|
"The proposal of any new law or
regulation of commerce which comes from [businessmen] ought always
to be listened to with great precaution, and ought never to be
adopted, till after having been long and carefully examined, not
only with the most scrupulous, but with the most suspicious
attention."
Adam Smith, the 18th
century economist who provided the theoretical framework for market
capitalism. [The Wealth of Nations, Chapter
11]
America's business community is
at the heart of our economy, and it is crucial that policy-makers
consider the impact their actions will have on industries. But
that doesn't mean that industry lobbyists should be allowed
to make the laws
themselves.
Over 100 of President Bush's
high-level
appointees to regulatory
agencies previously worked as corporate lobbyists in the very
industries they oversee. [Denver Post] And the shocking
"If you were king" email from a energy department official to a
corporate lobbyist is an example of how Bush's regulatory agencies
have made policy changes based directly on lobbyists' wishes.
["If you
were king"
email] The graph below shows the
results from a recent nationwide Harris Poll, which asked:
"Do you think big
business has too much or too little power and influence on
Washington?"
|
Too
much |
83% |
| Too
little |
9% |
| About right |
5% |
|
|
The Harris Poll. Feb. 9-16, 2004. N=1,020
adults nationwide. MoE ±
3. |
Eighty-three percent of Americans are concerned about the
unprecedented level of corporate influence on the federal
governemnt; a mere 14% were satisfied with the current
situation (the remainder either did not know or refused to
answer).
OPEN AND HONEST
GOVERNMENT ARCHIVE Miscellaneous
Articles | Cheney &
Halliburton | Advisory Board Scandals | The Bush
Administration's
Secrecy
Miscellaneous
Articles
Archived
6/2/05:
House reverses DeLay-oriented ethics
rules by 406-20 vote [Reuters] BitTorrent file of UN Oil-for-Food documents [outragedmoderates.org] Sandy Berger
pleads guilty to taking classified material [CNN] Sunshine Week brings new open government
legislation [outragedmoderates.org] KBR charged DoD $27 million to ship $82,000 of
cooking oil [Houston Chronicle]
Cheney &
Halliburton
Archived 7/13/04 (originally
posted 7/1/04):
DCAA audit results in suspension of KBR's
billing privileges
 (Full document PDF: House Committee on Government Reform Minority
Office; also available through our
Download For
Democracy P2P campaign)
This internal Pentagon report was issued by the Defense
Contract Audit Agency (DCAA) on May 13, 2004. The audit found
that Halliburton subsidiary Kellogg Brown and Root (KBR) failed to
prepare billings "in accordance with applicable laws and
regulations and contract terms." A key problem identified by
the audit was that KBR "does not monitor the ongoing physical
progress of subcontracts or the related costs and billings."
This failure is exemplified by the "37,200 cases of soda"
testimony of a former KBR employee, which was posted
yesterday.
The
Executive summary of the 36-page report is shown
below:

 (Full
document PDF: House Committee on
Government Reform Minority Office; also
available through our Download For
Democracy P2P campaign)
The audit
found that there were 10 "significant deficiencies in the design or
operation" of KBR's internal control structure:
1. Lack of
Written Billing Policies and Procedures 2. Failure to Adjust
Billings Promptly for Changes in Indirect Rates 3. Incorrectly
Prepared Adjustment Vouchers 4. Lack of Appropriate Review and
Approvals of Vouchers 5. Failure to Notify ACO of Contract
Overpayments 6. Lack of Reconciliation of Recorded to Billed
Costs 7. Lack of Adequate Contract Briefings 8. Billing of
Unallowable Costs 9. Inadequate Controls over Subcontract
Billings 10. Management Oversight - Internal Audit
As a result of the DCAA
audit, KBR's direct billing privileges were suspended,
and KBR must send all subsequent billing to the DCAA for
approval before it can receive payment. The excerpt
below, from the "Results of Audit" section, also notes
that "the cost impact to the government is indeterminable; however,
we consider the potential impact to be significant based on the size
of KBR's operations."

(Full document PDF: House Committee on Government
Reform Minority Office; also available through our Download For Democracy
P2P campaign)
outragedmoderates.org supports a formal
Congressional investigation of Halliburton subsidiary KBR's
contracts in Iraq and Kuwait. Click here to write your Senator or House
Representative an email telling them that you feel the
same way.
