Last Updated:November 28 @ 07:44 am

Malkin: Obama's Half-Billion-Dollar Crony Drug Deal

By Michelle Malkin

What do you get when you mix Democratic fat-cat donations, Big Labor favors, pharmaceutical lobbying and Beltway business as usual? Answer: another toxic half-billion-dollar Barack Obama-approved crony deal. Move over, Solyndra. Here comes Siga-Gate.

This latest Chicago-style payoff on your dime involves a dubious smallpox drug backed by a liberal billionaire investor, along with a former union boss who was one of the White House's most frequent visitors. They're the "1 percent" with 100 percent immunity from the selectively outraged Occupier mobs that purport to oppose partisan government bailouts and handouts to privileged corporations.

Ronald Perelman is the New York City-based leveraged buyout wheeler-dealer who controls Siga Technologies. He has donated nearly $130,000 mostly to Democrats over the past two election cycles alone, and he forked over $50,000 to pay for the president's lavish inaugural parties. A Siga affiliate pitched in nearly half a million more in contributions -- 65 percent of which went to Democrats -- and the firms have spent millions on lobbying.

Perelman's pharma company makes an experimental antiviral pill used by smallpox patients who received diagnoses too late to be treated with the existing smallpox vaccine. Smallpox experts cast doubt on the need for the drug given ample vaccine stockpiles, the remoteness of a mass attack and questions about its efficacy. But over the objections of federal contract negotiators, competitors and scientists, the Obama administration approved a lucrative $433 million no-bid deal for Siga in May. No other manufacturers were able to compete for the "sole source" procurement, according to the Los Angeles Times.

The special arrangement was made after a competitor objected to the administration's violating small-business rules during a first call for bids. That's right: It's yet another rigged giveaway from a Hope-and-Change champion who vowed on the 2008 campaign trail to "end the abuse of no-bid contracts once and for all."

Intensifying the culture-of-corruption stench: the critical role of Andy Stern. He's the profligate, corruption-coddling former head of the powerful Service Employees International Union -- the 2.2 million-member public-employee union powerhouse that he left in April 2010 with a mountain of debt and eroding rank-and-file pensions.

After pouring some $60 million of workers' dues into Democratic coffers, Stern was rewarded by Obama with a cozy spot on the White House deficit panel and dozens of visits to 1600 Pennsylvania Avenue -- including at least seven with the president, one with Vice President Joe Biden, and meetings with Obama Chief of Staff Rahm Emanuel, Biden Chief of Staff Ron Klain, OMB Director Peter Orszag, health czar aide Jennifer Cannistra and Valerie Jarrett's former high-powered aide and Chicago fundraiser Tina Tchen.

In a classic access-buying maneuver, Siga placed Stern on its board of directors in June 2010. Four months later, Siga nabbed an estimated $3 billion contract. By January of this year, Siga's stock had skyrocketed. The House GOP has been investigating the deal for months, which comes amid separate allegations of insider trading and political profiteering by investigative journalist Peter Schweizer.

Stern and Perelman have been scratching each other's backs for years. In the fall of 2006, the SEIU backed off organizing protests against AlliedBarton, a security guard firm in Philadelphia owned by a Perelman interest -- and then remained quiet when the firm was bought out by a longtime SEIU nemesis, the Blackstone Group.

According to the L.A. Times, which exposed the scandal over the weekend, Obama's top biodefense bureaucrat Nicole Lurie railroaded a key dissenter at the Department of Health and Human Services who ridiculed Siga's inflated projected profit margins. Lurie soothingly reassured a whiny Siga executive that the "most senior procurement official" would take over and mollified him in a letter: "I trust this will be satisfactory to you."

Lurie falsely told the newspaper that she had never made contact with the official regarding the contract and deemed any such contact improper. When caught with documentation, her department spun the communication with Siga as a "national security" matter. Lurie, it should be noted, is a former Clintonite and Howard Dean health care consultant who was most recently in the headlines for pushing anthrax vaccine testing for children. According to the Labor Union Report, there have been market murmurs of a merger between Siga and the anthrax vaccine manufacturer, PharmAthene. Hard to trust Lurie's public health moral authority with the taint of pay-for-play wafting over the Siga deal.

As always, venture socialism backed by Big Labor muscle and White House wealth redistribution is hazardous to taxpayers' health.


Michelle Malkin is the author of "Culture of Corruption: Obama and his Team of Tax Cheats, Crooks & Cronies" (Regnery 2010). Her e-mail address is


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  1. inluminatuoComment by inluminatuo
    November 16, 2011 @ 9:13 am

    The way these Liberal Democrats are burning through our money you have to believe it is not just stupidity or petty thievery of billions. They have their eye on the big prize which is to conquer America by pulling down and bankrupting the very Capitalist pillars upon which our freedoms stand, and military might is funded, by purposely bankrupting America.
    You got to know that no federal money is cut loose without the agreed Chicago kickback campaign payoff which is extortion and grounds to send them all to jail. Obama’s government  promise of Transparency is just so much dust in the wind. Those who sow the secular Liberal Democrat wind at the polls will surely reap the whirlwind later,,,,,later is now.
    This is not “Hope and Change” but the usual Chicago politics of graft and political payoffs, just on a national scale.

