Concurrent Technologies Corporation (CTC) is a Section 501(c)(3) entity. Its 2005 Form 990 reports no direct support from the public (charitable contributions). On the other hand, it received over $116 million in government grants. Who is behind CTC?
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According to a recent article in the New York Times, Representative John R. Murtha is the man. See David D. Kirkpatrick and Aron Pilhofer, Trading Votes for Pork Across the House Aisle, N. Y. Times, October 2, 2006.
In 1988, Murtha asked the University of Pittsburgh to a form a nonprofit that would focus on excellence in metalworking. The new center was to receive funding from the Navy. In the ensuing years, the center has morphed into CTC. It has been funded with earmarks. According to the Times, the military and other federal agencies have paid CTC almost $1 billion in grants and contracts.
CTC looks quite similar to the Institute for Scientific Research, another Section 501(c)(3) entity that has thrived from congressional earmarks. In that case, the congressional sponsor was Rep. Alan B. Mollohan (D) of West Virginia. There is one significant difference. Mollohan has been subject to allegations (which he denies) that individuals associated with ISR and several other exempt organizations rewarded him with sweetheart deals. As far as we know, no one has alleged that Murtha has personally benefited from the earmarks.
Yet, the Murtha situation is very troubling when you look at CTC’s Form 990. With the exception of three individuals listed on the schedule of officers and directors, all have contributed to Murtha’s congressional campaigns since 2002. Here is the schedule:
<>
POSITION <>
COMP <>
2006-05 <>
2004-02 <>
<>
<>
<>
<>
President & CEO <>
451,610 <>
2,500 <>
4,500 <>
Executive VP <>
355,221 <>
0 <>
1000 <>
Senior VP & COO <>
332,971 <>
2,500 <>
3,500 <>
Senior VP & CFO <>
310,171 <>
0 <>
5,500 <>
Vice President <>
285,049 <>
2,500 <>
2,500 <>
Vice President & CTO <>
260,459 <>
1,000 <>
3,000 <>
Vice President & CQO <>
259,590 <>
2,500 <>
500 <>
Vice President <>
259,008 <>
1,000 <>
2,500 <>
General Manager <>
218,162 <>
0 <>
2,500 <>
General Manager <>
212,337 <>
2,500 <>
2,500 <>
General Manager & Treas <>
207,297 <>
1,000 <>
3,500 <>
Corporate Secretary <>
80,778 <>
0 <>
500 <>
Chairman <>
5,500 <>
0 <>
2,000 <>
Board Member <>
3,500 <>
0 <>
3,000 <>
Board Member <>
4,500 <>
0 <>
0 <>
Board Member <>
5,500 <>
0 <>
0 <>
Board Member <>
4,000 <>
0 <>
0 <>
Board Member <>
4,500 <>
0 <>
3,500 <>
Board Member <>
1,500 <>
2,900 <>
5,000 <>
Board Member <>
4,500 <>
0 <>
3,500
The Times also notes that CTC has paid somewhere around $500,000 to a lobbying firm. The lobbying firm's executives and clients have contributed over $1.2 million to Murtha in campaign contributions (the Times refers to these as donations) since 1999, according to the Times.
So we have a congressman who was a driving force behind the creation of this tax-exempt entity. That same congressman is earmarking significant amounts of money to that organization. Those who are in control of the organization (several of whom receive significant salaries from CTC) contribute large amounts of money to the congressman’s campaign. We can only wonder how the entity distributes the federal grant money within the local community.
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