Thursday, December 21, 2017

U.S. Commerce Official Still Holds Stake in Company Linked to Putin Associates


Wendy Teramoto, the agency’s chief of staff, has maintained the investment in the wake of calls for an investigation.! 

by Dan Alexander, Forbes, and Derek Kravitz, ProPublica

This story was co-published with Forbes.

The chief of staff for Secretary of Commerce Wilbur Ross, Wendy Teramoto, still owns a stake in a shipping company tied to associates of Vladimir Putin, despite the fact that her former role as a board member for the same company prompted six Senate Democrats to request an investigation into her apparent conflicts of interest last month.

“We have not been notified, nor are we aware, of a formal investigation by the inspector general,” Commerce Department spokesperson James Rockas said in a statement. “But we continue to answer any questions that are raised by department ethics officials or the inspector general.” The statement said that Teramoto has recused herself from any matters relating to her investments. (The same senators also requested an investigation of Ross, who initially retained an estimated $3.4 million stake in the company, Navigator Holdings, but has since sold it.)

As long as Teramoto hangs onto her own investments, she will likely remain under scrutiny, especially since there is evidence that her official actions are affecting the shipping industry, in which she is heavily invested.

Teramoto previously worked for Ross at his private equity firm WL Ross & Co. She invested in funds that held Navigator stock, as well as owning shares directly, and also served on the board of the shipping company from 2014 to July 2017. From 2014 to 2016, Navigator did $68 million worth of business with a Russian petrochemicals company named Sibur. That company is partially owned by two billionaires in Putin’s inner circle, Kirill Shamalov and Gennady Timchenko. 

Click here for the full article. 

Source: ProPublica

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