-Caveat Lector-
Criminals to Audit the Investigators...
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Date: Wed, 16 Jan 2002 04:59:58 +0100
From: Mario Profaca <[EMAIL PROTECTED]>
Reply-To: [EMAIL PROTECTED]
To: "[Spy News]" <[EMAIL PROTECTED]>
Subject: [Spy News] [windows-1250] Arthur Andersen^�s Contract to Audit FBI
Unaffected by [windows-1250] Mounting Evidence of Criminal Activity
http://www.copvcia.com/stories/jan_2002/AndersenFBI.html
Delusions of Sanity
Arthur Andersen�s Contract to Audit FBI Unaffected
by Mounting Evidence of Criminal Activity
by Michael C. Ruppert
Copyright 2002,
>From The Wilderness Publications
and Michael C. Ruppert,
www.copvcia.com.
All rights reserved.
May be reprinted, copied, distributed
or posted on the internet for non-profit purposes only.
FTW, January 15, 2002 � In the exploding popcorn mix of new Enron
investigations, increasingly focusing on possible criminal misconduct by
accounting giant Arthur Andersen, a Justice Department spokesperson has told
FTW that a contract for Andersen to review sensitive FBI management and
recordkeeping procedures has been unaffected.
Recent statements by Senators Joseph Lieberman (D�CT) and Russ Feingold
(D-WI) indicating that investigations of Andersen may turn criminal, and a
January 14 commentary by CNN�s Lou Dobbs indicating that the scandal may put
the company out of business, raise serious questions about the Department of
Justice�s contract calling for Andersen to �review the FBI�s management
practices, including recordkeeping, technology and human resources
issues,� as described in an August 29, 2001 story by reporter Kellie Lunney
on the website www.GovExec.com. This is especially relevant since FBI agents
will themselves be investigating Andersen in newly announced DoJ probes
related to Enron.
The Gov Exec story, relying on documents from the Federal Register, detailed
that, �In July, Justice and FBI officials revealed that more than 400
weapons and 180 laptop computers � including some holding sensitive and
classified information � were missing from the agency. The FBI has faced
harsh criticism over the last few months, most notably for its failure to
turn over all documents to lawyers for Oklahoma City bomber Timothy McVeigh,
a controversy that resulted in a temporary postponement of McVeigh�s
execution.�
In August, Attorney General John Ashcroft authorized the creation of a
special commission to evaluate years of serious and well-documented FBI
lapses ranging from mishandling of key evidence in the crime lab, as exposed
by FBI whistleblower Fred Whitehurst, to the loss of sensitive intelligence
materials. Commission members include former CIA Director William Webster,
former Secretary of Defense William Cohen, former House Speaker Tom Foley
and former HUD Secretary and U.S. Trade Rep Carla Hills.
According to the GovExec story, �All of the commission�s meetings will be
closed to the public to protect sensitive information� according to a July
16 memo from the Justice Department.� The key question is, �Information
sensitive to whom, that might damage whose interests?�
DoJ spokesman Brian Sierra indicated on January 14, that the issue of
Andersen�s contract, which would give them access to many of the FBI�s most
sensitive files, has not yet been raised in the wake of the rapidly evolving
Enron debacle. �As of this moment the contract is still in effect,� said
Sierra. I can�t speak to the issue and I don�t think the question has been
brought up at Justice.�
Spokespersons for Andersen, headquartered in Chicago, did not return an FTW
call asking for comment.
The obvious conflict of interest could not come at a worse time for an
Administration that is frantically attempting to get ahead of the Enron
scandal. It also comes at a time when the impartiality of other government
agencies including the Securities and Exchange Commission and the General
Accounting office is called into question because of the past relationships
of the heads of those two agencies with the embattled accounting firm.
Harvey Pitt at SEC once represented Andersen in his private law practice.
GAO chief David Walker is a former board member at Andersen whose tenure
there ended in late 1998, long after the time period in which Andersen has
been implicated in the falsifications of Enron�s financial statements which
began in 1997.
Walker�s former partners may now become the subject of criminal probes by
the FBI, the SEC and the GAO. Unlike the SEC and the FBI, the GAO is known
as the investigative arm of Congress � the same Congress which is now
representing itself to be the champion of the public interest. Headed by
Walker in the Comptroller General position, the GAO remains one of the last
defensible positions that the government � both the White House and the
Congress � can offer as a statement of government credibility to an
increasingly cynical population.
The notion that Andersen could now be trusted to investigate the FBI and
gain access to information that would damage the FBI�s credibility and
possibly be traded off for softer handling for its own actions stretches the
imagination to the breaking point and beyond. Congress and the
administration need to understand that by failing to walk the most perfect
of lines with Enron and Andersen they risk the credibility of the entire
government and not just the Bush White House.
A previous FTW story on unexplored conflicts of interest related to Enron is
located at: http://www.copvcia.com/members/enron_money_laundering.html.
Michael C. Ruppert
P.O. Box 6061-350, Sherman Oaks, CA 91413
(818)788-8791 * fax(818)981-2847
[EMAIL PROTECTED]
� COPYRIGHT 1998, 1999, 2000, 2001
MICHAEL C. RUPPERT.
ALL RIGHTS RESERVED.
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