Archived 7/13/04 (originally
posted 6/30/04):
Former Halliburton employees report shockingly
wasteful practices
The following
are excerpts from the testimony of David Wilson, former convoy
commander for Halliburton subsidiary KBR in Kuwait and Iraq
(November 2003 - March 2004):
 (Full document PDF: House Committee on Government
Reform Minority Office; also
available through
our Download For Democracy
P2P campaign)
Oil changes were "out of the question" for convoys running
from Kuwait to Iraq? Wilson says that "it
was like their whole preparation was to buy the trucks, hire the
drivers, and let the rest take care of itself."
Later in his testimony,
Wilson recalls an occasion when an
$85,000 truck had to be abandoned due to a flat
tire: "for some reason that was never explained to us, KBR
removed all the spare tires in Kuwait. So when one of our
trucks got a flat tire on the highway, we had to leave it there for
the Iraqis to loot, which is just
crazy."
 (Full document PDF: House Committee on Government Reform Minority
Office; also
available through
our Download For Democracy P2P campaign)
Wilson says that he saw abandoned trucks "on a daily
basis." In addition to the abandonment of trucks, Wilson
describes large convoys of empty trucks, which not only wasted gas
and "caused extra wear and tear," but put employees' lives in
unnecessary danger. He says he still
doesn't understand "why KBR would have placed our lives in
danger that way for no reason."
  (Full document PDF: House Committee on Government
Reform Minority Office; also
available
through our Download For Democracy P2P campaign)
The following are excerpts from the
testimony of Marie deYoung, former KBR employee in Kuwait
(December 2003 - April 2004):
 (Full document PDF: House Committee on Government Reform Minority
Office; also available through our Download For Democracy
P2P campaign)
One
hundred dollars to get a fifteen-pound bag of laundry
washed? According to deYoung, Halliburton was paying only
$28 per bag under a separate subcontract with the exact same
company. In another example of waste that deYoung cites,
KBR was delivered only 37,200 cans of soda, when they had
ordered 37,200 cases of soda. Incredibly, KBR just
paid the bill, anyway, as if it was no big deal that the
delivery was short by some 855,600
cans:
 (Full document PDF: House Committee on Government Reform Minority
Office; also available through our Download For Democracy
P2P campaign)
The DCCA
audit that deYoung mentioned in the first excerpt was released on
May 15, 2004; tomorrow's post will feature key elements
of that report.
Archived 7/13/04
(originally posted 6/29/04):
Were Bush's Iraq
War plans finalized before November 2002?
Yesterday's post showed that Halliburton
subsidiary KBR was given the task order to create a Contingency
Support Plan on November 11, 2002, four months before the U.S.
invaded Iraq. If Department of Defense was already working out
the details on how to put out the post-invasion fires by then,
when did it finish its plans for the invasion itself?
Here's a very abbreviated
review of the Bush Administration's planning for War in
Iraq up between September 11, 2001, and November,
2002:
September 11-12,
2001:
In notes to his aides
written at 2:40 pm on September 11, 2001, Secretary of Defense
Donald Rumsfeld said: "Judge whether [info is] good enough hit [to]
S.H. [meaning Saddam Hussein] at same time, not just U.B.L. [Osama
Bin Laden] . . . Go massive . . . Sweep it all up. Things related
and not." [CBS
News]
The day after the 9/11 attacks, Rumsfeld said
that the tragedy presented an "opportunity" to attack
Iraq. [Woodward, p.25]
September 20,
2001:
According to Vanity Fair, President Bush first
asked British Prime Minister to support an invasion of Iraq at a
private dinner at the White House, just nine days after the
September 11 attacks. Blair reportedly told Bush not to get
distracted from dealing with Al Qaeda. [The
Observer]
January 29, 2002:
In his State of the Union Address,
President Bush linked Iraq, Iran and North Korea, calling them an
"axis of evil." [CNN] When pressed for any evidence of
coordination between the three countries that warranted
a comparison to the World War II axis of powers, White
House Press Secretary Ari Fleischer explained that the phrase was
"more rhetorical than historical." [Slate] It
should be noted that "axis" has a specific meaning in the
political context, even when it is not being used in direct
reference to World War II: Merriam-Webster defines it as
a "partnership" or "alliance." [Merriam-Webster]
Spring 2002:
Word began to come from Bush
administration officials that the decision to invade Iraq had
already been made. On February 13, 2002, an unnamed
Bush official told the Philadelphia Inquirer: "This is not an
argument about whether to get rid of Saddam Hussein. That debate is
over. This is . . . how you do it." [Philadelphia
Inquirer] In
the same article, another Bush administration official
described Vice President Cheney's planned March 2002 trip to meet
