Bush's talent for cronyism: foxes guarding the henhouse | Incompetent at best, dangerous at worst
James Baker: Iraq Debt Envoy ... BUSH appoints James Baker as Iraq debt envoy. Baker is senior counselor to the Carlyle Group, a global investment company that has done business with the Saudi royal family. He is also a partner in Baker Botts, a Houston law firm whose client list includes Halliburton and the Saudi Royal family. Mr. Baker's law firm will most likely represent the Saudi Royals in the suit against them filed by the 9-11 victims families ....
John Snow: Secretary of Treasury ... Under Snow's watch, despite raking in close to a billion dollars in pretax profits since 1998, CSX paid no federal income taxes in three of the past four years – magically making all of its profits "pretax." What's more, thanks to a combination of accounting gimmicks and tax shelters, the company was even able to score a hefty $164 million in tax rebates during that time. Tax rebates on taxes that CSX NEVER PAID....
Mike Leavitt: former EPA administrator current Secretary of Health and Human Services ... As Utah governor he allowed US Magnesium to emit over 42 million tons of Chlorine per year-nine times the Chlorine emissions from all other states. ... Kennecott, Utah has one of the world's largest ground water contamination problems as a result of its mining operations and Leavitt's refuals to do anything about it ... Leavitt struck a back room deal with the bush administration to open six million acres of wild lands in Utah to mining, clearcutting, oil and gas drilling, and bulldozing. ...
Linda Fisher: Deputy administrator at EPA ... Former Mocnsanto V.P. Second in ranking only to EPA Administrator Christine Todd Whitman. Her appointment was opposed by critics of genetically modified (GM) foods who raised concerns about industry's ability to influence Fisher. ...
Gale A. Norton: Secretary of the Interior (retired) ... Appointed Gale A. Norton, former mining industry lobbyist and current secretary of the interior: She is a proponent of "self-audit" laws, which allow industries to decide on their own whether or not they comply with environmental regulations. ...
...
ETC. ETC
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Rear Admiral Cristina Beato: Acting Assistant Secretary for Health, Department of Health and Human Services ...(but the curriculum was developed while Beato was still a medical student). ... (but the clinic existed before she was hired, and there was even another medical director before her)
...
Stan Suboleski: Mine Safety and Health Review Commission ... Suboleski is an executive with the A.C. Massey Coal Company which, according to the United Mineworkers, has one of the worst safety records in the industry. ...
Monday, November 26, 2007
Executives are lavishly rewarded if the companies they run seem successful: $48M, $25M for CEOs ... then collapse ...
Banks Gone Wild | By PAUL KRUGMAN | Published: November 23, 2007
“What were they smoking?” asks the cover of the current issue of Fortune magazine. Underneath the headline are photos of recently deposed Wall Street titans, captioned with the staggering sums they managed to lose.
The answer, of course, is that they were high on the usual drug — greed. And they were encouraged to make socially destructive decisions by a system of executive compensation that should have been reformed after the Enron and WorldCom scandals, but wasn’t.
...
But even as the danger signs multiplied, Wall Street piled into bonds backed by dubious home mortgages. Most of the bad investments now shaking the financial world seem to have been made in the final frenzy of the housing bubble, or even after the bubble began to deflate.
In fact, according to Fortune, Merrill Lynch made its biggest purchases of bad debt in the first half of this year — after the subprime crisis had already become public knowledge.
...
Around 25 years ago, American business — and the American political system — bought into the idea that greed is good. Executives are lavishly rewarded if the companies they run seem successful: last year the chief executives of Merrill and Citigroup were paid $48 million and $25.6 million, respectively.
But if the success turns out to have been an illusion — well, they still get to keep the money. Heads they win, tails we lose.
Not only is this grossly unfair, it encourages bad risk-taking, and sometimes fraud. If an executive can create the appearance of success, even for a couple of years, he will walk away immensely wealthy. Meanwhile, the subsequent revelation that appearances were deceiving is someone else’s problem.
If all this sounds familiar, it should. The huge rewards executives receive if they can fake success are what led to the great corporate scandals of a few years back. ...
“What were they smoking?” asks the cover of the current issue of Fortune magazine. Underneath the headline are photos of recently deposed Wall Street titans, captioned with the staggering sums they managed to lose.
The answer, of course, is that they were high on the usual drug — greed. And they were encouraged to make socially destructive decisions by a system of executive compensation that should have been reformed after the Enron and WorldCom scandals, but wasn’t.
...
But even as the danger signs multiplied, Wall Street piled into bonds backed by dubious home mortgages. Most of the bad investments now shaking the financial world seem to have been made in the final frenzy of the housing bubble, or even after the bubble began to deflate.
In fact, according to Fortune, Merrill Lynch made its biggest purchases of bad debt in the first half of this year — after the subprime crisis had already become public knowledge.
...
Around 25 years ago, American business — and the American political system — bought into the idea that greed is good. Executives are lavishly rewarded if the companies they run seem successful: last year the chief executives of Merrill and Citigroup were paid $48 million and $25.6 million, respectively.
But if the success turns out to have been an illusion — well, they still get to keep the money. Heads they win, tails we lose.
Not only is this grossly unfair, it encourages bad risk-taking, and sometimes fraud. If an executive can create the appearance of success, even for a couple of years, he will walk away immensely wealthy. Meanwhile, the subsequent revelation that appearances were deceiving is someone else’s problem.
If all this sounds familiar, it should. The huge rewards executives receive if they can fake success are what led to the great corporate scandals of a few years back. ...
Wednesday, November 21, 2007
The predator’s mission is to home in on the vulnerable. ... one unaffordable loan following another.
A Swarm of Swindlers | By BOB HERBERT | Published: November 20, 2007
Like vultures, the mortgage lenders began circling the single-family house with the tiny front lawn on Merrill Avenue.
They knew that the woman who owned the house was old and sick and that her two aging daughters were struggling with illness and poverty as well. That was all to the good as far as the lenders were concerned. The predator’s mission is to home in on the vulnerable.
“The people that wanted to put through the loan called me about a hundred times,” said Rosa Dailey, who is 65 and going blind and needs an oxygen tank at times to help her breathe. “I kept telling them no, because I didn’t think we could afford it. But they kept saying how it was to our advantage. So I finally said: ‘All right, let’s see what we can do.’ ”
That was the beginning of a tragic spiral, with one unaffordable loan following another. As Ms. Dailey put it: “I feel like they led me down a dark alley.” ...
Like vultures, the mortgage lenders began circling the single-family house with the tiny front lawn on Merrill Avenue.
They knew that the woman who owned the house was old and sick and that her two aging daughters were struggling with illness and poverty as well. That was all to the good as far as the lenders were concerned. The predator’s mission is to home in on the vulnerable.
“The people that wanted to put through the loan called me about a hundred times,” said Rosa Dailey, who is 65 and going blind and needs an oxygen tank at times to help her breathe. “I kept telling them no, because I didn’t think we could afford it. But they kept saying how it was to our advantage. So I finally said: ‘All right, let’s see what we can do.’ ”
That was the beginning of a tragic spiral, with one unaffordable loan following another. As Ms. Dailey put it: “I feel like they led me down a dark alley.” ...
as Edwards says, the fact that "powerful interests, particularly corporate interests, have literally taken over this government."
November 20, 2007 9:35 AM | "Corporate Interests Have Literally Taken Over This Government"
Some folks have asked me why I have written so much about John Edwards in the past few months. The answer can be seen in this short clip. ... or writing a book that's actually called Hostile Takeover: How Big Money & Corruption Conquered Our Government - And How We Take It Back.
...
