Giuliani’s Top 10 ‘Shag Fund’ excuses — and why they’re wrong

So, after a very tough week, are things getting better or worse for everyone’s least-favorite scandal-plagued presidential candidate? Take a wild guess.

In the fall of 2001, city cops chauffeured Rudy Giuliani’s then-mistress, Judith Nathan, to her parents’ Pennsylvania home 130 miles away on the taxpayers’ dime.

Records show that city cops refueled at an ExxonMobil station down the road from Nathan’s childhood home in Hazleton on Oct. 20, 2001, while Giuliani stayed behind in New York attending 9/11 funerals. A similar receipt pops up at a different Hazleton gas station two months later, when Nathan apparently went home for a pre-Christmas visit with her parents.

The records show that – in addition to using City Hall funds to take Giuliani and Nathan to 11 secret trysts in the Hamptons, as has been previously reported – taxpayers were paying to ferry Nathan on long-distance trips without Giuliani, now a Republican contender for President.

Indeed, this scandal has produced several entertaining headlines over the last half-day or so. Giuliani’s campaign aides have begun bullying reporters, there was a new report showing that when the city comptroller initially raised questions about Giuliani’s highly suspicious billing practices he was stonewalled repeatedly, and we also learned that Giuliani made an unusual $400,000 pre-payment to American Express in 2001, which “adds weight to the theory that the Giuliani administration was using accounting gimmicks to obscure his office’s travel expenditures.”

Taking a step back, however, one sees that the former mayor and his aides have come up with a variety of rationalizations to justify Giuliani’s conduct and dubious decisions. I’ve put together a list, with the explanations ranging from merely unpersuasive to transparently ridiculous.

Indeed, I’ve come up with a Top 10 list.

1. The story “isn’t true” — At Wednesday’s debate, Giuliani said Smith’s article “isn’t true.” There’s been no follow-up to explain why he doesn’t think the story is true; he simply wants to assert it.

2. The premise of the story isn’t true — Giuliani adviser Anthony Carbonetti said yesterday that the “premise of the original story has been proven false.” I’m not exactly sure what this means, but both the story and its “premise” remain very much intact, and Team Giuliani hasn’t offered a shred of evidence to the contrary.

3. Giuliani was trying to help the NYPD — Why did Giuliani hide his Shag Fund bills in the budgets of the Loft Board and the Office for People With Disabilities? According to Giuliani, to help the cops get paid faster. New York City Police Commissioner Ray Kelly has debunked this argument completely.

4. This is “old news” — Yesterday, Giuliani aides said these revelations are “old news,” which necessarily minimize their significance. First, the billing scandal made headlines on Wednesday, which is pretty “new” news. Second, Giuliani is running for president based on what he did in office. If he wants us to consider his record, are we really supposed to overlook the scandalous parts? By that logic, aren’t his accomplishments from NYC also “old news”? Besides, this defense might have been more effective if Giuliani had answered questions when they first arose in 2001 and 2002, instead of stonewalling investigators.

5. “We’ve already explained it” — As the questions become more intense, Giuliani would only tell reporters yesterday, “We’ve already explained it.” If that were true, there wouldn’t be so many questions. (Note to Rudy: nonsensical rationalizations that have already been debunked do not count as an “explanation.”)

6. The story is a “hit job” — Funny thing about this scandal, the messenger and the message are equally hard to attack. The evidence is based on incontrovertible NYC billing records. That someone found them and started making connections does not a “hit job” make.

7. The money was “reimbursed” — Both Giuliani and his campaign are emphasizing that the various city agencies were eventually reimbursed for the expenses. That’s probably true, but utterly irrelevant. Josh Marshall explained that the whole argument is “basically a distraction. The issue was why they were paying these bills out of these obscure accounts in the first place. Reimbursement or not, it still has the effect of hiding what Rudy was doing.”

8. Everybody does it — Giuliani’s campaign argued that the scandalous billing practices are common in NYC and have been utilized by a variety of other NYC mayors. The campaign then reversed course a few hours later and admitted their claim is completely wrong.

9. Everything was “transparent” — Giuliani and his aides have insisted that the expenses were handled “openly” and “honestly,” and that the billing was “transparent.” NYC Comptroller Bill Thompson has no idea what Giuliani is talking about: “That’s not the way that we operate these days, and it would not be the preferred way of doing business. In the end, it’s a very convoluted way of getting things done. If anyone hoped that no one would notice, they were being foolish.”