with Middle Eastern heads of state: "He's not going to beg for
support . . . He's going to inform them that the President's
decision has been made and will be carried out, and if they want
some input into how and when it's carried out, now's the time for
them to speak up." [Philadelphia
Inquirer]
An unnamed former White
House official later told the New Yorker that, by March 2002,
it was understood by many in the Bush administration that the
President had decided to invade Iraq. In that
article, Seymour Hersh wrote that:
| The undeclared decision had a
devastating impact on the continuing struggle against
terrorism. The Bush administration took many intelligence
operations that had been aimed at al-Qaeda and other
terrorist groups around the world and redirected them to the
Persian Gulf. Linguists and special operatives were abruptly
reassigned, and several ongoing anti-terrorism intelligence
programs were curtailed. [The New
Yorker] |
September
2002:
White House chief of staff Andrew
Card was asked why, if the Iraq threat was as immediate as
the Bush administration claimed it was, we weren't going ahead and
invading them. Card responded that "from a marketing point of
view, you don't introduce new products in August." [CNN]
Archived 7/13/04 (originally posted
6/29/04):
Justifications given for Halliburton's
"Other Than Full and Open Competition" Iraq reconstruction
contract
Today's post
is a continuation of yesterday's post (Halliburton's "Other Than
Full and Open Competition" contract), analyzing the
"Justification and Approval for Other Than Full and Open Competition
for the Execution of the Contingency Support Plan," which gave
Halliburton subsidiary KBR its no-bid
contract.
In November
2002, Department of Defense officials made the
determination that KBR was "the only source capable of
developing a CSP in the time required." Nowhere in the
document is this "time required" for delivering the CSP
clarified. However, an earlier section in the document does
say that the award is projected for second
quarter 2003.
(Full document PDF: Judicial Watch.
Also available through the Download For Democracy campaign)
The section below
provides the justifications for giving KBR the no-bid
contract: (Full document PDF: Judicial Watch. Also available through the Download For Democracy campaign)
In the section shown above,
the main argument made in defense of KBR's no-bid contract is
that the company is more familiar with the operating procedures
of the U.S. Central Command (CENTCOM) - due to the fact that it
holds the Defense Department's massive Logistics Civil
Augmentation Program contract (LOGCAP). In 2001, KBR won
the competitive bidding process for the LOGCAP contract, which is
renewable for up to 10 years. Later, in response to
Congressional inquiries, "Army officials
said they determined that extinguishing oil fires fell under the
range of services provided under LOGCAP, meaning that KBR could
deploy quickly and without additional security clearances." [Center for Public
Integrity]
However, government procurement experts
have testified that this contract for extinguishing oil
fires does not fall under LOGCAP - and require a separate
bidding process. General Accounting Office comptroller David
Walker recently released a report on Iraq contracts that found that
the Defense Department and other agencies involved in Iraq
frequently expanded contracts beyond their original intent without
holding new bidding competitions:
| “Of the 11 task orders we
reviewed, seven were, in whole or part, not within scope,”
he told lawmakers.
Task orders outside the scope of their
contracts had a combined value of $715 million through Sept.
30, 2003. Determining whether work is within contract
parameters is subject to interpretation in the judgment of
the contracting officer, according to the report,
“Rebuilding Iraq.” Other than the basic requirement that
task orders be within scope, there are no statutory
procedures that guide a contracting officer in making this
determination . . .
The report studies 25 fiscal 2003 contract
actions representing about 97 percent of the $3.7 billion
obligated that year for reconstruction. One example cited in
the report was a $1.9 million Army task order in November
2002 to KBR under its contract for military support, known
as the LOGCAP, to develop emergency plans for dousing
possible oil well fires in Iraq early in the war. That work,
Walker said, was clearly unrelated to the scope of the
contract, which was centered around camp maintenance, meal
preparation and other chores.
“All parties — including GAO and DoD — agree
that repairing Iraq’s oil infrastructure would not have been
within the scope of the LOGCAP,” Walker said. [Federal Times] |
For more information about Iraq
contracts, check out the House Committee on Government Reform
Minority Office's special investigation into Iraq contracting
[Committee on Government
Reform Minority Office], and the Center
for Public Integrity's "Windfalls of War" project [Center For Public
Integrity].
