Posted on 12/05/2012 11:29:10 AM PST by servo1969
WASHINGTON — Dick Armey’s resignation as chairman of FreedomWorks follows months of turmoil, accusations of unethical behavior, top officials being put on administrative leave and a wave of staff departures inside the tea party-affiliated organization.
Multiple sources inside FreedomWorks told The Daily Caller that Armey’s resignation — made public this week but in the works for months – came about after the former House Majority Leader became angry with how FreedomWorks CEO and president Matt Kibbe was operating the organization.
“We had serious differences of opinion about the process of how you do business and I wanted to move on,” Armey told TheDC in a Tuesday phone interview.
FreedomWorks, formed in 2004, has established itself as a prominent player in campaign politics. It is known for organizing large tea party rallies and in backing conservative candidates in races across the country.
The tension between Armey and Kibbe boiled over in August, according to sources, when Armey found out about the details surrounding Kibbe’s new book, “Hostile Takeover: Resisting Centralized Government’s Stranglehold on America.”
Armey, who in September accepted a $8 million consulting contract in return for leaving FreedomWorks after the election, was outraged that Kibbe — and not FreedomWorks – would earn money from the book. The royalties from a previous book co-authored by Kibbe and Armey went directly to the organization.
Despite a request from Kibbe, Armey refused to sign a document for the book deal. In September, Kibbe and Adam Brandon, a top official who helped Kibbe secure the book deal, were temporarily put on administrative leave as the organization’s board of trustees looked into the matter and hoped to keep it quiet before the elections, sources said.
Armey wasn’t the only one at FreedomWorks uncomfortable with Kibbe’s actions. Some questioned why Kibbe was on a book tour ahead of the election instead of devoting resources to the election.
“There’s unethical behavior going on at the top and there are a bunch of people leaving,” one knowledgeable source told TheDC.
Said another source: “There is a feeling by a lot of folks that FreedomWorks is shifting over to become a promotion vehicle for Matt Kibbe more than an organization that focuses on public policy and elections and being a service center to the grassroots.”
As many as 10 other people – including longtime staffers Brendan Steinhauser and Max Pappas — have left or are also leaving FreedomWorks, the sources said.
In an interview on Tuesday, Kibbe argued the book helps the organization more than it helps him and the organization is stronger than it has ever been.
“We really set out to tell what I consider the FreedomWorks story, the philosophy and decentralized strategy and some of the policy issues that matter,” he said of the book.
Kibbe, whose contract with Harper Collins is worth $50,000, said the book is “incredibly valuable to FreedomWorks to promoting our agenda, to raising money.”
“A lot of our most successful high dollar fundraising piece was in fact lifted directly from the book,” he said. “And I’ve used this book to educate both donors and activists.”
“It was always designed as something that would help FreedomWorks, because that’s what I do and that’s what I want to accomplish,” he said.
Kibbe disputed that Armey resigned over the book.
“That had virtually nothing to do with it,” Kibbe told TheDC. “I think there were just two very different visions about where FreedomWorks was headed.”
He also denied that staffers were leaving because of “this dispute over the direction of FreedomWorks.”
“We also have over 50 people on our staff and you’re bound to get a certain percentage of turnover at any given time,” he said. “That’s how this town works and we’re no exception to that.”
According to sources, Armey’s tension with Kibbe reached an all-time high over the book. But Armey had other complaints as well: he suspected that FreedomWorks press staffers were bumping him from TV appearances so they could book Kibbe instead. He also thought staff were having to choose between being loyal to Kibbe or loyal to FreedomWorks, and those choosing Kibbe were given preferential treatment.
When it became clear that Armey wanted out of FreedomWorks, Dick Stephenson, one of Armey’s longtime friends who is also on the FreedomWorks board – stepped in to convince him to wait until after the election to call it quits.
It was feared that the press would have a field day with his resignation, potentially hurting tea party prospects at the polls, sources said.
Armey then secretly signed a consulting contract with Stephenson — the Associated Press revealed on Tuesday — worth $8 million in $400,000 annual installments, under the condition he wouldn’t leave FreedomWorks until after the election.
“The question of the timeline was a matter of anxiety over the election, not wanting to upset the applecart before the elections,” Armey told TheDC on Tuesday.
Referencing news reports suggesting otherwise, Armey emphasized that the money isn’t coming from the FreedomWorks coffers.
“I can tell you that any agreement I had with Dick Stephenson in no way was an agreement between me and FreedomWorks,” he said.
Armey resigned in an email to Kibbe on Friday. It stayed quiet until Mother Jones, a liberal outfit known for being critical of conservatives and tea partiers, broke the news.
On Monday, hours before the story broke, there were no signs of turmoil as Kibbe held a press availability for 100 local tea partiers that convened at the group’s Capitol Hill offices for a weekend conference.
Standing on a platform and surrounded by the activists, Kibbe declared: “I think there’s more energy in this movement today than there was Nov. 6.”
