July 20-26, 2001 AsianWeek.com: "Matt Fong Bows Out as Army Undersecretary: Says process is frustrating, bureaucratic, and too uncertain, " by Sam Chu Lin

Former California State Treasurer and GOP senatorial candidate Matt Fong has asked the White House to withdraw his nomination for Undersecretary of the Army in a surprise announcement, citing personal and family reasons.

"We're finding this process too long, too frustrating, too bureaucratic and too uncertain," Fong said. "The White House told me it would probably be another six months before my confirmation hearings came up ... It could be longer. With that kind of uncertainty, I am withdrawing my nomination."

Last May, President Bush nominated Fong to the Army post. Following confirmation, it was anticipated the Air Force Academy graduate and lieutenant colonel in the Air Force Reserve would become the first Asian American to serve as Army undersecretary.

Before arriving at his decision, Fong traveled to Washington, D.C., last week to confer with Labor Secretary Elaine Chao, Transportation Secretary Norman Mineta and other advisors. He said he expressed to them his frustration. With each passing month, "the actual practical impact of going back there and making a difference was going out the window," he added.

During the most recent presidential election, Fong, a long-time Republican supporter, served as an advisor to Bush and campaigned with him throughout California. Assuming confirmation, his original plan was to remain at the Pentagon for three years and then return to California to campaign for Bush's re-election.

But he pointed out that the budget year supplement is already complete. "The 2002 budget that I was going to work on has already been locked in place, pretty much," he said. "The 2003 budget is starting to be discussed now. Who knows how much of it would be locked in by the time I got there?"

Family Man

According to Fong, the political uncertainty also affected his family. His daughter Jade will be a college freshman this fall, and his son Matt Jr., is wrapping up his senior year at Pepperdine University in Malibu, Calif. Both Fong and his wife, Paula, put their careers on hold while awaiting action from Washington.

Fong also hinted that his family's financial situation was one factor in his decision to withdraw his name. Until three months ago, he worked as an attorney based in Los Angeles.

"It's pretty tough when your clients have already given you farewell parties ... thinking you were leaving in April. You're no longer getting paid. There's only so much you can do or wait."

Fong noted that President Bush's nominees for Undersecretary of the Air Force and Assistant Secretary of the Army have withdrawn their names, as well. Moreover, he said of Bush's appointees, only some "20 to 30 percent are in place." That Republicans abruptly lost control of the Senate has also added to the delay, he said.

"This process is setting the record for delays, and a lot of good people, in addition to me, are saying, 'We have other things to do besides sit and wait,'" he said.

"You have five agencies doing the background checks instead of one. It's way too bureaucratic."

Targeted by Judicial Watch

Following his nomination, Judicial Watch, a public law firm that investigates and prosecutes government corruption, put a dark cloud over Fong by questioning his relationships and dealings in China and Taiwan. Judicial Watch went so far as to allege that Fong could be a security risk to the United States.

Judicial Watch uncovered a $100,000 donation Fong accepted from Ted Sioeng, an Indonesian businessman to pay off debt from his 1994 campaign for California treasurer. Fong later discovered that $50,000 came from Sioeng's personal account and returned the money immediately.

Asian American civil rights organizations, such as Japanese American Citizens League, National Federation of Filipino American Associations and Organization of Chinese Americans, came to Fong's defense. Since the 1990s, a few APIs have been charged with making illegal campaign donations. Community leaders, however, have pointed out that in other cases, accusations have been unfounded and used to smear the reputation of Asian Americans for political advantage.

When allegations against Fong began to surface, Vincent Eng, director of the Asian Pacific Legal Consortium, charged the Judicial Watch with racial profiling, saying its president, Larry Klayman, was "targeting his distrust of Asians in general. He is making wild accusations."

Not a Factor

Fong, a fourth-generation American, and his supporters have reiterated the decision to bow-out has no connection with those reports.

"I don't think Judicial Watch is an issue," Fong said. "I don't see evidence of that to cause any delays."

He added: "If there was a witch-hunt, if they were gunning for me and they were succeeding, out of principle, I would stand up and fight."

John Tsu, former chairman of Asian Pacific Americans for Bush for President, said that the delay in Fong's confirmation hearings had nothing to do with campaign finance questions or his ethnicity.

"Judicial Watch didn't have any influence with Matt's nomination," Tsu said. "The FBI may have checked a little bit because Judicial Watch publicized its story, but that story was long done. Matt returned Teddy Sieong and his family's contributions that were given to pay off his state treasurer's campaign debt. That had nothing to do with it."

Tsu added that the position for which Fong was nominated "requires a high security check of everything, not only China, Taiwan, but any foreign dealings or any company he served as an advisor or consultant."

Since Democrats now control the Senate and the Armed Services Committee, it would have been tougher for Fong to be confirmed, Tsu said, especially since he challenged Senator Barbara Boxer, D-Calif., for her seat.

Despite his decision, Fong remains optimistic about the Bush administration and the future of Asian Americans.

"There shouldn't be a negative message to the API community from my announcement," Fong said. "President Bush has already appointed two Asian Americans to his cabinet and nominated many Asian Pacific Americans to sub-cabinet posts. This demonstrates his administration is committed to APIs".