Letter To GSA Requesting Audit of Old Post Office

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Katherine W. Dedrick, Staff Director Pnul J. Sass, Republican Staff Director

October 1, 2019
Emily Murphy
Administrator
General Services Administration (GSA)
1800 F Street, NW
Washington, DC 20405
Dear Administrator Murphy:
As documented in the General Set-vices Administration Inspector General's (GSA IG)

] anuary 16, 2019, report on the Old Post Office Building, President Trump's ownership interest in
the Trump International Hotel, which leases the GSA-managed Old Post Office Building in
Washington, D.C., raises questions of compliance with the U.S. Constitution and the terms of the
lease.1 Specifically, it raises questions about (i) the U.S. Constitution's Foreign Emoluments Clause2,
which prohibits U.S. presidents from receiving payments from foreign states without Congressional
consent, (ii) the U.S. Constitution's Presidential Emoluments Clause.' (also known as the Domestic
Emoluments Clause), which prohibits U.S. presidents from receiving payments from U.S. state
governments and the U.S. Federal Government, other than salary, (iii) section 37.19 of the lease,
which prohibits any elected Federal official in the United States from being admitted to any share or
part of the lease," and (iv) section 37.2 of the lease, which requires compliance with all laws of the
United States including the U.S. Constitution5.
In the January 2019 report, GSA IG concluded that GSA recognized the possibility that
constitutional issues may breach the lease, but GSA decided not to address these issues in
connection with its management of the lease. It also found GSA improperly ignored the
1
"Evaluation of GS.A's :tvfanagement and Administration of the Old Post Office Building Lease," Office of Inspector
General (OIG), General Services Administration (GSr\), OE19-002), Janua1y 16, 2019, accessed here:
h ttps: // \V\VW. gsaig.gov I con ten ti eva lua tion-gsas-m anagement -and-ad minis tra tion-old-pos t-office-building-lease.
2 U.S. Constitution, Article I, Section 9, Clause 8
3 U.S. Constitution, Article II, Section 1, Clause 7

4
General Services Administration, Ground Lease, By and Betueen The United States of.America (as "Landlord'') and Trump Old
Post Office LLC (as "Tenant") (GS-LS-11-1307) (Aug. 5, 2013), accessed here: https: //,V\V\v.gsa.gov /reference/freedom-
of-information-act-foia/electronic-reading-room.
5 General Services Administration, Ground Lease,
By and BetJ1Jee11 The United States ofAmerica (as "Landlord") and Trump Old
Post Office LLC (as 'Tmant'') (GS-LS-11-1307) (Aug. 5, 2013), accessed here: https: //w,V\v.gsa.gov /reference/freedom-
of-information-act-foia/elect.ronic-reading-room.
Administrator Murphy
October 1, 2019
Page 2
and it found that GSA's unwillingness to address the constitutional issues affected its analysis of
Section 37.19 of the lease and the agency's decision to grant the tenant, the Trump Old Post Office
LLC, an Estoppel Certificate, which certified the lease as valid.6
GSA's failure to appropriately address these issues is even more problematic in light of the
manner in which its rental payments are calculated under the lease. Under Article V of the lease,
GSA can receive, as a part of its monthly rental payments, a portion of Trump International Hotel's
gross revenue.7 This creates an inherent conflict for GSA, which is benefitting from a lease that may
not be valid and could be violating the U.S. Constitution's Emoluments Clauses.
Worse still, GSA isn't even attempting to gather the relevant financial data it needs to ensure
compliance with the terms of lease or the U.S. Constitution. As GSA's Public Buildings
Commissioner Dan Matthews acknowledged at our September 25, 2019, Subcommittee on
Economic Development, Public Buildings, and Emergency Management hearing, GSA has not yet
conducted an audit of the Trump International Hotel. Based on his testimony, it appears the only
audited information that GSA has about the hotel, are annual audits conducted by a third-party
company chosen by the Trump International Hotel.
Given GSA's past failures to address constitutional and contractual issues raised by President
Trump's ownership interest in the Trump International Hotel, and the possibility that GSA may
now be receiving rents earned from constitutional violations and/ or a breached lease, we
respectfully request that GSA do the following:
1) Produce the financial records and legal analysis to our committee as requested in our
January 22, 2019 letter, which includes, but is not limited to full and complete copies of
the Trump Old Post Office LLC's annual and monthly statements.
2) Conduct an audit to determine:
a. The amount of rent GSA is receiving pursuant to its lease of the Old Post Office
Building, including what portion of that rent consists of GSA's share of the
hotel's gross revenue, and identify what steps GSA is taking to ensure that it is
receiving all gross revenue- related rent it is owed.
b. The amount of rent GSA is receiving that derives, in any part, from payments
received by the Trump International Hotel from foreign governments or their
entities, U.S. state governments, and/ or the Federal Government of the United
States, and what steps GSA is taking to ensure that:
1. The Trump Old Post Office LLC is not receiving revenue in violation of
the U.S. Constitution or the terms of its lease with GSA; and
6 Office of the Inspector General, General Services Administration, Eualaation of GSA 's lvla11ageme11t and .Administration of
the Old Post Office Building Lease, p. 23 (JE 19-002) Qw. 16, 2019) accessed here:
https:/ I www.gsaig.gov/ content/ evaluation-gsas-management-and-administration-old-post-office-building- lease.
7 General Services Administration, Gro1111d Lease,
By and Between The United States of.America (as "Landlord") and Trump Old
Post Office LLC (as 'Tenant") (GS-LS-11-1307) (Aug. 5, 2013), accessed here: https:/ I www.gsa.gov/ reference/ freedom-
of-information-act-foia/ electronic-reading-room.
October 1, 2019
Page 3
ii. GSA is not receiving anyTrnmp Old Post Office LLC revenue that may
be in violation of the U.S. Constitution or the terms of its lease with
GSA
3) Use GSA's authority under Section 5.5 of its lease to Trump Old Post Office LLC to
inspect the hotel's records and to identify and report to this committee all of the hotel's
transactions with foreign governments or their entities, U.S. state governments, and the
Federal Government of the United States, including but not limited to the following:
1. The Embassy of Kuwait's 2017 and 2018 National Day celebrations at

