The House Commission on Surveillance and Reform said luxury hotels a few blocks from the White House were in so much trouble that the Trump organization injected $ 27 million from other parts of the business and received payments. incentives from major lenders. Said to delay payments on a loan of $ 170 million.
The Commission said losses were suffered despite estimated revenues of $ 3.7 million from foreign governments. Ethics experts say Trump should have refused because it created a conflict of interest with his role as president.
The Trump organization said in a statement that the findings of the Democrat-led committee were misleading, false and not specially treated by creditors.
“This report is nothing more than ongoing political harassment in a desperate attempt to mislead the American people and vilify Trump in pursuing his own agenda,” the company said.
The Commission documents, the first release of the hotel’s audited financial statements, show a large loss despite the active activities of lobbyists, businesses and Republican groups in which Trump is office.
Deutsche Bank’s allegations of delays in loans to the president were a “private incentive” the president should point out, as Deutsche Bank has a significant amount of business in the United States, the Commission said. Said in a letter to the office. Supervise the hotel. The hotel is leased to the Trump Organization by the federal government.
“The document concerns … Trump’s lease with the GSA and the agency’s ability to manage conflicts of interest with the former president during his tenure while it was in effect on both sides of the contract as the landlord and tenant. I raise an annoying new issue for the Commission, ”wrote Carolin Maloney of New York and Gerald Connolly of Virginia, Democratic Party co-chairs of the Commission, in their letter.
The GSA did not immediately respond to the request for comment.
Deutsche Bank said in a statement that the Commission made “inaccurate statements” about the loan agreement, but declined to give details due to concerns about the confidentiality of the loan.
The Commission’s letter to the GSA said the loss of the hotel contradicted the president’s “exaggerated picture of financial success” in his personal financial disclosure report sent to the Federal Ethics Administration each year. .. However, these reports should only disclose income, not profits. It’s a comparison of apples and oranges seized by one of Trump’s sons in a tweet that blows up the committee.
“Before you write us a long letter, learn the difference between total income and net income,” Eric Trump wrote, calling the committee “incompetent.”
The Trump company has been trying to sell a 263-room hotel since fall 2019, but during the coronavirus pandemic, it struggled to find a buyer at the stated initial asking price of over $ 500 million. Made.
The loss, the CREW chief told Government Ethics Watchdog, said the loss sheds new light on Mr. Trump’s refusal to bar foreign governments from sponsoring his company.
Noah Bookbinder, president of Citizens for Responsibility and Ethics in Washington, said, “Using his presidency to win business was absolutely essential in stopping the flow of losses. “
To alleviate concerns about conflicts of interest, Trump has pledged to send payments to the U.S. Treasury every year for foreign government income from his business. The commission said payments from hotels in Washington under the deal amounted to more than $ 350,000 in the first three years after he took office. Critics of the voluntary deal say Trump’s definition of gains was unclear, giving the president leeway to reduce the numbers.
The Washington hotel was badly hit by a pandemic-related shutdown last year, but audited financial statements released by the Commission show it was in pain every year before it opened. He lost nearly $ 50 million in the first three years of his inauguration and lost $ 22 million last year.
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Donald Trump’s hotel in Washington, DC lost over $ 70 million during presidency, despite foreign government revenue Source link Donald Trump’s hotel in Washington, DC lost over $ 70 million during presidency, despite foreign government revenueSource link