Behind the Bushes
THE NEW
GENERATION
BEHIND THE BUSHES INDEX
KARL ROVE
ROVE ACCUSED OF TRYING TO SMEAR
ALABAMA GOVERNOR
GREAT MOMENTS IN THE LIFE OF KARL ROVE
AMY GOODMAN, DEMOCRACY NOW - In 1970, College
Republican Rove stole letterhead from the Illinois Democratic
campaign of Alan Dixon, and used it to invite hundreds of people
to Dixon's new headquarters opening, promising "free beer,
free food, girls and a good time for nothing," disrupting
the event.
In 1973, Rove ran for chairman of the College
Republicans. He challenged the front-runner's delegates, throwing
the national convention into disarray, after which both he and
his opponent, Robert Edgeworth, claimed victory. The dispute
was resolved when Rove was selected through the direct order
of the chairman of the Republican National Committee, who at
the time was none other than George H.W. Bush. . .
When Rove advised on George W. Bush's 1994
race for governor of Texas against Democratic incumbent Ann Richards,
a persistent whisper campaign in conservative East Texas wrongly
suggested that Richards was a lesbian. According to Texas journalist
Lou Dubose: "No one ever traced the character assassination
to Rove. Yet no one doubts that Rove was behind it. It's a process
on which he holds a patent. . .
After John McCain thumped George W. Bush
in the 2000 New Hampshire primary, with 48 percent of the vote
to Bush's 30%, a massive smear campaign was launched in South
Carolina, a key battleground. TV attack ads from third groups
and anonymous fliers circulated, variously suggesting that McCain's
experience as a prisoner of war in Vietnam left him mentally
scarred with an uncontrollable temper, that his wife, Cindy,
abused drugs and that he had an African-American "love child."
In fact, the McCains adopted their daughter Bridget from a Bangladesh
orphanage run by Mother Teresa.
According to the investigation of Special
Prosecutor Patrick Fitzgerald, Rove played a central role in
the outing of undercover CIA operative Valerie Plame to columnist
Robert Novak and former Time magazine reporter Matthew Cooper,
in retaliation for her husband Joe Wilson's accusation that the
Bush administration falsely claimed that Saddam Hussein sought
uranium in Niger.
http://www.democracynow.org/
FUN FACTS ABOUT KARL ROVE
WIKIPEDIA - According
to a 2003 New Yorker profile, Rove, the second of five children,
found out at nineteen (during his parents' divorce negotiations)
that the man who raised him was not his biological father. Rove's
mother would later commit suicide (in Reno, Nevada, in 1981).
In 1970, at the age of
nineteen and while a protege of Donald Segretti (later convicted
as a Watergate conspirator), Rove snuck into the campaign office
of Illinois Democrat Alan Dixon and stole some letterhead, which
he used to print fake campaign rally fliers promising "free
beer, free food, girls and a good time for nothing," and
distributed them at rock concerts and homeless shelters. Admitting
to the incident much later, Rove said, "I was nineteen and
I got involved in a political prank."
Rove dropped out of the
University of Utah in 1971 to become the Executive Director of
the College Republican National Committee and held this position
until 1972 when he became their National Chairman (1973-1974).
As Chairman, Rove had access to many powerful politicians and
government officials of the Republican party, and formed ties
with George H. W. Bush, then Chairman of the Republican National
Committee (1973-1974). . .
For the next few years,
Rove worked in various Republican circles and assisted George
H. W. Bush's 1980 vice-presidential campaign. Rove introduced
Bush to Lee Atwater. A signature tactic of Rove was to attack
an opponent on the opponent's strongest issue. . . .
In 1986, just before a
crucial debate in the election for governor of Texas, Karl Rove
announced that his office had been bugged by the Democrats. It
was later claimed that Rove had bugged his own phone to garner
media coverage.
In 1992, Rove was fired
from George H. W. Bush's 1992 presidential re-election campaign
for allegedly leaking information to journalist Robert Novak.
State campaign manager Robert Mosbacher had allotted Rove only
one-quarter of the campaign's $1 million direct mail contract,
after Rove had the entire contract in 1988. As Novak wrote, "Also
attending the session was political consultant Karl Rove, who
had been shoved aside by Mosbacher". Novak's column described
the firing of Mosbacher by former Senator Phil Gramm. Novak and
Rove deny that Rove was the leaker. Mosbacher maintains that
"Rove is the only one with a motive to leak this. We let
him go. I still believe he did it.". . .
In 1993, according to
the New York Times, John Ashcroft's campaign paid Karl Rove &
Co. over $300,000 to aid his (eventually successful) Senate race.
. .
In 2000, it is suspected
that Rove masterminded a push poll during the South Carolina
primaries which asked potential voters "Would you be more
likely or less likely to vote for John McCain for president if
you knew he had fathered an illegitimate black child?".
Since McCain was campaigning with his adopted Banglideshi daughter,
an image quickly gathered around that statement. . .
In March 2001, Rove met
with executives from Intel, successfully advocating a merger
between a Dutch company and an Intel company supplier. Rove owned
$100,000 in Intel stock at the time. In June 2001, Rove met with
two pharmaceutical industry lobbyists. At the time, Rove held
almost $250,000 in drug industry stocks. On 30 June 2001, Rove
divested his stocks in 23 companies, which included more than
$100,000 in each Enron, Boeing, General Electric, and Pfizer.
On 30 June 2001, the White House admitted that Rove was involved
in administration energy policy meetings, while at the same time
holding stock in energy companies including Enron.
June 23, 2005, marked
another controversial statement from Rove, when he said that
"Liberals saw the savagery of the 9/11 attacks and wanted
to prepare indictments and offer therapy and understanding for
our attackers." Conservatives, he said, "saw the savagery
of 9/11 and the attacks and prepared for war.
http://en.wikipedia.org/wiki/Karl_Rove
JULIAN BORGER, GUARDIAN
- Born on Christmas Day 1950 in Denver, Colorado, he grew up
in or near the Rockies, where his father worked as a geologist.
On his 19th birthday, his father walked out on him. Soon afterwards,
he found out that he was not his father after all, the news dropped
into a dinner-table conversation by his aunt and uncle. Twelve
years later, alone in Reno, his mother committed suicide.
At high school in Utah,
Rove was known as a nerd and a motor-mouth, unpopular but irrepressibly
opinionated. While his peers were fixated on girls he became
obsessed with school politics, campaigning for student positions
in a precocious jacket and tie. Although his parents were apolitical,
he was a vocal Nixon supporter from the age of nine.
Like Dick Cheney, he avoided
the Vietnam draft with a college deferment, but gave up his education
to work on Republican campaigns, and never got a degree. He launched
his political career by wresting control of the College Republicans,
a radical group in the Nixon era. It was an unpleasant business.
In an interesting precursor to the Florida battle 17 years later,
Rove took on his opponent, Robert Edgeworth, principally on procedural
grounds - challenging the credentials of every single Edgeworth
delegate to the 1973 College Republican convention and putting
forward a rival delegate.
The aggressive tactics
won the 22-year-old Rove a walk-on role in the Watergate saga
that was consuming the nation. A report was published in the
Washington Post on August 10, 1973, titled "[Republican
party] Probes Official as Teacher of Tricks", gave an account,
based on tape recordings, of how Rove and a colleague had been
touring the country giving young Republicans political combat
training, in which they recalled their feats of derring-do, such
as Rove's Chicago heist at the Dixon headquarters.
At the time, Rove claimed
the tape had been doctored to exclude a warning to the audience
not to try to emulate any of his past misdeeds. Others present
simply remember a caution not to get caught. The publicity forced
the intervention of the Republican National Committee and its
chairman, a former Texas congressman clinging on to his political
career: George Herbert Walker Bush. After considering the case,
Bush Sr took action. He drove Edgeworth out of the party on suspicion
of having leaked the tapes, and hired Rove, bringing him to Washington.
. .
The [1986] contest between
Rove's Republican client, Bill Clements, and the Democratic incumbent,
Mark White, was neck and neck, when Rove announced he had found
an electronic listening device in his office, and cried foul.
The furore swung the election to Clements and to this day Texan
Democrats are convinced Rove concocted the whole episode. . .
In its last days, the
1994 campaign turned nasty. Texan voters began receiving calls
from "pollsters" asking questions such as: "Would
you be more or less likely to vote for Governor Richards if you
knew her staff is dominated by lesbians?" In the business,
it is called "push-polling" and Shipley has no doubt
who was behind it. . .
Only circumstantial evidence
links Rove to the push-polling. In fact, his fingerprints have
not been found on any dirty tricks since his College Republican
days. . .
http://www.guardian.co.uk/uselections2004/story/0,13918,1165126,00.html
KARL ROVE WAS NIXON ERA DIRTY TRICKS
OPERATIVE
BUY LUNCH WITH KARL ROVE FOR $50,000
HARKEN
GLENN
R. SIMPSON, WALL STREET JOURNAL - When the small company that helped
make George W. Bush a multimillionaire verged on bankruptcy in
1990, newly unearthed documents show an unlikely financial archangel
came to the rescue: Harvard University. It long has been known
that the school's endowment arm, Harvard Management Co., was
a major investor in Harken Energy Corp. But the documents reveal
two heretofore little-noticed deals, both endorsed by Mr. Bush,
to allow the Texas firm to stave off creditors. One, critical
to the company's survival, involved a partnership used to move
troubled assets and large debts off the company's balance sheet
-- much like the controversial investments that Enron Corp. set
up before it filed for bankruptcy-court protection. At the time,
one of the Harvard endowment's most influential board members
was a political supporter of then-President George H.W. Bush,
the current president's father. One result of the deal: The current
president avoided damaging his credibility as a businessman.
Unlike many of Enron's deals, Harken disclosed its transactions
to investors and the Securities and Exchange Commission and complied
with accounting rules. Mr. Bush didn't profit personally from
the subsequent boost in Harken's stock because he already had
sold most of his shares to fund a lucrative investment in the
Texas Rangers baseball team.
The partnership
deal is notable in the context of President Bush's drive to reform
corporate standards in response to a string of accounting scandals.
The Harken deal was designed to raise money without incurring
new debt or selling stock. It did so by exploiting "a fundamental
weakness in accounting rules" by moving the deal off its
balance sheet, said Rice University accounting expert Dala Bharan,
who reviewed the transactions for The Wall Street Journal.
TIMOTHY J. BURGER, NEW YORK DAILY NEWS - Harken Energy Corp. set up an offshore
subsidiary in the Cayman Islands tax haven while President Bush
sat on Harken's board of directors in 1989, the Daily News has
learned. The revelation comes as Republican lawmakers are roundly
criticizing the practice of U.S. companies setting up offshore
subsidiaries, usually to skirt American disclosure laws or corporate
income taxes on foreign income. Even White House spokesman Ari
Fleischer condemned the tactic yesterday, saying, "The President
is concerned about corporations in America who take advantage,
set up operations outside of America, in an effort to lower their
taxes." A spokesman for Bush said the offshore company did
not save any taxes because it failed to find oil or make a profit.
