A spokesperson for Nancy Pelosi confirmed that the House Speaker would not withdraw her nomination of Representative Donna Shalala (D., Fla.) to serve on an oversight commission created to monitor the dispensation of part of the $2.2 trillion phase-three coronavirus-relief package, despite Shalala’s admission that she violated the STOCK Act by not disclosing stock sales last year.
“Congresswoman Shalala has the Speaker’s complete confidence as she works to hold the Administration accountable to the taxpayer through the CARES Congressional Oversight Commission,” Pelosi spokesperson Drew Hammill told Roll Call. “Since coming to Congress, Congresswoman Shalala has taken aggressive steps to avoid even the suggestion of a conflict of interest over her personal investments.”
The Miami Herald reported Tuesday that Shalala, the lone House Democrat appointed to the panel, did not publicly report over a half-dozen stock sales in made last year — a violation of the STOCK Act.
“She had a misunderstanding about the periodic transaction report process and her need to report the sale of these stocks while preparing a blind trust,” Shalala spokesperson Carlos Condarco said. “As a new member with a broker and attorney who were not familiar with the congressional disclosure rules, there was a misunderstanding.”
Shalala herself apologized on Wednesday, saying that her sales were aimed at “getting rid of any conflicts of interest,” but she’d missed the deadlines to report them. Transactions that aren’t reported within 45 days are subject to a $200 fine, though it’s unclear if Shalala will face legal repercussions for the error.
Hammill pointed to the congresswoman’s public apology as further justification for Pelosi’s decision to stand by her nomination.
“Rep. Shalala has taken responsibility for her mistake in missing filings required under the STOCK Act and has been working with the Ethics Committee to address this issue since she became aware of it,” he said.
While Democrats stalled last month on passing the phase-three bill over concerns of a lack of oversight, Republicans have claimed that oversight was never actually a real point of contention.
“I really don’t remember it coming up very much,” said Senator Pat Toomey (R., Pa.) on March 25. “And then Senator Schumer, when he decided to take down the bill, both he and Pelosi had devised this and that’s when I recall this thing emerging. There wasn’t a lot of Republican objection conceptually to this idea, the concern was just that it be properly targeted.”