The SIGA scandal: Calls for investigation mount

By Michelle Malkin  •  January 27, 2012 02:13 PM

Back in November, I spotlighted Obama’s half-billion-dollar crony drug deal involving a no-bid contract with politically-connected SIGA.

Refresher course here.

In November, Democrat Sen. Claire McCaskill — chair of the Senate Subcommittee on Contracting and Oversight and up for re-election in less than a year — asked HHS to review the contract.

Last week, the NYPost reported that SIGA execs dumped stock when they learned the contract would be far less than they anticipated last spring.

Today, GOP Rep. Renee Ellmers of North Carolina asked the HHS Inspector General to investigate:

“Yesterday afternoon I submitted my second letter to the Inspector General at the Department of Health and Human Services regarding apparent gross impropriety on behalf of the Obama Administration.”

“The more I investigate this deal, the more shocked I become at the potential corruption and insider influence taking place at the highest levels of our government. I cannot help but see the similarities between this case and the Solyndra scandal, since both involve rewarding companies tied to Obama donors, billions in taxpayer dollars, and insider dealing.”

“The decisions made by HHS have caused a legitimate small business in North Carolina to be denied a level playing field to provide smallpox treatments in the event of a national emergency. I will be very interested to see how the Administration explains their actions in awarding a billion-dollar corporation such a substantial contract when it falsely claimed to be a small business.”

Federal law requires that a certain amount of grants for this research and production be set aside for small businesses. In turn, small businesses will compete for these contracts and “grant awards” while convincing the government that their products will provide the most effective treatment and protections, at the lowest cost to the American taxpayer.

The two companies at the center of this – SIGA and Chimerix – competed for this award and submitted their own proposals for drugs to combat smallpox. SIGA’s small business status was challenged and the SBA ruled twice that they were “Other Than Small,” and therefore ineligible for a small business set-aside contract. But rather than acknowledging SBA’s decision, HHS pulled the small business set-aside and reissued the contract as a sole-source, non-compete to SIGA Corp. for $2.8 billion.

MacAndrews & Forbes Holdings, Inc. is a corporation wholly owned by Ronald Perelman, and TransTech Pharma, Inc. (a privately-held drug discovery company controlled by MacAndrews & Forbes). In November 2003, Perelman announced he would invest $10 million through MacAndrews and Forbes into SIGA Technologies – at the time a tiny biotech company that was developing oral drugs to prevent and treat diseases, including smallpox and anthrax.

Scandals? What scandals?

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Comments


  1. #1
    On January 27th, 2012 at 2:20 pm, ChapBix said:

    Excellent work, Rep. Ellmers!

  2. #2
    On January 27th, 2012 at 2:20 pm, RedDog said:

    Mr. Obama needs to be made to understand that the United States cannot be “worked” like Chicago. I don’t know who is giving him advice but the guy is not doing his boss any favors. This is just one of many malfeasances for which this President and his administration should face criminal prosecution.

  3. #3
    On January 27th, 2012 at 2:27 pm, Marshall_Will said:

    Renee Ellmers said,

    “Yesterday afternoon I submitted my second letter to…

    I’ll check the refresher of course but by and large, wasn’t the vaccine intended for a very limited control group? Like lab tech’s that might come into contact w/ it during the course of the normal research?

  4. #4
    On January 27th, 2012 at 2:29 pm, letget said:

    I bet if the truth be told, EVERY single thing bho has put his slimy OK on to give taxpayers money, is nothing but a way to get funds for re-election or personal bank accounts for him and mo!

    Anyone, anyone, can you come up with a company that bho has been involved in that isn’t crooked, hasn’t filed for chapter 11, or hasn’t cratered?
    L

  5. #5
    On January 27th, 2012 at 2:32 pm, Marshall_Will said:

    MM said,

    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.

    So… that would be an even smaller group. Isn’t this what they have IPO’s for?

