(CNSNews.com) - Breaking nearly a week of silence, Sen. Dianne Feinstein’s office Tuesday called allegations of a conflict of interest “nonsense” and said the California Democrat played no role in awarding military contracts that benefited companies owned by her husband.
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This Senate panel offered her more ways to help the state of California, Gerber said, adding, “She is still on the full defense appropriations subcommittee.”

Feinstein’s service on the committee never presented a conflict of interest, Gerber said, because she didn’t have the power to direct contracts to her husband’s business or any other company.

“Sen. Feinstein never sought to award military contracts,” Gerber said. “That procedure is done by the defense department. Congress plays no role in that process.”

That’s only technically true, said Kenneth Boehm, chairman of the National Legal and Policy Center, a conservative government watchdog group. He said Tuesday it was disingenuous for Feinstein’s office to claim she had no role in awarding contracts.

“The Pentagon does award contracts, but when the Pentagon wants money it goes to the appropriation subcommittees in the House and Senate for money,” Boehm noted. “It’s hard to imagine a more textbook example of a major financial conflict of interest.”

When the Pentagon or any federal agency submits its wish list to Congress, Boehm explained, the appropriations committee members select which programs and projects are funded and often have knowledge of what companies might be suited for the project based on geography, specialization and other factors.

This is well known on Capitol Hill, he said.

“To say she didn’t actually do the contract is fall-down-laughing material,” Boehm said.
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Feinstein at the very least had knowledge about what the military wanted and when, said Chris Farrell, research director for Judicial Watch.

The conservative group is working on a complaint to the Senate Ethics Committee and a freedom of information request to the U.S. Department of Defense.

“She had a preview of what was coming down the pipeline,” Farrell told Cybercast News Service. “It’s a sneak preview for him [Blum]. It’s like ordering off a menu.”

Feinstein chairs the Senate Rules Committee, which sets both procedural rules and ethical guidelines for members.