John Edwards, as shown by this clip, is speaking out on what I believe is the fundamental issue of our time - an issue that my book shows is at the core of every other issue, whether it is Iraq, wages, health care, retirement security, trade, immigration, global warming, you name it. That issue is what my book is all about - the hostile takeover of our government, or, as Edwards says, the fact that "powerful interests, particularly corporate interests, have literally taken over this government." And Edwards hasn't just been talking about it - he has made a crusade against this, the issue of our day, the centerpiece of his campaign. He has, in short, made it the very reason he is running (which also fits with his impressive career as a plaintiffs attorney going after corporate abusers). ...
Some folks have asked me why I have written so much about John Edwards in the past few months. The answer can be seen in this short clip. ... or writing a book that's actually called Hostile Takeover: How Big Money & Corruption Conquered Our Government - And How We Take It Back.
...
John Edwards, as shown by this clip, is speaking out on what I believe is the fundamental issue of our time - an issue that my book shows is at the core of every other issue, whether it is Iraq, wages, health care, retirement security, trade, immigration, global warming, you name it. That issue is what my book is all about - the hostile takeover of our government, or, as Edwards says, the fact that "powerful interests, particularly corporate interests, have literally taken over this government." And Edwards hasn't just been talking about it - he has made a crusade against this, the issue of our day, the centerpiece of his campaign. He has, in short, made it the very reason he is running (which also fits with his impressive career as a plaintiffs attorney going after corporate abusers). ...
Senators who protected Big Pharma received millions of dollars from drug companies
Senators who protected Big Pharma received millions of dollars from drug companies | Monday, November 19, 2007 by: David Gutierrez | (NewsTarget)
Senators who received substantial donations from pharmaceutical companies were instrumental in making a new drug bill more industry-friendly, according to studies by nonprofit groups and remarks by some of the senators themselves
...
While the institute's recommendation to allow the FDA to monitor the safety of products after approval was included in the final bill, it was significantly weakened at the instigation of Sen. Judd Gregg, R-N.H.. Gregg has received $168,500 from the pharmaceutical industry since 2001.
Other recommendations fared even less well. A proposal to allow the importation of less expensive drugs from other countries was defeated 49-40. According to research by the Center for Responsive Politics and PoliticalMoneyLine, these 49 senators (less than 50 percent of the Senate) have received nearly 75 percent of the donations made by the drug industry since 2001, a total of $5 million.
In addition, a proposal to ban advertising of high-risk drugs for two years and another to curb conflicts of interest in the drug approval process were defeated by Senators who have received substantial industry contributions. ...
Senators who received substantial donations from pharmaceutical companies were instrumental in making a new drug bill more industry-friendly, according to studies by nonprofit groups and remarks by some of the senators themselves
...
While the institute's recommendation to allow the FDA to monitor the safety of products after approval was included in the final bill, it was significantly weakened at the instigation of Sen. Judd Gregg, R-N.H.. Gregg has received $168,500 from the pharmaceutical industry since 2001.
Other recommendations fared even less well. A proposal to allow the importation of less expensive drugs from other countries was defeated 49-40. According to research by the Center for Responsive Politics and PoliticalMoneyLine, these 49 senators (less than 50 percent of the Senate) have received nearly 75 percent of the donations made by the drug industry since 2001, a total of $5 million.
In addition, a proposal to ban advertising of high-risk drugs for two years and another to curb conflicts of interest in the drug approval process were defeated by Senators who have received substantial industry contributions. ...
Tuesday, November 20, 2007
They were told depleted uranium was not hazardous ... now workers and residents have cancer ... use of such weapons may be a war crime
November 18, 2007 by The Observer (UK) | ‘Safe’ Uranium That Left a Town Contaminated | by David Rose in Colonie, New York
[NOTE: THOUSANDS OF TONS were used in tank shells in IRAQ ... ed.]
They were told depleted uranium was not hazardous. Now, 23 years after a US arms plant closed, workers and residents have cancer - and experts say their suffering shows the use of such weapons may be a war crime.
...
The US federal government and the firm that ran the factory, National Lead (NL) Industries, have been assuring former workers and residents around the 18-acre site for decades that, although it is true that the plant used to produce unacceptable levels of radioactive pollution, it was not a serious health hazard.
Now, in a development with potentially devastating implications not only for Colonie but also for the future use of some of the West’s most powerful weapon systems, that claim is being challenged. In a paper to be published in the next issue of the scientific journal Science of the Total Environment, a team led by Professor Randall Parrish of Leicester University reports the results of a three-year study of Colonie, funded by Britain’s Ministry of Defense.
Parrish’s team has found that DU contamination, which remains radioactive for millions of years, is in effect impossible to eradicate, not only from the environment but also from the bodies of humans. Twenty-three years after production ceased they tested the urine of five former workers. All are still contaminated with DU. So were 20 per cent of people tested who had spent at least 10 years living near the factory when it was still working, including Ciarfello.
The small sample size precludes the drawing of statistical conclusions, the journal paper says. But to find DU at all after so long a period is ’significant, since no previous study has documented evidence of DU exposure more than 20 years prior… [this] indicates that the body burden of uranium must still be significant, whether retained in lungs, lymphatic system, kidneys or bone’. The team is now testing more individuals. ...
...
TV footage shot in Baghdad in 2003 shows children playing in the remains of tanks coated with thick, black DU oxide, while there have long been claims that the DU shells that destroyed Saddam Hussein’s tanks in the 1991 Gulf war were responsible for high rates of cancer in places such as Basra. ...
[NOTE: THOUSANDS OF TONS were used in tank shells in IRAQ ... ed.]
They were told depleted uranium was not hazardous. Now, 23 years after a US arms plant closed, workers and residents have cancer - and experts say their suffering shows the use of such weapons may be a war crime.
...
The US federal government and the firm that ran the factory, National Lead (NL) Industries, have been assuring former workers and residents around the 18-acre site for decades that, although it is true that the plant used to produce unacceptable levels of radioactive pollution, it was not a serious health hazard.
Now, in a development with potentially devastating implications not only for Colonie but also for the future use of some of the West’s most powerful weapon systems, that claim is being challenged. In a paper to be published in the next issue of the scientific journal Science of the Total Environment, a team led by Professor Randall Parrish of Leicester University reports the results of a three-year study of Colonie, funded by Britain’s Ministry of Defense.
Parrish’s team has found that DU contamination, which remains radioactive for millions of years, is in effect impossible to eradicate, not only from the environment but also from the bodies of humans. Twenty-three years after production ceased they tested the urine of five former workers. All are still contaminated with DU. So were 20 per cent of people tested who had spent at least 10 years living near the factory when it was still working, including Ciarfello.
The small sample size precludes the drawing of statistical conclusions, the journal paper says. But to find DU at all after so long a period is ’significant, since no previous study has documented evidence of DU exposure more than 20 years prior… [this] indicates that the body burden of uranium must still be significant, whether retained in lungs, lymphatic system, kidneys or bone’. The team is now testing more individuals. ...
...
TV footage shot in Baghdad in 2003 shows children playing in the remains of tanks coated with thick, black DU oxide, while there have long been claims that the DU shells that destroyed Saddam Hussein’s tanks in the 1991 Gulf war were responsible for high rates of cancer in places such as Basra. ...
Monday, November 19, 2007
allegations by current and former officials in Krongard's office that the inspector general thwarted probes into waste, fraud and abuse in Iraq
State Dept official asks to cancel Blackwater hearing | Sat Nov 17, 2007 7:35pm EST
WASHINGTON (Reuters) - The lawyer for State Department Inspector General Howard Krongard asked on Saturday that he not be called to testify before Congress on discrepancies between his statements and those of his brother over the brother's ties to the Blackwater security firm.
...