the Trump International Hotel in Washington, D.C.8
ii. A 2018 Philippine Independence Day celebration at the Trump

International Hotel in Washington, D.C.9
111. Rooms and meals purchased by then-Maine Governor Paul LePage and
his staff at the Trump International hotel in Washington, D.C.10 ·
In attempting to identify transactions that may be responsive to this request, we expect GSA
to, at a minimum, search for records involving email addresses ending in ".gov" or any U.S. state
.gov such as "Maine.gov"; transactions paid for with a U.S. government or state government credit
card; transactions paid for by credit card from any foreign government; as well as all records relating
to the Trump Organization's annual donations to the U.S. Treasury of profits from foreign
governments.11
Section 5.4 of the lease between GSA and Trump Old Post Office LLC expressly entitles
GSA to cause audits of the books and records of Trump International Hotel LLC on the hotel's
premises to be performed by an auditor of GSA's choosing within four years after the end of each
lease year.12 Section 5.5 of the lease gives GSA the power to inspect, examine, and audit hotel
records." Given that the hotel opened nearly three years ago, on October 26, 2016, time is of the
essence.
8 David A Fahrenthold and Jonathan O'Connell, Kiouait: embassy returns to Tr11mp hotel i11 D.C. for its national dqy cetebratio»,
Washington Post, Jan. 26, 2018, accessed here: https:/ /beta.washingtonpost.com/ politics/kuwaiti-embassy-retums-co-
trump-hotel-in-dc-for-its-national-celebration/ 2018/ 01/ 26/ 1355f9c0-02cd-1 le8-8acf-ad2991367d9d story.html.
9
Bernard Condon and Stephen Braun, Philippines Latest Foreign Cou11try to Book the Trump International Hotel, NBC
Washington, Apr. 28, 2018 accessed here: https:/ /www.nbcwashington.com/news/local/Philippines-Latest-Foreign-
Country-to- Book- Rooms-at-the-Trump-International- Hotel-481144831.html.
10
Ellen Cranley, Theformergooemor ofMaine reportedfy spent at least $22,000 i11 taxpayer mo,iry at Trump's DC hotel, Business
Insider, Feb. 17, 2019 accessed here: https://www.businessinsider.com/ maine-gov-lepage-spent-22000-of-taxpayer-
money-at-trumps-dc-hotel-2019-2.
11
Lucien Bruggeman, Trump O,;g reports $191,000 p,vfltfrom foreig11 govemmmts, cuts check to Treasury, ABC News, Feb. 25,
2019, accessed here: https:/ I abcnews.go.com/Politics/ trump-or:g-reports-191000-profit-foreign-govemments-
cuts/ story?id=61303571.
12
General Services Administration, Gro1111d Lease, By and Bet1Vee11 The United States ofAmerica (as "Landlord"} and Tmmp Old
Post Office LLC (as 'Tenant'') (GS-LS-11-1307) (Aug. 5, 2013), accessed here: https:/ I www.gsa.gov/ reference/ freedom-
of-information-act-foia/ electronic-reading- room.
13 Id.
October 1, 2019
Page 4
The issues outlined above combined with the specific emoluments concerns regarding the
Trump International Hotel make an audit of the GSA Old Post Office Building lease, along with the
document production to the committee and record inspection described above of the utmost
importance and we hope you will begin this work as soon as possible. If you are unable or unwilling
to conduct any part of the actions indicated above, please provide us with a written. explanation
detailing the obstacles or reasons for not fulfilling this request. Please respond to the committee in
writing by October 16, 2019, regarding your intended plan regarding the requests we have outlined
in this letter.
We appreciate your attention to this matter. If you have any questions about this request,
please contact Matthew Weisman on the Majority staff at 202-226-3357.
Sincerely,
DINA TI1US
Chair
Subcommittee on Economic
Development, Public Buildings, and
Emergency Management
cc: The Honorable Sam Graves, Ranking Member

Committee on Transportation & Infrastructure
The Honorable Mark Meadows, Ranking Member

Subcommittee on Economic Development,
Public Buildings, and Emergency Management

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Qtnmmitt.e.

e nn IDrannpnrtatinn anh lfnfraatrurture

Katherine W. Dedrick, Staff Director Pnul J. Sass, Republican Staff Director

Dear Administrator Murphy:

As documented in the General Set-vices Administration Inspector General's (GSA IG)

3 U.S. Constitution, Article II, Section 1, Clause 7

2) Conduct an audit to determine:

1. The Embassy of Kuwait's 2017 and 2018 National Day celebrations at

ii. A 2018 Philippine Independence Day celebration at the Trump

cc: The Honorable Sam Graves, Ranking Member

The Honorable Mark Meadows, Ranking Member

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