Several feet away from the platform was a box of books titled, “Hostile Takeover.”
I have no answer for you.
It may be that some behind Dick came to the conclusion that even with his influence he could not “control” the Tea Party and they bought him out to support their efforts. (not necessarily in the interest of the nation)
The resistance will come from Patriots, Vets, Independent Business Owners/managers, the Right, some Libertarians and the Nationalists.
We are seeing the convergence of the Left, the Muzzies and the Globalist Fascists. That is the enemy. I still cannot see where the direction is coming from yet, but it is there somewhere.
Polster called my this week and asked a lot of question, which I did answer. Most of it was about the fiscal cliff. She asked what I thought about negotiation with Obozo. I told her I want no part of any negotiations with him. I told her that Barrack H. Obama, Jr. or whatever his real name is, is a Liar and he serves the father of lies. (silence followed)
Guess we shall see. Remember, Richard Nixon was re-elected and not long after resigned due to a valid threat of impeachment. Now, the Dems will never impeach Obozo, but this mess can forever destroy the Dems and the GOP. It all depends on how they react.
What a mess.
Thank you for your candor.
And yes, what a mess.
He isn’t be blackmailed. He was a sleeper- and he is a socialist. He is in on it.
Was anyone on the GOP actually working on winning the election? It appears not at FreedomWorks. I never did trust them with all the media they got.
FreedomWorks was just a cushy, ego-boosting job for Armey..that’s all. He never believed in the TEA party movement-—he just wanted to fleece it for all it was worth.
And apparently this Kibbe is too. Sounds like the organization is done. Kaput. Finis. Toast.
Perhaps you weren't standing close enough to him in Texas, we who know him, have much more faith in his integrity then you do..
I have know Armey for 20+ years, and haven't had anything to give me any doubts about his loyalties, or his intentions..
He stepped aside when he could no longer make the kind of difference in the congress that he could do from the sidelines, and make some money for his family.. He could have stayed in Congress and be bought off for his influences at his high position in leadership..
Isn't that what we are always asking of our representatives??
Give it a break, and listen to what he said was the reason, and not the trash pages of the enemy..
“I have know Armey for 20+ years, and haven’t had anything to give me any doubts about his loyalties, or his intentions..”
I find it strange he objected to Kibbe earning royalties on an upcoming book Kibbe wrote, yet he had no issue with taking an $8 million dollar severance payment from the tea party organization in return for delaying his resignation until after the election.
If he was truly a man of honor and principle, he would have resigned from the organization on his own timing and he would not have accepted payment for leaving.
Somehow for Washington political operatives and professional politicians, it always comes down to money.
Armey is a dick!
if the top guys are making $8 million at a non-profit (I assume), then they are wealthy enough not to need our donations.
if the top guys are making $8 million at a non-profit (I assume), then they are wealthy enough not to need our donations.”
Eight million in severance is “rich” even by corporate standards except for the CEO’s of the very largest firms. For non-profits, I’ve never heard of a severance payment this large. I’m also surprised a political organization has an extra $8 million laying around immediately after a campaign. This is all very strange. However, it does seem we live in strange times.
Assuming neither of us has been provided the terms of the agreement, it is absurd to judge the value he affords the chairman or the association..
I have been awarded and have offered quite large contracts, that have brought my entire staff with me to fulfill the terms, marginalizing the net value to the total..
It is obvious that you wish to condemn a man based on your gut feeling, and I obviously can’t alienate you of that burden, so I’ll let it go at that.. Thanks
I did not question Dick Armey’s integrity. I simply stated that some behind him may have concluded that even with his influence, he could not control the Tea Party.
I have taken flack here for defending him. Have also received criticism for defending Rick Perry (he has made some real slips in things he supported).
As far as taking care of family ahead of other things, I sympathize. My past 5 years have almost totally been caring for sick family members.
Either I made a bad choice of words, or you did not see my intent in my post.
There was a time in the 1980’s that I was pretty involved in GOP Politics in NM, but it was long ago. Have only been an observer since then.
I do however despise the GOP element in DC who desire to sell us out the same way the Commie Dems do.
This is why the “Tea Party” is better off without “leaders.” The crooks inevitably take over and when the money tree quits growing, the crooks start eating one another.
No TF it was not intended for you.. So sorry that I tagged you.. I added you to show you that you had an partner in your corner.. Again, so sorry..
True.
More moochers making money off the conservative movement while destroying it from the inside.
FU John Boehner!
I feel the players in DC universally know how truly destructive and corrupt their game has become. A few quietly openly oppose the agenda, some quietly sympathize with the opposition but are too scared to resist, most simply are in it for themselves and the most evil seek to enslave the world.
Many useful scoundrels and a few truly evil despot want to be’s.
Here is some more, because you earned it. Armey was once a hero to me, but once he retired, he began to expose the real Dick.
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