The two brothers had differing recollections about whether Alvin "Buzzy" Krongard told Howard Krongard he was taking an advisory board position with Blackwater, which protects U.S. diplomats and other State Department officials in Iraq. Howard recalled Alvin stating he was not taking the position, and Alvin recalled saying he was taking it, the lawyer wrote.
"Alvin does not claim to have ever made any effort to inform Howard of the Blackwater position despite its obvious relevance to Howard's oversight responsibilities," Van Gelder wrote. The letter asked Waxman not to hold the hearing.
Waxman's committee is examining allegations by current and former officials in Krongard's office that the inspector general thwarted probes into waste, fraud and abuse in Iraq, including alleged arms smuggling by Blackwater.
Waxman decided to call Howard and Alvin Krongard to the same hearing after they separately gave the committee conflicting accounts about Buzzy's ties with Blackwater. ...
WASHINGTON (Reuters) - The lawyer for State Department Inspector General Howard Krongard asked on Saturday that he not be called to testify before Congress on discrepancies between his statements and those of his brother over the brother's ties to the Blackwater security firm.
...
The two brothers had differing recollections about whether Alvin "Buzzy" Krongard told Howard Krongard he was taking an advisory board position with Blackwater, which protects U.S. diplomats and other State Department officials in Iraq. Howard recalled Alvin stating he was not taking the position, and Alvin recalled saying he was taking it, the lawyer wrote.
"Alvin does not claim to have ever made any effort to inform Howard of the Blackwater position despite its obvious relevance to Howard's oversight responsibilities," Van Gelder wrote. The letter asked Waxman not to hold the hearing.
Waxman's committee is examining allegations by current and former officials in Krongard's office that the inspector general thwarted probes into waste, fraud and abuse in Iraq, including alleged arms smuggling by Blackwater.
Waxman decided to call Howard and Alvin Krongard to the same hearing after they separately gave the committee conflicting accounts about Buzzy's ties with Blackwater. ...
massive cash contributions by America’s power companies and [Bush] political arm-twisting in Washington has rarely been put into such sharp relief
November 16, 2007 by The Independent/UK | US Power Company Linked to Bush Is Named in Database As a Top Polluter | by Leonard Doyle
An American power company with close financial links to President George Bush has been named as one of the world’s top producers of global warming pollution.
The first-ever worldwide database of such pollution also reveals the rapid growth in global-warming emissions by power plants in China, South Africa and India. Power plants already produce 40 per cent of US greenhouse gas and 25 per cent of the world’s.
But it is the enormous carbon footprint of Southern Company - among the largest financiers of Republican Party politicians - which has raised eyebrows. Southern’s employees handed George Bush $217,047 to help him get elected, and they and the company have contributed an extraordinary $6.2m to Republican campaigns since 1990.
A single Southern Company plant in Juliette, Georgia already emits more carbon dioxide annually that Brazil’s entire power sector. The company is in the top two of America’s dirtiest utility polluters and sixth worst in the world. ...
...
The link between massive cash contributions by America’s power companies and political arm-twisting in Washington has rarely been put into such sharp relief. Environmentalists have long suspected that President Bush’s dogged refusal to sign up to international agreements to control global warming was linked to campaign contributions.
Yesterday’s report has finally identified the impact these power companies are having on global warming. Southern, which earned $14.4bn in revenues in 2006, is using its influence to block the introduction of wind, solar, biomass and other renewable energy sources on the grounds that it would eat into its profits.
Haley Barbour, one of the main lobbyists for Southern Co when President Bush took office, played a crucial role in persuading him to back away from his original campaign promise to reduce CO2 emissions when he first ran for president in 2000. Mr Barbour is a former chairman of the Republican Party, and was reelected governor of Mississippi last week.
According to FrankO’Donnell of Clean Air Watch, after Mr Bush became president, “he was got at by Haley Barbour, who said, ‘Hey, Mr President we didn’t elect you to have high energy costs’”. ...
An American power company with close financial links to President George Bush has been named as one of the world’s top producers of global warming pollution.
The first-ever worldwide database of such pollution also reveals the rapid growth in global-warming emissions by power plants in China, South Africa and India. Power plants already produce 40 per cent of US greenhouse gas and 25 per cent of the world’s.
But it is the enormous carbon footprint of Southern Company - among the largest financiers of Republican Party politicians - which has raised eyebrows. Southern’s employees handed George Bush $217,047 to help him get elected, and they and the company have contributed an extraordinary $6.2m to Republican campaigns since 1990.
A single Southern Company plant in Juliette, Georgia already emits more carbon dioxide annually that Brazil’s entire power sector. The company is in the top two of America’s dirtiest utility polluters and sixth worst in the world. ...
...
The link between massive cash contributions by America’s power companies and political arm-twisting in Washington has rarely been put into such sharp relief. Environmentalists have long suspected that President Bush’s dogged refusal to sign up to international agreements to control global warming was linked to campaign contributions.
Yesterday’s report has finally identified the impact these power companies are having on global warming. Southern, which earned $14.4bn in revenues in 2006, is using its influence to block the introduction of wind, solar, biomass and other renewable energy sources on the grounds that it would eat into its profits.
Haley Barbour, one of the main lobbyists for Southern Co when President Bush took office, played a crucial role in persuading him to back away from his original campaign promise to reduce CO2 emissions when he first ran for president in 2000. Mr Barbour is a former chairman of the Republican Party, and was reelected governor of Mississippi last week.
According to FrankO’Donnell of Clean Air Watch, after Mr Bush became president, “he was got at by Haley Barbour, who said, ‘Hey, Mr President we didn’t elect you to have high energy costs’”. ...
Thursday, November 15, 2007
Justice Department says it is necessary to make reporting mandatory because "few companies have actually responded" to voluntary disclosure rules.
Federal Contractors Could Be Forced to Self-Report Crimes | By Dana Hedgpeth | Washington Post Staff Writer | Thursday, November 15, 2007; Page D02
The Justice Department has proposed tough new regulations for those who do business with the government, a reflection of the growing number of fraud, bribery and waste cases arising from the multibillion-dollar federal procurement process, say industry experts and regulators.
The new rules would require federal contractors to report themselves if any of their employees -- or subcontractors -- violate a criminal law related to a contract worth more than $5 million while that work is being done. If a contractor is caught not reporting its violations, it could be suspended or barred from doing business with the government for up to three years.
...
Currently, contractors can voluntarily report themselves. But the Justice Department says it is necessary to make reporting mandatory because "few companies have actually responded" to voluntary disclosure rules.
Having companies turn themselves in "hasn't worked" Spivack said, "so now they're saying, 'We're going to force you to turn yourself in, and if you don't and we find out later, we're going to keep you from doing business with the federal government.' That's giving the government the gun and the bullets and asking them not to shoot you." ...
Tuesday, November 13, 2007
So now the critical resource of oil is driven by speculation at ever higher abstract electronic levels of futures trading.
Saturday, November 10, 2007 by CommonDreams.org | The Price of Oil | by Ralph Nader
Question of the day- who and what is determining the price of oil and your gasoline and home heating bills? Don’t ask Uncle Sam, because George W. Bush and Dick Cheney are running a regime marinated in oil that does not issue reports which explain the real determinants of petroleum pricing beyond the conventional supply-demand curves.
...
Today, a third party has moved to the table-the New York Mercantile Exchange, a similar operates in London and a new one in Dubai. There, boisterous traders buy and sell futures contracts on the delivery of oil. But as Ben Mezrich, the author of the new book Rigged said recently, the dollar amounts of these futures contracts are far far larger than the actual oil deliveries they represent as they turn over and over at the Mercantile Exchange.
