.”
“I miss the ocean but not enough to move back.”
What would it take to move back to California? “Number one, the whole state would have to clean up. Get some of those rotten politicians. Be tough on crime again, like you should. People’s attitudes would just have to change. But for the most part, I really am happy here.”
“My commute is seven minutes to work.”
“Yeah, we definitely have not even contemplated moving back. We are just really happy out here.”
One party Democratic rule has hollowed out the state of California, and the people Democrats used to claim to represent (the working poor and the middle class) are the ones most harmed by the graft, corruption, incompetence, and radical social justice-engendered spiraling crime rates.
Until that changes, expect people to continue to flee California.
Turns out at least one city employee involved in the contract was all but handing the money to himself.
All the evidence indicates this is was almost certainly an inside job.
It certainly appears that at least one City of Austin employee colluded or communicated with friends and business associates to secure lucrative seven figure contracts.
Despite being grossly unqualified and totally inexperienced for the job.
It also seems like ICCS Academy is lying about a bunch of stuff on their bid submission.
Snip.
Believe it or not, the ICCS Academy bidding process raises even more red flags than P Squared Services.
There are two City of Austin employees listed as “authorized contacts” for Item 23.
Sandra Wirtanen
John Wesley Smith
This screenshot shows John Wesley Smith is the “Small Minority Business Resources” contact for this proposal.
Guess where John Wesley Smith used to work as the ‘Compliance Director’ before he started working for Austin city government?
ICCS Academy!
Can you imagine a bigger conflict of interest?
Maybe that’s why ICCS Academy yanked their website yesterday (link).
However, this snippet on DuckDuckGo still appears when you search for ‘John Wesley Smith ICCS Academy’
John Wesley Smith was the Compliance Director for ICCS Academy.
His bio states he also works as a “Small Business Counselor with the City of Austin”.
Snip.
QUESTION: Shouldn’t John Wesley Smith have immediately recused himself from the bidding and contract negotiation process for Item 23, due to his massive conflict of interest as the current / former Compliance Director for ICCS Academy?
Massive Conflict of Interest
Gee, I wonder how the other eight companies who submitted bid proposals for Item 23 feel about the former Compliance director of ICCS Academy overseeing the bidding process, and awarding a $7 million contract to his former colleagues?
John Wesley Smith was definitely the Compliance Director for ICCS Academy at one point in time.
Whether that was two weeks, two months or two years ago – it doesn’t matter.
John Wesley Smith should have removed himself from this project due to the awful optics and huge conflict of interest.
John Wesley Smith’s LinkedIn profile shows his current role with Austin city government is “Business Development Coordinator II”.
John Wesley Smith says he’s in charge of “negotiating contractual agreements for the City of Austin” and is “responsible for various minority/women procurements.”
Huh.
For the record, ICCS Academy is currently a registered vendor with the city of Austin.
However, all of their ‘certified commodities’ are in education, training and consulting.
So a training vendor gets picked to do homeless site cleanup despite no experience in the field because a (former?) employee works for the city and just happens to be able to throw business their way.
How convenient.
If you’ve been reading this blog for a while, you may remember that the entire reimagining police lunacy was all about social justice warriors saying time and time again “take money from the police and give it to us.” There’s an entire industry of social justice grifters (both in homelessness and every other social justice cause) whose entire existence is dedicated to making life for average citizens worse while sucking as much money as possible from taxpayers. You can bet that this is far from the first time such self-dealing has occurred, and I bet forensic audits of both city contracts and the “nonprofit” entities that receive them would reveal numerous example of quid pro quo kickbacks.
Again, kudos to Teddy Brosevelt (whoever he may be) for peeling back the lid of Austin’s social justice warrior corruption problem.
Remember Austin’s scheme to hand millions to the homeless industrial complex to clean up the mess they created, and the shady, recently-created “P Squared Services, LLC” they picked to give $1.7 million to?
That attracted so much attention that that particular piece of graft is now off the table:
Kudos to blogger Teddy Brosevelt (I’m going to go out on a limb and guess that’s a pseudonym) and Austin City Council member Mackenzie Kelly for killing this giant bucket of graft.
It’s good to be a member of the Austin Homeless Industrial Complex. Not only do you get to rake off graft for luring drug-addicted transients to town, you also get to rake off graft to clean up the resulting mess.
Item #23 on this week’s Austin City Council agenda allocates another $20 million to the Homeless Industrial-Complex to clean up dozens of dangerous homeless encampments around the city.
Item 23 (link) says it’s critical for these camps to get cleaned up, since they pose “a great degree of health, safety, and fire risks.”