  6. #6
    On January 27th, 2012 at 2:33 pm, happyscrapper said:

    As soon as this usurper is ousted in January, let the investigations and law suits begin!! We’ll keep that creep very very busy for years to come. He will not have much time to enjoy his “retirement”. Of course, some of his “handlers” might not want him around to testify at any trials. That does not bode well for our Liar-In-Chief.

  7. #7
    On January 27th, 2012 at 2:34 pm, RedDog said:

    The latest shakedown scheme, and it involves the banks again.

    Mortgage deal draws detractors from all sides

    “Color of Change is circulating a petition asking Obama and Attorney General Eric Holder to “reject a settlement deal that lets Wall Street banks off the hook, protecting them from legal prosecution, and instead, push for a full investigation, compensation to homeowners and real accountability for those responsible.”"

    Oh please do investigate. But that will never happen because an investigation will expose the Democrats’ entire scam. This was the greatest theft of wealth and property in the history of mankind and it wrecked the world economy, not just ours. They strongarmed the banks up front to make “creative” loans to high risk borrowers and now they want to cleanup on the back end and buy some more votes to boot. A legitimate investigation would expose the entire scheme and send many Democrats and Wall Street friends to jail. Frank, Dodd, Raines, Gorelick included. They own the Great Mortgage Meltdown and there’s no way to hide it.

  8. #8
    On January 27th, 2012 at 2:37 pm, Mister P said:

    So think of it. If a company is willing to cheat and break the law for a smallpox drug. And a President is willing to cheat and break the law to help his cronies who produce the smalltalk drug. Is it a stretch to think that they would resort to releasing smallpox itself on the population. We have a breech of trust and one cannot predict at what length people will go to protect their own breech. This is not just an issue for the FDA or SEC, but its an issue for Homeland Security (if there truly is such a thing).

  9. #9
    On January 27th, 2012 at 2:39 pm, Mister P said:

    As soon as this usurper is ousted in January, let the investigations and law suits begin!!

    GOP will never allow it to happen.

  10. #10
    On January 27th, 2012 at 2:42 pm, Hangfire said:

    Corruptocrats.

  11. #11
    On January 27th, 2012 at 2:43 pm, Pasadena Phil said:

    On January 27th, 2012 at 2:39 pm, Mister P said:

    GOP will never allow it to happen.

    Exactly. There has been nothing stopping them from acting up to now. It’s the “there but for the grace of God go I” problem. It’s not an Obama problem but a corrupt one-party government problem.

  12. #12
    On January 27th, 2012 at 2:43 pm, Hangfire said:

    Obama makes Nixon look like an Eagle Scout.

  13. #13
    On January 27th, 2012 at 2:47 pm, NotTheMama said:

    On January 27th, 2012 at 2:39 pm, Mister P said:

    GOP will never allow it to happen.

    Speaking of corruption … no one is talking about how the Senate races are doing. Seems like everyone is focused on the pres race.

    We still have a lot of house cleaning to do in both chambers.

  14. #14
    On January 27th, 2012 at 2:50 pm, hawkeye54 said:

    Is it a stretch to think that they would resort to releasing smallpox itself on the population

    Would be easy. Just find infected people overseas and transport them into densely populated urban areas here. Piece of cake.

  15. #15
    On January 27th, 2012 at 2:50 pm, happyscrapper said:

    On January 27th, 2012 at 2:39 pm, Mister P said:
    As soon as this usurper is ousted in January, let the investigations and law suits begin!!
    GOP will never allow it to happen.

    Why the H not??? Once he is out of office, he is fair game. If we don’t have this horrible criminal investigated, we are a lawless society and anything goes. And why should the GOP have anything to say about it? The hell with the GOP. What have they done for us lately? Hmmmm??

  16. #16
    On January 27th, 2012 at 2:52 pm, Marshall_Will said:

    RedDog said,

    Oh please do investigate. But that will never happen because an investigation will expose the Democrats’ entire scam. This was the greatest theft of wealth and property in the history of mankind and it wrecked the world economy, not just ours.

