US 'now a full-fledged banana republic' after Mitch McConnell wife $78m grants revelation

Donald Trump's transport secretary designated a special liaison to help with grant applications from her senator husband’s state, paving the way to fund projects worth $78m (£62m), it has been reported.

Elaine Chao personally asked a Department of Transportation aide to serve as an intermediary and advisor to Republican Senate majority leader Mitch McConnell and his Kentucky state officials, according to emails seen by Politico.

The projects funded – as Mr McConnell prepared to campaign for re-election – reportedly included road improvements in Republican political strongholds for which grant applications had previously been rejected.

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Walter Shaub, a former director of the US Office of Government Ethics, described the arrangement as “the sort of thing that should lead to the impeachment" of an official.

“We are now a full-fledged banana republic,” the vocal Trump critic added.

Shape Created with Sketch. World news in pictures Show all 50 left Created with Sketch. right Created with Sketch. Shape Created with Sketch. World news in pictures 1/50 10 June 2019 A participant of the Koetztinger Whitsun Ride stands with his horse on a street near Bad Koetzingen, Germany. The procession of around 900 riders is one of the oldest Bavarian events AP 2/50 9 June 2019 Police officers use pepper spray against protesters in Hong Kong. People took to the streets on Sunday to protest a proposed amendment to the extradition law that protesters fear would allow Hong Kong citizens to be unfairly extradited to China AP 3/50 8 June 2019 A participant dances while holding a large rainbow flag during the Athens Gay Pride. Thousands marched in the 15th annual Athens Pride parade that was dedicated to the memory of a LGBTI activist who died earlier this year after a violent attack. 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The procession of around 900 riders is one of the oldest Bavarian events AP 2/50 9 June 2019 Police officers use pepper spray against protesters in Hong Kong. People took to the streets on Sunday to protest a proposed amendment to the extradition law that protesters fear would allow Hong Kong citizens to be unfairly extradited to China AP 3/50 8 June 2019 A participant dances while holding a large rainbow flag during the Athens Gay Pride. Thousands marched in the 15th annual Athens Pride parade that was dedicated to the memory of a LGBTI activist who died earlier this year after a violent attack. Greek capital's Syntagma square, the venue of violent anti-austerity protests during the peak of the financial crisis, was full of rainbow flags as well as body painting kiosks for the more than 7,000 participants AFP/Getty 4/50 7 June 2019 A man walks past a billboard showing members of the French women's World Cup football team on the side of a building on the Champs-Elysees avenue in Paris. The 2019 tournament starts this evening with the hosts playing South Korea Reuters 5/50 6 June 2019 Canadian's Army officer stands during the international ceremony on Juno Beach in Courseulles-sur-Mer, Normandy, northwestern France, as part of D-Day commemorations marking the 75th anniversary of the World War II Allied landings in Normandy AFP/Getty 6/50 5 June 2019 Queen Elizabeth II and US President Donald Trump at an event to commemorate the 75th anniversary of D-Day, in Portsmouth Reuters 7/50 4 June 2019 Muslim worshippers gather to perform Eid al-Fitr prayers at the Martyrs Square of the capital Tripoli. Muslims worldwide celebrate Eid al-Fitr marking the end of the Muslim holy month of Ramadan AFP/Getty 8/50 3 June 2019 President Donald Trump reviews an honor guard during a ceremonial welcome in the garden of Buckingham Palace in London AP 9/50 2 June 2019 A cruise ship crashed into a dock and a tourist river boat on one of Venice’s busiest canals. Four people were injured in the smash, Venice port authorities reported. It happened on the Giudecca Canal – a major thoroughfare that leads to Saint Mark’s Square – on Sunday morning at 8.30am AFP/Getty 10/50 1 June 2019 Supporters arrive at Wanda Metropolitano stadium for the Champions League final between Tottenham Hotspur and Liverpool in Madrid EPA 11/50 31 May 2019 A Palestinian girl cool off by water to beat the scorching heat, as others pray outside the Dome of the Rock at the al-Aqsa Mosque in Jerusalem during the last Friday prayers of the Muslim holy month of Ramadan,31 May 2019. Israeli police Friday morning shot and killed a Palestinian young man following an alleged stabbing attack in Jerusalem’s Old City. Muslims around the world celebrate the holy month of Ramadan by praying during the night time and abstaining from eating, drinking, and sexual acts daily between sunrise and sunset. Ramadan is the ninth month in the Islamic calendar and it is believed that the Koran's first verse was revealed during its last 10 nights. EPA 12/50 30 May 2019 Serena Williams in action during her second round match against Japan's Kurumi Nara. The 23-time grand slam winner went through to the next round 6-3, 6-2 Reuters 