Harken registered Harken Bahrain Oil Co. on Sept. 1, 1989, according
to Cayman Islands government documents.
[Harken was far from the
only one to use the Cayman Island scam. At the time, Grand Cayman
had a population of 18,000, 570 commercial banks, one bank regulator
and a bank secrecy law. Among the investors, according to one
account, was an electronic transfer of $50 million from the Arkansas
Development Financial Authority, a political piggy bank established
by then governor Bill Clinton.]
ADAM ENTOUS, REUTERS - President Bush played an active
role in Harken Energy Corp's business decisions and consulted
with the head of the company shortly before a controversial 1989
transaction which drew scrutiny from the Securities and Exchange
Commission documents show. The information raised fresh questions
about the extent of Bush's role as a director at Harken more
than a decade ago. Democrats have seized on the Harken transactions
and Vice President Dick Cheney's tenure at Halliburton Co. to
paint the Republican administration as compromised by insider
deals and close business connections . . . According to a June
15, 1989 letter from Harken President Mikel Faulkner, obtained
by the nonpartisan Center for Public Integrity, Bush frequently
advised Harken management on "organizational and strategic
matters." In the letter, Faulkner praised Bush for "the
positive image you have helped create regarding Harken Energy
Corporation, the intuitive analysis you have provided on our
various acquisitions, operating decisions at the board level
and the personal suggestions and ideas you have shared with me
over the past two years on a CEO to CEO basis. I consider the
role which you play at Harken Energy Corporation to be a very
meaningful and significant role and look forward to a continuing
relationship," Faulkner said in his letter to Bush.
BETH HEALY AND MICHAEL KRANISH, BOSTON
GLOBE - Even as
Bush was dumping the bulk of his Harken holdings - about $848,000
in stock sold to a buyer whose name has never been disclosed
- Harvard Management plowed millions more into the firm. Several
former Harvard Management officials said in interviews that they
wanted to pull out of the Harken deal, but they said one man
in particular - Harvard Management executive and Harken director
Michael Eisenson - resolutely insisted he could turn around the
investment by pumping more money into it. Interviews and reviews
of documents by the Globe showed that Harvard's stake in Harken-related
investments was, in the end, nearly two-thirds larger than the
university has ever previously acknowledged, about $50 million.
The Texas-based energy company was, in 1990, the seventh-largest
stock holding in Harvard's portfolio, bigger even than the university's
stake in Exxon Corp. In all, Harvard Management risked 1 percent
of the university's endowment in the small, struggling company,
a surprisingly large bet by any measure, but particularly given
Harken's dismal prospects. . . The Globe review also found no
evidence to support the contention by some critics of Harvard
Management and some adversaries of Bush that its deep involvement
in Harken was a political favor to the Bush family.
MICHAEL KRANISH AND BETH
HEALY, BOSTON GLOBE
- One week before George W. Bush's now-famous sale of stock in
Harken Energy Corp. in 1990, Harken was warned by its lawyers
that Bush and other members of the troubled oil company's board
faced possible insider trading risks if they unloaded their shares.
The warning from Harken's lawyers came in a legal memorandum
whose existence has been little noted until now, despite the
many years of scrutiny of the Bush transaction. . . The memo,
a copy of which was obtained by the Globe, does not say directly
whether Bush would face legal problems if he sold his stock.
But it does lay out the potential for insider-trading violations
by Bush and other members of the Harken board, and its existence
raises questions about how thoroughly the SEC investigated Bush's
unloading of $848,000 of his Harken stake to a buyer whose name
has not been made public. The SEC cleared Bush after looking
into whether he had insider knowledge of an upcoming quarterly
loss at Harken. But the SEC investigation apparently never examined
a key issue raised in the memo: whether Bush's insider knowledge
of a plan to rescue the company from financial collapse by spinning
off two troubled units was a factor in his decision to sell.
The plan engineered by one of the company's largest shareholders,
the endowment fund of Harvard University, raised uncertainty
about the value of Harken after the breakup. The question is,
did Bush sell believing that the stock might soon dip?
TOM FLOCCO, AMERICAN FREE PRESS - Newly uncovered evidence now reveals,
via examination of the pattern of daily trades for Harken during
1990, that George W. Bush sold more than 2,000% times the average
1990 daily share volume on June 22, yet the share price never
budged -- indicating that the insider stock sale was pre-arranged
or pre-negotiated . . .
One of the questions to which
the SEC was strangely unable to obtain an answer was who bought
George W. Bush's stock at the zenith of its value immediately
preceding the Gulf War. One person did look into it. According
to "The Buying of the President 2000," a book by the
highly respected Charles Lewis, Director of the Center for Public
Integrity, Harken officials were lining up a major new financial
backer: Harvard Management -- the overseer of the school's multi-billion
dollar endowment. "A month after Bush came on board, Harvard
management agreed to invest at least $20 million in Harken. It
would come to own some ten million shares of Harken stock, making
it one of the company's largest investors. The Bush name may
have helped seal the deal," said Lewis.
He added that "Harvard's
Harken investments in oil and gas would eventually generate nearly
$200 million in losses for the endowment." Knowledgeable
observers have not been questioning whether Harken was nothing
more than a money laundering operation -- given the substantial
corporate loses suffered over time by a company into which Harvard
Management kept pouring its endowment contributions and inheritance
trust receipts . . .
The Buying of the President
2000, notes that "nine years (1995) after [Harvard's] Harken
investment helped save Bush from financial ruin, the Texas Teacher
Retirement System sold the Anatole Hotel in Dallas to a partnership
that included the Crow family, which owns a controlling interest
in [both] Trammell Crow Company, a top real estate management
company -- and Harvard Management." Lewis added, "Without
even taking bids (which may also be contrary to Texas law), TTRS
-- during the first year of Texas Governor George W. Bush's first
term -- reportedly sold the hotel for $27 million less than [the
Teachers Fund] had spent to make improvements on the structure."
CARL LIMBACHER, NEWSMAX- In the two weeks since President Bush's
1990 sale of Harken Energy stock became the focus of a media
maelstrom, the prestige press has given the so-called scandal
50 times the coverage it gave to the Clintons' Whitewater land
deal during a comparable period. In the 14 days after the New
York Times broke the Whitewater story on March 8, 1992, the entire
mainstream press corps gave the scandal just 14 mentions, a Lexis-Nexis
search reveals . . . From June 28 to July 12, 2002, the media
has devoted no fewer than 711 reports to the Bush stock sale,
more than 50 times the coverage it gave Whitewater at a similar
point in that story.
JOE CONASON, SALON - Lewis believes "the available
evidence" shows that the mystery institutional buyer of
Bush's 212,000 Harken shares in June 1990 was Harvard. The university
increased its Harken holdings around that same time, according
to him. And although the broker involved, Ralph Smith of Sutro
& Company, has steadfastly refused to name the buyer, Lewis
reports that "at the bottom of a spreadsheet Smith used
to record his calls to Bush was the name of Michael Eisenson,
along with the telephone number of Harvard Management."
In 2000 when Lewis was working on his book, Eisenson didn't return
his calls.
CENTER FOR PUBLIC INTEGRITY has posted a second round of the documents
obtained from the Securities and Exchange Commission under the
Freedom of Information Act. Among the items:
April 20, 1990 Letter From
Mikel D. Faulkner, President of Harken Energy, to the board of
directors. The letter notes that new conditions on a loan Harken
sought "greatly intensifies our current liquidity problem
and mandates the infusion of equity into the company."
May 18, 1990 Letter From Bruce
N. Huff, senior vice president of Harken Energy, to the members
of the company's "special committee," which included
George W. Bush. The letter notes, " . . . Waivers and extensions
will allow the Company to properly report the substantial portion
of its debt facilities as long-term and thereby avoid any negative
repercussions that might otherwise occur if the Company remains
in a state of non-compliance with regard to loan covenants."
January 9, 1991 Letter From
Bruce N. Huff, senior vice president of Harken Energy, to Edmund
Coulson, chief accountant of the SEC which notes, "By June,
1990, the Company was constrained by its worsening cash and credit
situation."
BETH HEALY AND MICHAEL KRANISH, BOSTON
GLOBE - Even as
Bush was dumping the bulk of his Harken holdings - about $848,000
in stock sold to a buyer whose name has never been disclosed
- Harvard Management plowed millions more into the firm. Several
former Harvard Management officials said in interviews that they
wanted to pull out of the Harken deal, but they said one man
in particular - Harvard Management executive and Harken director
Michael Eisenson - resolutely insisted he could turn around the
investment by pumping more money into it. Interviews and reviews
of documents by the Globe showed that Harvard's stake in Harken-related
investments was, in the end, nearly two-thirds larger than the
university has ever previously acknowledged, about $50 million.
The Texas-based energy company was, in 1990, the seventh-largest
stock holding in Harvard's portfolio, bigger even than the university's
stake in Exxon Corp. In all, Harvard Management risked 1 percent
of the university's endowment in the small, struggling company,
a surprisingly large bet by any measure, but particularly given
Harken's dismal prospects. . . The Globe review also found no
evidence to support the contention by some critics of Harvard
Management and some adversaries of Bush that its deep involvement
in Harken was a political favor to the Bush family.
MICHAEL KRANISH AND BETH
HEALY, BOSTON GLOBE
- One week before George W. Bush's now-famous sale of stock in
Harken Energy Corp. in 1990, Harken was warned by its lawyers
that Bush and other members of the troubled oil company's board
faced possible insider trading risks if they unloaded their shares.
The warning from Harken's lawyers came in a legal memorandum
whose existence has been little noted until now, despite the
many years of scrutiny of the Bush transaction. . . The memo,
a copy of which was obtained by the Globe, does not say directly
whether Bush would face legal problems if he sold his stock.
But it does lay out the potential for insider-trading violations
by Bush and other members of the Harken board, and its existence
raises questions about how thoroughly the SEC investigated Bush's
unloading of $848,000 of his Harken stake to a buyer whose name
has not been made public. The SEC cleared Bush after looking
into whether he had insider knowledge of an upcoming quarterly
loss at Harken. But the SEC investigation apparently never examined
a key issue raised in the memo: whether Bush's insider knowledge
of a plan to rescue the company from financial collapse by spinning
off two troubled units was a factor in his decision to sell.
The plan engineered by one of the company's largest shareholders,
the endowment fund of Harvard University, raised uncertainty
about the value of Harken after the breakup. The question is,
did Bush sell believing that the stock might soon dip?
MIKE ALLEN, WASHINGTON POST - An internal Securities and Exchange
Commission memo from 1991 says President Bush repeatedly failed
to file timely reports of his business interests and transactions
before his election as Texas governor. The memo said that when
Bush was a director of a Texas-based oil and gas exploration
firm called Harken Energy Corp., he had filed reports up to eight
months late for four stock transactions totaling $1 million .
