Bertha Lewis on 'FNS'

" And hello again from Fox News and Washington. As you may have heard by now President Obama decided to do five Sunday shows today. But the White House made it clear they had no interest in talking to us we'll have more on that later. But first the nation's biggest community organizing group known as acorn. Was caught and -- hidden cameras thing that's -- both houses of congress vote to cut federal fund that. We're joined today by acorn CEO Bertha Lewis and buy one of its toughest critics congressman Darrell ice up and we welcome both of you. To Fox News -- ms. Lewis when those. Videos of acorn workers who were. Hoping what they thought were a pimp and a prostitute first came out you said the following and let's put it off. We are there -- important for 2009 we are the -- man for the right wing and its echo chamber. Now the vast majority of Democrats in the house and the Senate have voted to cut funding for acorn -- is still site this is just about race and politics."

" Well we are the largest community organization of low and -- income folks and mostly people of color. And of course any organization. Who. It's not entirely perfect. I think congress you know we'll be looking at doing an anti -- amendment just singling out one organization. But we continue to make sure that. All of our employees. -- if they're too stupid to understand and that they are not reaching professional standards. We terminate them and we actually make show where they -- You know what we do internally is serving our constituents 500000. Poor black and brown Asian and white people in this country so. I was outraged by everyone should be and I can understand how the congress was --"

" Well congress -- nice it's not just the videos in July the Republican staff your staff. On the government oversight and rather the house committee on oversight and government reforms. Issued an 88 page report in which you -- the following. -- is committed investment fraud deprive the public of its right to honest services. And engaged in a racketeering enterprise affecting interstate commerce briefly. Explain why you think acorn as of criminal organization."

" One thing they did was they covered up and in puzzlement. Both internally and externally. And then glossed over the dollars. And the -- and embezzlement by the brother of the founder back in 1999 and 2000. Of almost a million dollars of almost a million dollars. Basically the -- stayed on the that the board until this became public eight years later. Now he's with affiliates. A doing the same work and and be able to say -- at least not with the company. The bottom line is there's no transparency. In acorn. Any charity that you would look at and we've looked at him and our committee it's a regular part of what we do. You normally find out who's paid what where the money goes what the collection cost star and so on. Here we have. Literally hundreds of organizations tied under the acorn umbrella. And you can't even find out what they're -- corporation is whether they pay taxes who makes what or more importantly. Whether corporations. Within the affiliates who work in different areas. Political fund raising getting candidates elected voter registration. Other community activities whether or not those monies are -- moved illegally."

" I think that that brings up ms. Lewis the question I got most from our viewers an email laughter we announced that -- going to be on the program which was how can -- nonprofit. Engage in political activity it turns out that -- The parent group is not a 501 C four which would be. Tax exempt but rather a taxable. Non profit the congressional research service says that you are the only taxable non profit that they could find. In this entire country is that. So that your various subsidiaries can get federal funds and act as non profits while your parent -- can engage in political active."

" We've made sure it since I've become the CEO. This it affiliate. Have firewalls between them I know they had to -- back last year. We were outraged. That the board didn't know. About the previous chief organizers activities are completely overhaul all of our finances all of our controls. And he was fired immediately just as in this instance. With these tapes we terminated folks immediately. Under my watch and my leadership. I will make sure that we keep saving people's homes making sure that people get paid good wages and making sure that our corporate structure. Is above board it is open the internally let us and we --"

" Ms. Lewis if you're so concerned about serving the community obviously being a taxable non profit means that you have to pay taxes is if you're so concerned about serving the community. Wanna be a non right to tax exempt nonprofit stay out of politics and then you could get that money is senate to the federal government -- you give it to your community."

" I think what. You would also agreed with the you have the right of the people to come together. Not only to petition their government and right to do that poor people have the right to do that. But you also need to be able to do -- I think we activities such as servicing to community which we do. We can organization can do both hundreds of organizations do the same thing. That we do we make sure that we serve as a 500000 manhunt tonight -- but."

" You know in fairness -- I don't know of another organization structure the way you are where they're both a political. Wing if you will of the Democratic Party and has close relations with the unions and takes federal dollars and takes charity money. And does not disclose in a way in which anybody your donors the government when they provide money. Can actually get transparency if you're gonna change this -- you come before chairman town a man who by the way voted not to cut off your funding. And get in give the kind of disclosure -- where the government oversight reform committee can know that you are doing work with firewalls as you say. So the American people know that their dollars don't end up doing political activities prohibited by law."

" Is the question that we really should be but -- answer his question is little question that we really should be answering. Do you have an organization. Such as -- That absolutely. Pays it's taxes absolutely. Provides its services has firewalls. We think it's up to the congress to determine. How they would handle some sort of anti acorn. Program -- and there are poor people in this country every day. That we're saving their homes making sure that they had different wages."

" But he'll find out how big it could you answer to answer the congressman's. I asked my job. My job is to serve our 500000 and is listed nice about it directly and that line the line on how we're gonna want to go before the committee we. Talking about and please let me ask the question. Congressman towns who's a Democrat. It is a democratic control committee but they're obviously -- Republicans like the ranking Republican. Congressman -- are saying. Come before us and explain because it seems like your merging. Charity non profit profit political nonpolitical and that it all gets jumbled up and get don't know which dollar is going where."

