How the Clintons Worked the Angles in Haiti By Mary Anastasia O’Grady

http://www.wsj.com/articles/how-the-clintons-worked-the-angles-in-haiti-1431300232

Bill handled earthquake aid while Hillary was secretary of state. The nation deserved better.

“It is the sense of Congress that transparency, accountability, democracy, and good governance are integral factors in any congressional decision regarding United States assistance, including assistance to Haiti.”

—Assessing Progress in Haiti Act of 2014, section 4.

Peter Schweizer’s new book, “ Clinton Cash,” has stirred up media and public interest partly by making the point that most of the dealings of Bill and Hillary Clinton have been with poor countries with a weak rule of law. The U.S. legislation cited above singles out Haiti.

There could hardly be a better example of Clinton machinations undermining development. Congress is partly to blame and now seeks to make amends.

The U.S. Founding Fathers went out of their way to establish a republic guided by the rule of law and not the rule of men. If there is a singular principle that has set the U.S. apart from countries south of the Rio Grande it’s the checks and balances that protect against caudillo power.

Yet in the aftermath of the January 2010 earthquake, while Hillary Clinton was secretary of state, the Obama administration and Congress gave Bill Clinton carte blanche in handling hundreds of millions of U.S. taxpayer dollars flowing to Haiti for recovery and reconstruction. This translated into enormous political power for the former president in the poorest country in the hemisphere, making him a de facto cacique.

Mr. Clinton loves to paint himself as a third-world redeemer, as he did in an interview in Africa with an NBC reporter that aired last week. The reporter asked about charges that the Clinton Foundation’s practice of pulling in big money from governments and wealthy donors during Hillary’s tenure as secretary of state was a conflict of interest. Mr. Clinton countered that he’s helping the poor.

As an NBC narrator described Clinton Foundation activities, the former president and his daughter were shown fitting locals with hearing aids. Pravda could not have crafted a better piece of propaganda.

Yet peel back the veneer of “charity” and one finds that the Clinton way has inflicted egregious harm on the poor in developing nations because it has undermined respect for the rule of law that is so necessary for economic growth. If a former president of the U.S. flouts anticorruption protocols, why should the locals get hung up on them?

Haitians learned about Mr. Clinton’s affinity for cronyism after he used the Marines to restore deposed Haitian strongman Jean Bertrand Aristide to power in 1994. As I have documented in this column, “friends of Bill” subsequently were awarded, in secret, a sweetheart deal from the state-owned monopoly phone company, Haiti Teleco, that gave them a substantial edge over the prevailing, mandated long-distance rates set by the Federal Communications Commission.

Within two weeks of Haiti’s January 2010 earthquake, the word had already gone out from the State Department that Bill Clinton would be in charge of U.S. reconstruction efforts. “That means,” one individual told me and I reported in a Jan. 25, 2010 column, “if you don’t have Clinton connections, you won’t be in the game.”

The “game,” as my source called it, meant securing hundreds of millions of dollars in no-bid contracts from the State Department’s U.S. Agency for International Development and grants from multilateral institutions like the InterAmerican Development Bank, which gets the bulk of its funding from the U.S.

The Clintons deny that Bill’s power over State’s purse was used to secure donations to the Clinton Foundation. But at least two contributors who gave more than $1 million as I described in a March 9 column, including the InterAmerican Development Bank, benefited from U.S. earthquake aid.

There’s a lot that didn’t get done. In the north of the country, the Clinton-proposed Caracol Industrial Park was supposed to feature some 40 buildings for apparel assembly supporting up to 65,000 jobs. It remains a mystery why there are still only three buildings in full operation and only 5,000 jobs, despite plenty of tenant interest.

Haitians are reluctant to criticize the Clintons publicly because of their power. “No one wants to be on the wrong side of the next president of the United States,” one Haitian told me during a visit I made to the country in December.

Yet Congress was so scandalized by the dismal findings of a 2013 Government Accountability Office report on reconstruction spending in Haiti that it finally passed an “Assessing Progress” act requiring periodic reports on where tax money goes.

Congress is well aware of the Clintons’ runaway abuses. Its “sense” that foreign aid, “including” to Haiti, ought to be tied to the rule of law is an admission that under the Clintons established protocols to protect against corruption were tossed aside.

Write to O’Grady@wsj.com

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