Two House Democrats have urged a government agency to cancel the lease for Donald Trump’s DC hotel, citing the recent bombshell letter from his accountants.
Last week, Mr Trump’s accounting firm, Mazars USA, dropped his company as a client and disavowed its financial statements on him, saying they “should not be relied upon.” In a letter to the US General Services Administration, Reps Carolyn Maloney and Gerald Connolly argued that this could invalidate the lease for Trump International Hotel, which is located in a former post office building.
“As part of his bid to win the Old Post Office Building lease, former President Trump submitted three years’ worth of Statements of Financial Condition, all compiled by Mazars, to GSA,” wrote the representatives, who serve on the House Oversight Committee.
The GSA approved that bid in 2013. But the statements it based that decision on, the Democrats explained, were among the ones that Mazars declared unreliable. The only remedy, they said, is to cancel the lease.
“In light of these new revelations, including further evidence that the former President submitted at least one financial statement with possible material misrepresentations to GSA, we request that you consider terminating the Old Post Office Building lease to former President Trump and the Trump Organization,” the Democrats wrote, “and end, once-and-for-all, the grave damage this inappropriate lease has done to presidential ethics and integrity in government contracting.”
Mr Trump has argued that Mazars’ decision in no way reflects poorly on his company’s finances, or on the accuracy of its bookkeeping.
“We have a great company with fantastic assets that are unique, extremely valuable and, in many cases, far more valuable than what was listed in our Financial Statements,” the former president said in a statement on Tuesday. “The accounting firm Mazars has been threatened, harassed, and insulted like virtually no other firm has ever been. They were essentially forced to resign from a great long-term account by the prosecutorial conduct” of Attorney General Letitia James and the Manhattan District Attorney.
But experts say the Mazars news could spell serious trouble for the Trump Organization, which relies on its financial statements to secure loans. In their letter, Mr Trump’s own accountants have now told the world those statements are not to be trusted.
“We write to advise that the Statements of Financial Condition for Donald J Trump for the years ending June 30, 2011 – June 30, 2020, should no longer be relied upon,” Mazars wrote.
The Independent has reached out to Mr Trump, the Trump Organization, and the GSA for comment.