Considering the Department of Defense's willingness
to skirt basic contracting rules, KBR's recent track
record, and the fact that Vice President Cheney was CEO of
Halliburton until 2000, and is still paid $178,000 per year by the
company - it is not surprising that Congressional leaders like
Senator Leahy have called for further investigations. When you
add the "coordinated w VP's office"
email to
the equation, it becomes evident that anything
short of a formal Congressional investigation of the KBR
contracts is a disservice to the American
taxpayer.
Check back tomorrow and Thursday for a look at KBR's
track record, including testimony from former KBR employees
regarding the company's wasteful practices,
like abandoning an $85,000 truck in the desert when it got
flat tires. [Forbes]
Archived 7/13/04 (originally posted 6/28/04):
Halliburton's "Other Than
Full and Open Competition" contract  (Source: Judicial Watch; available
through our Download For
Democracy
P2P campaign)
In Department of Defense lingo,
if contracts are awarded without the standard bidding process, it is
called "Other Than Full and Open Competition." This document
is the "Justification and Approval" (or "J&A") for
bypassing the standard competitive bidding process.
The section below provides a
description of the supplies and services which Halliburton
subsidiary Kellogg, Brown, & Root (KBR) would provide under
the Contingency Support Plan (CSP)
for Iraq.

 (Full document PDF: Judicial Watch.
Also available through the Download For
Democracy campaign)
It should be pointed out that the list of
supplies/services Halliburton/KBR would provide, above, goes far
beyond putting out the fires and environmental remediation.
The contract also includes "start-up and repair oil system,"
"start-up and repair product systems," "distribute energy products
within Iraq" and "distribute energy products outside Iraq."
The comprehensive nature of this
"cleanup" contract is troubling when you consider
that, during November and December 2002, top White House
and Pentagon officials were arguing that Iraq's oil should not just
pay for humanitarian and rebuilding efforts, but should be
considered "spoils of war," which would be used to pay for the
U.S.'s military invasion. [Newsday]
The next section of the document,
below, gives details on some aspects of the timing of the
Contingency Support Plan. KBR was actually given the task
order to develop the CSP on November 11, 2002, over four months
before the war began. This raises the question of how close to
finalized the war plans were by November 2002.
 (Full document PDF: Judicial Watch.
Also available through the Download For
Democracy campaign)
Continued in Justifications
given for Halliburton's "Other Than Full and Open Competition"
contract.
Archived 7/13/04 (originally posted on
6/24/04):
Pressed on Halliburton,
Cheney tells Senator: "go ----
yourself"
No, this isn't a headline from
The Onion - Dick
Cheney really did say that to a Senator who asked him about
Halliburton's no-bid contract. [CNN] On the Senate floor. And it
wasn't just some new guy - Cheney said this to Senator Patrick Leahy
of Vermont, who is the Ranking Member of the Judiciary Committee, a
senior member of the Appropriations Committee, and
ranks 8th in seniority in the Senate.
| Sources told CNN the encounter Tuesday was brought on
by Leahy's recent criticism of the vice president over
Halliburton Co. Cheney is the former chief executive officer
of the oil field services company, and Democrats have
suggested he has helped win lucrative contracts for his
former firm while serving in the Bush administration.
[CNN] |
Cheney didn't even apologize - in fact, he
said that his comment was "long overdue," and, in a
bizarre moment straight out of MTV's The Real World, told
reporters he "felt better" after using the f-word towards
a senior member of the U.S. Senate. [CNN] If this is how Vice President Cheney responds
when one of the highest ranking members of the Senate raises a
legitimate issue, what do you think he says about us?
Archived 7/13/04 (originally posted on
6/21/04):
Email shows that Halliburton no-bid Restore Iraqi Oil
contract was "coordinated w VP's office"

(Full
document PDF: Judicial Watch.
Also available through the Download For
Democracy campaign)
In September 2003, Vice President
Cheney told Meet the Press that he had "absolutely no influence of, involvement of,
knowledge of in any way, shape or form of contracts led by the Corps
of Engineers or anybody else in the federal government". [MSNBC] The email shown above,
obtained by Judicial Watch in a
Freedom of Information Act lawsuit, directly
contradicts
Cheney's claim.