. . The memo said Bush sold 212,140 shares of Harken stock on
June 22, 1990, for $848,560, before Harken's announcement on
Aug. 20, 1990, that it had lost $23.2 million in the quarter
ending June 30. The SEC said the announcement caused Harken's
stock to drop by more than 20 percent, and called Bush's stock
sale a "matter under inquiry." At the time, Bush was
a member of Harken's audit committee. The stock sale was reported
by Bush on March 4, 1991, about 34 weeks late, the memo said. SEC
DOCUMENTS
RICHARD CHENEY
TO HELL WITH PERJURY,
CHENEY QUALIFIES FOR TRIAL AT THE HAGUE
DANA PRIEST AND
ROBIN WRIGHT WASHINGTON - Over the past year, Vice President
Cheney has waged an intense and largely unpublicized campaign
to stop Congress, the Pentagon and the State Department from
imposing more restrictive rules on the handling of terrorist
suspects, according to defense, state, intelligence and congressional
officials. Last winter, when Sen. John D. Rockefeller IV (D-W.Va.),
vice chairman of the Senate Select Committee on Intelligence,
began pushing to have the full committee briefed on the CIA's
interrogation practices, Cheney called him to the White House
to urge that he drop the matter, said three U.S. officials.
In recent months,
Cheney has been the force against adding safeguards to the Defense
Department's rules on treatment of military prisoners, putting
him at odds with Secretary of State Condoleezza Rice and acting
Deputy Secretary of Defense Gordon R. England. On a trip to Canada
last month, Rice interrupted a packed itinerary to hold a secure
video-teleconference with Cheney on detainee policy to make sure
no decisions were made without her input.
Just last week,
Cheney showed up at a Republican senatorial luncheon to lobby
lawmakers for a CIA exemption to an amendment by Sen. John McCain
(R-Ariz.) that would ban torture and inhumane treatment of prisoners.
The exemption would cover the CIA's covert "black sites"
in several Eastern European democracies and other countries where
key al Qaeda captives are being kept.
http://www.washingtonpost.com/wp-dyn/content/article/2005/11/06/AR2005110601281.html
CHENEY LIKENS GITMO GULAG TO TROPICAL
HAVEN
JAMIE WILSON,
GUARDIAN - The American vice-president, Dick Cheney, provoked
fresh uproar over Guantanamo Bay yesterday after he claimed that
prisoners held by the U.S. there were "living in the tropics"
and had been given everything they could possibly want. His comments,
the latest attempt by leading Republicans to portray the prison
at the U.S. base in Cuba as something of a holiday camp, came
as evidence emerged that military doctors have helped interrogators
by advising them how to increase stress levels and exploit the
fears of the detainees.. . .
In an interview
with CNN, Mr Cheney insisted: "They got a brand new facility
down at Guantanamo. We spent a lot of money to build it. They're
very well treated there. They're living in the tropics. They're
well fed. They've got everything they could possibility want."
He added: "There isn't any other nation in the world that
would treat people who were determined to kill Americans the
way we're treating these people."
A spokesman for
Amnesty International said his comments "missed the point"
completely. "It is not a matter of climate or what food
prisoners get, but a question of justice," the spokesman
said. 6/05
CHENEY'S FIRM
HAS LOST A THIRD OF GOVERNMENT PROPERTY IT WAS PAID TO MANAGE
IN IRAQ
http://www.truthout.org/docs_04/112804W.shtml
AP - A third
or more of the government property Halliburton Co. was paid to
manage for the U.S.-led Coalition Provisional Authority in Iraq
could not be located by auditors, investigative reports to Congress
show. Halliburton's KBR subsidiary "did not effectively
manage government property" and auditors could not locate
hundreds of CPA items worth millions of dollars in Iraq and Kuwait
this summer and fall, Inspector General Stuart Bowen reported
to Congress in two reports.
Bowen's findings
mark the latest bad news for Vice President Dick Cheney's former
company, which is the focus of both a criminal investigation
into alleged fuel price gouging and an FBI inquiry into possible
favoritism from the Bush administration. The Associated Press
reported Wednesday that FBI agents have extensively interviewed
an Army contracting officer who last month went public with allegations
that the Bush administration was improperly awarding contracts
to Halliburton without competitive bidding.
CHENEY'S FIRM PAID OFF NIGERIANS
INDEPENDENT,
UK - A lawyer, based in offices in a run-down part of north London,
worked with three British executives from the US construction
group Halliburton to pay at least $132m in "unjustified"
fees to contacts in Nigeria. These payments, many of which occurred
when Halliburton was being run by Dick Cheney, now the American
Vice-President, helped a consortium including the US group to
win a $12bn contract to build a gas terminal at Bonny Island
in Nigeria.
In court documents
submitted to a French corruption investigation, Halliburton has
admitted it paid $132m to Jeffrey Tesler, a UK lawyer. Mr Tesler's
firm, Kaye Tesler, is based on a run down high street in Tottenham,
north London. Mr Tesler would not return calls but his French
solicitor admits Mr Tesler received the money, which he said
was for advisory and other legitimate fees.
CHENEY CHIEF OF STAFF INVOLVED
IN GETTING HALLIBURTON SET UP IN IRAQ
LA TIMES - Pentagon officials
have acknowledged that Vice President Dick Cheney's chief of
staff and other Bush administration political appointees were
involved in a controversial decision to pay Halliburton Inc.
to plan for the postwar recovery of Iraq's oil sector, a Democratic
lawmaker said yesterday. The decision, overruling the recommendations
of an Army lawyer, eventually resulted in the award of a $7 billion
no-bid contract to Halliburton, which Cheney ran for five years
before he was nominated for vice president.
Rep. Henry A. Waxman,
D-Calif., who was briefed by Pentagon officials last week, issued
a letter to the vice president yesterday demanding full disclosure
of the top-secret process that led to awarding the contract to
the Houston-based oil services company. . .
Cheney repeatedly has
denied that he had any influence over the decision to award the
massive contract last March. "As vice president, I have
absolutely no influence of, involvement of, knowledge of in any
way, shape or form of contracts let by the Corps of Engineers
or anybody else in the federal government," he said on NBC's
"Meet The Press" last fall. Cheney's staff stood by
that statement yesterday.
HALLIBURTON UNDER INVESTIGATION FOR NIGERIAN
BRIBES
CHENEY GOES HUNTING WITH SUPREME COURT JUSTICE
REVIEWING HIS CASE
JONATHAN D. SALANT ASSOCIATED
PRESS - Scalia and Cheney, longtime friends, had dinner at a
restaurant on Maryland's Eastern Shore in November, two months
after the Bush administration asked the justices to overrule
a lower court's decision requiring White House to identify task
force members. The men went duck hunting in Louisiana this month,
not long after the court agreed to hear the case. Scalia says
there is no reason to question his ability to judge the case
fairly. Cheney's office referred questions about the propriety
of the social encounters to the court. . .
Rogan Kersh, a Syracuse
University political science professor, said Scalia should withdraw
from the case. He said questions remain about the court's evenhandedness
in the aftermath of its decision to stop the Florida recount,
which gave the 2000 presidential election to George W. Bush..
. .
Scalia, in a written statement
to the Los Angeles Times for its story Saturday on the duck hunting
trip, said: "I do not think my impartiality could reasonably
be questioned."
NEW ISSUE OF THE DAY
HUMANE SOCIETY - Monday's
hunting trip to Pennsylvania by Vice President Dick Cheney in
which he reportedly shot more than 70 stocked pheasants and an
unknown number of mallard ducks at an exclusive private club
places a spotlight on an increasingly popular and deplorable
form of hunting, in which birds are pen-reared and released to
be shot in large numbers by patrons. The ethics of these hunts
are called into question by rank-and-file sportsmen, who hunt
animals in their native habitat and do not shoot confined or
pen-raised animals that cannot escape.
The Pittsburgh Post-Gazette
reported today that 500 farm-raised pheasants were released yesterday
morning at the Rolling Rock Club in Ligonier Township for the
benefit of Cheney's 10-person hunting party. The group killed
at least 417 of the birds, illustrating the unsporting nature
of canned hunts. The party also shot an unknown number of captive
mallards in the afternoon.
ECHENEY'S
FIRM GETS $1 BILLION NONCOMPETITIVE CONTRACT IN IRAQ
OLIVER MORGAN, OBSERVER
- Halliburton, the engineering group formerly run by US vice-president
Dick Cheney, has been given $1 billion worth of reconstruction
work in Iraq by the US government without having to compete for
it, thanks to repeated delays in opening up a key contract to
competition. The Houston-based company was controversially awarded
a contract to repair Iraq's damaged oil infrastructure without
competition in February. The cost-plus contract means the amount
spent by the US Army Corps of Engineers, which is running the
work, is open-ended, rather than being fixed at the outset, because
the scope of the damage was unknown. The USACE described the
contract as a 'bridge to competition', but original plans to
award the work competitively in August have repeatedly slipped.
So far, $1.7bn has been made available to Halliburton for the
work. 12/03
LITE
ETHNOGRAPHY
NEWSMAX - The neighbors
all around the vice president's residence on the grounds of the
U.S. Naval Observatory in Washington have been up in arms about
underground dynamiting. Explosions have rocked the neighbors'
homes, reports say. The mystery of the explosions, Vanity Fair
suggests, is a nuclear proof bunker being built for the vice
president and his family.
More goings on at the
Cheney residence. A Washington insider close to the FBI tells
Newsmax that Cheney has a fully equipped hospital emergency room
in his home, just in case of a medical emergency. While Cheney
has been in good health since his last heart attack, suffered
just after the 2000 election, he's leaving nothing to chance.
There will be no need for paramedics and screaming ambulance
sirens if Cheney gets chest pains again. Instead, he can go right
into the hospital room. "They can even operate there,"
a source claimed. The source says they had not seen the room
but spoke to people who have.
LIE OF THE DAY
PR WATCH - "In 'Meet
the Press' last Sunday, Vice President Dick Cheney said, 'Since
I left Halliburton to become George Bush's vice president, I've
severed all my ties with the company, gotten rid of all my financial
interests. I have no financial interest in Halliburton of any
kind and haven't had now, for over three years.' That is the
latest White House lie,'" the Boston Globe's Derrick Jackson
writes. On Tuesday, Senator Frank Lautenberg (D-NJ) drew attention
to Cheney's US Office of Government Ethics public financial disclosure
sheets. According to the filings, Cheney received $162,392 in
deferred salary in 2002 from Halliburton, the oil and military
contracting company he ran before running for vice president.
In 2001, Cheney received $205,298. He also is still holding 433,333
stock options. "Five years ago, America was in a tizzy over
President Clinton's 'That depends on what the meaning of is,
is.' That was over lying about sex. For that, Clinton was impeached.
Now, we have a vice president who tells America he has severed
his ties even as his umbilical cord doubles his salary. . . .
Halliburton has already amassed $2 billion in no-bid, no-ceiling
contracts in Iraq.
