January 17, 2020
"This is exactly the kind of unethical, revolving-door corruption that has made Americans cynical and distrustful of the federal government"; Warren's anti-corruption legislation would prohibit corporations like Energy Transfer from hiring or compensating senior government officials from agencies the companies had lobbied in the past two years
Sen. Warren Calls on Former Energy Secretary Rick Perry to Resign from Board of Energy Transfer, a Fossil Fuel Company Whose Board He Rejoined Weeks After Leaving Office
"This is exactly the kind of unethical, revolving-door corruption that has made Americans cynical and distrustful of the federal government"; Warren's anti-corruption legislation would prohibit corporations like Energy Transfer from hiring or compensating senior government officials from agencies the companies had lobbied in the past two years
Washington, DC - United States Senator Elizabeth Warren
(D-Mass.) sent letters to Energy Transfer, the company responsible for the
Dakota Access Pipeline and other controversial fossil fuel infrastructure
projects, and former Energy Secretary Rick Perry that (1) requested additional
information regarding Perry's decision to rejoin the company's board of
directors just weeks after leaving the U.S. Department of Energy and (2) asked
that Mr. Perry reconsider his decision and immediately resign from the Board.
The letters raised concerns about corruption and conflicts of interest. As
Energy Secretary, Perry played a significant role in aggressively promoting and
boosting the oil and gas industry in the Trump administration's energy policy
-- policies Energy Transfer seeks to influence.
After serving as Governor of Texas from 2000 to 2015, Perry served as
Secretary of Energy for nearly three years, from 2017 to 2019. Between these
roles, Perry became a member of the board of directors of Energy Transfer and its
subsidiary Sunoco in February 2015, the month after leaving office as governor.
Perry left the board in December 2016, the same month then-President-elect
Trump announced his intention to nominate Perry for Energy Secretary. Energy
Transfer reported lobbying the Energy Department while Perry was Secretary.
Perry announced his resignation as Energy Secretary in October 2019 and left
office two months later. Securities and Exchange Commission (SEC) filings
indicate that Perry was appointed as a director of the general partner of
Energy Transfer on January 1, 2020, just weeks after departing government.
This re-appointment to the company's board is a lucrative move for Secretary
Perry, who reportedly could receive an annual retainer of up to $100,000 and
equally valuable stock options, and it gives Energy Transfer access to a
well-connected senior former Trump administration official.
"It is disheartening that immediately following his tenure as Energy
Secretary, Secretary Perry decided to rejoin the Energy Transfer board," wrote
Senator Warren in her letter to Energy Transfer. "Secretary
Perry's rapid trip through the revolving door between public office and
membership on your company's board will lead to countless questions about
whether Energy Transfer is purchasing access to high-level Trump administration
officials and whether top Energy Department officials are making decisions that
benefit the department's former head."
"I am concerned that, given your decision to rejoin Energy Transfer's
board immediately after resigning from federal public service and your tenure
overseeing the weakening of environmental protections that may benefit the
fossil fuel industry, you may have used your time as Energy Secretary to
benefit your former business affiliates, political allies, and future
benefactor," Senator Warren wrote in her letter to former Energy
Secretary Perry. "This is exactly the kind of unethical,
revolving-door corruption that has made Americans cynical and distrustful of
the federal government...you should rectify your mistake and immediately resign
from your position on the Board of Directors of Energy Transfer."
Senator Warren requested responses from Energy Transfer no later than
January 31, 2020.
Senator Warren has introduced far-reaching ethics
legislation, the Anti-Corruption
and Public Integrity Act, which would prevent
senior government officials from spinning through the revolving door by
prohibiting corporations like Energy Transfer from immediately hiring or
compensating former senior government officials -- like Secretary Perry -- from
an agency the company lobbies.
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