Austin Water also needs cleanup services on “environmentally sensitive areas of the wildlands” due to toxic waste and debris contaminating the watershed.
Snip.
One of the three companies who won this big fat $20 million contract – P Squared Services, LLC – is the most suspicious, sketchy and (almost certainly) fraudulent company I’ve encountered during my three years of reading through these absurd Austin City Council agenda items.
Just look at the 11 bids and financial docs for Item 23 (link).
You will shake your head in anger and disbelief, asking yourself:
How could Austin Finance be so incompetent, lazy and irresponsible?
Is something more sinister going on?
Is this a case of internal corruption or criminal behavior?
No sane person would make these decisions.
Nah. Austin City Council. Corrupt and incompetent is the default setting.
Meet P Squared Services, LLC
Major red flags pop up across the galaxy when you investigate this highly suspicious, brand new company called P Squared Services.
P Squared Services has:
No internet presence
No website
No clients
No experience
There’s overwhelming evidence that P Squared Services, LLC is almost certainly up to something nefarious and possibly illegal.
The major question is whether it’s an inside job and who made the final decision to funnel money to these frauds.
P Squared Services is a Texas Domestic Limited-Liability Company that was formed in Smithville on November 4, 2022.
The business address for P Squared Services is an exact match for the residential address of the two married co-owners:
Brandon Keith Pietsch
Kristina Dawn Pietsch
So the married co-owners of P Squared Services are running this mysterious business out of their HOUSE.
And this “business address” is actually a residential, single family home with zero visible equipment, tools or supplies for cleaning up industrial waste.
P Squared Services, LLC
607 Ash Street
Smithville, TX 78957
Let’s look at the google street view photos of their business headquarters / house.
See if you can notice:
Empty beer cans on front lawn
Tipped-over cooler by porch
Unfinished projects like doors and window screens that were never installed.
So they’re hiring someone to clean up a homeless camp whose house looks like a homeless camp.
The conclusion: “I’m almost positive that P Squared Services LLC is a fake, phony, money laundering scam.”
Indeed.
That seems to be the driving purpose behind all Austin homeless policies…
The decline of California under one-party Democrat rule has been one of the long-running themes of this blog. Today Victor Davis Hanson discusses how California’s wealthy destroyed the middle class with policies whose baleful effects they knew wouldn’t fall on them.
“The irony is that, as we created more wealth and more leisure, because of the very success of the middle class citizen, the middle class citizen and his central role in western government was forgotten.”
“California in the 1960s had the largest middle class in the United States. California had the finest educational system. California invented the idea of a modern freeway and a modern airport.”
“California had a state where two-thirds of the people lived with one-third of the precipitation, and yet they built the greatest transference of water with reservoirs and aqueducts the world had ever seen.”
“California had the most successful oil, timber and mineral industries in the world. They had some of the finest universities…Again this was a product of, both democratic governors and Republican governors.”
“However, today when we look at California, it’s got the highest number of homeless people in the United States. Half of all of America’s homeless live in California.”
“One-third of all the welfare recipients in the United States live in California. One-fifth of all Californians live below the poverty line.”
“California yet has the highest taxes in the country in the aggregate, the highest property taxes because of the enormous assessed evaluations…highest sales tax at over 10 to 11%, highest income tax at up to 13.2%.”
“The result of all of that that is is the middle class finds itself unable to pay and be competitive with other businesses in other states.”
“They look at all of these higher taxes, and they say themselves ‘I’m willing to pay it if I’m economically viable,’ but the regulations that the state creates fall heavily on the small farmer, the hardware store owner, the tire [store?] owner, but not necessarily on the Silicon Valley corporation that has an array of lawyers, or legal teams, or analysts, or economists, that find ways not to pay it.
“And so the middle class leaves, they vote with their feet they go to places where it’s more conducive for middle class livelihoods. We’ve lost somewhere between 8 and 12 million people of the middle class.”
At the same time, America has allowed in 20 million illegal aliens, half of which have ended up in California.
“We have not built an aqueduct in California in about 40 years. The schools that were rated in the top 10 percent of comparative state rankings are now in the bottom 10 percent. The airports are decrepit.”
“That the more taxes I pay, the worse schools I get.”
“In this period, there was about five trillion dollars in market capitalization that grew out of Silicon Valley alone. And we created sort of a medieval caste, a wealthy caste of Barons and Lords that were not subject to the consequences of their own ideology. So they had so much wealth they felt they were exempt from worries about taxation.”
“We created a very, very wealthy elite that was not subject to the consequences of their own ideology.”
