Sat, May 04, 2019 - Page 7 News List

Trump leases spark concerns

TRUMP WORLD TOWER:The rental transactions could add to scrutiny of the president’s business dealings with foreign governments, which are the subject of multiple lawsuits


Trump World Tower is pictured in the Manhattan borough of New York City on Wednesday.

Photo: Reuters

The US Department of State allowed seven foreign governments to rent luxury condominiums in New York’s Trump World Tower in 2017 without approval from the US Congress, according to documents and people familiar with the leases, in what some experts say could be a breach of the constitution’s emoluments clause.

The 90-story Manhattan building, part of the real-estate empire of US President Donald Trump, had housed diplomats and foreign officials before the property developer became president, but now that he is in the White House, such transactions must be approved by federal lawmakers, some legal experts say.

The emoluments clause bans US officials from accepting gifts or payments from foreign governments without congressional consent.

The rental transactions, dating from the early months of Trump’s presidency and first disclosed by Reuters, could add to scrutiny of his business dealings with foreign governments, which are now the subject of multiple lawsuits.

Congressional staffers confirmed to Reuters that the Trump World Tower lease requests were never submitted to the US Congress.

US House of Representatives Oversight and Reform Committee Chairman Elijah Cummings said that his committee has been “stonewalled” in its efforts to obtain detailed information about foreign government payments to Trump’s businesses.

“This new information raises serious questions about the president and his businesses’ potential receipt of payments from foreign governments,” Cummings said in a statement to Reuters. “The American public deserves full transparency.”

A state department spokesperson referred Reuters to the US Department of Justice because the subject involved “matters related to ongoing litigation.”

The justice department declined to comment.

The White House referred a request for comment to the state department and the Trump Organization, which declined to comment before publication.

Following publication of this article, Trump Organization attorney Alan Garten sent an e-mail to Reuters describing the story as “inaccurate” and “misleading.”

He said Trump World Tower is owned by its third-party condominium owners and therefore Trump would not receive proceeds from the lease of such units.

Six legal experts said that regardless of who owns those units, the fact that Trump was collecting fees for managing the building while foreign governments were paying to live there represents a potential breach of the emoluments clause.

The 1982 Foreign Missions Act requires foreign governments to get state department clearance for any purchase, lease, sale or other use of a property in the US.

Through the Freedom of Information Act, Reuters obtained diplomatic notes sent to the agency under this requirement from early 2015 until late 2017.

The records show that in the eight months following Trump’s Jan. 20, 2017, inauguration, foreign governments sent 13 notes to the state department seeking permission to rent or renew leases in Trump World Tower.

That is more solicitations from foreign governments for new or renewed leases in that building than in the previous two years combined.

The governments of Iraq, Kuwait, Malaysia, Saudi Arabia, Slovakia and Thailand, as well as the EU got the green light to rent a combined eight units in Trump World Tower and followed through with leases, according to other documents viewed by Reuters and people familiar with the leases.

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