10. There was no “cover-up” — Giuliani’s spokesperson was reduced to this pathetic response: “I don’t understand when it started. I don’t understand why it started. But I do know one thing: It was consistently done … in no way shape or form did it imply a cover-up.” First, when you hide unrelated billing records in the Office for People With Disabilities, it looks like a cover-up. Second, when auditors have questions about billing records, and Giuliani and his aides refuse to cooperate or answer any questions, it looks even more like a cover-up.

Usually, when a political scandal breaks, the accused manages to come up with some kind of talking points for supporters to use. So far, Giuliani & Co. are completely stuck, bouncing from one debunked claim after another.

It’s not a good sign.

“It’s not a good sign.”

for whom? personally, i think it’s a great sign.

  • I think Giuliani’s current dealing with the media is pretty telling – and in my opinion, it’s a pretty stupid move on his part: nothing like being stonewalled to get reporters to dig even deeper. I’m sure Rudy’s thinking that if he ignores it, the whole thing will blow over, but this is probably the juiciest thing the media has seen since the campaign started, so I kind of doubt they are going to let it go.

  • Indeed it is not a good sign for Democrats…. It looks like this scandal has legs and given Rudy’s nature, he’ll drop out of the race before it can be claimed that he ‘lost’ the nomination. Maybe his colon cancer came out of remission, maybe he had a talk with his family and he decides to spend more time with them, maybe another ‘cancer’ is found in his body. Either way, I can see him dropping out before the official nomination for the Republican candidate happens…

    It’s the old adage: beware what you ask for. WE wanted more accountability and more scrutiny of Rudy’s lies and fraudulent dealings in the past. We got them and now we won’t have him to kick around during the Presidential election.

    I don’t think that even a ‘Rove’ can save Rudy at this moment. At least Bush’s DUI’s, drug addiction records, and being AWOL happened so long ago that records were easily lost. Rudy or any other candidate for that matter doesn’t have that luxury. Those ‘tubes’, called the internet, have a good purpose: making their lives and actions more transparent. — For better of for worse….

  • On point 7, it’s not irrelevant if, in fact, reimbursements were not made. I think the reimbursement paper trail (or lack thereof) could, in fact, be very interesting. Here’s the options:

    1 – Reimbursements were made, and all drawdowns satisfied in full. From what account, and under whose authority? Can we see the checks?

    2 – Some reimbursements were made, but not in full for all accounts

    3 – Reimbursements were generally not made; the agencies were expected to eat the charges for the mayor, for what payback or as against what was held over their head we know not.

    We shouldn’t take it for granted that, because they are using ‘reimbursements were made’ as a defense, that all reimbursements were made. I’d bet that they left at least some of the accounts begging. The agency heads may have reluctant to make demands on da mayor, and later (post-Rudy) they may have been reluctant to admit they’d been used that way, and may have just kept it zipped, hoping it would all go away. Some interviews with the agency heads would be interesting as well; responses may honestly vary from ‘yeah, we knew, they made us go along with it’ to ‘what?’.

    I think there’s a very good chance that reimbursements were not made, which deepens the depth of the doodoo greatly. In any event, it would be revealing to see the checks and accounting records.

  • I was just over at Washington Monthly, where a poster named “patrick” brought up the old Guiliani/Lategano affair. It reminded me of one of my all-time favorite quotes in an article written about the affair, which said someone – maybe Donna Hanover – walked into Guiliani’s office and found him “dick-deep” in Lategano.

    Don’t know why, but “dick-deep” has remained one of my fav phrases about Guiliani.

  • “Indeed it is not a good sign for Democrats”

    You think Romney or Huck would be that hard to beat? Last I saw, Rudy was polling the best against the Dems. Fine with me if he flames out now.

  • Kyle… I think that Rudy would be easier to beat than Romney. I doubt Huckabee will be the candidate. Romney has government experience as well as business experience. Something the majority of Republicans find important.

    I think with Rudy as the candidate more Republicans would peel away from the party, compared to when Romney is the candidate. Given their very short memories, they would forget about all the squirming Romney had to do in order to get the nomination to get past the religious conservative nuts. I don’t think that Rudy could count on a short memory in regards to all the scandals that plague him.

    Regardless of who the republican candidate is, I think the democratic candidate will win. It would just be nice to see the republican party disintegrate with Rudy as their poster boy. With Romney, they would just lose the election, compared to with Rudy it would be a complete implosion.

