US: A leading Washington lobbying firm will close at the end of this month because of links to former Republican lobbyist Jack Abramoff and former House majority leader Tom De Lay.
Alexander Strategy Group, which has represented some of America's biggest businesses, including Microsoft, said press attention surrounding the Abramoff scandal made it difficult to continue lobbying.
The firm is owned by Edwin Buckham, a former aide to Mr DeLay and employed the former majority leader's wife, Christine, from 1998 to 2002.
The move comes as Congress scrambles to tighten rules governing lobbyists following Mr Abramoff's guilty pleas last week to fraud and conspiracy charges. Mr Abramoff is co-operating with prosecutors, who have suggested that as many as 130 congressmen may have received favours from the disgraced lobbyist.
Most Americans believe that corruption is widespread in Congress, and nine out of 10 think it should be illegal to give public representatives presents, trips or anything else of value, according to a Washington Post-ABC News poll published yesterday.
House speaker Dennis Hastert has asked California Republican David Dreier to start drafting a lobbying bill in response to the influence-peddling scandal. Senator John McCain has introduced a bill in the senate that would require greater disclosure of lobbyists' activities.
Members of congress are already forbidden from accepting gifts worth more than $100 (€83) from any individual over the course of the year. They are not allowed to lobby former congressional contacts for a year after leaving congress, and lobbyists are obliged to report their income and client lists.
Lobbying has grown rapidly in Washington over the past decade, and senate records show that 32,890 lobbyists were registered last year, three times the number 10 years ago. Businesses and interest groups spent $2.2 billion on lobbying last year, compared to $800 million in 1996.
In most cases, lobbyists act on behalf of business clients who want to be taxed less and regulated more lightly or who hope to benefit from publicly funded projects approved by congress.
Mr Abramoff, who was paid $82 million in lobbying fees by Indian tribes, persuaded the tribes to contribute $4.4 million to 240 congressional election campaigns between 1999 and 2005. Such contributions are important to congressmen seeking re-election this year as campaigns become more expensive. Successful candidates in the 2004 house elections spent an average of more than $1 million.
Lobbyists often curry favour with legislators by offering the use of private aircraft or taking them on "fact-finding" trips to attractive resorts.
One reason for the rise of the lobbyist is legislators' increasing willingness to approve "earmarks", individual appropriations written into major spending bills for the benefits of specific congressional districts.
Arizona Republican Jeff Flake said yesterday that legislators can too easily target spending towards particular projects, contractors or campaign donors.
"We simply have too much power. We Republicans have abused that power badly over the past several years," he told USA Today.
Democrats hope to make what they call the Republican culture of corruption a major issue in November's mid-term elections. Most of those associated with Mr Abramoff were Republicans, and in Mr DeLay the scandal has claimed a high-profile victim.
However, the Democratic strategy could backfire, because opinion polls suggest that most voters believe both parties are equally corrupt and that the Republicans simply have more opportunity to benefit from graft right now.