13/50 29 May 2019 Ken Wyatt is sworn in as Minister for Indigenous Australians by Australia's Governor-General Sir Peter Cosgrove in Canberra, Australia. Scott Morrison announced his new ministry on Sunday 26 May, following his victory in the May 18 Federal election. The new Cabinet features a record number of women with seven taking on senior roles, including Bridget McKenzie as the first female Agriculture Minister. Ken Wyatt is the first indigenous person to be appointed the Indigenous Affairs Minister Getty 14/50 28 May 2019 People look on as they examine the damaged remains of school in Dayton, Ohio, after powerful tornadoes ripped through the US state overnight, causing at least one fatality and widespread damage and power outages AFP/Getty 15/50 27 May 2019 President Donald Trump and first lady Melania Trump attend a State Banquet with Japanese Emperor Naruhito, second from right, and Empress Masako at the Imperial Palace in Tokyo AP 16/50 26 May 2019 Former Italian PM and leader of the right-wing party Forza Italia Silvio Berlusconi looks at photographers as he casts his vote at a polling station in Milan AFP/Getty 17/50 25 May 2019 A paramilitary soldier stands guard in front of closed shops during restrictions in downtown area of Srinagar EPA 18/50 24 May 2019 Pope Francis gestures as he participates alongside thousands of soccer-mad children in a project to promote the values of sport and soccer, at the Vatican Reuters 19/50 23 May 2019 Bharatiya Janata Party (BJP) supporters celebrate their party's potential win as votes are counted for the Lok Sabha election in Bangalore, India. The Lok Sabha, the lower house of Parliament, elections, began on 11 April and held for 542 of the 543 lower house seats. A party or alliance needs 272 seats to form a government. It was announced that Narendra Modi was to retain the position of Prime Minister along with the BJP EPA 20/50 22 May 2019 Palestinian children help their father sort through arugula produce before he heads to sell it at a market, in an impoverished area in Beit Lahia in the northern Gaza Strip AFP/Getty 21/50 21 May 2019 Indonesia's Incumbent President from the Indonesian Democratic Party of Struggle (PDIP) Joko Widodo takes a selfie with local residents after his victory speech following the announcement of the election results at a slum area in Jakarta. Joko Widodo was re-elected after beating his rival, retired General Prabowo Subianto EPA 22/50 20 May 2019 President-elect Volodymyr Zelensky holding an ancient Bulava (historical symbol of the state power) during his inauguration in the Ukrainian parliament in Kiev. Mr Zelensky with 73,22 percent of the votes beat out the current president Petro Poroshenko, who received 24,45 percent of the votes during the second tour of presidential elections in Ukraine which was held on 21 April Presidential Press Service/EPA 23/50 19 May 2019 Sudanese protesters gather for a sit-in outside the military headquarters in Khartoum. Talks between Sudan's ruling military council and protesters are set to resume, army rulers announced, as Islamic movements rallied for the inclusion of sharia in the country's roadmap AFP/Getty 24/50 18 May 2019 James Hinchcliffe of Canada rolls his car after hitting the wall during qualifications for the Indianapolis 500 IndyCar auto race in Indiana, US AP 25/50 17 May 2019 Taiwan became first state in Asia to legalise same-sex marriage. Thousands of gay rights supporters gathered outside parliament in Taipei during the debate EPA 26/50 16 May 2019 Spectators watch as riders take the start of stage six of the 102nd Giro d'Italia, Tour of Italy, race, 238kms from Cassino to San Giovanni Rotondo AFP/Getty 27/50 15 May 2019 Buildings in Hung Hom district are shrouded in coastal fog in Hong Kong, China. In springtime, Hong Kong is affected by alternate cold and warm air. As cold air from the north recedes, warm and humid air comes in from the sea and as the water near the coast is still rather cold, the warm and humid air may be cooled sufficiently by the underlying cold water EPA 28/50 14 May 2019 An Indian worker packs mangos for sale at a wholesale fruit market in Jammu, the winter capital of Kashmir. Mango is regarded as the national fruit of India, Pakistan, Bangladesh and the Philippines. India is one of the leading producers of tropical and subtropical fruits in the world and is said to be the world's largest mango producer EPA 29/50 13 May 2019 A nurse carries a newborn baby after a fire broke out on the terrace of a children's hospital building in Ahmedabad, India Reuters 30/50 12 May 2019 Members of the action group Extinction Rebellion hold banners in front of the Eiffel Tower after spilling fake blood on the Trocadero esplanade during a demonstration to alert on the state of decline of biodiversity, in Paris. Extinction Rebellion is an international movement that uses non-violent civil disobedience to achieve radical change in order to minimise the risk of human extinction and ecological collapse AFP/Getty 31/50 11 May 2019 An armed police officer greets members of the Muslim community in front of Al Noor mosque as they arrive for the iftar, the evening meal, in