Whether out of virtue signaling and guilt, or whether out of contrived political necessity, they made a political alliance with the very poor of California. And the poor said “Give us more entitlements, tax the middle class, transfer that money to us we need it.” And the wealthy said “Yes, we will open the borders. We’ll transfer money, but you have to vote for issues that we’re in favor of. And we’re in favor of them precisely because they don’t affect us.”
And of course, the left’s disdain for the middle class shows up in their language: They’re the “bitter clingers,” the “deplorables,” the “chumps and dregs of society.”
“Muscular labor was no longer essential to the American experiment. In other words, you could make have things made overseas in China or southeast Asia or Mexico. And the great middle class territory of the middle west of the United States—Michigan, Ohio, Illinois, Indiana—started to become hollowed out.”
“We’ve taken the middle class, the backbone of citizenship, and we’ve eroded it and destroyed it.”
Remember Democratic County Judge and de-facto Queen of Harris County Lina Hidalgo, she of the numerous staff corruption charges? There have been a lot of Freedom of Information Act requests coming her way over all the alleged crooked dealings, so she went to her legal counsel to thwart transparency.
With the state’s largest county already facing at least one lawsuit over refusal to comply with public records requests, a leaked memo from Harris County officials appears to outline a strategy for avoiding the release of documents related to County Judge Lina Hidalgo’s travel and taxpayer-funded expenses.
Investigative reporter Wayne Dolcefino reported this week on a leaked chain of emails that began with a January 25, 2023 open records request from Houston Chronicle reporter Jen Rice seeking travel records for Hidalgo and “her entourage” between January 2019 and January 2023.
After requesting clarification, Hidalgo’s legal counsel Kathryn Kase forwarded the request and instructions for handling it to several Hidalgo staffers and Glenn Smith of Affinity Dynamics. The county auditor’s office lists payments totaling $35,000 to Smith’s company in 2020, but none this year.
“The law does not require us to create documents in response to this PIA request and I ask that you not create such documents,” wrote Kase. “For example, if we do not have a list of the Judge’s trips outside Harris County that the County paid for in whole or part between 1/1/ 2019 and 1/25/2023, then the law does not require us to create such a list, nor do I want you to create one.”
Kase also stated that staffers do not have to ask other departments for documents responsive to the request.
“If, for example, the Auditor or the Treasurer have copies of reimbursements to Judge Hidalgo, do not ask the Auditor or the Treasurer to provide them to you.”
Rice’s request likely stems from reports of Hidalgo taking private security, paid for by Harris County taxpayers, on her personal vacations to Mexico, Columbia, and according to sources familiar with the matter, Thailand, earlier this year.
Until last April, the Precinct 1 constable’s office provided security for Hidalgo, but in a 3 to 2 vote the commissioners court approved a no-bid contract to private security company XMi Protection at a price of $121,524 for three months. The commissioners later approved a budget of up to $500,000 for XMi, although reportedly Hidalgo’s security is now provided by the Harris County Fire Marshal’s Office while XMi continues to cover other employees.
Remember that Queen Lina’s previous legal troubles stemmed from handing out contracts to connected Democrat firms and not wanting public scrutiny for that either.
As far as I can tell, XMi Protection seems to employee exactly one person: Cortez Emilio Richardson. (Maybe he hires temps to round out his team?) Also strange: The listed address for XMi protection is 9900 Spectrum Drive, Austin, TX, 78717, which is the address of Integreon, a “global outsourcing partner” that doesn’t list “executive protection” among its services, as well as LegalZoom, which seems to be a “one stop set-up-your-business” shop. (Maybe he set up his LLC through them?) However, Richardson’s LinkedIn profile says that he’s in Houston, and XMi Protection is based in nearby Spring. Two other LinkedIn accounts that show XMi Protection entries are a Paquita Bailey who lives in Detroit and is evidently working four different jobs at the same time (lot of sidehustle they’ve got going on there), and the following private listing:
Which is for a pharmacy technician from Anna, Texas (which is north of Dallas), both of whom would seem to be deeply unlikely to be working a protection detail in Houston.
$40,000 a month is an awful lot of cheddar for one guy.
Jim “Mattress Mack” McIngvale and Dolcefino have also filed a lawsuit against the county, seeking access to public election records that the county has refused to release on the grounds that they are related to litigation and a criminal investigation of Tatum and the elections department.
In response to multiple complaints over delay and evasion tactics employed by government agencies across the state, Sen. Paul Bettencourt (R-Houston) has pushed legislation that would punish those using the appeals process to delay compliance. His Senate Bill 1579 has been approved in committee, but it has not yet been scheduled for a vote on the Senate floor.
