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WASHINGTON, DC -- Rep. George Miller (D-CA) sent a letter on Wednesday to U.S. Labor Secretary Elaine Chao asking for more information about the shady dealings that led to the resignation of Mark Knouse, the executive director of a three-nation commission to examine labor issues under the North American Free Trade Agreement. According to National Journal magazine, Knouse – a Pennsylvania lobbyist – is alleged to have used commission funding to continue engaging in outside lobbying. Chao nominated Knouse to the position in 2004. Knouse is married to an assistant in the executive office at the Labor Department.
“Secretary Chao appointed a crony to lead a key labor commission under NAFTA,” said Miller, the senior Democrat on the House Education and the Workforce Committee. “Chao’s nomination of Knouse in the first place is itself enough cause for concern. But even more troubling is what Knouse did after taking office. If allegations against him are accurate, then Mr. Knouse repeatedly abused the public trust, using taxpayer dollars from three countries to fund his own lobbying activities. Secretary Chao must release all of the relevant records so that we can learn all the facts.
“Unfortunately, the appointment of corrupt and inexperienced cronies to important positions in the federal government has become all too familiar during the Bush administration’s tenure. And Congress’ total failure to conduct oversight has allowed this unaccountable administration to run amock. It is time for a new direction in Washington,” said Miller.
The full text of Miller’s letter to Chao is below.
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November 1, 2006
Dear Secretary Chao:
I was alarmed to learn of the circumstances surrounding the resignation of Mark Knouse, the U.S.-nominated executive director of the secretariat of the NAFTA Commission for Labor Cooperation (CLC). A number of allegations regarding Mr. Knouse’s tenure at the CLC are deeply troubling to say the least. I am writing to obtain further information about these matters.
According to an article in the October 28, 2006, issue of National Journal, Mr. Knouse resigned sometime after a Labor Department memorandum raised concerns regarding “whether the executive director has engaged in outside activities while charging his time and expenses for such activities to the secretariat.” The article reports that, while CLC rules prohibit the executive director from engaging in outside employment without the express authorization of the Council of Ministers, Mr. Knouse – during his tenure as executive director – registered as a lobbyist for clients before the Pennsylvania Senate and never received authorization to do so. During his tenure as executive director, Mr. Knouse apparently charged thousands of dollars to his CLC credit card for meals with Pennsylvania state and federal legislative staff and for travel to and from Pennsylvania. It also appears that he hired friends of his from Pennsylvania and college friends of his daughter to work with him at the secretariat and entered into contracts with former clients.
According to a Labor Department spokesman quoted in the article, “a joint decision was made by the three countries that it would be best if Mr. Knouse stepped down as executive director.” Mr. Knouse is quoted as saying he “agreed to the separation.” The article reports: “He was not required to repay any expenses, and his separation agreement with the CLC includes a clause releasing Knouse from liability ‘for any and all claims of any kind whatsoever . . . which the commission . . . now has or ever had’ against him.” It is not clear from the article why the CLC would enter into such an agreement.
Pursuant to my position as Ranking Member on the U.S. House Committee on Education and the Workforce and pursuant to the Freedom of Information Act, I am requesting that you provide me with the following information:
1. A copy of the memo referred to in the October 28, 2006, National Journal article (page 56) as an August 18 “memo produced by the Labor Department office that oversees the commission.”
2. A copy of any written findings or conclusions from the U.S. Department of Labor solicitor and his office indicating that, as Mr. Knouse is quoted saying, “no irregularities were found and that my management decisions were found to be in accordance with the rules of the secretariat.”
3. A copy of any written referral of the questions or concerns raised regarding the propriety of Mr. Knouse’s actions as executive director of the secretariat of the NAFTA CLC to an independent office for investigation, such as the Department of Labor’s Office of the Inspector General or the Department of Justice.
4. A copy of the bills for Mr. Knouse’s Secretariat credit card, from August 2004 through October 2006.
5. A copy of any expense reports or other documents indicating how Secretariat funds were being spent by Mr. Knouse and his staff, from August 2004 through October 2006, including any documentation indicating that Secretariat funds were used to purchase a membership or memberships with the National Republican Capitol Hill Club.
6. A copy of any and all letters, e-mails, facsimiles, or other communications between the Department of Labor and its offices, including the Bureau of International Labor Affairs, OTAI/NAO, and the Secretary’s Office, and the Secretariat, Council of Ministers, Council Designees, and Commission for Labor Cooperation concerning allegations relating to inappropriate use of Secretariat funds and staff time and employee harassment since 2004, including any May 17, 2006, letter from the Department of Labor’s deputy undersecretary for international affairs to any Secretariat offices concerning freezes on budgetary activities such as contract revisions, relocation expense authorizations, and home leave and any follow-up communications thereto.
7. A copy of any separation agreement or other agreement between the Department of Labor or the Secretariat and Mr. Knouse concerning his separation from employment as the executive director of the secretariat of the NAFTA Commission for Labor Cooperation.
8. A copy of any letters, e-mails, facsimiles, or other communications between the Department of Labor and its offices and the Secretariat, Council of Ministers, Council Designees and the Commission for Labor Cooperation concerning negotiations or contents of any separation agreement between Mr. Knouse and the Secretariat/Commission for Labor Cooperation.
9. A copy of the original employment contract between Mr. Knouse and the Secretariat.
10. A copy of any records or other documents indicating when Mr. Knouse used vacation time during his tenure.
11. A copy of any records or other documents indicating any and all payments to Mr. Knouse by the Secretariat, the date of such payments and the purpose of such payments during his tenure.
12. A copy of all publications, reports, or other research projects produced by the Commission for Labor Cooperation for use by the member countries during Mr. Knouse’s tenure.
Please provide these documents to my office within seven days.
Thank you for your attention.
Sincerely,
GEORGE MILLER
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