The G.O.P. Chief And The Lobbyist. Same Guy

Marc Racicot raised some eyebrows in Washington when he announced he would be keeping his day job after taking over as G.O.P. national committee chairman in January. The former Montana Governor lobbies for interests critically affected by government policy, among them electric utilities, railroads and, until recently, Enron, the bankrupt energy concern. Racicot's decision could pose an ethical challenge for the Bush team: can Administration officials say no to a man who will be piling up campaign cash for their boss and spinning for the party?

Racicot has wielded clout as a lobbyist since leaving the governorship a year ago. Representing a coalition of power companies, Racicot met with vice-presidential aides on Dec. 3, sources tell TIME, and argued to relax a clean-air law requiring utilities to install new pollution controls when they upgrade plants. In November he sent promotional material for Siebel Systems software to Director of Homeland Security Tom Ridge, according to Siebel executive Frank Bishop. Racicot, a Siebel director, followed up with a phone call to Ridge. Racicot says it is "insulting" to suggest his political role might help his lobbying. "I've never found that a bad argument and a good relationship carried the day," he tells TIME. He promises "heightened sensitivity" to avoid appearing to put the interests of his business clients over those of the President. It's a pledge likely to be tested.

--By Michael Weisskopf