Cheney Profits From Katrina
Posted by Brooke Shelby Biggs on April 19th, 2006
A Notre Dame professor has analyzed Dick Cheney's 2005 tax return and concluded that our fair Vice President exploited a new tax law instituted post-Katrina to save himself several million dollars. It turns out that Smirky Dick used a loophole intended to encourage charitable donations for Katrina relief to write off charitable contribution which went to non-Katrina causes. That alone might not be enough to get irked about, except that it looks like the exploitation of the loophole was deliberate to minimize his overall liability, and he used Halliburton money to do it.
Cheney exercised some of his Halliburton options in late 2005, during which time that company's profits were soaring in part because of fat no-bid reconstruction contracts granted to its subsidiary KBR in the wake of Katrina. Cheney used those proceeds -- $6.8 million -- to donate to charities per his 2001 agreement to use his options only for charity.
Says the prof: "While there's nothing inappropriate about that from a legal
perspective, it does demonstrate how the legislation, which was sold to
the public as providing relief to Katrina victims, provided significant
tax benefits to the VP (and potentially other wealthy individuals) in
situations that have nothing to do with Hurricane Katrina."
Not illegal but definitely soulless, cynical, opportunist, and greedty. So, no big surprise.
See No Corruption, Address No Corruption
Posted by Brooke Shelby Biggs on April 3rd, 2006
It seems that not only does the right hand not know what the left hand is doing, the right hand doesn't even knows what it's doing.
Last week the Pentagon, presumably with a collective straight face, finished reviewing its contract procurement system (specifically with regard to its primary vendors), and found that, hey! the system works great!
Never mind that Iraq contractor Custer Battles was found guilty of $3 million in fraud just the week prior. Never mind that the Defense Logistics Agency confessed that it had been overcharged more that $300,000 by its suppliers of such crucial terror-fighting implements as refrigerators and ice-cube trays. ($32,000 for a refrigerator somehow didn't spark suspicion for years, nor did a $20 ice-cube tray; I'm in the wrong business). Never mind that the DLA decided to discontinue contracts with several suppliers deemed to have scammed them.
If it weren't my money, as a United States taxpayer, it would be hard to feel sorry for the feds for getting, er, used and abused. After all, the only way they can avoid being embarassed is to deny that they were suckered. Its like enabling an abuser. Rumsfeld pops up with a black eye, and says "I ran into a door," instead of "I bought a $32,000 fridge." Maybe he thinks deserves it.
Beyond Cronyism to Geopolitics in the Port Controversy
Posted by Brooke Shelby Biggs on February 22nd, 2006
As much as this is a story of privatization and racism, it is also about cronyism. The New York Daily News notes that Dubai Ports World has at least two ties to the Bush Administration - Treasury Secretary John Snow who, a year after joining the administration, sold his company's port operations to the same Dubai firm; and David Sanborn, the head of the U.S. Maritime Administration who still runs Dubai Ports World's European and Latin American operations.
But before concluding that this is simply more Bushistic cronyism, consider that almost all of the United States' military supplies headed for Iraq and Afghanistan are channelled through Dubai's ports, at the pleasure of Dubai's government, which in turn just happens to run DP World. This is geopolitical quid-pro-quo. Don't piss off Dubai, and we can still run our wars in the Middle East.
Pump and Dump
Posted by Brooke Shelby Biggs on February 22nd, 2006
Great interview with the authors of "Pump and Dump: The Rancid Rules of the New Economy" on the WaPo site today. The book's authors float an obvious theory (to us anyway) of 1990s financial fraud called "pump and dump," in which corporate executives artificially inflate stocks and securities in order to sell
their shares at higher prices, leaving any fall-out and responsibility
on naive investors.
You don't say? We applaud the market timing of the publisher, releasing the book as they did during the Enron trial.
Tyco Execs' Mugshots
Posted by CorpWatch on January 3rd, 2006
It isn't everyday you get to see Dennis Kozlowski holding a jailhouse clapboard featuring his vitals. Thanks to Thesmokinggun.com, we can give you that pleasure.
Click here for former Tyco CFO Mark Swartz's mugshot. (Hey, where did his curly tresses go?)
Looking Back on 2005
Posted by Brooke Shelby Biggs on January 2nd, 2006
Sure, sure, The New York Times is the voice of the status quo according to lefties, the bully pulpit of the liberal elite according to righties. But if corporate corruption, graft, greed, incompetence and influence-peddling are of concern to you - no matter your political stripe - you have to admit that a lot of stories used to fly under the radar of the Gray Lady are now frontpage news, and that is good news. Perhaps we can thank Kenneth Lay for that; what we at CorpWatch have long done just wasn't as sexy before he came along. Thanks, you big lug.
So here in the first week of a new year, we begin with a clean slate, ready for a year of customary despoiling. In reflection, let us review the year in corporate crime, courtesy of Gretchen Morgenson at The New York Times. (Or, of course, you could page through a few thousand of our favorite stories on the subject from the last 12 months ...)