So now the critical resource of oil is driven by speculation at ever higher abstract electronic levels of futures trading. Increasingly, the distance becomes greater and greater between this abstract trading (fueled by rumors of storms in the Gulf of Mexico, or some possible political turmoil in a region of the world, or some other frightful excuse for bidding up) and the physical supply and demand for oil and its refined products.
These oil gamblers in New York and London try to justify their frenetic daily bidding by saying that these futures markets provide liquidity, and a clear price for oil. Alright, but who benefits when, how and where? ...
...
In recent days, the price of crude oil escalated to over $90 a barrel, fluctuating up to a high of $96 a barrel. Yet the average price of gasoline in the United States-around $3.00 per gallon-is about what it was earlier this year when the price of crude oil was around $60 a barrel. Why the disconnect?
“It’s a big gambling hall,” The Washington Post quotes Fadel Gheit, an oil analyst at Oppenheimer. “This time it’s just speculation,” Peter C. Fusaro, chairman of Global Change Associates, told the Post, adding, “There’s a large bet out there that prices will continue to trend higher. But it’s detached from fundamentals because there’s no shortage of oil.” ...
...
So long as the price of crude oil is set by speculators on trading floors, so long as the oil-indentured politicians are not challenged by new candidates standing tall for people and environments, so long as we do not protest for change and press ourselves to prevent wasteful habits and uses, get ready for higher oil prices.
Question of the day- who and what is determining the price of oil and your gasoline and home heating bills? Don’t ask Uncle Sam, because George W. Bush and Dick Cheney are running a regime marinated in oil that does not issue reports which explain the real determinants of petroleum pricing beyond the conventional supply-demand curves.
...
Today, a third party has moved to the table-the New York Mercantile Exchange, a similar operates in London and a new one in Dubai. There, boisterous traders buy and sell futures contracts on the delivery of oil. But as Ben Mezrich, the author of the new book Rigged said recently, the dollar amounts of these futures contracts are far far larger than the actual oil deliveries they represent as they turn over and over at the Mercantile Exchange.
So now the critical resource of oil is driven by speculation at ever higher abstract electronic levels of futures trading. Increasingly, the distance becomes greater and greater between this abstract trading (fueled by rumors of storms in the Gulf of Mexico, or some possible political turmoil in a region of the world, or some other frightful excuse for bidding up) and the physical supply and demand for oil and its refined products.
These oil gamblers in New York and London try to justify their frenetic daily bidding by saying that these futures markets provide liquidity, and a clear price for oil. Alright, but who benefits when, how and where? ...
...
In recent days, the price of crude oil escalated to over $90 a barrel, fluctuating up to a high of $96 a barrel. Yet the average price of gasoline in the United States-around $3.00 per gallon-is about what it was earlier this year when the price of crude oil was around $60 a barrel. Why the disconnect?
“It’s a big gambling hall,” The Washington Post quotes Fadel Gheit, an oil analyst at Oppenheimer. “This time it’s just speculation,” Peter C. Fusaro, chairman of Global Change Associates, told the Post, adding, “There’s a large bet out there that prices will continue to trend higher. But it’s detached from fundamentals because there’s no shortage of oil.” ...
...
So long as the price of crude oil is set by speculators on trading floors, so long as the oil-indentured politicians are not challenged by new candidates standing tall for people and environments, so long as we do not protest for change and press ourselves to prevent wasteful habits and uses, get ready for higher oil prices.
founder of Help Hospitalized Veterans, pays himself and his wife more than $500,000 a year, ... only 31% of $70M intake went to veterans
ABC investigates veterans charities that mostly enrich their owners | David Edwards and Muriel Kane | Published: Friday November 9, 2007
...
Institute President Daniel Borochoff told ABC, "Under 35% of your budget on actual bona fide charitable programs will get you an F grade." Thirteen out of 27 military and veterans charities reviewed by the Institute did not meet that standard, and one was found to spend as little as 2% of its receipts on program services.
Meanwhile, some of the people running the F-rated charities are getting rich. For example, Roger Chapin, founder of Help Hospitalized Veterans, pays himself and his wife more than $500,000 a year, while only 31% of the $70 million he took in last year actually went to help hospitalized veterans. Chapin, described by Daniel Borochoff as "a charity entrepreneur," has founded more than a dozen such charities over the past three decades. ...
...
Institute President Daniel Borochoff told ABC, "Under 35% of your budget on actual bona fide charitable programs will get you an F grade." Thirteen out of 27 military and veterans charities reviewed by the Institute did not meet that standard, and one was found to spend as little as 2% of its receipts on program services.
Meanwhile, some of the people running the F-rated charities are getting rich. For example, Roger Chapin, founder of Help Hospitalized Veterans, pays himself and his wife more than $500,000 a year, while only 31% of the $70 million he took in last year actually went to help hospitalized veterans. Chapin, described by Daniel Borochoff as "a charity entrepreneur," has founded more than a dozen such charities over the past three decades. ...
Monday, November 12, 2007
Their defense of the industries’ morally indefensible tax breaks is tawdry: private equity contributed $11.8 million to candidates ...
Alternative Tax Showdown | Published: November 8, 2007
...
Under current tax law, 23 million taxpayers will owe the alternative tax for 2007, up from 4 million last year. The tax was originally intended to apply to multimillionaires. But most of this year’s alternative taxpayers make between $100,000 and $500,000 and about a third make less than $100,000. They all have good cause to feel rooked and to expect help from Congress. ...
...
The House tax committee met the challenge, drafting a bill that provides the needed tax relief and plugs the resulting budget gap, mainly by raising taxes on private equity partners and hedge fund managers. The bill is good policy. The tax relief assuages justifiably aggrieved taxpayers. Tax increases on private equity firms and hedge funds rectify outdated rules that have allowed the very wealthiest to enjoy tax rates lower than those paid by middle-income Americans and, in some cases, to defer taxes indefinitely.
...
But key Democratic senators, among them New York’s Charles Schumer, who is the main fund-raiser for Senate Democrats, are balking. They know they must provide alternative tax relief, but they don’t want to tax private equity and hedge funds to pay for it. Their defense of the industries’ morally indefensible tax breaks is tawdry. As The Washington Post reported yesterday, in the first nine months of 2007, as pressure built to dismantle the tax breaks, investment firms and hedge funds contributed $11.8 million to candidates, party committees and leadership political action committees. That’s more than was given in 2005 and 2006 combined. More than two-thirds of that money went to Democrats. ...
...
Under current tax law, 23 million taxpayers will owe the alternative tax for 2007, up from 4 million last year. The tax was originally intended to apply to multimillionaires. But most of this year’s alternative taxpayers make between $100,000 and $500,000 and about a third make less than $100,000. They all have good cause to feel rooked and to expect help from Congress. ...
...
The House tax committee met the challenge, drafting a bill that provides the needed tax relief and plugs the resulting budget gap, mainly by raising taxes on private equity partners and hedge fund managers. The bill is good policy. The tax relief assuages justifiably aggrieved taxpayers. Tax increases on private equity firms and hedge funds rectify outdated rules that have allowed the very wealthiest to enjoy tax rates lower than those paid by middle-income Americans and, in some cases, to defer taxes indefinitely.
...
But key Democratic senators, among them New York’s Charles Schumer, who is the main fund-raiser for Senate Democrats, are balking. They know they must provide alternative tax relief, but they don’t want to tax private equity and hedge funds to pay for it. Their defense of the industries’ morally indefensible tax breaks is tawdry. As The Washington Post reported yesterday, in the first nine months of 2007, as pressure built to dismantle the tax breaks, investment firms and hedge funds contributed $11.8 million to candidates, party committees and leadership political action committees. That’s more than was given in 2005 and 2006 combined. More than two-thirds of that money went to Democrats. ...