" Well that's congressman I think -- opinion again. But anyone that half of com we will do what ever we need to do to make sure the folks understand the work that we actually do that we've been doing. For forty years. That we've been doing and we've been doing it -- Chris."

" Is asking a question you're giving an answer that -- console. Kingsley said he's not true you don't have -- that's an internal memo that your counsel saying you have these problems. And if you had those problems then. And for forty years have had these problems and the American people to put 53 million dollars and your organization and countless other dollars of other state local. And charity money the question is will you allow at least looking back. A review of these things so the -- gonna have a confidence that you have those those -- There's no god given right for any organization to receive a grant from the the American people the fact is -- organization standing in line. That we should they -- instead of view and they're giving us the transparency so we can have the confidence the money is spent only for the purpose of the grant."

" Congressman I think is right you have competitive grants. And you need to compete with a lot of other folks you need to deliver those services he is absolutely right he's absolutely right that. His staff. Who repeatedly talked to the lawyers that harm and current affairs we did an internal. -- a lawyer client privileged confidential document they gave advice fifth and took over. I have overhauled the entire thing."

" Wait wait wait every -- they look like I do and that's what we're delighted that you -- I think so you overall the whole system. There are the videos which have happened on your watch. I just wanna put up here are acorn workers advising. Young man -- woman posing as a -- a prostitute how to buy a house and avoid. Paying taxes service. -- business is performing. -- Okay let those same breath. Yet."

" I did not in the."

" There. I wanna point out because you've also attacked fox fox did not produce did not make -- not by those videos we just put them on the air. Like everybody else now house. You were brought in a year ago to clean up --"

" Is this the new and improved -- well what that I do. Immediately. These folks were terminated like legally it back Dotson said it was okay municipal all -- it is Paris immediately. I know the frequent those folks were terminated immediately. And went that I often do. Make sure that we have an independent review. Make sure that was suspended any walking activities so we can review. What worked what didn't work and -- instances. Those folks thrown out I have an obligation to my board. To my members and some other employees. That actually did practice professional good high standards. Those folks -- not until -- on a year after you took off well here's the thing as I said it. The first thing that we began to do -- reorganized board make sure that we have financial structures and controls. Make sure of the way our offices were mandates and you know in a way it's indefensible -- I saw there. That is why I think you know what. We're gonna terminate these folks immediately even though I've been revealing things and making sure that we look at an organization has -- anyone fact. In a way this was good for -- so what it did was show what took off what weaknesses we have and we have moved swiftly. --"

" Acorn has long ties to Barack Obama is done work over the years for for various organizations and that there are certain laws should let the matter of a pain he was -- an attorney for acorn on a couple of -- and personally endorsed Barack Obama. Last year in -- in a speech before acorn. Do you hope that he will -- any measure that comes out of congress cutting off acorn funds."

" First well President Obama was a young lawyer among. Many different lawyers that represented a whole. Host I don't innovation just not and again and here's what we want it and Obama. It's a very smart very thoughtful person. What he does if it is his decision I would never presume to tell the president whether he should be total bill and."

" He says that he believes an acorn should be investigated. Well that's his opinion -- Let's also chairman John Conyers opinion he's asked his subcommittee ranking and chairman Nadler to -- pursue that. And again this is not Republicans. This is about all the corporate structure whether things have been violated. You know at what if you want to have an independent investigation and -- I've heard that expression used by birth of many times. You go out to price Waterhouse or Ernst and young and you. You you walk in and say I want an audit of our corporations I want to item and and when we get an -- and it public interrupt you find -- because you said. This last week that you would name an independent auditor by Friday. To review acorn I looked at your website twenty minutes ago this is a lot of work."

" You will have. That announcement one Monday making sure that when we hit the ground running and everything -- in place because. It is important that if somebody independent Mike Price Waterhouse. I -- think you're -- not a very some analysts want to let go and find out who that person has. And you'll also note that we brought in things last year new monitors. -- new financial professionals to make sure that they gave affected device which I've been implementing. As well as making sure that what you just -- never ever happen."

" We're if I could ask just one question from the standpoint of the government rules done -- before we before we provide additional grants -- make you eligible for additional grants. Wouldn't it be fair for you to demonstrate. To the federal government to the agency's. That in fact you now have those separations so that whether it's price Waterhouse or somebody else. Will you assure us that that's the case because my opinion continues to be you shouldn't get another penny of federal dollars. Until you demonstrate that those dollars are fire -- for only that use and that has an -- in the history of the organization."

" I'm glad congressman I -- for that is his opinions. Are you willing to open your books up to I am willing to do the work that I need to do every single day not be distracted. Make sure that things that we do well. We we beef up in things that we don't do so well. That would change can we reform I have to work for poor people. I have to make sure I'm saving people's homes and it I have to make sure that children don't get lead poisoning that's my job as well and I'm going."

" On tonight's I want to thank you both -- both for coming in and answering all of our quest thank you."