DOT chief target of ethics probe into maritime connections

Cummings’ investigation is also looking into the extent to which Chao was involved in decisions to reduce funding for DOT programs that benefit U.S.-flagged vessels that operate in foreign trades that could benefit Foremost Group, which operates foreign-flagged ships exclusively.

The letter outlines DOT’s budget requests in 2018 and 2019, which sought more than an $80 million cut in from the government’s Maritime Security Program, which subsidizes 60 U.S. flagged commercial vessels that are on-call for use by the Department of Defense as needed for sealift capacity. DOT also requested “millions of dollars” in cuts for federal grants and loans for U.S. shipyards and shipbuilders, according to the letter.

“Given the decline in the number of U.S.-flagged vessels in foreign trade, DOT’s approach to these programs may threaten national security by increasing the likelihood that our military will be dependent on foreign-flagged vessels during times of war or emergency.”

In addition to her maritime connections and interests, Cummings’ committee also wants to investigate Chao’s failure to divest her ownership in Vulcan Materials, a major U.S. construction company, before starting her position as DOT Secretary. Chao, who was sworn in on Jan. 31, 2017, did not divest her 3,000 shares of common stock, worth more than $300,000, until June 3, 2019, after news reports of her failure to divest, according to the letter.

A DOT spokesperson acknowledged that the agency had received the committee’s letter seeking “information on a variety of topics based on publicly available information and news coverage,” in response to a request seeking comment, adding that “media attacks targeting the Secretary’s family are stale and only attempt to undermine her long career of public service.”

Cummings has asked Chao to respond to a list of 18 information and document requests by Sept. 30. The list includes communications between herself or any DOT employee and Angela Chao, James Chao, or other current or former employees of Foremost Group about official meetings and travel, starting from January 2017. Also requested are the number of enforcement actions brought by DOT for violations of “cargo preference” regulations which require federal agencies to transport certain percentages of government cargo on U.S. flag vessels.