    Encapsulating 10 yrs. in (1) tidy paragraph, not bad! Yeah the banksters have been looking for assurances they won’t be held personally liable for the mess they helped grease.

    Another sign Bammie won’t survive. They’re ramping this up before being forced to negotiate w/ the new Administration. In that regard, it’s a good sign. But don’t think I’m lettin’ the homeowners off the hook either?

  17. #17
    On January 27th, 2012 at 2:52 pm, hawkeye54 said:

    Speaking of corruption … no one is talking about how the Senate races are doing. Seems like everyone is focused on the pres race.
    We still have a lot of house cleaning to do in both chambers

    Yup. From my perspective, too, the presidential race is getting just about all the attention, while the senate and congressional races are just as, if not more, important for a cleansing.

  18. #18
    On January 27th, 2012 at 3:02 pm, letget said:

    On January 27th, 2012 at 2:52 pm, hawkeye54 said:

    Another thing that needs major attention, the AG in the states? soros is he!! bent spending millions seeing to it that d AG’s are elected so voters have to deal with them on issues. Please, people keep up with your states and national those running and vote for the best for our Republic!
    L

  19. #19
    On January 27th, 2012 at 3:05 pm, walterc said:

    Why the H not??? Once he is out of office, he is fair game.

    Happy, the GOP won’t let it happen because they don’t want it to happen to their guy in 4 or 8 years. This is what having career politicians in both houses gets us.

    Serving in Congress was not meant to be a career, but a sacrifice for your country. When people have been there for 20+ years, the system gets corrupted and is more about what’s good for government and less about what’s good for the country.

  20. #20
    On January 27th, 2012 at 3:20 pm, happyscrapper said:

    I see. So Obama is going to get off scott free for what he has done. Well, I guess there is always God’s judgement. Yeah, that’ll do just fine.

    Off topic…This moron called Rush today and said “I’ve never voted in my life, so you can’t blame this mess on me”. No, it wasn’t because she was too young to vote. She just didn’t vote. I can’t believe Rush didn’t ask her WHY the he!! she never voted. He used unbelievalbe restraint. I expected him to go off on her, but he was nice to her for some reason. I was screaming at that doofus!

  21. #21
    On January 27th, 2012 at 3:25 pm, DBNinKY said:

    But rather than acknowledging SBA’s decision, HHS pulled the small business set-aside and reissued the contract as a sole-source, non-compete to SIGA Corp. for $2.8 billion.

    I can him now, “Diane, this all began under my predecessors’ watch…”

  22. #22
    On January 27th, 2012 at 3:27 pm, Flyoverman said:

    Today, GOP Rep. Renee Ellmers of North Carolina asked the HHS Inspector General to investigate:

    That will do a lot of good. /sarc

  23. #23
    On January 27th, 2012 at 3:29 pm, happyscrapper said:

    The foxes are not guarding the henhouse. They are ALL foxes, no hens.

  24. #24
    On January 27th, 2012 at 3:40 pm, Republicanvet said:

    On January 27, 2012 at 12:27 pm, Marshall_Will said:

    Renee Ellmers said,

    “Yesterday afternoon I submitted my second letter to…

    I’ll check the refresher of course but by and large, wasn’t the vaccine intended for a very limited control group? Like lab tech’s that might come into contact w/ it during the course of the normal research?

    It will be like the HPV and anthrax vaccines where politically connected hacks will get Congress to mandate it thereby creating “demand” for it.

  25. #25
    On January 27th, 2012 at 3:45 pm, Republicanvet said:

    On January 27, 2012 at 12:33 pm, happyscrapper said:

    As soon as this usurper is ousted in January, let the investigations and law suits begin!! We’ll keep that creep very very busy for years to come. He will not have much time to enjoy his “retirement”. Of course, some of his “handlers” might not want him around to testify at any trials. That does not bode well for our Liar-In-Chief.

    I had my hopes up for the same thing when bubba and the seahag had to exit the WH…only to see Republicans go mute once they were gone.