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    • onewildmanComment by onewildman
      November 16, 2011 @ 9:37 am

      Your right inluminatuo, This is about rewarding campaign donors and bankrupting America. The Congress needs to call Obama on this and everything else. The media is running cover for Obama and his cohorts. The Congress needs to make open charges and force the media to cover it.
       The media has lost it’s way and can’t be trusted to tell the truth or to report the real stories with truth and honesty. The have lost all creditability and might as well take up offices in the White House because all they do is spout propaganda.
      IMPEACH OBAMA NOW! ! ! ! ! 

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    • newsjunkyComment by newsjunky
      November 16, 2011 @ 10:01 am

      The liberal Democrats know exactly what they are doing, and so does Obama.  Everyone seems to believe that Obama and his administration are just inept, incompetent, etc., however, I believe that everything they do is for the sole purpose of destruction.  Tearing down our system is the only way they can put into place their vision of a “new world order,” one which the liberals have been designing for eons and one which is finally beginning to materialize.  Reading the books of their liberal mentors validates this statement and then some.  There never was any intention of restoring our economy and Obama’s policies have certainly proven that to be true.  The desperation to re-elect Obama is to bring it all to fruition.

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  2. carolComment by carol
    November 16, 2011 @ 9:28 am

    This egotistical, pompous and utterly corrupt man has grieved my spirit and I believe that he has grieved The Spirit.  But it seems as though all in Washington are just sitting back and allowing this man to do anything that he pleases and they do nothing!  My question is, “are they (the politicians) all in on this?”  Do they know something that us little peons, the American people, don’t know?  What is going on?  Why isn’t this arrogant man, this dictator-in-chief, being impeached?  What is going on?  Really, would someone please tell me, what is going on?

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    • ccfontenComment by ccfonten
      November 16, 2011 @ 9:52 am

      Carol: I fear that two things are going on with our politicians: (1) they are ignorant of the facts and are so self absorbed that they can’t be bothered; or (2) they are complicit.  Either option is truly frightening.
      Same thing with the politicians being allowed to do insider trading.  We would go to jail.  They, however, are immune and above the laws we peons have to follow.
      They all need to have their leashes shortened dramatically.
      I am so disgusted with the lot of them.

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    • MadeinAmerica33Comment by MadeinAmerica33
      November 16, 2011 @ 10:01 am

      As BHO has said from day one, he is redistributing the wealth. The part he did not finish on day one was , redistribute to his Liberal Progressive friends and backers! Wake up America!

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    • ConstitutionalPatriotComment by ConstitutionalPatriot
      November 16, 2011 @ 11:05 am

      Most of them are in on it. Doesn’t matter if they a D or R, being affiliated with a party is just a big show for the uneducated masses. Very few are what they seem and the few that are above boards are powerless to stop them, well outnumbered, and/or eventually coerced into joining the club. Can’t trust anyone in congress unless they have a long untarnished record of dong the right thing. How many of them have that? Those that do are driven out by those in power. “Progressives” now dominate our educational system and are pushing their agenda on college students especially in law schools. This is all part of a long range plan to convert the U.S. to a socialist country. It is working.
      My advice to all is to vote wisely and vote only on those who’s records show they deserve to have their jobs. If someone new is running and has no previous record then give them a chance to prove themsleves, if they don’t, vote them out. It took many years to get to this level of corruption, it is going to take many more years to undo what these theiving self serving crooks have done to this country. In the meantime they will be pushing as much legislation through as possible to stop us from saving our Constitutional Republic.
      Unless those of us who value freedom stand up and be heard at every chance we get I have no doubt our children will be left with a socialist and bankrupt country as their home.

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    • carolComment by carol
      November 16, 2011 @ 11:10 am

      Yes, MadeinAmerica33, he is redistributing the wealth into his pockets and the pockets of his cronies.  This wicked man has hated the rich or as he puts it, “the rich fat cats” and has so envied them all of his life that now he is busily lining his pockets with the wealth of the “rich fat cats.”  He really is filled with hatred and envy and greed and is now in a position to become what he has always envied, one of those “rich fat cats.”  November 2012 can’t come soon enough for this American woman.

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      November 16, 2011 @ 1:55 pm

      You got it Carol.

      Where are all the sixty one new House Republicans while one instance of corruption after another by the Obummer administration, is being played out, right under their noses.

      All I hear are weak bleatings, baa, baa, let’s start an investigation, baa, baa, let’s appoint a committee to look into it, baa, baa, well, these things take time, baa, baa, baa.

      Sounds to me like a lot of money is filling a lot of campaign coffers, and a lot of nothing is being done, to curb Obummer’s stealing.