ANNE E. KORNBLUT, BOSTON GLOBE - As President Bush launched a campaign
to confront the recent epidemic of accounting scandals and answered
embarrassing questions about his own corporate past, another
corporate veteran in his administration, Vice President Dick
Cheney, remained silent. Cheney had good reason to avoid the
limelight, in the opinion of several Republican officials and
securities specialists. His former firm, the Halliburton Co.,
is the subject of an ongoing Securities and Exchange Commission
probe, and it has been hit with nearly a dozen lawsuits by former
shareholders for its accounting practices while Cheney was chief
executive of the energy services firm. Another lawsuit filed
in Dallas by a private watchdog group names Cheney as a defendant,
an action that could lead to the vice president being deposed
by private lawyers numerous times . . . White House officials
appear far more concerned about Halliburton than Harken Energy
Corp., the Texas firm whose stock Bush sold in 1990, less than
two months before the company reported a large and unexpected
loss . . . One administration described Halliburton as a potential
time bomb. Compared with the controversies surrounding Bush,
Cheney fares much worse "for being closer to the situation
and for the situation being closer to us in time," said
Michael L. Andresino, a securities lawyer at Posternak, Blankstein
& Lund in Boston.
Cheney, who was chief executive
officer of Halliburton from 1995 to 2000, has not been contacted
by the SEC about its probe, said Jennifer Millerwise, a Cheney
spokeswoman. She also referred calls about the most recent lawsuit
to Halliburton, whose lawyers are handling the case. The value
of Halliburton stock fell after the announcement [of the probe]
and has dropped nearly two-thirds since last July. The stock
was worth just $13.27 per share at the close of trading yesterday,
compared with $36.79 a year ago.
THE LIST
Cheney stats
- Cheney's 2000 income from
Halliburton: $36,086,635
- Increase in government contracts
while Cheney led Halliburton: 91%
- Minimum size of "accounting
irregularity" that occurred while Cheney was CEO: $100,000,000
- Number of the seven official
US "State Sponsors of Terror" that Halliburton contracted
with: 2 out of 7
- Pages of energy plan documents
Cheney refused to give congressional investigators: 13,500
- Amount energy companies gave
the Bush/Cheney presidential campaign: $1,800,000
MOVE
ON
ASSOCIATED PRESS - Vice President
Dick Cheney, who ran Halliburton Co. when it adopted accounting
practices that now are the subject of a federal inquiry, has
not been contacted by Securities and Exchange Commission investigators.
The investigation of Halliburton is more than one month old and
SEC Chairman Harvey Pitt said over the weekend that Cheney is
not immune to inquiries.
||| MARTIN A. LEE SAN FRANCISCO
BAY GUARDIAN November 13, 2000 - During former defense secretary
Richard Cheney's five-year tenure as chief executive of Halliburton,
Inc., his oil services firm raked in big bucks from dubious commercial
dealings with Iraq. Cheney left Halliburton with a $34 million
retirement package last July when he became the GOP's vice-presidential
candidate. Of course, U.S. firms aren't generally supposed to
do business with Saddam Hussein. But thanks to legal loopholes
large enough to steer an oil tanker through, Halliburton profited
big-time from deals with the Iraqi dictatorship. Conducted discreetly
through several Halliburton subsidiaries in Europe, these greasy
transactions helped Saddam Hussein retain his grip on power while
lining the pockets of Cheney and company. According to the Financial
Times of London, between September 1988 and last winter, Cheney,
as CEO of Halliburton, oversaw $23.8 million of business contracts
for the sale of oil-industry equipment and services to Iraq through
two of its subsidiaries, Dresser Rand and Ingersoll-Dresser Pump,
which helped rebuild Iraq's war-damaged petroleum-production
infrastructure. The combined value of these contracts exceeded
those of any other U.S. company doing business with Baghdad.
. . With Cheney at the helm since 1995, Halliburton quickly grew
into America's number-one oil-services company, the fifth-largest
military contractor, and the biggest nonunion employer in the
nation. Although Cheney claimed that the U.S. government "had
absolutely nothing to do" with his firm's meteoric financial
success, State Department documents obtained by the Los Angeles
Times indicate that U.S. officials helped Halliburton secure
major contracts in Asia and Africa. Halliburton now does business
in 130 countries and employs more than 100,000 workers worldwide.
MORE
1/02
||| ROBERT MOORE, CENTER FOR
PUBLIC INTEGRITY - When a generous patron of President Bush and
the Republican Party sought political backing for his company's
multi-billion dollar Alaskan pipeline project, he turned to Vice
President Dick Cheney, head of the administration's energy policy
task force, known formally as the National Energy Policy Development
Group. Forrest Hoglund, Chairman and CEO of Arctic Resources
Co., was one of an undisclosed number of executives from private
energy companies that advised Cheney and members of his task
force last year. Hoglund has also been a generous contributor
to Republican causes; he has given more than $200,000 since 1997.
The Bush administration has refused to disclose the names of
the outside advisers to its energy policy task force. In a meeting
with Cheney last year, Hoglund told the Center for Public Integrity,
he asked Cheney to support Arctic Resources' Alaskan pipeline
project. The task force, in its final recommendations to President
Bush, did not include the specific pipeline route from Alaska
that Arctic Resources sought. But it did endorse expediting the
necessary permits to build a pipeline along an unspecified route
from Alaska to the lower 48 states. MORE
1/02
VEEP STAKE
Richard Cheney
and Joe Lieberman are two of the most curious choices for vice
president of recent times. While commentators have come up with
a number of contorted explanations, the most obvious one is being
ignored: Cheney and Lieberman's real constituency is not a collection
of voters but the defense industry, which they can be expected
to serve as faithfully as they have in the past. Lieberman comes
from the land of the Sikorsky helicopters and told Connecticut
voters as recently as last October that "In my view, one
layoff is one too many because each and every worker represents
the very heart and soul of our national defense."
Selecting a couple
of reliable Pentagon pimps is important at this time for reasons
not widely reported: there is strong bipartisan support for a
planned massive increase in defense spending. The build-up would
raise the size of the Pentagon budget relative to GDP by about
50%.
This is not a
secret plan. For example, Defense Daily reported on August 16
that the Marine Commandant, General James Jones, was talking
about going from "about 2.9 percent through a gradual ramp-up
to about 4 and 4.5 percent of the US Gross Domestic Product.
And the Washington Post said: "The nation's military leaders
say they will loyally obey the president's marching orders until
the moment he leaves office in January. But when it comes to
money matters, they already are targeting the next administration."
Just in the short
term, the increases sought are "equal to almost the entire
budget for the Education Department." Said a civilian Pentagon
official, "the service requests have been unrestrained."
Writes the Post:
"'We're
going for the big money,' said an officer on the staff of the
Joint Chiefs, adding that his bosses are 'a little bit like kids
in the candy store.'"
The military
especially likes Bush but won't be disappointed with Gore who
told the Veterans of Foreign Wars a few years ago:
"It is the
Republican Congress themselves that would cut defense at the
turn of the century to try to make their numbers fit together.
Again, look beyond the rhetoric and look at the facts. Let me
repeat. It is the Republican defense budget, not President Clinton's,
that drops in the next century. President Clinton's budget, which
is also there for your to see, does not. It increases."
* * *
PUBLIC
I: Under
the guidance of Richard Cheney, a get-the-government-out-of-my-face
conservative, Halliburton Company over the past five years has
emerged as a corporate welfare hog, benefiting from at least
$3.8 billion in federal contracts and taxpayer-insured loans.
One of these loans was approved in April by the US Export-Import
Bank. It guaranteed $489 million in credits to a Russian oil
company whose roots are imbedded in a legacy of KGB and Communist
Party corruption, as well as drug trafficking and organized crime
funds, according to Russian and US sources and documents. Those
claims are hotly disputed by the Russian oil firm's holding company
. . . If Halliburton has benefited from government generosity,
it also has reciprocated with substantial political contributions,
largely to Republicans. During Cheney's five years at the helm,
the company has donated $1,212,000 in soft and hard money to
candidates and parties, according to numbers compiled by the
non-partisan Center for Responsive Politics. In the five years
prior to his arrival, the company had given $534,750.
THE DALLAS MORNING NEWS reports
that GOP vice presidential candidate Dick Cheney failed to vote
in 14 of 16 elections since moving to Texas in 1995. Cheney's
Democratic rival for the vice presidency, Sen. Joe Lieberman
of Connecticut, has a five-for-six rate of election participation
over the same period according to the paper.
1987 was a big year in the Reagan
administration. The Iran-Contra chickens were coming home to
roost. The previous December, CIA director William Casey had
developed a brain tumor and lost his ability to speak. In February
1987 he resigned and died soon afterwards. That same month, former
National Security Director Robert McFarlane tried to commit suicide.
Also in February, the Tower Commission laid the blame on White
House chief of staff Donald Regan for the "chaos that descended
upon the White House" in the Iran-Contra affair. The commission
praised Bush for his "vigorous reaffirmation of US opposition
to terrorism in all forms" Regan was forced to resign.In
November a joint congressional investigation of Iran Contra issued
a bland report that cleared Vice President Bush. Key to the exculpation
was senior House Republican member Richard Cheney. When he became
president Bush appointed Tower as Defense Secretary and fellow
Tower Commission member Brent Scowcroft as national security
adviser. The Senate refused to confirm Tower and Bush named the
loyal Cheney in his stead.
Cheney's voting record was slightly
more conservative than mine -- Newt Gingrich. In 10 years in
the House, [Dick Cheney]... chocked up a conservative voting
record that rivaled Senator Jesse Helms's. -- Business Week
GREG PIERCE, WASHINGTON TIMES:
As secretary of defense, Richard B. Cheney entertained major
Republican contributors at private meetings at the Pentagon,
the Associated Press reports, citing documents gathered by congressional
fund-raising investigators. Mr. Cheney was host for at least
two GOP donor gatherings inside the Defense Department in 1991
and in 1992, the records show. "If he's having an open house
for contributors at the Pentagon, it does bring back reminiscences
of the Lincoln Bedroom," said Larry Makinson, executive
director of the Center for Responsive Politics . . . On Aug.
19, 1992, members of the Presidential Roundtable (minimum donation
$5,000) attended a briefing with Mr. Cheney . . . A Republican
National Committee brochure that touted the benefits of joining
the Presidential Roundtable included a picture of Mr. Cheney
briefing members at the Pentagon.
SAM SMITH, "WHOSE WAR IS
IT?," TPR 1992: George Bush's behavior in [the Iraq] affair
is bizarre even by presidential standards, let alone constitutional
ones. He has barely consulted the joint chiefs of staff while
making a commitment of American troops close to that in Vietnam.
When Defense Secretary Cheney made a televised announcement that
the US might be sending more troops to Saudi Arabia, Gen. Colin
Powell learned of it while on his way back from the Middle East.
And the president has clearly not consulted Congress. The question
inevitably arises: whose war is this going to be? Sununu's? Cheney's?
Millie's? Some of the speculation has bordered on the grotesque.
The emir of conventional journalism, David Broder, wrote on November
18: "It is almost impossible to imagine a more serious,
calm, cautious, rational and prudent set of people than those
the president has assembled." The New York Times's R. W.