    I doubt highly that any investigation or lawsuit will happen after these two crooks are thrown out.

  26. #26
    On January 27th, 2012 at 3:54 pm, Marshall_Will said:

    Republicanvet said,

    It will be like the HPV and anthrax vaccines where politically connected hacks will get Congress to mandate it thereby creating “demand” for it.

    If I recall correctly the people that are resistant to smallpox vaccines is because they are constantly exposed to it a lab environment! And as Michelle notes, there’s even doubts as to how effective it might be?

    With all that’s wrong in the world, and all the good those dollars could be used more effectively elsewhere, is this really a priority? Apparently if it’s not your money, then yes!

  27. #27
    On January 27th, 2012 at 4:00 pm, Republicanvet said:

    On January 27, 2012 at 01:54 pm, Marshall_Will said:

    Republicanvet said,

    It will be like the HPV and anthrax vaccines where politically connected hacks will get Congress to mandate it thereby creating “demand” for it.

    If I recall correctly the people that are resistant to smallpox vaccines is because they are constantly exposed to it a lab environment! And as Michelle notes, there’s even doubts as to how effective it might be?

    With all that’s wrong in the world, and all the good those dollars could be used more effectively elsewhere, is this really a priority? Apparently if it’s not your money, then yes!

    Given what has been reported on this scam, there was no risk to justify 1.2B other than paying off another donor.

  28. #28
    On January 27th, 2012 at 4:04 pm, stuckinIL4now said:

    Can we get them to develop an anti-Obama vaccine for immediate distribution?

  29. #29
    On January 27th, 2012 at 4:11 pm, RedDog said:

    I’m beginning to agree with Alex Jones and the Paulbots. This is a Globalist scheme that is beyond our ability to deal with. Crony disbursement and direct theft of the public treasury, FEMA camps, deliberate over-regulation and destruction of the economy, dissolution of Posse Comitatus and the rule of law… I am not liking where this is going.

    If you don’t know Jesus, you’d best get acquainted quickly.

  30. #30
    On January 27th, 2012 at 4:15 pm, NavyGal said:

    My state was ‘infected’ with the obamalady (similar to the plague that decimated Europe a few centuries ago) this morning. From what I hear it overtook almost an entire campus. Only by the miracle of flight was the disease wisked away before it claimed more victims.

  31. #31
    On January 27th, 2012 at 4:18 pm, Marshall_Will said:

    RedDog,

    Never a ‘bad’ time to get to know Jesus. You don’t have to agree w/ the likes of Jones etc. to see this is Globalist in nature.

    But it’s not beyond our control. It’s just never been this overt before? The fact it’s taking place [finally] in plain sight is a good thing.

    Bring.It.On

  32. #32
    On January 27th, 2012 at 4:22 pm, Misscheryl said:

    Look, no one is going to make this guy accountable for anything. PERIOD! We keep cussing and discussing this blatant disregard, tapping our foot waiting for something to happen….it never does. Reminds me of the Jews in Shindler’s List. We just keep on complaining…”Can you believe what this idiot did NOW!!!!!”

  33. #33
    On January 27th, 2012 at 4:29 pm, Rogue Cheddar said:

    Today, GOP Rep. Renee Ellmers of North Carolina asked the HHS Inspector General to investigate:

    “Yesterday afternoon I submitted my second letter to the Inspector General at the Department of Health and Human Services regarding apparent gross impropriety on behalf of the Obama Administration.”

    “The more I investigate this deal, the more shocked I become at the potential corruption and insider influence taking place at the highest levels of our government. I cannot help but see the similarities between this case and the Solyndra scandal, since both involve rewarding companies tied to Obama donors, billions in taxpayer dollars, and insider dealing.”

    Calamity Jane: Aw, is that so? That is too bad! Join the @#$%in’ club of most of us!

