WASHINGTON, Dec. 14 (UPI) — The General Services Administration has concluded President-elect Donald Trump must divest his financial interest in a luxury Washington, D.C., hotel or he will be in violation of the lease when he is sworn in.
The new Trump International Hotel sits on federal property operating on a 60-year lease issued by the General Services Administration, or GSA. In the lease agreement, any “elected official” is prevented from being “admitted to any share or part of this lease or to any benefit that may arise therefrom.”
GSA records show Trump owns about 77 percent of the entity leasing the hotel, while his children own most of the rest.
In a letter sent to GSA Administrator Denise Turner Roth, Democratic Reps. Elijah Cummings of Maryland, Peter DeFazio of Oregon, Gerald Connolly of Virginia and Andre Carson of Indiana requested the agency provide documents related to the lease.
“The deputy commissioner informed our staff that GSA assesses that Mr. Trump will be in breach of the lease agreement the moment he takes office on January 20, 2017, unless he fully divests himself of all financial interests in the lease for the Washington, D.C., hotel,” the lawmakers wrote. “The deputy commissioner made clear that Mr. Trump must divest himself not only of managerial control, but of all ownership interest as well.”
In response to claims of potential conflicts of interest, Trump earlier this week announced he plans to hand over control of his businesses to his sons, Donald Trump Jr. and Eric Trump, before his inauguration on Jan. 20.
“Even though I am not mandated by law to do so, I will be leaving my businesses before January 20th so that I can focus full time on the Presidency,” Trump tweeted.
The GSA could officially notify Trump of the breach in the lease if he does not divest. The GSA could then refer the issue to the Civilian Board of Contract Appeals, which would resolve the potential dispute.
