April 7 (Bloomberg) -- Mark Penn, the much-criticized chief strategist of Hillary Clinton's presidential campaign, is out as her top adviser after coming under fire for his firm's role in promoting trade with Colombia.
``After the events of the last few days, Mark Penn has asked to give up his role as chief strategist of the Clinton campaign,'' campaign manager Maggie Williams said in a statement e-mailed to reporters last night.
Penn, a veteran adviser to the senator from New York and her husband, former President Bill Clinton, lost his top role a day after Colombian officials fired Burson-Marsteller, the lobbying and public relations firm where Penn is chief executive officer, for showing ``a lack of respect.'' Clinton opposes the Colombian free-trade agreement, and Penn described a March 31 meeting he had with the Colombians on efforts to promote the accord as an ``error in judgment.''
Penn's work with the South American nation threatened Hillary Clinton's efforts to win the support of blue-collar workers in Pennsylvania, where she leads in polls before the April 22 primary there. She trails Senator Barack Obama of Illinois in pledged delegates won in earlier primaries and caucuses.
Penn will continue as a pollster and adviser for Clinton, Williams said. Campaign communications head Howard Wolfson and Geoff Garin will take over coordinating Clinton's ``strategic message team'' she said.
Penn Draws Fire
Penn, 54, drew fire in political circles for making the message of the campaign too much about Clinton as a tough commander-in-chief and not enough about her as a person. When Clinton lost 11 primary contests in a row after Feb. 5, much of the blame fell on Penn.
In a March 3 Los Angeles Times article, Penn singled out other members of the campaign team -- such as former campaign manager Patti Solis Doyle -- as the ones responsible for the day-to-day decisions of the campaign.
His work as head of Burson-Marsteller has also conflicted with other policy goals of the Clinton campaign and left her open to criticism from Obama that she is too much part of the Washington establishment. Obama erased a 24-point lead in a Bloomberg/Los Angeles Times poll Clinton enjoyed as late as early December, weeks before her defeat in the Jan. 3 Iowa caucuses.
In one example last year, Penn wrote in an internal company blog how Burson worked ``behind the scenes'' for TXU Corp., a Texas company seeking to build power plants fueled by pulverized coal, which some environmentalists say would be major polluters. At the same time, Clinton was pushing for more research for new energy technologies to help stem greenhouse gasses and reduce dependence on foreign oil. Other clients, from tobacco companies to drugmakers, also had interests at odds with Clinton's agenda.
Colombia Agreement
The Colombia agreement would eliminate tariffs on goods traded between the two countries. Clinton, 60, and Obama, 46 have said some free-trade pacts eliminate U.S. jobs and don't come with proper safeguards for labor rights and environmental protection.
Penn, interviewed outside of his four-story townhouse in Washington's Georgetown neighborhood last night, said it was his decision to step down from the chief strategist position.
``Given the events of the last couple of days, I just didn't think it made sense to continue to advise and poll,'' Penn said.
The controversy echoes Clinton's accusation that Obama misled voters about his views on trade because his economic adviser held a private meeting in February with Canadian officials on the North American Free Trade Agreement. Clinton and Obama have both said they favor renegotiating that agreement.
Penn's Meeting
Colombia hired Burson-Marsteller to promote U.S. approval of a trade deal, according to documents the company filed with the Department of Justice. Penn met with Colombian officials March 31 in his capacity as the firm's chief executive.
``The meeting was an error in judgment that will not be repeated and I am sorry for it,'' Penn said in a written statement on April 4. His words weren't well received by his client.
``The Colombian government considers that declaration a lack of respect towards Colombians, which is unacceptable,'' the Colombian government's statement said.
Penn was admitted to the Clinton inner circle by consultant Dick Morris to help on Bill Clinton's 1996 re-election campaign.
Penn co-founded Penn, Schoen & Berland in 1975 while studying at Harvard University, according to the company Web site. In 2001, London-based WPP Group Plc, the world's second- biggest advertising company and owner of Burson-Marsteller, acquired Penn Schoen. Penn became chief executive of Burson- Marsteller in December 2005.
Federal Election Commission reports show that as of February Clinton owed Penn's firm, Penn, Schoen & Berland Associates LLC $2.5 million. The subsidiary of Burson-Marsteller was paid $2.27 million last year and owed another $1.49 million as of Dec. 31, according to campaign filings.
The administration of President George W. Bush completed the Colombia agreement in 2006 and is pushing for Congress to ratify it regardless of opposition from Democrats.
The accord would eliminate tariffs on flowers, corn, machinery, meat and other products. It also would set rules for investment.
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