    As Howard Dean said: we can’t take it for granted and have to fight them all the way. Republicans are not known to be good at running government, but they are good at winning elections. A Rudy caused implosion of the Republican Party would go a long way to making sure they don’t win elections for the foreseeable future.

  • I agree, entirely, with drinkof, @5. Given that they’re lying their heads off on all other points, we shouldn’t be assuming that they’re suddenly telling the truth about the money having been reimbursed. All 3 points mentioned by drinkof should be checked and #4 added: *if*, indeed, the money had been reimbursed, *when* was it done? Because, if it was just this week, as a matter of damage control, it would look that much worse for him.

  • I agree with some of the other commentary. I don’t care if Giuliani flames out now, I prefer it in fact. It’s much mo’ betta now than after he would get the nomination, acquire the Repug mantle, and get another thicker coat of media Teflon. I happen to think that the other potential candidates like Mitt & Huck are more readily beat than Rudy and frankly the thought of Don Rudy as President scares me even more than a 3rd term of Bush would. Can you imagine the evil cornucopia of violence, corruption, cronyism, insanity, and greed that tinpot scumbag tyrant would unleash on the world at the helm of a SuperPower? Scary beyond belief.

    Frankly, I love seeing Rudy brought down because he can’t keep it in his pants.

  • The problem with this “smear” is that it is a “gotcha” that is purely a media creation that feeds the need for raw meat by factions that weren’t going to vote for Rudy anyway. Which is why it is five years old and which is why it didn’t get any traction the first time around. that won’t stop it from running its course and I do expect it to do some damage because of the salacious way it is being presented.

    If it is still in the news by this time next week — Rudy will likely have to do some kind of big “60 Minutes type interview ala Bill and Hillary over the Jennifer Flowers episode back in 1992 which saved his campaign.

    And it not like Rudy doesn’t have a good case to make that this is just your typical political mudslinging — a few points should be remembered.

    1st, there is no indication that any crime was comitted by Rudy here or even by any of his advisors — and the Bloomberg Administration has already stated that the NYPD reimbursed these agencies for the monies that were initially charged to them. That supports Rudy’s statement that the payments were made the way they were in order to get American Express paid on time since the NYPD was a much slower payer then other agencies under the mayors control.

    Anyone who has ever worked for a company that had a huge corporation as a vendor knows how much harder it is to get paid when invoices must travel through a bloated bureacracy like at IBM — then it is to get paid from smaller companies. Likewise the NYPD is like the “IBM” of NYC agencies.

    And as we all know American Express expects to have the balance paid off by the end of every month or you incurr very steep interest rates and other penalties. So it is not unreasonable to believe that the mayors office, upon seeing that the NYPD was not paying Amex on time, would have chose to pay these credit card bills on time through other agencies and then have the agencies reimbursed by the NYPD. And the Bloomberg administration has vouched for Rudy — the NYPD did reimburse these agencies.

    2nd, if Rudy hads been actually trying to hide expenses related to his security detail because they were for Judi– he certainly would not hide them in obscure city agencies that aren’t normally billed for such services (like the NYPD) and therefore were sure to be red flagged.

    3rd, Rudy never did hide his relationship with Judi — and the the accusation that there is something improper about a Mayor of NYC whose high profile status makes him the target of threats on a daily basis should not be allowed to have the city provide security for his family and significant other is just ridiculous.

    4th, the charge of “mistress’ suggests that Rudy was involved in some kind of sleazy behaviour behind his wife’s back — as I’ve pointed out with links to prove it — it was common knowledge that Rudy’s marriage was over by 1996 and he didn’t even meet Judi until 1999. In fact, the charge in NYC at the time was not that Rudy was caught cheating with Judi — it was more that he was so cruel in throwing the relationship in Donna’s face during their ugly and very public separation and finally divorce. As a divorced man myself, whether I supported Rudy or not I would be hard pressed to judge his actions during a divorce — it is a living hell – and I am happy that he seems to have found his soul mate in Judi.

    Given all the above, it will be interesting to see how all this plays out in the polls — my feeling is that GOP moderates and independents aren’t going to care — but you never know.

  • Don’t bother with the long winded “everybody does it – nothing to hide – move along now”.

    We’re not voting for him.

    But good luck with all that – I’ve seen people fired for a whole lot less.

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