"GSA's decision-making process related to Tenant's possible breach of the lease included serious shortcomings. GSA had an obligation to uphold and enforce the Constitution. However, GSA opted not to seek any guidance from OLC and did not address the constitutional issues related to the management of the lease," the IG report says.
The IG recommends that GSA conduct a legal review of the language in its contracts but doesn't specifically call on the agency to review the current lease with Trump, said an official with the IG's office.
"One ongoing problem is that GSA continues to use problematic language from this lease in other leases. For that reason, we recommend that the agency determine the purpose of that provision, conduct a formal legal review that includes consideration of the Emoluments Clauses, and revise the language to avoid ambiguity in the future," said the IG's congressional relations officer Robert Preiss.
Government watchdogs and the President's opponents argue the payments to Trump's business from governments -- domestic or foreign -- violate clauses in the Constitution designed to prevent corruption and self-dealing by the President.
The relationship between GSA and the hotel has drawn concern from ethics experts as well as Democrats in Congress. The agency manages federal buildings and land, including the historic Old Post Office building on Pennsylvania Avenue.
The GSA lease was awarded in 2012 and the hotel opened in 2016, shortly before Trump's election. Since taking office, Trump has maintained his interest in the Trump Organization, which is held in a trust. The company is managed by his adult sons Don Jr. and Eric.
Trump has made a habit of visiting the hotel for dinner, and it has become a regular gathering spot for those with business before the government, including foreign governments.
The attorneys general of the District of Columbia and Maryland have sued, claiming that Trump is in violation of the Constitution's ban on emoluments, or payments, from foreign or domestic government entities to the President because of his continued interest in the hotel.
The Justice Department has moved to halt the case from proceeding.
This is a breaking story and will be updated.
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