This website is a member of Liberty Alliance, which has been named as an company.

Obama’s Half-Billion-Dollar Crony Drug Deal

Written on Sunday, November 20, 2011 by


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


Posting Policy
We have no tolerance for comments containing violence, racism, vulgarity, profanity, all caps, or discourteous behavior. Thank you for partnering with us to maintain a courteous and useful public environment where we can engage in reasonable discourse. Read more.

  • fliteking

    Obvious cronyism.

    Liberals don’t even try to hide their guilt anymore.

    They seem comfortable in thinking good conservatives have been factored out.

    • patriot2

      now everyone knows why the head muslim puts border patrol officers in jail for doing their duty,keeping out illegals & drug smugglers.

  • Robert R

    Look at what this idiot is doing to us, ruining our country, our lives. What a useless ass he has turned out to be. Useless, illegal, and an idiot. Whoah, the 3 stooges, 3 amigos, whatever. Time to send him out to graze and hopefully graze his way back to kenya.

  • el_loco_jp

    This is what we get when the liberal / socialist main stream media using the welfare vote gets to elect our public officials. The 2012 election will be the last chance for this country to turn around. We have to vote all democraps out of office and take our country back. Even then, when over half our population is on the gov’t teat, I don’t know if we’ll ever be able to put things right.

    • charlie S.

      You know when I was 17 yrs old I was fascinated with Ronald Reagan. We at that time were on the gov’t dole with us receiving a check every month and the gov’t was supporting us. Mom (God rest her soul)she would never admitt to being a socialist but she was.

      She would say things like, “Oh my God, if you vote for him he will cut your check off”. Of course that never happened.

  • The Blue Collar Man

    Share this on your Facebook/Twitter/etc, home pages, and ask all to forward it to their friends. I’ll do that, and email it to myself, to share on the web with my friends.
    If you do this everytime, many people will be able to read it, that may not other wise get to see this information.

  • Flyrodroger

    Thats what happens when you take thugs from chicago,and put them in the white house.

  • Dean

    The liberal dems aren’t going to take the pansy Repubs serious anymore. They apparently figured out the the oppositioin party is afraid to bring any charges against the half-black president. SAD! I guess we vote them all out in 2012 and start over.

    • TheThinMan

      Yes, so much positive was expected of the House that was elected in 2010, just to find out that the real power is in the Party – not the representative. they quickly bowed before the party and the weak spined Boehner and the establishment republicans. We have gotten nothing for our effort. Boehner needs to be ousted quickly and a true tea party conservative put in as Speaker – hey there Michelle Bachmann

  • am2sweet

    This is no doubt why the meds have also kept going up in price or they conveniently keep running out of something. Bad enough when drug companies are screwing the public but Obama and the government needs to stay out of it unless they want to make the drug companies behave and stop pulling all the stuff they do.

  • charles S.

    C’mon my fellow Republicans we need to get rid of this man our national parsinage The White House. He seems to be absolutely hellbent on distroying our nations economy. He has to be the most distructive Presiden in our history.

  • charlie S.

    Either that or he is Demon Possesed. The leftist radicals in our gov’t seem to be host’s of the same spirit. These are not from the JFK era. These same ones that used to spit on the veterans coming back from Viet Nahm. At that time they were not in our gov’t but, they highly ihfluenced our gov’t. Now these same ones who were there spitting on these honorable men are now in our gov’t. These redicals who hate our constitution and everything we stand for. These are those who hate them who believe in a higher power. Those who believe in the creator that the constitution speaks about.

    They are now teaching our children that are now coming up in our school system. They’re teaching them to hate our way of life. Teaching them to disregard the sanctity of life and freedom and equal justice. Not social justice. That is accomplished over a period of time. Well they have had a whole generation to brain wash these kids now they are blowing each others brains out in the schools. I hope you are happy you statists, leftist/Marxists, and progressives.

    • TheThinMan

      The “sainted” JFK was no better – he just didn’t live long enough.

  • http://na the marine

    Whats new, same daily crap that goes on for a long time but now its out of control, every thing in dc is going crazy, and i dont see anything coming from our new congress of repubs. and t party congressmen, i hope im wrong but it seems there afraid of oblunder and his side kick bidendork. Impeach the moron and gorilla women semper fi

  • Dave USA

    Pure F’ing G.D. CRIMINALITY, PERIOD !!!!!!! Our Fed Gov is NOTHING but a MAFIA. Wash is ORGANIZED CRIME !!!!!!!!!!

  • Kookie

    The drugs are for Obummer. He’s running low.

  • TheThinMan

    It is ALL about the money. Never forget the money – and the association to the power that it brings.

  • BruceD

    In order to not be called “racist” I suggest we vote the “white” part of Obammy out of office. Just a thought as any talk of getting him out of office because of his incompetence is considered racist. I don’t care about red, green, blue, yellow, brown or white. Stupid is as stupid does.