In the email, a Corps of
Engineers representative writes to tell a colleague
that the Department of Defense has approved the no-bid
Halliburton deal, and that "We anticipate no issue;
since action has been coordinated w (with) VP's
office." [CNN]
The date on the email, March
5, 2003, is also worth noting. The Restore Iraqi Oil
contract was awarded three days later, on March 8, but President Bush did not announce the final
decision to go to war until March 17. [Houston
Chronicle]
Archived 6/20/04:
Halliburton abandoned $85,000 trucks
due to flat tires
According to a recent Pentagon internal audit, and testimony
by former employees of Kellogg Brown & Root, a Halliburton
subsidiary, "abandoned $85,000 trucks because of flat tires and
minor problems" and "spent $1.50 a can to buy 37,200 cans of soda in
Kuwait, about 24 times higher than the going price." [Seattle Times] Here is an excerpt from the
Seattle Times article:
|
In January, KBR
announced it would will pay the Pentagon $6.3 million for
possible overcharges by a subcontractor accused of giving
kickbacks to supply food and services to U.S. soldiers in
Iraq. A month later, KBR said it would pay back $27.4
million and defer billing of $140 million in meals for U.S.
forces in Iraq and Kuwait over a discrepancy between the
number of meals ordered and those actually served.
The 36-page report
by the Defense Contract Audit Agency said KBR had a billing
system that was "inadequate," had numerous deficiencies and
billing misstatements, and that KBR didn't follow laws and
regulations relating to spending and record keeping. [Seattle
Times] |
PDFs of the Pentagon audit and the testimony of the five
Halliburton employees are available through our Download For
Democracy campaign.
Archived 6/19/04:
Cheney was paid $178,000 by Halliburton in
2003
"Vice President Dick
Cheney received $178,437 in deferred pay last year from Halliburton,
the Texas oil-field services company he once headed that has
received billion-dollar government contracts in Iraq." [Forbes]
Advisory
Board Scandals
Archived 10/11/04
(originally 7/20/04):
Energy task force
documents show that the oil lobby had direct influence on
President Bush's Executive Order 13211 Topic: Open and
Honest Government / Advisory Board
Scandals
Last Wednesday's post provided an
introduction to the 13,500 pages of energy task force documents
that the Natural Resources Defense Council obtained in
its Freedom of Information Act lawsuit against the Department
of Energy. Many of the documents handed over were heavily
blacked out or redacted.
However, as the NRDC says in
its analysis of the documents, "even with this censorship
the records reveal that industry lobbyists not only played a pivotal
role in developing the administration's national energy strategy,
they wrote much of it themselves." [NRDC]
In the "If you were King" email, dated March 18,
2001, Energy Department official Joseph Kelliher asked natural gas
industry lobbyist Dana Contratto what his energy polices would be
"if [he] were King, or il Duce . . ." [view excerpt of email] Contratto responded on the 22nd with a three-page
list of recommendations that would ease federal regulations on
pipeline construction and operation. [Judicial Watch]
Earlier that week, on March 20, American
Petroleum Institute lobbyist Jim Ford emailed Kelliher a set of
recommendations. It is unknown whether Kelliher asked
Ford what he would do "if [he] were King" - but the American
Petroleum Institute's response was to draft a full executive
order:
Batch
005, page 17 - "The last document is a suggested executive
order to ensure that energy implications are considered and acted on
in rulemakings and other executive
actions."
 (Full document PDF: NRDC. Also
available through the Download For
Democracy P2P
campaign.)
Batch 006, page
10 - The American Petroleum Institute's proposed
"Executive
Order ____, March ____,
2001"
  (Full
document PDF: NRDC. Also available
through the Download For Democracy
campaign.)
Roughly two months later, on May 18, 2001,
President Bush signed Executive Order 13211 into law:
President Bush's Executive Order 13211
of May 18, 2001

 (Full document PDF: Federal Register.
Also available through the Download For Democracy campaign.)
In March 2002, the NRDC obtained the
energy task force documents, including the American Petroleum
Institute's email and proposal. The NRDC website calls
Bush's Executive Order "remarkably similar in structure, scope and
language to the draft submitted two months earlier by the American
Petroleum Institute." [NRDC]
Here is an overview of the most important of
these similarities:
Section 2 of the American Petroleum
Institute's proposal establishes that the order
would pertain to:
"any regulatory action that
could significantly and adversely affect energy supplies,
distribution, or use."
The title of President Bush's Executive
Order 13211 is:
"Actions Concerning Regulations That Significantly Affect
Energy Supply, Distribution, or Use."
Section 2 of the American Petroleum Institute's
proposal would require federal agencies taking these
actions to issue:
"a detailed statement on (i) the
energy impact of the proposed action, (ii) any adverse energy
effects . . . and (iii) alternatives to the proposed
action."