      How come we see this and Congress is blind to it? 

      The answer is:  Follow the money, and you will find out.

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  3. KlausComment by Klaus
    November 16, 2011 @ 10:16 am

    I’m not sure Obama is all that bright, but his puppetmasters are. He is totally controlled by some very evil people. Obama is simply a tool. All these people need to be prosecuted.

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  4. brucefeherComment by Bruce Feher
    November 16, 2011 @ 10:33 am

    Come on! It’s chump change to the DC crowd!

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  5. hardheadedComment by hardheaded
    November 16, 2011 @ 11:31 am

    It’s time (We The People) that put them in the OFFICE, take THEM OUT, All of them and start over. we can’t wait till 2012 there may be nothing left. If we call for special election, and send a vote of incompetecy
    , FIRE THEM. 

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    • inluminatuoComment by inluminatuo
      November 16, 2011 @ 2:02 pm

      Just watch as they burn through as much of our borrowed cash before they go down in 2012. Then watch them pass out the pardons right before they leave office.

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    • newsjunkyComment by newsjunky
      November 16, 2011 @ 3:07 pm

      Let’s hope they do go down! 

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  6. carolComment by carol
    November 16, 2011 @ 11:46 am

    I realize that we are living in perilous days.  The New World Order is forming as I write this and I do believe that almost every politician is in on the scheme to form, in their minds, a godless utopia with just an elite few in charge of all of us little peons.  I believe that we are living at the end of this age and am a Christian.  Just the fact that what is happening in the middle-east is written about throughout the Bible.  Psalm 83 comes to mind.  Just as God told us it would, the countries that are around Israel are forming a confederacy to rid the world of the Zionist state.  Anti-semitism is on the rise.  The unnatural hatred of what the Bible calls, “God’s chosen people” and the anti-Christian sentiment on the rise.  Yes, I believe that the “anti-christ” is about to be revealed and those who are left on this earth after the Rapture will not be at all happy.  You think things are bad now, just wait until the tribulation begins.  Russia and Iran will be the first to try and destroy Israel.  All hell is about to break out on this earth.  In the end, after 7 years of hell on earth, Jesus Christ will come and rule and reign over this evil world.  And it won’t be evil anymore.  We think things are bad now, but, if you don’t know Jesus Christ as your personal Savior, what we are experiencing now will be remembered as the good old days during the tribulation.  Billions of people will die because of nuclear warfare.  It will be a horrible time.  I am so glad that I know that I know that I know, Jesus Christ is Lord and those who believe on Him will not see the wrath that is about to come on this earth.  Looking forward to seeing Him.

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  7. frank1737Comment by frank1737
    November 16, 2011 @ 12:44 pm

    What Obama is doing is called “Money Laundering!  It’s a typical Chicago Mob  Practice:  ” You Donate to My Campaign and I’ll Pay You Back, Plus”  He’s using taxpayer money to build uphis Campaign Chest!  Illegal as H–L!

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  8. wdjincComment by wdjinc
    November 16, 2011 @ 1:30 pm

    Union campaign donors are reaping their harvest with paybacks. Obama then has the gall to ask Congress for another ‘bailout’ with the phony named ‘Jobs Bill’. 

    There need to be an accountability of all the ‘bailout’ money funded by us taxpayers, such as where did it all go, who did it go to and why some went to some but not others.

    There most likely will be other stories coming up soon regarding these type of ‘Chicago Way’ cronyism’s, but I don’t expect the liberal press to investigate or report as they are too busy blasting Cain for past alleged harassments and criticizing Republican candidates and the Tea Party. 

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  9. knorskeComment by knorske
    November 16, 2011 @ 1:55 pm

    Michelle…Each of your articles is more frigthening than the former!  I do hope, though, you keep your bright light shining on those terrible things in which we discover our elected officials concerned.

    As other have stated, the only “good thing” in this mess is the knowledge God is on my side (not being able to speak for others, of course). 

    I do pray, as I hope will others, God Bless America.  If he does hear a majority of us praying to Him, He might choose to not abandon this country (seemingly as have our elected officials).

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  10. hoboutitComment by hoboutit
    November 16, 2011 @ 7:48 pm

    It’s an easy fix, either vote Republican or independent. Gert rid of the Dems and China before we have to start speaking Mandrin. Fix the trade agreements, start manufacturing American again. Our Leaders in Goverernment need to get there Heads out of there -ss’es, or there will be no more America. I am a Vet of the Navy and Army and I’m sick of my Government trying to sell out America to a third world Country and all the **** goin on in this country. I hope my time is soon but I pray for my kids and grandkids’s futures.

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  11. unclebarryComment by unclebarry
    November 16, 2011 @ 8:43 pm

    I wouldn’t allow this regime to dictate any kind of preventive medicine (shots) for my children.

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  12. bebadComment by bebad
    November 17, 2011 @ 10:51 am

    What do BHO, JFK and MLK have in common?

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