  34. #34
    On January 27th, 2012 at 4:34 pm, prendad said:

    I keep hearing how requests are being made for investigations into actions by the Obama administration, which are then initiated, for which hearings are called, upon which witnesses are summoned who profess ignorance, requests are made for information which are ignored or only partially fulfilled, and so on and on. So, when in the hell is someone going to stand up and say HEY, ENOUGH IS ENOUGH. LET’S MAKE UP OUR MINDS HERE. ARE WE JUST GOING TO KEEP PAYING LIP SERVICE TO THESE INVESTIGATIONS OR ARE WE GOING TO START SOCKING IT TO SOMEBODY AND GET THE IMPEACHMENT, PROSECUTION, AND OTHER VARIOUS HURT MACHINES FIRED UP AND SPINNING UP TO FULL POWER? I AM TIRED OF WAITING, I WANT SOME ACTION; I WANT SOME FLESH
    CHOMP CHOMP CHOMP
    GIVE ME SOME FRIGGING FLESH

  35. #35
    On January 27th, 2012 at 4:43 pm, Rogue Cheddar said:

    Easy there Hannibal, you’ll pop a vessel.

  36. #36
    On January 27th, 2012 at 4:47 pm, Iowa Guy said:

    Ha! Investigations are for the little people.

  37. #37
    On January 27th, 2012 at 4:47 pm, bjc said:

    *A long time ago I took Reagan’s words about the Soviets, “trust, but verify”, and applied them to politicians; They are “don’t trust, then verify why”; Michelle Malkin is in the forefront in this fight, God Bless her; They are all dirty to some degree, but especially on the Demoprog side; For the life of me, I don’t know how anyone here in the south can call themselves a proud Democrat!

  38. #38
    On January 27th, 2012 at 4:50 pm, Paratus said:

    I don’t like agreeing with MissCheryl #32, but she’s right. Criminals, like the ones we’re dealing with, and that’s about everyone in DC, always have an exit plan or alibi.

  39. #39
    On January 27th, 2012 at 4:55 pm, Misscheryl said:

    4:50 pm, Paratus said:

    Whaddyamean you don’t like agreeing with me?

  40. #40
    On January 27th, 2012 at 5:01 pm, conservative hispanic said:

    Somebody please confirm this: after the 2001 Dark Winter war game, it was decided that we would stock enough smallpox vaccine for ALL Americans. What the hell are we doing wasting time and money on this nonsense? 2.8 billion dollars of taxpayers money for this? Whose less than brilliant idea was this? I want some heads!!!!

  41. #41
    On January 27th, 2012 at 5:07 pm, Misscheryl said:

    I’ve often wondered who’s side the military will come down on…

  42. #42
    On January 27th, 2012 at 5:16 pm, Hangfire said:

    On January 27th, 2012 at 5:07 pm, Misscheryl said:

    I’ve often wondered who’s side the military will come down on…

    With rare exceptions, you pretty much have to be a politician to rise to star rank.

    If the day comes, right-wing Colonels will have to arrest/kill the lefty Generals before a proper coup could take place.

  43. #43
    On January 27th, 2012 at 5:44 pm, Paratus said:

    How do you walk back a poorly worded sentence? You look lovely today MissCheryl.

  44. #44
    On January 27th, 2012 at 5:47 pm, zorro said:

    Keep shining that sanitizing Sun light on these corruptocrats!

    We may be able to impeach that Chicago thug after all. Even if its after he leaves office, no pension for him.

  45. #45
    On January 27th, 2012 at 5:48 pm, Misscheryl said:

    5:44 pm, Paratus said:

    You compliment her and she’ll forgive you anything :)

  46. #46
    On January 27th, 2012 at 5:55 pm, rocketman said:

    ***
    HI FLYOVERMAN–#42. Good observation on the generals mostly being politicians. It seemed to me that Lt. Colonel was the dividing line between soldiers and politicians. Witness what happened to Billy Mitchell, General Patton, and others. Too many politicians and not enough warriors. Although every so often a Curtis LeMay comes along.
    ***
    Getting to Bird Colonel and higher also seemed a lot more likely for those with West Point or other Service Academy graduation.
    ***
    It’s hard to believe how many Flag Rank officers we have in our much smaller Military now–in peacetime yet! Really top heavy.
    ***
    John Bibb
    ***

  47. #47
    On January 27th, 2012 at 5:56 pm, zorro said:

    good one

  48. #48
    On January 27th, 2012 at 6:06 pm, Hangfire said:

    On January 27th, 2012 at 5:55 pm, rocketman said:

    It’s hard to believe how many Flag Rank officers we have in our much smaller Military now–in peacetime yet! Really top heavy.