President Bush's Executive Order 13211
requires federal agencies taking these actions
to issue:
"a detailed statement . . . relating
to: (i) any adverse effects on energy supply,
distribution, or use, and (ii) reasonable alternatives to the
action."
A March 28, 2002 Washington Post article, titled
"Bush Energy Order Wording Mirrors Oil Lobby's Proposal," quoted American Petroleum Institute
president Red Cavaney's reaction to the scandal:
| He said the
charge that "the administration lifted ours is probably a
little overstating the case." Cavaney said that API wanted
the order to apply retroactively, which the Bush order did
not do. [Washington
Post] |
By underscoring one of the only real differences
between the American Petroleum Institute's proposal and the
President's Executive Order - that Section 3 of his lobby's
proposal was canned - Cavaney does little to quell
the controversy.
So what practical effect does Executive Order
13211 have? It creates a bureaucratic
roadblock for federal regulatory agencies like the
Environmental Protection Agency and the Federal Aviation
Administration. Any time their actions could potentially
affect the oil industry, these agencies are put on the
defensive - forced to justify the very work they were created
to do.
Archived 8/29/04 (originally
7/14/04):
An introduction to the NRDC's energy
task force documents Topic: Open and
Honest Government / Advisory Board
Scandals
In 2001,
the Natural Resources Defense
Council (NRDC) brought a
lawsuit under the Freedom
of Information Act (FOIA), requesting documents related to Vice
President Cheney's national energy task force. In April 2002,
a federal judge ordered the Energy Department to release the
records, holding that "citizens' right to know 'what their
government is up to,' . . . cannot be defeated by detailing an
agency employee to a task force operating out of the White House or
some other non-agency." [PDF of Judge Paul F. Friedman's
opinion]
On March 25, 2002,
the NRDC received about 10,000 pages of documents; later the group
received an additional 3,500 documents. The
organization has posted all of the documents on its
website in 551 batches,
each roughly 25 pages.
As of this week, all of the
batches are also available through this site's Download For Democracy P2P
campaign.
So what kind of documents make up these 13,500
pages, anyway?
Unfortunately, many of the documents that the Energy
Department released under the Freedom of Information Act lawsuit do
not offer much in the way of information: vast portions of
the documents have been blacked out and/or redacted. Batches
164 and 2064 are great examples of
this:
Batch
164, pages 14-15 - "Let me know if you have any further
questions."

 (Full
document PDF: NRDC. Also
available through the Download for
Democracy
campaign.)
Batch 2064, page 24
- "the significant omissions in the piece EPA sent over, the
biggest of which are:
__________________"
(Full document PDF:
NRDC. Also available through the Download for Democracy P2P
campaign.)
What
is particularly frustrating about the "significant omissions"
email shown above is that the subject line involves an "EPA NSR
background document." "NSR" stands for New Source Review, the
most important part of the Clean Air Act, which was rolled back
by Bush's Clear Skies plan. [see NSR segment in Protecting America's Health] Considering
the staggering side effects that are projected as a result of Bush's
rollback of the Clean Air Act, it
would be very interesting to see what this EPA piece discussed,
and what it
omitted.
Fortunately,
not all of the energy task force records are blacked out. In
letter shown below, Enron Chairman Kenneth Lay invites Energy
Secretary Spencer Abraham to an industry
conference.
Batch 2044, page 1 - "Your
participation would greatly enhance the prospects of a positive
outcome."  (Full document PDF: NRDC. Also
available through the Download for Democracy
P2P
campaign.)
It
is undisputed that Enron Chairman Kenneth Lay - who was indicted
last week for making false statements about his company's
finances [Forbes] - was
involved with the energy task force. Vice President Cheney
admitted that much in early 2002, when he released a list of
six meetings with Lay and other Enron executives. [CNN] Cheney
insists that, in the meetings, he and the Enron execs "did not
discuss information concerning the financial position of the Enron
Corporation" - but merely discussed the direction of the
federal government's national energy policy. [CNN]
It remains unclear how much influence Lay and
other former Enron executives had, especially after the
Supreme Court's decision in Cheney v. United States District
Court for the District of Columbia, which lets Cheney off the
hook, at least until after the November
election. [article: USA Today;
decision: Findlaw] A
recent New York Times's op-ed piece notes that "when President
Bush was elected, there was much speculation about whether his top
corporate sponsor, Kenneth Lay of Enron, would end up as secretary
of the Treasury or the Department of Energy." [New York
Times]
Not surprisingly, the heavily redacted energy task
force documents that the Energy Department released to the NRDC do
not do much to clear up this issue.