Christchurch, New Zealand. Muslims around the world are observing the holiest month of Ramadan, fasting from sunrise to sunset for a month. Ramadan this year will be slightly sombre for New Zealand Muslims - especially those in Christchurch - in the wake of the mosque terror attacks where 51 people died after a gunman opened fire during Friday prayers at Linwood and Al Noor Mosques on March 15 Getty 32/50 10 May 2019 Muslims perform prayers on a road outside a mosque on the first Friday of the holy fasting month of Ramadan in Srinagar Reuters 33/50 9 May 2019 German Chancellor Angela Merkel greets people after posing for a family photo during the informal meeting of European Union leaders in Sibiu, Romania Reuters 34/50 8 May 2019 Smokes rises after a huge explosion near the offices of the attorney general in Kabul, Afghanistan. Two police officials say Wednesday's explosion was followed by a gunbattle between militants and security forces AP 35/50 7 May 2019 Reuters reporters Wa Lone and Kyaw Soe Oo wave as they walk to Insein prison gate as they were freed, after receiving a presidential pardon in Yangon, Myanmar Reuters 36/50 6 May 2019 Students sit in circles as they read the Koran on the first day of Ramadan at Ar-Raudhatul Hasanah Islamic boarding school in Medan, North Sumatra, Indonesia. Muslims around the world celebrate the holy month of Ramadan by praying during the night time and abstaining from eating, drinking, and sexual acts during the period between sunrise and sunset. Ramadan is the ninth month in the Islamic calendar and it is believed that the revelation of the first verse in Koran was during its last 10 nights EPA 37/50 5 May 2019 Dutch Prime Minister Mark Rutte ignites the liberation fire during the Liberation festival in Almere, The Netherlands. EPA 38/50 4 May 2019 Demonstrators wearing bees masks and costumes lie on the ground during a demonstration for biodiversity called by the World Wide Fund for Nature (WWF) in Paris. AFP/Getty Images 39/50 3 May 2019 Caster Semenya celebrates after winning the women's 800m at the IAAF Diamond League competition in Doha AFP/Getty 40/50 2 May 2019 Children chant slogans as they watch a demonstration outside the army headquarters in Khartoum. Crowds of Sudanese protesters began converging in Khartoum for a "million-strong" march to press for a civilian administration after talks with military rulers ran into trouble AFP/Getty 41/50 1 May 2019 People hold blue, white and red smoke bombs as they demonstrate to mark May Day in Toulouse. France's zero-tolerance approach to protest violence will be tested, when a mix of labour unionists, "yellow vest" demonstrators and hardline hooligans are expected to hit the streets on Labour Day AFP/Getty 42/50 Opponents to Venezuela's president Nicolas Maduro face off with Bolivarian National Guards in armored vehicles, loyal to the president, during an attempted military uprising in Caracas, Venezuela. Opposition leader Juan Guaido took to the streets with a small contingent of heavily armed troops in a call for the military to rise up and oust Madur AP 43/50 29 April 2019 In this aereal view officials measure a giant teddy bear measuring more than 20 meters long and 4 tons of weight, which entered the Guiness Book of World Records as the biggest of its kind in Xonacatlan, Mexico state. AFP/Getty Images 44/50 28 April 2019 Competitors ride their bikes along sand dunes during the Stage 1 of the 14th edition of Titan Desert 2019 mountain biking race around Merzouga in Morocco AFP/Getty 45/50 27 April 2019 Greenpeace activists hold banners reading "Climate urgency: Think, vote, act" on top of the Columbus (Colon) Monument in Barcelona on April 27, 2019 as part of an awareness campaign on the eve of Spain's general elections. - Spain returns to the polls on April 28 for unpredictable snap elections marked by the resurgence of the far-right after more than four decades on the outer margins of politics. AFP/Getty 46/50 26 April 2019 A security officer stands guard outside St. Anthony's Shrine, days after a string of suicide bomb attacks on churches and luxury hotels across the island on Easter Sunday, in Colombo, Sri Lanka Reuters 47/50 25 April 2019 Palestinian beekeepers inspect beehives at the honey-bee farm in the east of Khan Younis town, near the border with Israel, southern Gaza Strip. The beekeepers collect honey and wax from beehives at this time of this year EPA 48/50 24 April 2019 North Korean leader Kim Jong-un inspects a Russian honor guard after arriving at a railway station in Vladivostok, for the summit to be held with Russian President Vladimir Putin EPA 49/50 23 April 2019 India's Prime Minister Narendra Modi gestures as he holds the granddaughter of India's ruling Bharatiya Janata Party (BJP) president Amit Shah after he arrives to cast his vote at a polling station during the third phase of general election in Ahmedabad Reuters 50/50 22 April 2019 A woman living near St Anthony's shrine runs for safety with her baby after police found explosive devices in a parked vehicle in Colombo, Sri Lanka. Bombings on Easter Sunday ripped through churches and luxury hotels killing at least 290 people AP