Apple Jr., who got off to a bad start in August characterizing
Bush as "tough" and "statesmanlike," had
recovered enough by December to write: "Right from the start,
foreign policy professionals have complained that Mr. Bush, something
of a foreign policy professional himself, has drawn the circle
too tight, limiting discussions of really important positions
to himself, Secretary of State James A. Baker 3rd, Defense Secretary
Dick Cheney and Brent Scowcroft, his national security advisor."
One foreign editor on the case described the vision of the White
House as being as though looking through a "rifle sight."
There is no apparent consideration of long-term effects, cultural
factors, the links with other regional issues or history. I suspect
that for George Bush, invading Iraq would not really be a war
at all, but as with Noriega, more of a personal match -- tennis
by other means. An old preppie treating the whole world as his
country club.
TPR, FEBRUARY 1992: Extra! reports
that People magazine's Dirk Mathison made three surreptitious
visits [to Bohemian Grove] last July, aided by members of the
Bohemian Grove Action Network. Among the activities he witnessed
was a speech by former Navy Secretary John Lehman, who said the
Pentagon estimated that 200,000 Iraqis were killed in the recent
war. Other policy addresses were by Richard Cheney, Joseph Califano,
and Elliott Richardson. Mathesin, however, was recognized by
an official of Time Warner (People's owner), who made him leave.
Mathesin had plenty of material and turned in a story, but after
an initially enthusiastic response, the piece was killed, just
as early stories on the Grove for NPR and Time had been scotched.
CARLYLE
GROUP
INSIDE THE CARLYLE GROUP
CTR FOR PUBLIC INTEGRITY - The
Carlyle Group, a Washington, D.C.-based private equity firm that
employs numerous former high-ranking government officials with
ties to both political parties, was the ninth largest Pentagon
contractor between 1998 and 2003. A dozen companies in which
Carlyle had a controlling interest netted more than $9.3 billion
in contracts.
From its founding in 1987, the
Carlyle Group has pioneered investing in the defense and national
security markets, and through its takeover of companies with
billions of dollars in defense contracts became one of the U.S.
military's top vendors, ranking among better known defense firms
like Lockheed Martin, Boeing Co., Raytheon Co., Northrop Grumman
and General Dynamics.
Unlike those firms, however,
the Carlyle Group itself is not a manufacturer. It offers no
services directly to the Pentagon, and has no defense contracts.
Rather, it manages investments-some $18.4 billion from 600 individuals
and entities in 55 countries, according to its Web site. The
firm's business is making money for these investors, the vast
majority of whose identities are not disclosed to the Securities
and Exchange Commission or other government bodies.
Though Carlyle itself has won
no contracts, the companies it has owned or controlled have done
billions of dollars worth of business with the Pentagon.
Private equity firms did not
have any significant presence in the defense industry until the
end of the Cold War. Traditionally, the Defense Department depended
on mega contractors such as Boeing Corp., Lockheed Martin and
Raytheon for weapons and services. But since the 1990s, the military
has increasingly outsourced to private contractors a variety
of jobs and services, ranging from planning of operations to
the supply of linguistic services.
"Carlyle is the biggest
single success in Washington of a venture capital firm,"
Dr. Loren B. Thompson Jr., a national security expert at the
libertarian Lexington Institute, said. In 1997, for example,
the group made a 650-percent profit when it sold BDM International
Inc., a McLean, Va., defense contractor. And in December 2001,
Carlyle sold off the majority of its holdings in United Defense
Inc. Altogether, Carlyle earned $1 billion in profit from the
United Defense investment.
It was under the leadership of
former Defense Secretary Frank Carlucci-first as a managing director,
from 1989 to 1993, and as chairman from 1993 to 2003-that Carlyle
grew from a small private equity to a global investment giant,
and became a major player among defense contractors. Other former
government officials who have recent or current ties to the firm
include former British Prime Minister John Major and former Philippines
President Fidel Ramos; former Office of Management and Budget
director Richard Darman; former Clinton chief of staff Thomas
F. "Mack" McLarty; former Securities and Exchange Commission
chairman Arthur Levitt and former Federal Communications Commission
chairman William E. Kennard. Former Secretary of State James
Baker works for the firm, as did his former boss, President George
H.W. Bush, who was an adviser for the firm's Asian investment
funds until he left Carlyle in 2003.
"Carlyle would never have
gotten to the level that it is at today had it not been for this
premeditated commingling of business and politics," said
Dan Briody, author of The Iron Triangle: Inside the Secret World
of the Carlyle Group, a book that takes a critical look at the
rise of the firm. One of Carlyle's most controversial hirings
was of former president Bush to serve as a senior adviser for
its "Asia advisory board."
"The fact that George H.W.
Bush was working for them while his son was president, while
his son, in fact, was dramatically increasing defense spending-that
seems to me one of the most blatant conflicts of interests in
history," Briody said.
THE IRON TRIANGLE
INSIDE THE SECRET WORLD OF THE CARLYLE GROUP
By Dan Briody
ECONOMIST - On the day
Osama bin Laden's men attacked America, Shafiq bin Laden, described
as an estranged brother of the terrorist, was at an investment
conference in Washington, DC, along with two people who are close
to President George Bush: his father, the first President Bush,
and James Baker, the former secretary of state who masterminded
the legal campaign that secured Dubya's move to the White House.
The conference was hosted by the Carlyle Group, a private equity
firm that manages billions of dollars, including, at the time,
some bin Laden family wealth. It also employs Messrs Bush and
Baker. In the immediate aftermath of the attacks, when no one
was being allowed in or out of the United States, many members
of the bin Laden family in America were spirited home to Saudi
Arabia. The revival of defense spending that followed greatly
increased the value of the Carlyle Group's investments in defense
companies. . .
Carlyle arguably takes
to a new level the military-industrial complex that President
Eisenhower feared might "endanger our liberties or democratic
process." What red-blooded capitalist can truly admire a
firm built, to a significant degree, on cronyism; surely, this
sort of access capitalism is for ghastly places like Russia,
China or Africa, not the land of the free market?. . .
Perhaps there would be
less reason to worry about Carlyle if there were rival clubs
of ex-political heavyweights competing within the iron triangle.
Alas, this firm seems to be an aspiring monopolist, hoovering
up former public officials from across the political divide and,
increasingly, from across the world. It is becoming more ambitious
in Europe, and keenly eyeing China. Perhaps there would be less
reason to worry if Carlyle's activities were more open-but as
a private equity firm, it has largely escaped America's recent
efforts to improve the governance and transparency of companies,
which is unfortunate. At a time when America is aggressively
promoting democracy and capitalism abroad, including by military
means, it would be helpful if its politicians and businesses
were regarded as cleaner than clean. Shrouded in secrecy, Carlyle
calls capitalism into question.
CARLYLE GROUP
HOW GEORGE BUSH GOT
BOUNCED FROM CARLYLE BOARD
By Suzan
Mazur
[David Rubenstein,
co-founder and Managing Director of The Carlyle Group, the "world's
largest private equity firm," recently recounted his first
meeting the current president and Bush's days on the Carlyle
board in a speech to the Los Angeles County Employees Retirement
Association. LACERA has invested $95 million in Carlyle, now
the 11th largest defense contractor in America as majority shareholder
in United Defense. For ethical reasons, many in the association
would like to see LACERA funds pulled and invested elsewhere.
In the speech Rubenstein
also touched on company ethics - under intense scrutiny since
9/11 - including widely reported stories about Carlyle operating
as a shadow government. He assured investors that "making
money is nice" but Carlyle is "first and foremost"
concerned with ethics.]
DAVID RUBENSTEIN - We
have an enormous amount of our own personal capital - about 90%
of our net worth is tied up in these funds. My partners and I
and all the other professionals have committed $700 million to
our various funds throughout the world so we've got a lot of
money committed to this and it's important to get it back. But
it's more important that we not do anything that impairs the
reputation of ourselves or our investors. So making money is
nice but we're more worried about our reputation and concerned
with ethics and that's first and foremost.
[He had this to say
about George W. Bush]
Let me talk about a bad
deal. At the beginning of Carlyle - early - we didn't have any
funds. We didn't have any dedicated funds. And we had a deal
that seemed like it would be the greatest deal since sliced bread.
It was handed to us. Marriott said to us, look, we're going to
sell our airline catering business [Caterair].It's number one
in the world. Management team has been there for 10 years. We
dominate all the markets and we're not going to do an auction.
We're going to sell it to you guys 'cause some of our people
[Carlyle co-founders Steve Norris and Dan D'Aniello and Bush
crony Fred Malek] used to work at Marriott. You know, what could
be better?
So the financing was there.
And we thought, this is an easy business. So they're going to
give us a company. Number one in the world. Gold plated. Got
all the equipment you need. Good management team.
Well, then the Gulf War
came. And all of a sudden people stopped flying. And then those
who were flying realized that they weren't going to be getting
the food that they thought they were going to get. . . . So no
matter how good you think a company can be something can go wrong.
We couldn't anticipate the Gulf War. So the airline catering
business has gone this way.
I mention this because
it reminds us all the time we shouldn't have hubris. You know
no matter how smart we think we are or how good we are, something
can go wrong. And if something seems too good in life to be true,
it usually is. In this case, the only interesting thing about
the deal--and we lost all our money in it. Our money and our
investors' money in it. In that deal.
But when we were putting
the board together, somebody [Fred Malek] came to me and said,
look there is a guy who would like to be on the board. He's kind
of down on his luck a bit. Needs a job. Needs a board position.
Needs some board positions. Could you put him on the board? Pay
him a salary and he'll be a good board member and be a loyal
vote for the management and so forth.
I said well we're not
usually in that business. But okay, let me meet the guy. I met
the guy. I said I don't think he adds that much value. We'll
put him on the board because - you know - we'll do a favor for
this guy; he's done a favor for us.
We put him on the board
and [he] spent three years. Came to all the meetings. Told a
lot of jokes. Not that many clean ones. And after a while I kind
of said to him, after about three years - you know, I'm not sure
this is really for you. Maybe you should do something else. Because
I don't think you're adding that much value to the board. You
don't know that much about the company.
He said, well I think
I'm getting out of this business anyway. And I don't really like
it that much. So I'm probably going to resign from the board.
And I said, thanks - didn't
think I'd ever see him again. His name is George W. Bush. He
became President of the United States. So you know if you said
to me, name 25 million people who would maybe be President of
the United States, he wouldn't have been in that category. So
you never know. Anyway, I haven't been invited to the White House
for any things.
[Suzan Mazur's reports
have appeared in the Financial Times, Economist, Forbes, Newsday,
Philadelphia Inquirer, and on PBS, CBC and MBC. She has been
a guest on McLaughlin, Charlie Rose, and Fox television shows.]
VICTOR THORN, BABEL MAGAZINE - A few weeks ago,
James Baker publicly offered advice to the Bush Administration
on how they should proceed with their war on Iraq. What he and
every newscaster or commentator failed to mention was that Baker
is now employed by the highly-influential Carlyle Group, which
is the eleventh largest defense contractor in the United States.