However, you
apparently don't have to be one of the largest campaign
contributors over the course of George W. Bush's political
career, like Lay is [USA
Today], to have your voice
heard. Mixed in with the official documents obtained
by the NRDC are a number of letters from private citizens
commenting on the national energy policy.
Here are examples
of some of the best and the worst ideas that private citizens
had to
offer:
Batch
2068, pages 243-253 - Former Gulf Oil Executive offers "A
Realistic Energy
Policy"
Charles L.
Campbell, Senior Supply Officer at Gulf Oil Corporation during the
energy crises of the 70's, weighed in with a well-researched set of
energy policy considerations. Campbell's
10-page recommendation is refreshing, because it is from
the perspective of an energy industry insider, but it
doesn't neglect the significance of environmental health
protections and limiting global warming. Here's an excerpt of
his
proposal:
 (Full document PDF: NRDC. Also available
through the Download for
Democracy P2P
campaign.)
Batch 2069, page 1 - "Lord Donald
Shaffer's Weekly Planner"
In contrast,
here is one bizarre week's worth of policy recommendations
from a "Lord Donald
Shaffer."
(Full
document PDF: NRDC. Also
available through the Download for
Democracy P2P
campaign)
These are just a sampling of
the thousands of pages of energy task force documents obtained by
the NRDC. Check back during the next week for analysis of
the energy task force documents that show how energy industry
lobbyists had a strong influence on the energy task
force's creation.
Archived 8/1/04
(originally posted 7/2/04):
Cheney's Energy Task Force mapped
Iraq’s oilfields during
2001
On January 29, 2001, just after he entered office,
President Bush announced the creation of a new Cabinet-level
National Energy Task Force, to be headed by Vice President
Cheney. [CNN] Given Vice
President Cheney's close ties to the energy
industry, there were concerns about potential conflicts of
interest from the start. Here's an excerpt from the
President's Question and Answer session that afternoon:
| Reporter: . . .given
the Vice President's past ties to oil, what can you say to
consumers that would allay any fears they might have that
any deal that you come up with on energy, any national
energy policy, may be more geared toward oil companies than
to consumers?
President Bush: Well, Dick Cheney is a
person who loves America and cares about the future of the
country, just like I do. And he understands what I
understand, that if we don't find more energy supplies to
meet growing demand in places like California, the consumer
is going to pay a dear price. [The White
House] |
In closed meetings about a month later,
Cheney's Energy Task Force discussed the map and chart shown
below.
 (Full
document PDF: Judicial Watch; also available
through our Download For
Democracy P2P
campaign)
This map of
Iraq’s oilfields
shown below was obtained by Judicial
Watch from the Commerce Department, as a result of the
group’s Freedom of Information Act lawsuit regarding the activities
of the Cheney Energy Task Force. The map is dated
“3-01.”
The document below, “Foreign
Suitors for Iraqi Oilfield Contracts,” dated March 5,
2001, lists firms that have
oil contracts for the individual oilfields, as well as the current
status of those contracts. According to former Wall
Street Journal reporter Ron Suskind, the author of "The Price of
Loyalty," this document was also used by the Pentagon
during Iraq War planning discussions during early March
2001. [CBS News]

(Full document PDF: Judicial Watch; also available through our
Download For Democracy P2P
campaign)
I don't believe in
conspiracy theories. In and of
themselves, these documents do not prove anything. But they
raise some very serious questions:
Why was the Energy Task Force discussing oil
contracts in a foreign country, on a field-by-field, and
contract-by-contract, basis? Is this within the scope of the
group's activities as listed in the Executive Order that
established it?
Did the Energy Task Force participate
in the planning of the war in Iraq, as some critics of the Bush
administration have claimed? If so, is this within the scope
of the group's activities as listed in the Executive Order that
established it?
Considering the crucial importance of the topics
the Energy Task Force appears to have discussed in meetings,
don't the American people deserve disclosure of the participants and
nature of these meetings? And isn't that type
of disclosure supposed to be guaranteed by Federal law under
the Federal Advisory Committee Act?
During the next two weeks, outragedmoderates.org will
explore these issues more fully.
In the meantime, I'd like to wish you a
happy Fourth of July. [interactive Declaration of
Independence from ourdocuments.gov]
Archived 7/13/04 (originally posted
6/21/04):
The Energy Department's
"If you were King" email to a gas industry
lobbyist
 (Source:
Judicial Watch; available through our Download For
Democracy P2P
campaign)
"If you were King, or Il Duce, what would
you include in a national energy policy?" - U.S. Department
of Energy official Joseph Kelliher, in an email to natural gas
industry lobbyist Dana Contratto, March 18, 2001.
