-Caveat Lector- http://www.reuters.com/newsArticle.jhtml?type=politicsNews&storyID= 2446538 Lawmaker Seeks Probe of Pentagon Adviser Perle Tue March 25, 2003 01:51 PM ET By Jeremy Pelofsky
WASHINGTON (Reuters) - A senior Democrat called for an investigation of Richard Perle, an influential architect of the war on Iraq, for possible conflicts of interest in his roles as corporate adviser and Pentagon consultant. Rep. John Conyers, the top Democrat on the House of Representatives Judiciary Committee, asked the Pentagon's inspector general to probe Perle's work as a paid adviser to bankrupt telecommunications company Global Crossing Ltd. and guide to companies on investment opportunities resulting from the Iraq conflict. Perle was not available for comment on Tuesday but has said he has always followed ethics rules. A spokesman for the Defense Department was not available for comment on the issue. "I am aware of several potential conflicts that warrant your immediate review," Conyers said on Monday in a letter to the Defense Department's Inspector General Joseph Schmitz. The letter was made available on Tuesday. "Mr. Perle is considered a 'special government employee' and is subject to government ethics prohibition -- both regulatory and criminal -- on using public office for private gain," Conyers' letter said. Perle chairs the Defense Policy Board, created in 2001 to advise the Pentagon, but has no official policymaking role and is not paid. A leading Washington hawk, he has played an influential role in developing the Bush administration's blueprint for ousting Iraqi President Saddam Hussein. Critics have questioned Perle's activities when not advising Secretary of Defense Donald Rumsfeld. GLOBAL CROSSING REVIEW Perle signed on to help Global Crossing, a bankrupt operator of an international fiber- optic network, win U.S. approval to sell a 61.5 percent stake to Hutchison Whampoa Ltd. and Singapore Technologies Telemedia Pte. The plan has run into trouble with a little-known panel called the Committee on Foreign Investment in the United States. The panel, made up of Rumsfeld and other top national security officials, examines mergers and acquisitions for potential harm to U.S. interests and can block such deals. Global Crossing began talks to restructure its deal after the panel raised concern that its network would be controlled by a company with strong ties to China. Hutchison is majority owned by Hong Kong's richest man, Li Ka-shing. Perle has said he would be paid $125,000 for his advice and another $600,000 if the government approves the deal. Conyers noted a New York Times article citing a March 7 affidavit in which Perle discussed his "unique perspective" on national defense and security issues and said he had contacted a government official on Global Crossing's behalf. "The fact that Mr. Perle may be reconsidering filing the affidavit does not alter the existence of the alleged conflict," Conyers said. Conyers also asked the Pentagon to probe reports that Perle participated in a conference call sponsored by Goldman Sachs to discuss investment opportunities emerging from the war in Iraq and that he received stock options from a company that does business with the U.S. military. "I would submit that it is a conflict of interest for a high-ranking government official to be proffering advice on how to profit from the war," Conyers said. A Goldman Sachs spokesman had no immediate comment. Conyers also pointed out that Perle sits on the board of Autonomy Corp., which lists the U.S. Army and military as customers, and received stock options. Forwarded for your information. 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