. . If you're not familiar with them, the Carlyle Group has become
a powerhouse in affecting the direction in which our foreign
policy takes, especially in regard to war. They accomplish this
by hiring former government officials, then investing in private
companies that are subject to government change (i.e. the military
and telecommunications). Who, you may ask, do they employ to
secure their government contracts? Well, check-out this list
for starters:
- - Frank Carlucci
- Department of Health, Education and Welfare - 1970's Deputy
Director, CIA - 1978-81 Deputy Secretary of Defense - 1981-82
National Security Director - 1987-89
- - George Bush
- CIA Director - 1976-77 Vice President of the United States
- 1981-89 President of the United States - 1989-93
- - James Baker
- Chief of Staff - 1981-85 Secretary of the Treasury - 1985-89
Secretary of State - 1989-93
- - Dick Darman
- Former White House Budget Chief William Kennard - Former Head,
FCC
- - Arthur Levitt
- Former Head, SEC
- - John Major
- Former Prime Minister, Britain
- - Fidel Ramos
- Former Philippine President
- - Afsaneh
Beschloss - Treasurer & Chief Investment Officer of the World
Bank
- - Anand Panyarachum
- Former President, Thailand Karl
- - Otto Pohl
- Former President, Bundesbank Louis Vuitton - French Aerobus
Company
- - Park Tae
Joon - Former South Korean Prime Minister
- - Alwaleed
Sin Talal bin Abdulaziz Alsaud - Saudi Arabian Prince
- - George Soros
- New World Order/Bilderberg luminary & int'l financier
- - Fred Malek
- George Bush Sr's campaign manager. . .
Carlyle also
employs the former chairman of BMW and Nestle, is interviewing
former Clinton cabinet members (to insure that they have both
sides of the aisle covered), plus once hired Colin Powell and
AOL Time-Warner Chairman Steve Case to speak at a meeting at
Washington D.C.'s Monarch House. . . The Washington Business
Journal simply says, "The Carlyle Group seems to play be
a different set of rules."
||| STEVE GELSI, CBS MARKET WATCH
- In October of 1997, The Carlyle Group purchased a majority
stake in United Defense Industries in the midst of a slowdown
in U.S. military spending following the end of the Cold War.
After Sept. 11, President George W. Bush proposed huge increases
in military spending now pending before Congress. The languishing
defense sector has heated up and with it military-flavored IPOs
have surfaced from several players including Tuesday's Anteon
International (ANT: news, chart, profile), Integrated Defense
Technologies (IDE: news, chart, profile), Man Tech International
(MANT: news, chart, profile) and upcoming information technology
specialist Veridian. The $400 million United Defense Industries
IPO was the first to debut in the latest salvo of weapons debutantes.
When the maker of military vehicles
went public in December, Frank Carlucci owned 40,000 shares at
an average strike price of $4.71, according to the company's
IPO filings. The IPO debuted at $19 per share and has since risen
to more than $27 per share. Carlucci is showing a tidy paper
profit of $892,000 on his stake in United Defense Industries
- pretty respectable. Granted, there are lockup periods governing
when insiders can sell their shares, but in this time of post
dot-com meltdowns and a barren IPO landscape, it's amazing to
see that such big profits are still possible.
Carlyle filed a $160 million
IPO for U.S. Marine Repair, a Norfolk, Va. specialist in maintaining
and refurbishing Navy ships. Although the IPO market may soon
tire of all these military deals, this one should do fairly well
and provide another nice payday for The Carlyle Group.
With access to folks like Secretary
of Defense Donald Rumsfeld and Vice President Dick Cheney, Carlyle
seems to have the defense game rigged as one of the biggest military
contractors in the country. Sure it's just good business to buy
low and sell high, but the Carlyle Group seems to be a bit too
well connected. 3/02
MORE
||| JASON NISSÉ, INDEPENDENT,
LONDON President George W Bush's administration, already on the
back foot over its connections with the collapsed energy giant
Enron, faces questions over a massive defense contract which
aided an investment firm with Bush family links. Last September,
the Army signed a $665 million contract to develop the Crusader
Advanced Field Artillery System, a $12 billion weapons programmed
being built by United Defense Industries. Last week, Mr Bush
signed a defense appropriation bill which included $487 million
for the programmed. This has helped Carlyle Group, the well-connected
Washington-based investment group, which controls UDI, to float
the defense contractor on the New York stock exchange . . . Its
chairman is Frank Carlucci, who was Defense Secretary in the
Reagan administration and is a close friend of Donald Rumsfeld,
the current Defense Secretary. The two were members of the same
wrestling team at Princeton University. The chairman of Carlyle
Europe is John Major, the former British Prime Minister. An adviser
to Carlyle in Asia is George Bush Snr, the former president and
father of the current president. And George W Bush himself was,
for five years, on the board of Caterair, a business Carlyle
backed. "It's the first time the President of the United
States' father is on the payroll of one of the largest US defense
contractors," said Charles Lewis, a director of the Center
for Public Policy . . . Carlyle denies that any of its managers,
directors or advisers used their influence to aid contracts for
UDI. MORE
*** MARK FINEMAN, LA TIMES -
Even by Washington standards, the Carlyle Group has some serious
clout. President George W. Bush's father works for Carlyle; so
does former Defense Secretary Frank C. Carlucci, whose close
friend Donald H. Rumsfeld now runs the Pentagon; and so does
a stellar cast of retired generals and Cabinet secretaries, including
former Secretary of State James A. Baker III. And even by Wall
Street standards, the Carlyle Group has some serious money: $12.5
billion in investments at last count . . . On a single day last
month, Carlyle earned $237 million selling shares in United Defense
Industries, the Army's fifth-largest contractor. The stock offering
was well timed: Carlyle officials say they decided to take the
company public only after the Sept. 11 attacks. The stock sale
cashed in on increased congressional support for hefty defense
spending, including one of United Defense's cornerstone weapon
programs . . . By any standard, the Carlyle Group has the right
address. Its suite of offices are on Pennsylvania Avenue midway
between the White House and Congress - a 15-minute walk to each
. . . As its reputation grew, so did the group's star-studded
management roster. It added former Joint Chiefs of Staff Chairman
Gen. John M. Shalikashvili; Arthur Levitt, the long-serving former
chairman of the Securities and Exchange Commission; former British
Prime Minister John Major; former Secretary of State Baker; and
former President Bush MORE
*** DAILY TEXAN - The Carlyle Group is a global private investment
firm, anchored in Washington, D.C., with heavy stakes in military
contracting. What makes Carlyle significant is the powerhouse
payroll of the firm which includes former U.S. president George
Bush, former secretary of state and current G.W. Bush confidant
James Baker, former defense secretary Frank Carlucci, and former
British prime minister John Major. Those versed in process of
revolving door politics will realize that the Carlyle Group is
perhaps the world's pinnacle of cronyism and business opportunism
. . . The Carlyle Group can profit heavily from military action
in the Middle East. The Wall Street Journal recently raised issues
with former president Bush's involvement in the Carlyle Group
and Judicial Watch, no friend of liberals or Democrats, has called
for Bush's outright resignation from a group that could profit
from his son's economic and military decisions. George W.'s escalation
of the war will create more and more military contracts, boosting
stocks in Carlyle portfolios, profiting the elder Bush, and,
eventually, George W.
*** REUTERS - Defense companies are back after a five-year absence
from the market for new equity issues. And they could not have
picked a better time. The war in Afghanistan and the government
commitment to a long fight against terrorism at home and abroad
foreshadow increases both in defense budgets and, more importantly,
in the government spending in new equipment and technology, analysts
said . . . Demand for United Defense shares, which are expected
to sell at between $18 and $20 apiece, is strong, sources in
the investing community say . . . United Defense, which produces
combat vehicles, artillery and missile launchers, is well aware
of the opportunity to capitalize on such momentum. ``The terrorist
attacks of Sept. 11, 2001 have generated strong Congressional
support for increased defense spending,'' the company said in
its filing with U.S. regulators. Taking advantage of the favorable
climate for defense companies, the banks managing United Defense's
IPO have sped up the deal . . . Initially, the company said it
would raise up to $300 million. A month later, when it set the
price range for its shares, its expectations had increased to
$422 million . . . United Defense will sell 21.1 million shares,
but the company's main stockholder, private equity firm Carlyle
Group, will get more than half of the money raised.
MORE ON THE CARLYLE GROUP including a rare mention
of the involvement of George Soros
MANHATTAN
INSTITUTE
[JOHN J. DIIULIO
JR. AND STEPHEN GOLDSMITH, whom George Bush is placing in charge
of his cash-for-Christ program, are senior fellows of the conservative
Manhattan Institute and colleagues of Charles Murray, author
of the notorious "Bell Curve." As we have pointed out,
the problem with Bush's plan is not that religious organizations
would get public funds for public services, but that Bush is
crediting to these groups virtues that have far more to do with
their community base than with their "faith base."
By making an invidious distinction between religious and secular
community groups, Bush would be in clear violation of the Constitution
in a way that community-based programs coincidentally including
religious groups would not be.]
* NY TIMES: For
years, Mr. DiIulio, who taught at Princeton before the University
of Pennsylvania, was known more for his work on criminal justice
issues than on his interest in faith-based programs. He was among
the voices loudly advocating increased prison construction in
the early 1990's . . . Mr. Goldsmith, a former prosecutor, was
a two-term mayor in Indianapolis who privatized everything from
golf course construction to sewage treatment and showed an interest
in revitalizing long-neglected inner-city neighborhoods . . .
"There's a lot of respect for Stephen Goldsmith," said
Rabbi David Saperstein, director of the Religious Action Center
of Reform Judaism. "Many in the Jewish community know him
and respect him, but any time you have a formal government endorsement
of religion that this faith-based office conveys, that takes
us down a path that too often in our history has turned out to
be disastrous for religious freedom and religious tolerance."
* NORMAN SOLOMON:
The Manhattan Institute was founded in 1978 by William Casey,
who later became President Reagan's CIA director. Since then,
the Institute's track record with authors has been notable. Funneling
money from very conservative foundations, the Institute has sponsored
many books by writers opposed to safety-net social programs and
affirmative action. During the 1980s, the Institute's authors
included George Gilder (Wealth and Poverty), Linda Chavez (Out
of the Barrio) and Charles Murray (Losing Ground). Murray's Losing
Ground -- a denunciation of social programs for the poor -- catapulted
him to media stardom in 1984 . . . Along with ongoing subsidies
from a number of large conservative foundations, the Manhattan
Institute has gained funding from such corporate sources as the
Chase Manhattan Bank, Citicorp, Time Warner, Procter & Gamble
and State Farm Insurance, as well as the Lilly Endowment and
philanthropic arms of American Express, Bristol-Myers Squibb,
CIGNA and Merrill Lynch.
* MANHATTAN INSTITUTE:
"Education and Welfare: Meeting the Challenge: A Message
from CCI [a division of Manhattan Institute]Chairman, Mayor Stephen
Goldsmith : . . . The conference brought together public officials
like Wisconsin Governor Tommy Thompson and scholars like Dr.