Yes,
you read that correctly - a top Department of Energy official really
asked a corporate lobbyist what he would do if he were king or "Il
Duce," the nickname Italians gave to Benito Mussolini.
But even more shocking than Kelliher's choice of words is
what transpired in the weeks following that email.
The following is an excerpt from the April 4,
2004 New York Times article "Changing All The
Rules":
| Apparently that was one of many e-mail
messages to industry lobbyists, for Kelliher's electronic
mailbox was soon pinging with activity. A March 20, 2001,
message from Jim Ford, lobbyist for the American Petroleum
Institute, a powerful oil-and-gas-industry trade group,
included a ready-made decree. ''The last document,'' Ford
wrote, referring to one of 10 attachments, ''is a suggested
executive order to ensure that energy implications are
considered and acted on in rulemakings and other executive
actions.'' President Bush would issue a very similar
executive order two months later, the day after the energy
task force report was released.
Another Kelliher correspondent,
Stephen Sayle, a Republican Congressional aide, who is now
an energy lobbyist, added a somewhat abashed note to the end
of his March 23, 2001, wish list, which included a plea to
stop enforcement of new-source review. ''Obviously, this is
a dream list,'' he wrote. ''Not all will be done. But
perhaps some of these ideas could be floated and adopted.''
In fact, Sayle was being needlessly pessimistic; most of the
items on his list, many of which dealt with new-source
review, were eventually adopted. [NY
Times] |
Archived 6/19/04:
Defense Policy Board
Members' Ties to Defense
Contractors
The Center For Public Integrity issued
a report last year called "Advisors of Influence: Nine Members of the Defense
Policy Board Have Ties to Defense Contractors." A chart
released with the report lists those Defense Policy
Board members' affiliations with defense contractors, and provides the contracts each of the companies has
received during the Bush administration. [Center for Public
Integrity]
Archived 6/18/04:
Former Defense Policy Board Member Richard
Perle
On March
24, 2003, House Representative John Conyers sent a letter to
the Department of Defense's Office of the Inspector General, calling
for an investigation into conflicts of interest and other
misconduct by head neoconservative Richard Perle. [Center for Public Integrity] The
letter provides a detailed list of the potential allegations, and
argues that Perle should be considered a "special government
employee" under the meaning of 18 U.S.C. § 202,
which defines the terms of the federal conflict of
interest laws.
Three days later, on March
27, 2003, Perle resigned from the Defense Policy Board. [CNN]
Rep. Conyers' letter, the Defense
Policy Board's charter, the agendas of the Defense Policy
Board's October 2002 - February 2003 meetings, and the U.S.
government's Compilation of Federal Ethics Laws are are available
through our Download For Democracy
campaign.
The Bush Administration's
Secrecy
Archived 6/18/04:
Selected Quotes on Bush's
Secrecy:
"This is not a
monarchy."
-
House Government Reform Committee Member Dan
Burton, Republican from Indiana, after President Bush
invoked executive privilege to deny Congress access to prosecutorial
documents, which have routinely been turned over to Congress by past
administrations. [ABC News]
"One sometimes gets the impression that this administration
believes that how it runs the government is its business and no one
else's. It is certainly not the business of Congress. And if it's
not the business of the people's representatives, it's certainly no
business of yours or mine. But this is a dangerous condition
for any representative democracy to find itself in. The tight
control of information, as well as the dissemination of misleading
information and outright falsehoods, conjures up a disturbing image
of a very different kind of society. Democracies are not well-run
nor long-preserved with secrecy and lies."
- Walter Cronkite, from his op-ed piece "Secrets
and Lies Becoming Commonplace." [St. Augustine Record]
"We see an unprecedented secrecy in this White House that ... we
find very troubling. This is a case where left and right agree
... True conservatives don't act this way."
- Larry Klayman, executive director of
conservative legal watchdog Judicial
Watch. [USA Today]
"Congress, by and
large, has been left to learn about major war-related decisions
through newspaper articles . . . Is it any wonder that members of
Congress are beginning to question whether the administration is
deliberately leaving Congress in the dark — or whether the
administration is making major policy decisions on the fly, without
taking time for due consideration or consultation?"
- Senate Appropriations
Chairman Robert Byrd, Democrat from West
Virginia. [New York Times]
|