    The Navy has more flag officers now than at the height of WWII.

    Many are in D.C. and have never left.

    Also, whilst on the subject, higher enlisted ranks are more common.

    I remember going a week or two without seeing a Master Chief.

    Now, some of the commands have 2 or 3.

  49. #49
    On January 27th, 2012 at 6:08 pm, Hangfire said:

    On January 27th, 2012 at 5:55 pm, rocketman said:

    Curtis LeMay

    Class! And his wife had class, too.

  50. #50
    On January 27th, 2012 at 6:34 pm, sicoit said:

    On January 27th, 2012 at 4:55 pm, Misscheryl said:

    4:50 pm, Paratus said:

    Whaddyamean you don’t like agreeing with me?

    Ruh rooooooooowwwwwwww…. ;)

  51. #51
    On January 27th, 2012 at 6:37 pm, thejim said:

    As soon as this usurper is ousted in January, let the investigations and law suits begin!!

    There will be none, they are all in on it. Doubt me? Members of both parties voted for exemption on a host of laws & regulations that apply only to the “Little People”.

  52. #52
    On January 27th, 2012 at 8:03 pm, Virginia Patriot said:

    On January 27th, 2012 at 6:37 pm, thejim said:

    As soon as this usurper is ousted in January, let the investigations and law suits begin!!

    There will be none, they are all in on it. Doubt me? Members of both parties voted for exemption on a host of laws & regulations that apply only to the “Little People”.

    Right you are thejim. He wouldn’t be usurping without their help.

  53. #53
    On January 27th, 2012 at 9:12 pm, hawkeye54 said:

    There will be none, they are all in on it. Doubt me? Members of both parties voted for exemption on a host of laws & regulations that apply only to the “Little People”.
    Right you are thejim. He wouldn’t be usurping without their help.

    Yup,sSo many in CONgress are themselves usurpers in too many ways. Professional politicians should be outlawed.

  54. #54
    On January 28th, 2012 at 12:36 pm, MyrmidoNOT said:

    On January 27th, 2012 at 4:04 pm, stuckinIL4now said:

    Can we get them to develop an anti-Obama vaccine for immediate distribution?

    Two salient points:

    First, it will be covered, under the new obama-DON’T-care policy.
    (Sorta like prescribing MJ for steroid users…..so they “don’t care” how screwed-up they get. Medical MJ, perhaps?)

    Second, will rahmbo “shed a tear” when the last person ‘leaves’ IL, for ‘less taxed’ “other” states?

  55. #55
    On January 28th, 2012 at 1:21 pm, 18square said:

    @ Hangfire and rocketman…

    I still have my Wallace – LeMay bumper sticker! It was mounted on a fiberglass plate below the rear license plate on my 1966 Chevrolet SS396 Chevelle.

    On January 27th, 2012 at 6:08 pm, Hangfire said:
    On January 27th, 2012 at 5:55 pm, rocketman said:
    Curtis LeMay
    Class! And his wife had class, too.

  56. #56
    On January 28th, 2012 at 2:15 pm, Collateral Damage said:

    (D) = LIARS, CHEATS, and THIEVES!?! Just sayin’ …

  57. #57
    On January 29th, 2012 at 11:17 pm, NeoFan said:

    This is the company Andy Stern went to work for after he left the union. Why is his name not mentioned here? Just curious.

  58. #58
    On January 29th, 2012 at 11:23 pm, NeoFan said:

    Oops sorry I checked out the link and found him.

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