Charles Murray to discuss how governments and private groups
have reduced dependency and increased self-sufficiency . . .
Fifteen years after the Manhattan Institute published Charles
Murray's landmark study of American welfare policy, "Losing
Ground," the presentations showed that ideas once seen as
radical now form the mainstream of the welfare debate."
* VILLAGE VOICE,
Aug 8, 2000: Absent in the sticky Philadelphia heat was the drumbeat
of the fire-breathing, nay-saying Christian Right. In its place,
singing the praises of the Jesus-influenced candidate and following
a script laid out by the Manhattan Institute . . . The social
scientists from the Manhattan Institute rolled out their charts
and reported that kids who go to church in poor neighborhoods
do fewer drugs and thus, churches, mosques, and synagogues "should
be supported as uniquely qualified agencies of social control
that matter a great deal in the lives of adolescents in America's
most disorganized and impoverished communities." INSTITUTE
FOR PUBLIC ACCURACY
* PROGRESSIVE
REVIEW, August 2000: Besides helping to make "faith-based"
the politicians' favorite euphemism for 'religious,' the [Manhattan
Institute] has fostered the notorious Charles Murray as well
as one of George Bush's favorite writers, Michael Magnet, author
of the 'The Dream and the Nightmare,' the latter being all those
poor folks mucking up the place. In a review in the Texas Observer,
Michael King wrote:
"Poor people
are poor and nasty because they choose to be so, and any attempt
by the community at large to ameliorate their unhappy circumstances
is by definition counterproductive. And though he tap-dances
around the subject in various statistical ways, the undeserving
poor (a.k.a. the underclass), whom Magnet pities and despises
in almost equal measures, are most specifically the black urban
poor: those foul-mouthed, crack-smoking, baby-dropping, white-folks
mugging, wild-running Caliban-caricatures of the suburban imagination,
who refuse to work because they have learned (apparently from
reading Norman Mailer, Michael Harrington, and R.D. Laing) that
they can act crazy on street corners selling dope without fear
of retribution while readily pocketing twenty grand a year on
welfare.
"What are
the solutions to this cultural catastrophe? Do nothing - only
much more nothing. Scratch these neo-cons and one inevitably
turns up Charles Murray (of Losing Ground and The Bell Curve),
the "brilliant" sociologist who has concluded repeatedly
that all welfare programs should be abolished because they do
more harm than good (especially by allowing able-bodied mothers
to stay home with their kids when they should be on the job market
keeping wages down). Lately Murray has taken to saying the same
thing about public education, since certain children are, well,
ineducable. (We all know who they are.) Magnet suspects Murray
is right, although he says he wouldn't go that far - the requisite
political will is unfortunately lacking, and perhaps in the short-term,
"casualties would be too great." He counsels instead
the usual draconian measures to force welfare mothers (only the
deserving widowed or divorced, of course) into the job market,
although with surprisingly liberal provisions for day care and
Head Start programs." [According to the Manhattan Institute,
"Referring to this book, Gov. Bush has said, other than
the Bible, that it was the most important book he had read..."]
The Manhattan
Institute is obsessed with such matters. Eric Alterman, in the
Nation, described another of its good works: "The great
book of the New Right's assault on traditional forms of knowledge
was Charles Murray's anti-welfare tract Losing Ground: American
Social Policy, 1950-1980 (1984) The Manhattan Institute inaugurated
an extraordinary campaign to sell Murray to the public. Once
the book was published, [MI President William Hammett] sent 700
copies to journalists, politicians and academics and hired a
PR expert to turn the unknown author into a media celebrity.
He paid journalists $500 to $1,500 each to participate in a seminar
on Murray and his thought. The book itself proved to be the prototype
of "The Bell Curve:" Murrayite ideology mixed with
pseudo-science and killer public relations . . . Welfare causes
poor (read "black") people to breed like bunnies, and
"we" would be doing everyone a favor if we just stopped
encouraging "them." "We tried to provide more
for the poor, and we created more poor instead," as Murray
argued . . . A decade later, Murray would undertake an even grander
mission on behalf of his sponsors. It would be to make racism
scientifically respectable. Murray's research was considered
so controversial that this time the Manhattan Institute refused
to have anything to do with him, and he was shunted off to the
American Enterprise Institute."
New York artist-activist
Robert Lederman [notes that] Hitler himself, while schmoozing
with the Vatican in 1933, said, "Secular schools can never
be tolerated because such schools have no religious instruction,
and a general moral instruction without a religious foundation
is built on air; consequently, all character training and religion
must be derived from faith . . . we need believing people."
MANHATTAN
INSTITUTE
COLIN POWELL
POWELL BUDDIES TELL ON BUSH ET AL
SECRETARY
OF STATE COLIN POWELL is exhausted, frustrated, and bitter, uncomfortable
with President George W. Bush's agenda, and fatigued from his
battles with the Pentagon, reports GQ magazine writer-at-large
Wil S. Hylton in the June 2004 issue of GQ magazine.
Powell's
chief of staff, Larry Wilkerson, on whether Powell will return
for a second term: "He's tired. Mentally and physically.
And if the president were to ask him to stay on -- if the president
is re-elected and the president were to ask him to stay on, he
might for a transitional period, but I don't think he'd want
to do another four years."
Powell's
mentor from the National War College, Harlan Ullman on Powell's
discomfort with the Bush team: "This is, in many ways, the
most ideological administration Powell's ever had to work for.
Not only is it very ideological, but they have a vision. And
I think Powell is inherently uncomfortable with grand visions
like that ... There's an ideological core to Bush, and I think
it's hard for Powell to penetrate that."
Ullman
on Powell's relationship with Vice President Dick Cheney: "I
can tell you firsthand that there is a tremendous barrier between
Cheney and Powell, and there has been for a long time ... It's
like McCain saying that his relations with the president are
'congenial,' meaning McCain doesn't tell the president to go
f*ck himself every time."
Ullman
on National Security Advisor's Condoleeza Rice's comments that
Powell and Cheney are "on more than speaking terms,"
and that they're "very friendly": "Condi's a jerk."
Deputy
Secretary of State Richard Armitage on Powell's presentation
pre- war presentation before the U.N.: "It's a source of
great distress for the secretary." Hylton reports that Rice
described Powell as enthusiastic about the presentation, spending
four days and nights at CIA headquarters and scouring the evidence
against Saddam Hussein for ways to punch it up. But Armitage
and Wilkerson describe Powell's four-day immersion at the CIA
in very different terms -- not punching up the evidence but frantically
scouring it for mistakes and faulty intelligence.
"On
the last day and night [at the CIA], the secretary called me,
and he said, 'I need a little extra reinforcement.' So I went
out there and spent Sunday and Saturday night with him. He needed
someone. He was the voice throwing everything out, and he wanted
another loud voice at the table." Wilkerson describes those
four days at the CIA as a battle, with Powell's team scrambling
in the final hours to save the general from humiliation: "I
was down at the agency as his task-force leader, and we fought
tooth and nail with other members of the administration to scrub
it and get the crap out."
Wilkerson
on the neo-cons: "I make no bones about it. I have some
reservations about people who have never been in the face of
battle, so to speak, who are making cavalier decisions about
sending men and women out to die. A person who comes immediately
to mind in that regard is Richard Perle, who, thank God, tendered
his resignation and no longer will be even a semi-official person
in this administration. Richard Perle's cavalier remarks about
doing this or doing that with regard to military force always,
always troubled me. Because it just showed me that he didn't
have the appreciation, for example, that Colin Powell has for
what it means ... I call them utopians ... I don't care whether
utopians are Vladimir Lenin in a sealed train going to Moscow
or Paul Wolfowitz. Utopians, I don't like. You're never going
to bring utopia, and you're going to hurt a lot of people in
the process of trying to do it."
DISINFORMATION - While Powell was deputy security adviser
to Ronald Reagan's Secretary of Defense Caspar Weinberger, he
learned of the illegal deal to supply arms to Iran in return
for cash and the release of American hostages in Lebanon. He
told Weinberger and, though they supposedly didn't like it, they
went along with the deal. In violation of Pentagon procedure,
Powell secretly transferred missiles from the Army to the CIA.
When questioned during the Iran-Contra hearings, Powell grudgingly
gave testimony that has been described as contradictory, "limited,"
and "misleading." At one point in a sworn deposition
he said that Weinberger did not keep a diary, but in a sworn
affidavit five years later Powell said that his boss had indeed
kept a diary at the time. . .
It was Powell who pushed Bush
into invading Panama to capture Manuel Noriega, a move that violated
international law. Indiscriminately using force in civilian areas,
the effort to arrest Noriega resulted in the deaths of many civilians.
The US government admits to hundreds of dead innocents, and various
observers and human rights groups say the true total is in the
thousands.
Powell seems to have achieved
the worst of both worlds during Operation Desert Storm. He adamantly
opposed US involvement in the Iraq/Kuwait shit storm, but President
Bush wanted it. Kowtowing to his superiors, as always, Powell
led the way in torpedoing a Soviet deal that would have avoided
the war. Once the ground assault started, though, he almost immediately
tried to limit the combat. . .
Despite his rather inept handling
of the situation, Powell became a war hero for presiding over
a lopsided slaughter--which included burying Iraqis alive and
massacring them as they retreated--that left around 200,000 Iraqis
dead (including tens of thousands of civilians), compared to
147 Americans killed by the enemy (with an additional 207 killed
by accidents or "friendly fire"). Furthermore, Powell
targeted for destruction Iraq's water systems, power supplies,
civilian factories, and other non-military targets, actions which
are war crimes. . .
Powell has completely turned
his back on sick Gulf War vets. Whether or not Gulf War Syndrome
exists isn't the question here. The fact is that tens of thousands
of former and current members of the military are complaining
of a similar cluster of strange symptoms, and Powell has done
nothing to help them. In an interview with legendary investigative
journalist Seymour Hersh, . . .
Powell was decorated for his
role in planning Operation Vernon Lake in Vietnam. According
to the military's own records, 104 innocent civilians were killed
because of this action. . .
Declassified documents implicate
Powell in the secret, probably illegal arming of Iraq in the
years before the Gulf War. . .
Although he decried the sanctions
against Iraq (which so far have killed 500,000 children under
the age of five) in his autobiography, Powell surprisingly announced
his enthusiastic support for the sanctions just as soon as Dubya
tapped him for Secretary of State. . .
MORE SOURCES ON POWELL
TRUST POWELL? - Robert Parry, Consortium
News
[Back when
Colin Powell was last in the news -- as a possible 1996 presidential
candidate -- we proposed a few questions for him]
- Who won the
Gulf War?
- If the answer is the US, then how come Saddam Hussein is still
in power?
- Well then, if that's the case, when exactly did Hussein stop
being the "modern-day Hitler" as we were told at the
time?
- How many people did your troops kill during the Gulf war?
- Why did we have to kill that many?