Wednesday, November 07, 2007
Neil Bush's Firm Under Federal Scrutiny
Neil Bush's Firm Under Federal Scrutiny | November 7, 2007 04:08 PM EST
WASHINGTON — The Education Department's inspector general says he will review whether federal money is inappropriately being spent on programs by a company founded by Neil Bush, the president's brother.
...
The group contends school districts inappropriately are using federal dollars for Ignite! Learning Inc. programs. It says there is no proof the company's products are effective and claims the schools are using the products due to political considerations. ...
WASHINGTON — The Education Department's inspector general says he will review whether federal money is inappropriately being spent on programs by a company founded by Neil Bush, the president's brother.
...
The group contends school districts inappropriately are using federal dollars for Ignite! Learning Inc. programs. It says there is no proof the company's products are effective and claims the schools are using the products due to political considerations. ...
Tuesday, November 06, 2007
Traders, Not Political or Supply Concerns, May Be Pushing Fuel [Oil] Toward $100
Oil's Recent Rise Not as Familiar as It Looks | Traders, Not Political or Supply Concerns, May Be Pushing Fuel Toward $100 | By Steven Mufson | Washington Post Staff Writer | Monday, November 5, 2007; Page A01
...
Many veteran oil analysts say this is a bubble. Oil is historically a cyclical business. Modestly higher production by the Organization of Petroleum Exporting Countries, a warm winter, slower U.S. economic growth and a flattening of demand in the United States could puncture these lofty prices.
After a week of new records for crude oil prices, the question is: How high can they go?
In the past 10 weeks, the price of crude oil has shot up $25 a barrel, closing at $95.93 in New York on Friday, near an all-time inflation-adjusted peak. Unlike earlier spikes in oil prices, which came on the heels of war in the Middle East, this latest ascent does not appear to be linked to any one conflict or to any physical shortage.
Instead, traders who treat oil like any other commodity are widely thought to be driving prices upward, bolstered by a weak dollar and money flowing out of stock markets and other investment vehicles....
Many veteran oil analysts say this is a bubble. Oil is historically a cyclical business. Modestly higher production by the Organization of Petroleum Exporting Countries, a warm winter, slower U.S. economic growth and a flattening of demand in the United States could puncture these lofty prices.
"It just seems that the market is spasming here," said Adam Robinson, an oil analyst at Lehman Brothers. If slowly declining petroleum inventories start to build again, he said, "the radical increase we've seen to the upside can repeat on the way down." Oppenheimer & Sons analyst Fadel Gheit says oil is $30 a barrel overpriced. ...
Chief of CPSC and her predecessor have taken dozens of trips at the expense of the toy, appliance and children's furniture industries ...they regulate
Industries Paid for Top Regulators' Travel | Two Heads of Product Safety Agency Accepted Trips From Manufacturer Groups | By Elizabeth Williamson | Washington Post Staff Writer | Friday, November 2, 2007; Page A01
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"This is a blatant violation of the ethics code," said Craig Holman, an expert on governmental ethics law for the nonprofit consumer advocacy group Public Citizen. The rules allow nonfederal sources to pay for trips, "but not if you're a private party with business pending before the agency," he said.
The chief of the Consumer Product Safety Commission and her predecessor have taken dozens of trips at the expense of the toy, appliance and children's furniture industries and others they regulate, according to internal records obtained by The Washington Post. Some of the trips were sponsored by lobbying groups and lawyers representing the makers of products linked to consumer hazards.
The records document nearly 30 trips since 2002 by the agency's acting chairman, Nancy Nord, and the previous chairman, Hal Stratton, that were paid for in full or in part by trade associations or manufacturers of products ranging from space heaters to disinfectants. The airfares, hotels and meals totaled nearly $60,000, and the destinations included China, Spain, San Francisco, New Orleans and a golf resort on Hilton Head Island, S.C.
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"This is a blatant violation of the ethics code," said Craig Holman, an expert on governmental ethics law for the nonprofit consumer advocacy group Public Citizen. The rules allow nonfederal sources to pay for trips, "but not if you're a private party with business pending before the agency," he said.
The agency's travel patterns during the Bush administration, detailed in internal agency documents, differ from those of the Clinton era. Ann Brown, who served as chairman from 1994 to 2001, traveled only at the expense of the agency or of media organizations that sponsored appearances where she announced product recalls, according to the documents provided. ...
Wednesday, October 31, 2007
“auditors and outside exerts say the results have been vast cost overruns, poor contract performance and, in some cases, [unpunished] violence
Spending on private contractors has quadrupled under Bush | Adam Doster | Published: Tuesday October 23, 2007
...
According to the New York Times, “the amount of money the State Department pays to private security and has soared to nearly $4 billion a year from $1 billion.” At the same time, few new officials have been hired to oversee the contracts, and “auditors and outside exerts say the results have been vast cost overruns, poor contract performance and, in some cases, violence that has so far gone unpunished.”
Compared to the 70 Army officers managing just $900 million in logistics contracts in Kuwait “there are only 17 contract compliance officers at the State Department’s management bureau overseeing spending of the billions of dollars on these programs.” ...
...
According to the New York Times, “the amount of money the State Department pays to private security and has soared to nearly $4 billion a year from $1 billion.” At the same time, few new officials have been hired to oversee the contracts, and “auditors and outside exerts say the results have been vast cost overruns, poor contract performance and, in some cases, violence that has so far gone unpunished.”
Compared to the 70 Army officers managing just $900 million in logistics contracts in Kuwait “there are only 17 contract compliance officers at the State Department’s management bureau overseeing spending of the billions of dollars on these programs.” ...
Wal-Mart's REITs would simply take a hefty tax deduction for paying dividends to another subsidiary,... then not report earnings
Court docs: Wal-Mart plotted strategy in 'Tax Shelter Room' | Jason Rhyne | Published: Tuesday October 23, 2007
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When the Wal-Mart corporation sent out a 2001 plea to heavy-hitting accounting houses requesting some bright ideas about how the retail giant might be able to pay less in state taxes, Ernst & Young LLP was eager to pitch in. But after being challenged by North Carolina's attorney general, the big-time firm's secret tax-slashing strategies have come to light in an array of revealing materials filed in court.
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Among the revelations in the documents, according to the Journal, is evidence that Wal-Mart aggressively capitalized on its move a decade ago to transfer ownership of the company's stores to real estate investment trusts (REITs), subsidiaries that are exempt from federal tax provided that 90% of income is paid out in shareholder dividends. In California, Wal-Mart followed the firm's advice to claim tax deductions on shareholder dividends that were technically never paid.
Exploiting a loophole in California law that doesn't require dividend recipients to list that money as taxable income, Wal-Mart's REITs would simply take a hefty tax deduction for paying dividends to another subsidiary, which in turn would opt not to report the earnings. The practice resulted in a dramatic savings on tax bills in the state.
California's Franchise Tax Board, the state's income-tax agency, has since put the strategy on its list of "Abusive Tax Shelters," the paper reports. The current North Carolina case also involves real estate trusts. ...
...
When the Wal-Mart corporation sent out a 2001 plea to heavy-hitting accounting houses requesting some bright ideas about how the retail giant might be able to pay less in state taxes, Ernst & Young LLP was eager to pitch in. But after being challenged by North Carolina's attorney general, the big-time firm's secret tax-slashing strategies have come to light in an array of revealing materials filed in court.
...
Among the revelations in the documents, according to the Journal, is evidence that Wal-Mart aggressively capitalized on its move a decade ago to transfer ownership of the company's stores to real estate investment trusts (REITs), subsidiaries that are exempt from federal tax provided that 90% of income is paid out in shareholder dividends. In California, Wal-Mart followed the firm's advice to claim tax deductions on shareholder dividends that were technically never paid.
