You are here

Trump vows to put aside doubts over business empire

40538785.1 (40725414) - 30_11_2016 - FILES-US-VOTE-IMMIGRANTS-TRUMP.jpg
Donald Trump tried on Wednesday to head off criticism that his vast business empire poses an unprecedented conflict of interest for an incoming US president, even as he comes under attack for packing his cabinet with fellow billionaires.

[NEW YORK] Donald Trump tried on Wednesday to head off criticism that his vast business empire poses an unprecedented conflict of interest for an incoming US president, even as he comes under attack for packing his cabinet with fellow billionaires.

In one of his trademark pre-dawn tweetstorms, the Manhattan real estate mogul promised that he will reveal a plan next month to put aside his "great business in total in order to fully focus on running the country."

The 70-year-old tycoon did not say who would take over his multi-billion dollar global property and luxury branding interests, but said his children would be present at a December 15 news conference.

He has previously said his daughter Ivanka and sons Eric and Don Jr could take day-to-day charge while he is president, but it is not clear what he would do with his personal stake.

"While I am not mandated to do this under the law, I feel it is visually important, as president, to in no way have a conflict of interest with my various businesses," he tweeted, in a bid to get ahead of the burgeoning ethics controversy.

US law does not require Mr Trump to give up his business portfolio, although the Constitution states that no federal official can receive a gift or "emolument" from a foreign government.

Some previous presidents have placed investments in a blind trust, but they were not required to do so and Mr Trump has said since winning election in early November that his lawyers believe this unnecessary.

Critics argue, however, it would be an unprecedented ethical conflict for Mr Trump to keep an interest in properties spanning the globe - investments that rely in part on goodwill from foreign governments and regulators.

Even on home soil, his company has been attacked for marketing the new Trump International Hotel in Washington - just a few blocks from the White House - to foreign diplomats.

His new chief of staff, Reince Priebus, has insisted there are "smart ethics lawyers" working on a plan to resolve this issue.

Mr Trump has admitted the hotel's brand is probably "hotter" now that he is to be president, but has vaguely promised to "phase out" his hands-on, check-signing role in Trump Organisation business.

Meanwhile, the Republican is building the cabinet team that will join him in the capital after his January 20 inauguration with a mission to "drain the swamp" of Washington corruption.

So far, aside from former generals sidelined by President Barack Obama's administration, Mr Trump has focused on recruiting super-rich conservative figures from Wall Street and private business.

On Tuesday, Mr Trump dined on frog legs, scallops and sirloin at a Michelin-starred restaurant with Mitt Romney, former Massachusetts governor and private equity baron.

Mr Romney's own 2012 presidential campaign foundered in part because he was tagged as a member of an aloof, super-rich elite, but Mr Trump is considering him as a possible secretary of state.

The latest two figures Mr Trump has nominated for senior roles - Wall Street veteran Steven Mnuchin and investor Wilbur Ross - are both billionaires and even richer than Mr Romney.

Mr Trump's defeated Democratic opponent, Hillary Clinton, was attacked during the campaign for accepting hundreds of thousands of dollars for giving private speeches to Goldman Sachs bankers.

But Mr Trump, having already named former Goldman banker Steve Bannon as his chief strategist, this week nominated another, Mr Mnuchin, for the key role of Treasury secretary.

Mr Mnuchin was a partner in Goldman Sachs before he launched a fund backed by Democratic Party supporter George Soros. He financed Hollywood blockbusters like Avatar and Suicide Squad.

Alongside Mr Mnuchin, Mr Trump picked Mr Ross, best known for buying failing steel and coal firms and turning them into saleable investments, as his commerce secretary.

Appearing with Mr Ross on CNBC, the 53-year-old Mnuchin said: "We're thrilled to be here and we're thrilled to work for the president-elect and honoured to have these positions."

Democrats were quick to slam the hirings.

Senator Sherrod Brown, the senior Democrat on the banking committee, attacked Mnuchin's hedge fund background, declaring: "This isn't draining the swamp, it's stocking it with alligators." And Senator Elizabeth Warren, a scourge of Wall Street excesses, said Mr Mnuchin's hiring showed Mr Trump has "every intention of running Washington to benefit himself and his rich buddies."

Mr Mnuchin's appointment is widely seen as a reward for taking Mr Trump's side at a time when many of the Republican Party's major donors, such as the billionaire Koch brothers, had shunned him.

Mr Trump's picks are the first major nominations to his economic policy team.

The president-elect has vowed to cut corporate taxes and to encourage multinational companies to repatriate their earnings.

He plans to scrap the 2010 Dodd-Frank financial reforms, enacted to protect consumers and the financial system from Wall Street excesses that some argue caused the financial crisis.

Mr Ross has advocated a steep tariff on Chinese steel imports to prevent what Mr Trump has alleged is the dumping of cheap commodities on the US market.

On Thursday, Mr Trump was scheduled to embark on a victory tour, leading an evening rally with his running mate Mike Pence in Cincinnati, Ohio.

The pair are also to appear at the Indianapolis plant of an air conditioning firm that announced this week it will keep 1,000 jobs in the Rust Belt - a pledge Trump made during the campaign his transition team has dubbed it a "thank you tour."

AFP ]