Ms Chao and her aide, Todd Inman, have reportedly met annually with a delegation from Owensboro, a river port city in Kentucky that has long connections with Mr McConnell, over the last three years.

In their April 2017 meeting, according to people present, they discussed two projects of local economic importance – a plan to upgrade road connections to a commercial port and a proposal to reclassify a major road a branch of motorway.

Following the meeting, Mr Inman is said to have emailed the port authority with advice on how to improve its application. He also allegedly discussed the project by phone with Al Mattingly, the chief executive of Daviess County, which includes Owensboro.

Mr Mattingly said Mr Inman had been instrumental in helping to secure the DOT grant.

“Todd probably smoothed the way, I mean, you know, used his influence,” he told Politico. “Everybody says that projects stand on their own merit, right? So if I’ve got 10 projects, and they’re all equal, where do you go to break the tie?

“Let’s put it this way: I only have her ear an hour when I go to visit her once a year. With a local guy, he has her ear 24 hours a day, seven days a week.”

John Hudak, a senior fellow in governance at Washington DC’s Brookings Institution, said the case raised ethical questions.

“Where a cabinet secretary is doing things that are going to help her husband get re-elected, that starts to rise to the level of feeling more like corruption to the average American,” he said. ”I do think there are people who will see that as sort of ‘swamp behaviour’’.”

A DOT spokesman told The Independent that Politico’s story “intentionally misleads readers, misrepresenting the grant application process and disregarding key facts”.

“A few grants to one state have been selectively isolated to misrepresent the work DOT does across the country,” he said.

The spokesman added: “DOT’s chief of staff does not offer technical assistance to grant applications, and no state receives special treatment from the department.

“Our team of dedicated career staff does an outstanding job evaluating hundreds of applications for these highly competitive grant programmes, a thorough process developed well before this administration.”