Exploiting a loophole in California law that doesn't require dividend recipients to list that money as taxable income, Wal-Mart's REITs would simply take a hefty tax deduction for paying dividends to another subsidiary, which in turn would opt not to report the earnings. The practice resulted in a dramatic savings on tax bills in the state.
California's Franchise Tax Board, the state's income-tax agency, has since put the strategy on its list of "Abusive Tax Shelters," the paper reports. The current North Carolina case also involves real estate trusts. ...
Tuesday, October 30, 2007
consumer product safety Commissioner: opposes increased penalties, protecting whistleblowers, public reports, prosecuting executives ...
October 30, 2007 | Bigger Budget? No, Responds Safety Agency | By STEPHEN LABATON
WASHINGTON, Oct. 29 — The nation’s top official for consumer product safety has asked Congress in recent days to reject legislation intended to strengthen the agency, which polices thousands of consumer goods, from toys to tools.
On the eve of an important Senate committee meeting to consider the legislation, Nancy A. Nord, the acting chairwoman of the Consumer Product Safety Commission, has asked lawmakers in two letters not to approve the bulk of legislation that would increase the agency’s authority, double its budget and sharply increase its dwindling staff.
Ms. Nord opposes provisions that would increase the maximum penalties for safety violations and make it easier for the government to make public reports of faulty products, protect industry whistle-blowers and prosecute executives of companies that willfully violate laws.
The measure is an effort to buttress an agency that has been under siege because of a raft of tainted and dangerous products manufactured both domestically and abroad. In the last two months alone, more than 13 million toys have been recalled after tests indicated lead levels that sometimes reached almost 200 times the safety limit.
Ms. Nord’s opposition to important elements of the legislation is consistent with the broadly deregulatory approach of the Bush administration over the last seven years. In a variety of areas, from antitrust to trucking and worker safety, officials appointed by President Bush have sought to reduce the role of regulation and government in the marketplace.
...
Some of Ms. Nord’s complaints were similar to the ones that business groups and manufacturers have raised, including that the legislation would be unnecessarily burdensome. But in other areas, like whistle-blower protection, her complaints went beyond those of industry.
While companies generally have not objected to giving protection to whistle-blowers in the industries regulated by the commission, for example, she said it would “dramatically drain the limited resources of the commission, to the direct detriment of public safety.” ...
...
The agency has suffered from a steady decline in its budget and staffing in recent years. Its staff numbers about 420, about half its size in the 1980s. It has only one full-time employee to test toys. And 15 inspectors are assigned to police all imports of consumer products under the agency’s supervision, a marketplace that last year was valued at $614 billion.
WASHINGTON, Oct. 29 — The nation’s top official for consumer product safety has asked Congress in recent days to reject legislation intended to strengthen the agency, which polices thousands of consumer goods, from toys to tools.
On the eve of an important Senate committee meeting to consider the legislation, Nancy A. Nord, the acting chairwoman of the Consumer Product Safety Commission, has asked lawmakers in two letters not to approve the bulk of legislation that would increase the agency’s authority, double its budget and sharply increase its dwindling staff.
Ms. Nord opposes provisions that would increase the maximum penalties for safety violations and make it easier for the government to make public reports of faulty products, protect industry whistle-blowers and prosecute executives of companies that willfully violate laws.
The measure is an effort to buttress an agency that has been under siege because of a raft of tainted and dangerous products manufactured both domestically and abroad. In the last two months alone, more than 13 million toys have been recalled after tests indicated lead levels that sometimes reached almost 200 times the safety limit.
Ms. Nord’s opposition to important elements of the legislation is consistent with the broadly deregulatory approach of the Bush administration over the last seven years. In a variety of areas, from antitrust to trucking and worker safety, officials appointed by President Bush have sought to reduce the role of regulation and government in the marketplace.
...
Some of Ms. Nord’s complaints were similar to the ones that business groups and manufacturers have raised, including that the legislation would be unnecessarily burdensome. But in other areas, like whistle-blower protection, her complaints went beyond those of industry.
While companies generally have not objected to giving protection to whistle-blowers in the industries regulated by the commission, for example, she said it would “dramatically drain the limited resources of the commission, to the direct detriment of public safety.” ...
...
The agency has suffered from a steady decline in its budget and staffing in recent years. Its staff numbers about 420, about half its size in the 1980s. It has only one full-time employee to test toys. And 15 inspectors are assigned to police all imports of consumer products under the agency’s supervision, a marketplace that last year was valued at $614 billion.
Monday, October 29, 2007
CEOs act like their corporations exist just to build their own massive fortunes,” says Edwards,
October 26, 2007, 11:25 am | Edwards Gets Tough on Business | Susan Davis reports on the presidential race.
John Edwards s targeting Corporate America and what he argues are its corrupt and greedy practices. In a speech today in Des Moines, Iowa, he is outlining his plan to renew the “social contract” between business and government if elected president. “In corporate America, where a broader sense of social responsibility once held sway, a culture of greed has taken over. Instead of treating their employees fairly, being accountable to their shareholders and contributing to America’s prosperity, CEOs act like their corporations exist just to build their own massive fortunes,” says Edwards, according to speech excerpts provided to Washington Wire by his campaign.
Edwards is proposing, among other things, universal retirement accounts that employers would be required to provide if they don’t offer pension programs. Workers’ contributions would be matched dollar-for-dollar on the first $500 through a proposed “Get Ahead” tax credit. The plan would also allow workers to put their savings into government-sponsored annuities that would be run through the existing federal retirement savings plan or the Social Security Administration.
Edwards is also proposing stronger protections for workers seeking to unionize and increased shareholder rights. And he’s proposing to cap tax-deferred compensation funds for top executives at $1 million annually, and pushing for more disclosure of corporate governance structures, the pay and demographics of top corporate officers, as well as political contributions, government contracts, and taxes paid.
To protect consumers, Edwards wants a new regulator, the Family Savings and Credit Commission, which would oversee credit card and financial services plans marketed to the public. He also proposes tougher Food and Drug Administration inspection standards and safety regulations on products, like kids’ toys, made abroad. ...
John Edwards s targeting Corporate America and what he argues are its corrupt and greedy practices. In a speech today in Des Moines, Iowa, he is outlining his plan to renew the “social contract” between business and government if elected president. “In corporate America, where a broader sense of social responsibility once held sway, a culture of greed has taken over. Instead of treating their employees fairly, being accountable to their shareholders and contributing to America’s prosperity, CEOs act like their corporations exist just to build their own massive fortunes,” says Edwards, according to speech excerpts provided to Washington Wire by his campaign.
Edwards is proposing, among other things, universal retirement accounts that employers would be required to provide if they don’t offer pension programs. Workers’ contributions would be matched dollar-for-dollar on the first $500 through a proposed “Get Ahead” tax credit. The plan would also allow workers to put their savings into government-sponsored annuities that would be run through the existing federal retirement savings plan or the Social Security Administration.
Edwards is also proposing stronger protections for workers seeking to unionize and increased shareholder rights. And he’s proposing to cap tax-deferred compensation funds for top executives at $1 million annually, and pushing for more disclosure of corporate governance structures, the pay and demographics of top corporate officers, as well as political contributions, government contracts, and taxes paid.
To protect consumers, Edwards wants a new regulator, the Family Savings and Credit Commission, which would oversee credit card and financial services plans marketed to the public. He also proposes tougher Food and Drug Administration inspection standards and safety regulations on products, like kids’ toys, made abroad. ...
