Commerce Nominee’s Work for Ohio Firm Under Fire

President-elect Bill Clinton’s nominee for secretary of commerce received up to $140,000 in brokerage fees last year for helping an Ohio company land local government contracts, a published report said.

The Washington Post reported in Sunday’s editions that the money was part of the $750,000 in income that Democratic National Chairman Ronald H. Brown received last year.

Brown’s business relationships have become an issue as he seeks confirmation as secretary of commerce. Senate Republicans have threatened to seek a delay in committee action on the nomination until they get more information on his lobbying activities.

Last week, Brown canceled a scheduled pre-inaugural gala in his honor after it was disclosed that a number of giant corporations were paying up to $10,000 each to put on the event at the John F. Kennedy Center for the Performing Arts.

In the latest development, the Post said Brown’s relationship with the Public Employees Benefit Services Corp. (PEBSCO) has become an issue among Republican senators.

The private firm administers public employee retirement plans. Brown owns an affiliate of the company, Capital PEBSCO Inc.

Among other duties, the secretary of commerce has the responsibility of awarding certain government grants to distressed cities.

The Post said that after it asked questions about Brown’s relationship with the companies, Brown said he would “fully and promptly” divest himself of any interest in the firms “to avoid even an appearance of conflict.”

Brown aide Rob Stein said Brown decided to divest even though his dealings were cleared by the Office of Government Ethics and the ethics officer at the Commerce Department, the paper said.

It quoted Stein as saying that Brown would no longer collect brokerage fees from the firm.

It said Stein acknowledged earlier that Brown had earned the fees chiefly by soliciting business for PEBSCO in Washington, Philadelphia, New Orleans and Atlanta.