According to attorney Bill Aleshire, public information requests must be carefully tailored so as not to offer any loopholes. Aleshire opined that instead of asking for a “list,” Rice should have requested specific documents and included multiple departments in her original demand.
“Having said that, a public office devoted to transparency would not quibble with a requestor seeking travel records; it would just provide the records they’ve got, in good faith,” Aleshire told The Texan.
Snip.
In another leaked internal Harris County memo, legal fees approved by the Harris County Commissioners Court last March totaling $671,383 are described as covering legal costs for Kase, [County Commissioner Rodney] Ellis, and other county employees related to the investigation of a since-canceled $11 million COVID-19 vaccine outreach contract and allegations that Ellis had stored an African art collection at taxpayer expense.
The memo also includes “talking points” from “GS” that former Justice Administration Director Jim Bethke and other county officials, including Tatum, have been harassed by District Attorney Kim Ogg.
Payments for legal expenses appear to have been approved for McClees Law Firm, PLLC; Rusty Hardin and Associates, LLP; and Khalil Law PLLC. In addition to Ellis, Hidalgo, and other employees, the memo notes expenses were also covered for Commissioner Adrian Garcia (D-Pct. 2).
Something stinks in Harris County government, and there are a whole lot of questions about how Lina Hidalgo is spreading around taxpayer money that she really doesn’t want to answer…
Rep. Gary Gates (R-Richmond) took to the back microphone this week to make the case for greater regulation of a controversial state program offering millions in tax exemptions to developers for affordable housing.
One of several lawmakers to propose reforms to the Public Facility Corporation (PFC) program, Gates had introduced a reform bill with tough standards, but allegedly former Speaker Dennis Bonnen repeatedly pressured him to drop his proposals.
Gates told The Texan he was urged by Bonnen to sign on to arguably weaker reforms authored by Rep. Jacy Jetton (R-Richmond) — House Bill (HB) 2071 — and warned that although his own legislation had been approved by the House Committee on Urban Affairs, it would be killed in the powerful Calendars Committee.
Instead, Gates successfully tacked on multiple amendments to HB 2071 during Tuesday’s floor session.
“I’m pleased with these amendments, but I still have my own PFC reform bill, HB 3568, which I hope to get to the floor in short order. It has 69 authors and co-authors, while HB 2071 had only 10.”
Under the PFC program, local government officials may offer a 100 percent tax exemption to developers who build or purchase multifamily housing, as long as some rental units are set aside for “affordable” reduced rent. But both Jetton and Gates acknowledged there have been abuses of the system; in some cases, PFCs have been authorized with only 10 percent of units designated for low-income families.
On the House floor, Gates queried Jetton about whether his reforms set new minimum standards and noted that the current system took tax revenue from public school districts without their approval. He also pointed out that in some cases developers were already charging below-market rents before transitioning to PFC status and were therefore not obligated to demonstrate a public benefit.
“This is hurting our schools, this is hurting our counties and our cities,” said Gates. “This [tax revenue] is being taken from our fire departments, our police departments, our neighborhood schools. They are getting their taxes wiped out and we can’t determine if there’s any public benefit.”
In response to Gates’ questions, Jetton acknowledged that other taxpayers or the state’s general funds would have to make up the loss in revenue to school districts.
Gates’ first proposed amendment, opposed by Jetton, mandates that 60 percent of the developer’s tax savings must be dedicated to reducing rents. It was approved in a bipartisan vote of 87 to 54, with two members registered as “present, not voting.”
Under the formula, 12 percent of units must be set aside for those earning 50 percent of the Area Median Income (AMI), 12 percent for those at 60 percent AMI, and 12 percent at 80 percent AMI.
After the House voted for a second Gates amendment requiring approval from counties and school districts for any new PFCs, Jetton gave up his opposition and accepted four more revisions as friendly amendments.
Noting that some PFCs had been granted 100 percent sales and property tax exemptions for up to 99 years, Gates also questioned Jetton about HB 2071’s language setting a minimum tax exemption period of 10 years while removing even the 99-year limit.
Among revisions accepted by Jetton, the tax-exempt status will be limited to 12 years for new construction and 10 years for the conversion of existing properties.
So one cheer for Gary Gates for getting rid of a tax kickback.
Ideally, government should get entirely out of the business of giving different types of tax breaks for different rental housing. Get out of regulating any but the most essential safety and business standards and let the free market come up with solutions. The main obstacles to building actual affordable housing are too many regulations, not too few.
But we shouldn’t disdain even baby steps of reform in the right direction.