Sunday, October 28, 2007
Sen. Mitch McConnell, R-Ky. has taken at least $53,000 in campaign donations: pushing $25 million in earmarked federal funds ... for British defense
McConnell marks funds for contractor | FIRM UNDER INVESTIGATION FOR BRIBERY | By John Cheves | JCHEVES@HERALD-LEADER.COM | Sat, Oct. 27, 2007
Sen. Mitch McConnell, R-Ky., is pushing $25 million in earmarked federal funds for a British defense contractor that is under criminal investigation by the U.S. Justice Department and suspected by American diplomats of a "longstanding, widespread pattern of bribery allegations."
McConnell tucked money for three weapons projects for BAE Systems into the defense appropriations bill, which the Senate approved Oct. 3. The Defense Department failed to include the money in its own budget request, which required McConnell to intercede, said BAE spokeswoman Susan Lenover.
BAE is based in Great Britain but has worldwide operations, including a Louisville facility that makes naval guns and employs 322. McConnell has taken at least $53,000 in campaign donations from BAE's political action committees and employees since his 2002 re-election. United Defense Industries, which BAE purchased two years ago, pledged $500,000 to a political-science foundation the senator created, the McConnell Center at the University of Louisville. ...
Sen. Mitch McConnell, R-Ky., is pushing $25 million in earmarked federal funds for a British defense contractor that is under criminal investigation by the U.S. Justice Department and suspected by American diplomats of a "longstanding, widespread pattern of bribery allegations."
McConnell tucked money for three weapons projects for BAE Systems into the defense appropriations bill, which the Senate approved Oct. 3. The Defense Department failed to include the money in its own budget request, which required McConnell to intercede, said BAE spokeswoman Susan Lenover.
BAE is based in Great Britain but has worldwide operations, including a Louisville facility that makes naval guns and employs 322. McConnell has taken at least $53,000 in campaign donations from BAE's political action committees and employees since his 2002 re-election. United Defense Industries, which BAE purchased two years ago, pledged $500,000 to a political-science foundation the senator created, the McConnell Center at the University of Louisville. ...
The winning firm had an unfair advantage due to Bush administration links, say companies in complaints to GAO
Defense contract award protested | The winning firm had an unfair advantage due to Bush administration links, say companies in complaints to GAO. | By Walter F. Roche Jr., Los Angeles Times Staff Writer | October 26, 2007
WASHINGTON -- A Defense Department medical services contract worth up to $790 million was awarded last month to a Wisconsin-based company three months after it hired a former Bush administration appointee who had supervised military health programs at the Pentagon for the last six years.
William Winkenwerder Jr., assistant secretary of Defense for health affairs from 2001 until April, joined Logistics Health Inc. as a director and consultant in June. The firm beat out two other bidders with proposals that ranged from $80 million to $100 million less, records show. Under the new contract, Logistics Health will provide immunizations and physical and dental exams for reservists and National Guard members.
Logistics Health of LaCrosse, Wis., is headed by another ex-official of the Bush administration -- former Secretary of Health and Human Services Tommy Thompson.
"They stacked the deck," said Fran Lessans, president of Passport Health, one of the losing bidders. Her Baltimore-based firm lost despite a bid projected over five years to cost nearly $100 million less than Logistics Health's winning proposal.
"It was wired. There is no doubt in my mind," Lessans said of the Defense procurement process.
Two other firms involved in the bidding have filed formal protests with the Government Accountability Office. A draft copy of one protest letter, reviewed by The Times, cited Winkenwerder's role and complained that the winning bidder may have "gained unequal access to information not available to other competitors" by hiring the former Pentagon official.
"This creates an organizational conflict of interest and potentially constitutes prohibited contact," the draft letter said.
WASHINGTON -- A Defense Department medical services contract worth up to $790 million was awarded last month to a Wisconsin-based company three months after it hired a former Bush administration appointee who had supervised military health programs at the Pentagon for the last six years.
William Winkenwerder Jr., assistant secretary of Defense for health affairs from 2001 until April, joined Logistics Health Inc. as a director and consultant in June. The firm beat out two other bidders with proposals that ranged from $80 million to $100 million less, records show. Under the new contract, Logistics Health will provide immunizations and physical and dental exams for reservists and National Guard members.
Logistics Health of LaCrosse, Wis., is headed by another ex-official of the Bush administration -- former Secretary of Health and Human Services Tommy Thompson.
"They stacked the deck," said Fran Lessans, president of Passport Health, one of the losing bidders. Her Baltimore-based firm lost despite a bid projected over five years to cost nearly $100 million less than Logistics Health's winning proposal.
"It was wired. There is no doubt in my mind," Lessans said of the Defense procurement process.
Two other firms involved in the bidding have filed formal protests with the Government Accountability Office. A draft copy of one protest letter, reviewed by The Times, cited Winkenwerder's role and complained that the winning bidder may have "gained unequal access to information not available to other competitors" by hiring the former Pentagon official.
"This creates an organizational conflict of interest and potentially constitutes prohibited contact," the draft letter said.
Thursday, October 25, 2007
he cannot even reveal how many fraud whistle-blowers he represents, but there are dozens
The People vs. the Profiteers | by David Rose November 2007
Americans working in Iraq for Halliburton spin-off KBR have been outraged by the massive fraud they saw there. Dozens are suing the giant military contractor, on the taxpayers' behalf. Whose side is the Justice Department on?
...
Over the past 16 years, Grayson has litigated dozens of cases of contractor fraud. In many of these, he has found the Justice Department to be an ally in exposing wrongdoing. But in cases that involve the Iraq war, the D.O.J. has taken extraordinary steps to stand in his way. Behind its machinations, he believes, is a scandal of epic proportions—one that may come to haunt the legacy of the Bush administration long after it is gone.
Consider the case of Grayson's client Bud Conyers, a big, bearded 43-year-old who lives with his ex-wife and her nine children, four of them his, in Enid, Oklahoma. Conyers worked in Iraq as a driver for Kellogg, Brown & Root. Spun off by Halliburton as an independent concern in April, KBR is the world's fifth-largest construction company. Before the war started, the Pentagon awarded it two huge contracts: one, now terminated, to restore the Iraqi oil industry, and another, still in effect, to provide a wide array of logistical-support services to the U.S. military.
...
So far, Alan Grayson estimates, his efforts to pursue qui tam cases against contractors in Iraq have cost him about $10 million. The severe terms of the False Claims Act mean that he cannot even reveal how many fraud whistle-blowers he represents, but there are dozens. Stuart Bowen is the special inspector general for Iraqi reconstruction (sigir), a unique watchdog whose office reports to both the Pentagon and State Department. He reported last year that his office knew of 79 suppressed qui tam cases, some of which have multiple plaintiffs. As of August, 66 are still under seal. There may be many more. (KBR refuses to say how many qui tam cases have been filed against it.) ...
Americans working in Iraq for Halliburton spin-off KBR have been outraged by the massive fraud they saw there. Dozens are suing the giant military contractor, on the taxpayers' behalf. Whose side is the Justice Department on?
...
Over the past 16 years, Grayson has litigated dozens of cases of contractor fraud. In many of these, he has found the Justice Department to be an ally in exposing wrongdoing. But in cases that involve the Iraq war, the D.O.J. has taken extraordinary steps to stand in his way. Behind its machinations, he believes, is a scandal of epic proportions—one that may come to haunt the legacy of the Bush administration long after it is gone.
Consider the case of Grayson's client Bud Conyers, a big, bearded 43-year-old who lives with his ex-wife and her nine children, four of them his, in Enid, Oklahoma. Conyers worked in Iraq as a driver for Kellogg, Brown & Root. Spun off by Halliburton as an independent concern in April, KBR is the world's fifth-largest construction company. Before the war started, the Pentagon awarded it two huge contracts: one, now terminated, to restore the Iraqi oil industry, and another, still in effect, to provide a wide array of logistical-support services to the U.S. military.