- How many dead Iraqi draftees did your troops bulldoze into
mass graves?
- Wasn't the immolation of retreating Iraqi soldiers along the
"Highway of Death" a bit excessive?
- How many oil refineries were ignited by your own bombs?
- How much radioactive material did you leave in the Iraqi desert?
- How many civilians did our troops kill in Panama?
- How many were buried in mass graves?
- Is the sort of censorship, disinformation, and misinformation
provided by the military during the Gulf war and Panamanian invasion
what we could expect from a Powell presidency?
- What differences are there between American-style democracy
and the civilian operations carried out by the US military in
places such as Panama, Kuwait and Somalia?
- Which style of governance would your administration favor?
- Describe the nature of your professional experience with each
style of governance.
- Why did you help to cover up allegations of a massacre of 400
Vietnamese at My Lai?
- While in Vietnam what steps, if any, did you take to stop war
crimes such as the shooting of unarmed civilians from US helicopters?
- Why did Iran-Contra prosecutor Lawrence Walsh find your testimony
in his investigation to be "at least misleading" although
it "did not warrant prosecution?"
- Describe your efforts to reduce the more than $30 billion in
Pentagon "problem disbursements" i.e. money that was
spent but the military can't figure who spent or authorized it
to be spent.
- Does the fact that about half the front-line troops in the
Gulf War were from ethnic minorities reflect your concern for
civil rights?
- Why do you think it is that a higher percentage of American
veterans than non-veterans are unemployed, homeless or imprisoned?
- You have shown considerable interest in the Buffalo Soldiers.
Discuss their role in the ethnic cleansing of native Americans
by the US military.
- You urged military men to resign if they also opposed Clinton's
policy on gays in the military. Name one or more other issues
in which you expressed public opposition to your commander-in-chief?
- Are you at all concerned about the growing intrusion of the
military into democratic American life -- including law enforcement?
Discuss.
- What can you tell us that would reassure that in voting for
you we would not only put a military man in office but the military
as well. -- Progressive Review, November 1995
POWELL AND MY
LAI
There may be
isolated cases of mistreatment of civilians and POWs . . . This
by no means reflects the general attitude throughout the Division
. . . In direct refutation of this portrayal is the fact that
relations between American soldiers and the Vietnamese people
are excellent. - Colin Powell Excerpt from 1968 memo dismissing
claims that there had been a massacre of civilians at My Lai.
Powell issued this memo without having done any research into
the matter.
POWELL AND THE
JROTC
PROGRESSIVE REVIEW,
March 1996: Much of the military's intrusion [into civilian affairs
under Clinton] has been accomplished without public notice. For
example, the Pentagon has greatly expanded JROTC programs. Last
year, the American Friends Service Committee found retired military
personnel teaching approximately 310,000 students, ages 14 and
up, in about 2200 high schools (with another 700 on the docket).
As the AFSC pointed out:
"Public
schooling strives to promote respect for other cultures, critical
thinking and basic academic skills in a safe environment. In
contrast, JROTC introduces guns into the schools, promotes authoritarian
values, uses rote learning methods, and consigns much student
time to learning drill, military history and protocol, which
have little relevance outside the military. It pays off, though,
for the Pentagon. Although the JROTC denies it is engaged in
recruiting, 45% of all cadets completing the program sign up,
mostly as enlisted personnel. AFSC also found that JROTC programs
are more often found in schools with a high proportion of non-white
students -- now providing 54% of all cadets -- and in non-affluent
schools."
And what are
these cadets being taught? Says the report:
"A comparison
of the JROTC curriculum and two widely used civilian high school
civics and history textbooks demonstrates that the JROTC curriculum
falls well below accepted pedagogical standards. Units on citizenship
and history are strikingly different from standard civil texts
on these subjects. For example . . . the JROTC text portrays
citizenship as being primarily achieved through military service,
provides only a short discussion of civil rights; and downplays
the importance of civilian control of the military. . . . In
comparison to the civilian history text, historical events in
the JROTC curriculum are distorted . . History is described as
a linear series of accomplishments by soldiers, while the progress
engendered by regular citizens is marginalized. America's wars
are treated as having been inevitable.
While it claims to provide leadership training with broad relevance,
in fact the JROTC curriculum defines leadership as respect for
constituted authority and the chain of command, rather than as
critical thinking and democratic consensus-building . . . Finally,
the text encourages the reader to rely uncritically on the military
as a source of self-esteem and guidance."
Further, at a
time that schools are trying desperately to discourage violence,
the JROTC is teaching students how to kill more effectively.
It is also teaching them -- in a text that addresses the "Indian
menace" that "Fortunately the government policy of
pushing the Indians farther West, then wiping them out, was carried
out successfully. "
And just where
did the idea come from for the expansion of military indoctrination
in our high schools? From none other than that very media model
of a major modern general -- Colin Powell.
Following the
LA uprising in 1992, writes Steven Stycos in the Providence Phoenix,
the chair of the Joint Chiefs of Staff "proposed a massive
expansion of the program. Powell urged the new units be targeted
to inner-city youth as an alternative to drug use and gang membership."
In New England the number of students involved nearly tripled.
Was Powell seeking
citizen officers to balance the academy-trained military? Absolutely
not. The JROTC students are grunt-fodder. Besides, while referring
to ROTC as "vital to democracy," Powell closed 62 college-based
ROTC units during this same period. The inevitable result was
that the proportion of academy-trained officers rose and the
role of the citizen-officer diminished. You may recall that Powell
was the man whom the media pushed for president, depicting him
as in the mold of Dwight Eisenhower. The media forgot to tell
us that while Eisenhower warned of a growing military-industrial
complex, Powell has been one of its biggest beneficiaries and
boosters. While Eisenhower fought to restore democracy, Powell
fought to preserve sheikdoms. While the Eisenhower-era military
followed the wartime orders of strong civilian leaders like Churchill
and Roosevelt, the Powell-era military won't even follow Bill
Clinton's orders in peacetime. While Eisenhower was part of a
unique military demobilization after the Second World War, Powell
was among those who prevented demobilization after the Cold War.
On top of which he wants kids to know that the Indians were a
menace.
NEW REPUBLIC:
Powell's career began as an Army Ranger during the Vietnam War.
As Deputy Assistant Chief of Staff for Operations at a base in
Vietnam, he was ordered to investigate claims of Army massacres
at My Lai (where US forces murdered hundreds on March 16, 1968
- Powell had no involvement with that tragedy). Powell's cosmetic
"investigation" of allegations by Tom Glen, who knew
about the slaughter, claimed that his charges were false since
Glen's superiors stated that he could not have witnessed abuses
of Vietnamese. It wasn't until many months later that another
soldier, Ron Ridenhour, complained to his Congressman, that serious
inquiries into the My Lai massacre began within the Army, at
Washington headquarters. -- The New Republic, April 17, 1995
MARK ROBINOWITZ:
Just before leaving office, President Bush pardoned Casper Weinberger,
preventing any prosecution for his involvement in the illegal
arms for hostages deals. This act was one of the best things
for Powell's future political career, since he was deeply involved
in the scandal. There will never be a trial of his former boss,
Defense Secretary Weinberger, where he'd have to testify. The
US aided both Iran and Iraq during their 8-year long war, in
which one million people died. No one knows how many thousands
were killed with the 2,000+ missiles Powell helped send to Iran.
NATIONAL SECURITY
ARCHIVE: Weinberger testified before the [Senate Select] Committee
[on Intelligence] that later that day he received a call from
Poindexter informing him of the President's action [to send weapons
to Iran]. Weinberger ... instructed military aide, Major General
Colin Powell, to arrange the transfer of the weapons ... to the
CIA, and that the matter was to be closely held at the direction
of the President. General Powell had had previous discussions
with North about the program and about Israel's problems in getting
replacement TOW's [missiles]. .... According to [Assistant DOD
Secretary] Armitage and a CIA official, Powell worked with Major
General Vincent Russo of the Defense Logistics Agency to provide
the material securely and without any loss of funds for the Army.
-- The National Security Archive, "The Chronology: The
Documented Day-by-Day Account of the Secret Military Assistance
to Iran and the Contras," Warner Books, 1987, p. 262
JANE MAYER AND
DOYLE MCMANUS: Weinberger reluctantly ordered his military aide,
Major General Colin L. Powell, to arrange the sale of TOW's for
North's new deal." -- "Landslide: The Unmaking of
the President 1984-1988," p. 197
MARK ROBINOWITZ:
After Powell became Reagan's National Security Advisor, he threatened
to cut off US aid to any Central American country that refused
to support the US-backed Contra war against Nicaragua . . . In
December 1989, while Powell was Joint Chiefs of Staff -- the
top military leader for all US forces -- George Bush invaded
Panama in an attack condemned by almost every other country on
Earth. Portrayed as a "surgical strike" on Manuel Noriega,
it did virtually nothing to stem the flow of drugs into the US.
(Noriega's replacements installed by the US Southern Command
were also linked to the profitable drug trade.)
CENTRAL AMERICAN
HUMAN RIGHTS COMMISSION: The US Army used highly sophisticated
weapons--some for the first time in combat--against unarmed civilian
populations . . . The human costs of the invasion are substantially
higher than the official figures . . . The actual death toll
has been obscured through US military practices including: 1)
Incineration of corpses prior to identification; 2) Burial of
remains in common graves prior to identification; and 3) US military
control of administrative offices of hospitals and morgues, permitting
the removal of all registries to US military bases . . . A thorough,
well-planned propaganda campaign has been implemented by US authorities
to ... deny the brutality and extensive human and material costs
of the invasion.
MARK ROBINOWITZ:
Powell, as Joint Chiefs of Staff, presided over the bloody Persian
Gulf war. John Lehman, Reagan's first Navy Secretary, reportedly
confided in 1991 at a gathering at the "Bohemian Grove"
(an all-male retreat for corporate and political leaders in northern
California) that 200,000 people were killed in the Gulf War .
. . US forces bulldozed Iraqi draftees into mass graves, bombed
retreating forces on the "Highway of Death," set oil
refineries on fire, dropped uranium tipped shells across the
desert (over 40 tons of radioactive uranium was scattered), and
threatened to use nuclear weapons before the conflict started.
But, since strict Pentagon censorship prohibited virtually any
photographic documentation of the slaughter, Americans who only
watched TV never learned what happened in the desert . . . Powell
claims that he never received an illegal order during his military
career, but orders to bomb civilians in Iraq and Panama (among
many other locations) certainly could be classified as war crimes,
which Powell should have refused to carry out under both the
Uniform Code of Military Justice (which mandates that soldiers
refuse illegal orders) and the Nuremberg Principles. Instead,
Powell's only documented opposition to any policy was about Clinton's
efforts to end anti-gay witchhunts in the military -- Powell
urged military men to resign if they also opposed Clinton's policies.
MICHAEL POWELL
REUTERS: New
Federal Communications Commission Chairman Michael Powell named
Walt Disney Co. executive Marsha MacBride as the agency's new
chief of staff. MacBr |