A Convention Quandary

After John McCain nailed down the Republican nomination in March, his campaign began wrestling with a sensitive personnel issue: who would manage this summer's GOP convention in St. Paul, Minn.? The campaign recently tapped Doug Goodyear for the job, a veteran operative and Arizonan who was chosen for his "management experience and expertise," according to McCain press secretary Jill Hazelbaker. But some allies worry that Goodyear's selection could fuel perceptions that McCain—who has portrayed himself as a crusader against special interests—is surrounded by lobbyists. Goodyear is CEO of DCI Group, a consulting firm that earned $3 million last year lobbying for ExxonMobil, General Motors and other clients.

Potentially more problematic: the firm was paid $348,000 in 2002 to represent Burma's military junta, which had been strongly condemned by the State Department for its human-rights record and remains in power today. Justice Department lobbying records show DCI pushed to "begin a dialogue of political reconciliation" with the regime. It also led a PR campaign to burnish the junta's image, drafting releases praising Burma's efforts to curb the drug trade and denouncing "falsehoods" by the Bush administration that the regime engaged in rape and other abuses. "It was our only foreign representation, it was for a short tenure, and it was six years ago," Goodyear told NEWSWEEK, adding the junta's record in the current cyclone crisis is "reprehensible."

Another issue: DCI has been a pioneer in running "independent" expenditure campaigns by so–called 527 groups, precisely the kind of operations that McCain, in his battle for campaign-finance reform, has denounced. In 2004, the DCI Group led a pro-Bush 527 called Progress for America, which was later fined (along with several other 527s on both sides of the political divide) for violating federal election laws. Goodyear, however, says that DCI is "not in the 527 business anymore."

Ironically, Goodyear was chosen for the post after the McCain campaign nixed another candidate, Paul Manafort, who runs a lobbying firm with McCain's campaign manager, Rick Davis. The prospect of choosing Manafort created anxiety in the campaign because of his long history of representing controversial foreign clients, including Philippine dictator Ferdinand Marcos. More recently, he served as chief political consultant to Viktor Yanukovich, the former Ukrainian prime minister who has been widely criticized for alleged corruption and for his close ties to Russia's Vladimir Putin—a potential embarrassment for McCain, who in 2007 called Putin a "totalitarian dictator." "The Ukrainian stuff was viewed as too much," says one McCain strategist, who asked not to be identified discussing the matter. Manafort did not return calls for comment.

Editor's Note: Not long after Newsweek published this item, McCain's convention manager resigned .

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