...
So far, Alan Grayson estimates, his efforts to pursue qui tam cases against contractors in Iraq have cost him about $10 million. The severe terms of the False Claims Act mean that he cannot even reveal how many fraud whistle-blowers he represents, but there are dozens. Stuart Bowen is the special inspector general for Iraqi reconstruction (sigir), a unique watchdog whose office reports to both the Pentagon and State Department. He reported last year that his office knew of 79 suppressed qui tam cases, some of which have multiple plaintiffs. As of August, 66 are still under seal. There may be many more. (KBR refuses to say how many qui tam cases have been filed against it.) ...
BP $373M for conspiring to manipulate propane price ... violating the Clean Air Act ... criminal fines and restitution for pipeline leaks
BP to Pay $373 Million in Federal Probe | Thursday October 25, 1:02 PM EDT
WASHINGTON (AP) — Oil and gas giant BP PLC agreed Thursday to pay $373 million in fines and restitution to end investigations into whether it manipulated energy markets and violated environmental laws, the Justice Department said.
Additionally, four former BP employees were indicted by a federal grand jury in Chicago on 20 counts of mail and wire fraud charges connected to the price-fixing scheme.
BP, Europe's second-largest energy company, will pay an estimated $50 million as part of an agreement to plead guilty for violating the Clean Air Act as a result of a 2005 explosion at its Texas City refinery that killed 15 employees and injured more than 170 others.
Additionally, it will pay $20 million in criminal fines and restitution to the state of Alaska and the National Fish and Wildlife Foundation for pipeline leaks ofcrude oil that polluted tundra and a frozen lake in Alaska.
The rest of the fines aim to punish BP for conspiring to manipulate propane prices. ...
WASHINGTON (AP) — Oil and gas giant BP PLC agreed Thursday to pay $373 million in fines and restitution to end investigations into whether it manipulated energy markets and violated environmental laws, the Justice Department said.
Additionally, four former BP employees were indicted by a federal grand jury in Chicago on 20 counts of mail and wire fraud charges connected to the price-fixing scheme.
BP, Europe's second-largest energy company, will pay an estimated $50 million as part of an agreement to plead guilty for violating the Clean Air Act as a result of a 2005 explosion at its Texas City refinery that killed 15 employees and injured more than 170 others.
Additionally, it will pay $20 million in criminal fines and restitution to the state of Alaska and the National Fish and Wildlife Foundation for pipeline leaks ofcrude oil that polluted tundra and a frozen lake in Alaska.
The rest of the fines aim to punish BP for conspiring to manipulate propane prices. ...
Wednesday, October 24, 2007
Without enough fire-prevention money, they say, it is only a matter of time before the county faces another massive wildfire.
Alliance fears cuts in wildfire prevention | Proposal to reduce funding alarms backcounty residents | By Mike Lee | STAFF WRITER | April 2, 2007
Across San Diego County's fire country, an alliance of agencies has spent about $50 million to clear dead trees and overgrown brush after blazes charred much of the region in 2003.
But now, the federal fire-prevention money for their work is drying up. Priorities in Washington, D.C., have shifted to paying for national defense, cleanups after Hurricane Katrina and other needs, forestry experts say.
...
As memories of the 2003 blazes fade, some local leaders worry that federal officials are forgetting the lessons learned that fall. Without enough fire-prevention money, they say, it is only a matter of time before the county faces another massive wildfire.
...
Forest Service officials say spending on vegetation removal in San Diego County is $1 million to $2 million a year. In 2004, the agency issued about $10 million in grants for the region.
...
“Somebody is responsible for removing these dead trees, and it isn't happening,” he said. “You want to avoid another fire – that should be clear to everyone by now.”
Across San Diego County's fire country, an alliance of agencies has spent about $50 million to clear dead trees and overgrown brush after blazes charred much of the region in 2003.
But now, the federal fire-prevention money for their work is drying up. Priorities in Washington, D.C., have shifted to paying for national defense, cleanups after Hurricane Katrina and other needs, forestry experts say.
...
As memories of the 2003 blazes fade, some local leaders worry that federal officials are forgetting the lessons learned that fall. Without enough fire-prevention money, they say, it is only a matter of time before the county faces another massive wildfire.
...
Forest Service officials say spending on vegetation removal in San Diego County is $1 million to $2 million a year. In 2004, the agency issued about $10 million in grants for the region.
...
“Somebody is responsible for removing these dead trees, and it isn't happening,” he said. “You want to avoid another fire – that should be clear to everyone by now.”
Gov't Auditors Warned Bush Administration About Poor Firefighting Plans ... evidence is growing that the Bush administration is not adequately prepare
Gov't Auditors Warned Bush Administration About Poor Firefighting Plans | October 24, 2007 02:10 PM
As firefighters continue to risk their lives battling the inferno in southern California, evidence is growing that the Bush administration is not adequately prepared to support them.
The Government Accountability Office, Congress's nonpartisan auditor, issued stark warnings earlier this year on shortcomings in the administration's plans to fight fires.
In a June report, the GAO report faulted the U.S. Forest Service, Department of Agriculture, and other agencies for failing to accomplish the "fundamental step" of planning out what assets and resources were needed to prepare for approaching fire seasons. Meanwhile, disaster response problems that have become all too familiar in recent years were also identified: administration officials placing resources where they were politically expedient, and using poorly performing contractors to accomplish critical national tasks.
...
The report shows that the Bush administration was warned that the approximately $3 billion spent each year on fire prevention and suppression was not being used appropriately.
"Agencies have not yet improved their systems for determining the appropriate type and quantity of firefighting assets needed for the fire season or for effectively and efficiently procuring them," the GAO states.
...
Other problems, the GAO notes, involve private contractors, a common malady in the Bush administration. The Forest Service has turned to national contractors that can deploy firefighting crews and aviation resources anywhere in the nation, but a failure to ensure accountability has resulted in poor performance.
"[R]equirements varied from contract to contract and did not ensure that the agencies obtained the most cost-effective assets," it reported. "Further, inadequate administration and oversight of the agreements by the agencies resulted in poor contractor performance and high rental rates." ...
As firefighters continue to risk their lives battling the inferno in southern California, evidence is growing that the Bush administration is not adequately prepared to support them.
The Government Accountability Office, Congress's nonpartisan auditor, issued stark warnings earlier this year on shortcomings in the administration's plans to fight fires.
In a June report, the GAO report faulted the U.S. Forest Service, Department of Agriculture, and other agencies for failing to accomplish the "fundamental step" of planning out what assets and resources were needed to prepare for approaching fire seasons. Meanwhile, disaster response problems that have become all too familiar in recent years were also identified: administration officials placing resources where they were politically expedient, and using poorly performing contractors to accomplish critical national tasks.
...
The report shows that the Bush administration was warned that the approximately $3 billion spent each year on fire prevention and suppression was not being used appropriately.
"Agencies have not yet improved their systems for determining the appropriate type and quantity of firefighting assets needed for the fire season or for effectively and efficiently procuring them," the GAO states.
...
Other problems, the GAO notes, involve private contractors, a common malady in the Bush administration. The Forest Service has turned to national contractors that can deploy firefighting crews and aviation resources anywhere in the nation, but a failure to ensure accountability has resulted in poor performance.
"[R]equirements varied from contract to contract and did not ensure that the agencies obtained the most cost-effective assets," it reported. "Further, inadequate administration and oversight of the agreements by the agencies resulted in poor contractor performance and high rental rates." ...
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