June 22, 2010
- A d v e r t i s e m e n t
As former counsel and trainer in political tactics for ACORN, President Obama used a well-known ACORN tactic, the shakedown, in getting BP to create the $20-billion escrow (slush!) fund without any law, legal controls, or binding rules to guide it on how and how much those injured materially by the oil spill (and whom among them) will be paid. Attorney Kenneth Feinberg, well-respected and well-known for heading the September 11th Victim Compensation Fund, was appointed by the president to administer the escrow fund. BP will pay $5 billion into the fund for four years, starting in 2010.
BP announced early after the spill that it would pay all justifiable claims resulting from the disastrous oil spill. It opened 25 claims offices. As of June 15, BP approved initial payments that amounted to $63 million, expected to rise to $85 million by the end of the week, to businesses claiming $5,000 or more in damages. Why did the president insist that his own personal organization take over the job of paying claims? After all, supervising reparations is a judicial function, not an executive function. BP created its own fund, appointed its administrator, and determined how it will be staffed with a view to ensuring only qualified persons, businesses, and governments would be reimbursed for its losses. Now those decisions will be made politically.
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