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Watergate Scandal: Impact & Ethics Reforms

Learn about the Watergate scandal, its effects on government reform, and the subsequent ethics codes and laws implemented in the aftermath.

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Watergate Scandal: Impact & Ethics Reforms

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  1. Watergate

  2. Watergate • Break in at Democratic headquarters – June 17, 1972 – four men arrested that morning • Led to federal grand jury investigation and U.S. Senate investigation • Nixon denies knowing of break in, denies engaging in cover up – • 18 minute gap in one tape

  3. Senate judiciary committee conducts hearings, plus criminal trials of Nixon’s associates – • after these, House judiciary committee meets to consider impeachment charges against Nixon • 7 main areas of inquiry – more wide ranging than will Bill Clinton in 1990s

  4. 1. Domestic surveillance – “plumbers” • 2. Intelligence operations related to the 1972 presidential election • 3. Watergate break in and cover up -discussion of cash payments to buy silence • 4. Nixon’s personal finances – improvements to home, unreported income taxes • 5. Campaign fund abuses including illegal corporate contributions, sale of ambassadorships

  5. 6. political use of executive agencies such as the IRS to go after enemies • 7. Other misconduct including secret bombing of Cambodia, impoundment of funds appropriated by Congress. • Based on these 7 issues, House judiciary committee voted July 1974 to send 3 articles of impeachment to the House floor:

  6. Articles of impeachment • 1. obstruction of justice • 2. abuse of presidential powers • 3. contempt of Congress (denying committee subpoenas seeking materials for the committee’s inquiry) • Debate scheduled to begin in August, doesn’t look good for Nixon – he resigns August 10, 1974 before House floor can vote on impeachment.

  7. Effects of Watergate • Fuels cynicism about government/distrust in government, and more aggressive/non deferential press. • Leads to political reform – new campaign finance and ethics laws. • Before discussing reforms: note there were some Congressional scandals in 1970s that also contributed to reform efforts: Koreagate, Gulf Oil scandal.

  8. 1977 ethics codes, 1978 Ethics in Government Act (EIGA) • 1977 Congressional Ethics Codes and EIGA built on earlier efforts to provide general and specific ethical guidance/limits for federal government officials. • 1958 – first general ethics code for all federal employees – like the 10 commandments • 1960s- Congress passes new codes for its members only, after Bobby Baker scandal: including establishment of bipartisan ethics committee in Senate in 1964 (before, no permanent committee)

  9. New Senate rules in 1960s also detailed allowable uses for campaign contributions; required financial disclosure (but not public disclosure – confidential) • House also takes some ethics-related actions in 1960s after its own scandal; sets up bipartisan ethics committee in 1967, 1968 adopts new code (related to gifts and honoraria, requires PUBLIC financial disclosure).

  10. Later efforts, such as those in the 1970s, would tighten and make more specific earlier restrictions. • 1977 Congressional ethics codes: • Limited outside income to 15% of Cong. Salary • Disclosure must be public for House AND Senate • Sets maximum for allowable honoraria - $1000 per, $10,000 total per year. • Requires reporting of gifts of transportation, food, lodging, worth over $250 per year from each sources; can’t accept over $100 total in gifts from any person with direct interest in legislation OR a foreign national

  11. Senate ethics code of 1977 goes beyond House code of 1977 in a few regards: • No professional practice while in Congress • No lobbying Senate for 1 yr after leave office (revolving door) • No discriminating • Codes are important step but don’t have force of law (no criminal penalties, just sanctions by ethics committees such as reprimand or rebuke or fine).

  12. EIGA 1978 • Gives legal force to certain aspects of 1977 codes – such as public financial disclosure. • 1. Creates Office of Government Ethics (OGE) • 2. Establishes procedures for appointment of special prosecutor/independent counsel – can only be removed FOR CAUSE (legal reasons/misperformance of duties) not at whim of President as Nixon did with Archibald Cox.

  13. 3. Public finance disclosure requirements • Issues regarding financial disclosure: good/bad • 4. Revolving door ban – 1 year – applies to high level federal employees, NOT to Congress • 1978 also saw passage of separate act besides EIGA: Inspector General Act

  14. 1989 Ethics Act • Like with 1977 ethics codes, ethics restrictions were explicitly tied to a pay raise to soften the blow • 1. Totally banned honoraria for House members (Senate followed up in 1991) • 2. Limited travel paid for by private groups for non-governmental trips to 7 days for trips abroad, less for domestic trips. Lobbyists can’t pay for trips, but groups connected to special interests can if aren’t registered as a lobbying group.

  15. 3. Both chambers extended the gift limits – • To $300 per year from any source for Senators, • $200 per year from any source for House members. • BUT 1989 law also loosened some existing restrictions e.g. meals in D.C. And allows ethics committees to waive gift and travel restrictions if they see fit.

  16. 1989 Ethics Act also strengthens financial disclosure – doubles penalty for violating financial disclosure law to $10,000. • Bars members of Congress from revolving door for 1 year (previously only applied to Senate )

  17. TODAY • Gift limits: House and Senate: $0 from registered lobbyist, $50 from any who are not registered lobbyists • But gift exceptions (friends, trophies, trinkets, etc.) • 2007: limits on travel funded by private groups – today groups that employ a lobbyist can only sponsor trips of 1 day and 1 night (and lobbyist can’t be involved in planning the trip). • Groups with no lobbyist can sponsor trips up to 4 days domestically, 7 days internationally • Groups Abramoff (lobbyist) had offered a lot of such trips to legislators

  18. Abramoff (lobbyist) case • Prosecuted for violating federal laws: • Conspiracy, fraud and tax evasion • CONSPIRACY: two or more people getting together and planning to commit a criminal offense (maximum sentence 5 years, fine up to 250k) • FRAUD: devising a scheme to defraud or gain money or property using false/fraudulent pretenses, representations or promises (max sentence 20 years, fine of 250k)

  19. Ethics Committees • Where does their power come from: Article 1, Section 5. • Main punishments they recommend: • Expulsion, • Censure, • Fines, • Loss of chairmanship/right to vote on floor or committee

  20. How committees operate • Now only members can file complaints – used to be that outside groups like Common Cause could but that option was removed by Congress when it changed its ethics rules. (Note there IS an independent office of Congressional Ethics, 2008, before which outside groups/media/citizens can file complaints. But ethics committee don’t have to follow the recommendations of this independent commission

  21. By the constitution, only Congress has authority to determine rules and punish members. Still, independent commission has had some influence – pressure put on committee to act when commission publishes its findings (Rangel) • There have been attempts by members of Congress to cut budget of independent commission.

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