Qatar Contract Offers Glimpse Into Giuliani Firm

Dealings Have Potential
For Trouble If Ex-Mayor
Receives Nomination
By MARY JACOBY
November 7, 2007; Page A8


http://online.wsj.com/public/article/SB119440640166884884-WGjV8C1Rnex5t_oEZv
IJz4k4jW8_20071207.html?mod=tff_main_tff_top

Rudy Giuliani is one of the few candidates ever to pursue the White House
while maintaining a high-ranking role in a private-sector firm.

But since he became a candidate for president, the Republican front-runner
has rebuffed all calls to disclose details about the clients and dealings of
Giuliani Partners, the consulting firm he founded in 2002.

 [Rudy Giuliani]
<http://online.wsj.com/public/resources/images/HC-GJ478_Giulia_2007021217124
8.gif> 

Some of those clients have controversial records. Among those he hasn't
disclosed is the government of Qatar, a Persian Gulf state to whom the firm
provided security advice, according to the former U.S. ambassador there.
Qatar is a strategic U.S. military ally and energy supplier, yet also a
country that has been criticized for its conduct toward al Qaeda -- a
potential political pitfall for a candidate pitching himself as an
uncompromising foe of Islamic terrorism.

Other potentially controversial dealings have been disclosed by the firm or
by clients over the years. They include Purdue Pharma, a drug company that
hired the firm in 2002 to help with a federal investigation into overdose
deaths attributed to the pharmaceutical firm's powerful OxyContin
painkiller, and New York nuclear-power-plant operator Entergy Nuclear
Northeast.

But more recent Giuliani clients aren't known. Because the firm is closely
held, Mr. Giuliani isn't required to disclose much about his income and
wealth, other than his holdings in the firm itself, where he remains
chairman and chief executive and receives income in the form of guaranteed
payments and partnership distributions.

Campaign watchdog groups say that raises some red flags. "Are there folks
who might want to have greater influence with a potential President
Giuliani? If so, they may be partnering with him now in the hopes of
currying favor with him later," says former federal prosecutor Melanie
Sloan, head of Citizens for Responsibility and Ethics in Washington, a
nonpartisan watchdog group.

Mr. Giuliani so far has fended off all queries. Giuliani campaign
spokeswoman Maria Comella said the campaign wouldn't comment on any matters
to do with the candidate's business, and said such questions should be
answered by Giuliani Partners. A spokeswoman for Giuliani Partners, Sunny
Mindel, said in an email: "We do not discuss our clients."

 [Giuliani]
<http://online.wsj.com/public/resources/images/NA-AO472A_GIULI_2007110620564
6.gif> 

Earlier this week, he reiterated that he wouldn't release his client list in
an Associated Press interview. "Everything I did with Giuliani Partners has
been totally legal, totally ethical," he said. "They are a very ethical and
law-abiding business ... There's nothing for me to explain about it. We've
acted honorably, decently."

Still, Mr. Giuliani could face questions about his business ties if he wins
his party's nomination. The Qatar contract offers a window into the
potential complications.

Many details of the deal aren't known, including whether it is still in
effect. It was signed with state-run Qatar Petroleum around 2005, according
to Chase Untermeyer, who left a three-year term as President Bush's envoy to
Qatar in August. It involved a subsidiary, Giuliani Security & Safety LLC,
which offered security advice to a giant natural-gas processing facility in
Qatar.

Mr. Untermeyer provided the information after The Wall Street Journal asked
him about a 2006 speech in which he said Mr. Giuliani's firm had "important
contracts" in Qatar.

He is a Republican who says he hasn't endorsed any candidate in the party's
nominating contest; he hasn't donated to any campaigns this cycle. A
spokeswoman for Giuliani Partners declined to comment on the connection.

While Qatar is a U.S. ally, it has drawn scrutiny for its involvement in the
U.S. effort to combat terrorism. In 1996, the Federal Bureau of
Investigation went to Qatar to arrest al-Qaeda operative Khalid Sheikh
Mohammad, then under indictment in New York for a plot to blow up U.S.-bound
jetliners. But Mr. Mohammad slipped away, apparently tipped off by an
al-Qaeda sympathizer in the Qatari government, U.S. officials told the
bipartisan 9/11 commission. Mr. Mohammad went on to mastermind the Sept. 11,
2001 attacks.

Qatari officials have denied they tipped off Mr. Mohammad, and a State
Department report says the country has offered "significant"
counterterrorism support to the U.S. since the 2001 attacks.

Phone calls, emails and faxes seeking comment from officials at Qatar
Petroleum in Qatar and at the country's embassy in Washington went
unanswered.

The emirate also hasn't always followed U.S. wishes in recent years. The
Bush administration has pressured Qatar to tone down the anti-American
rhetoric of Al-Jazeera, the television station based there. But Qatar
rebuffed the request, citing freedom of the press. Qatar also has lagged
behind President Bush's ambitious global-democracy agenda. While the emir
has made limited moves toward elections, political parties remain banned and
proselytizing by non-Muslims is illegal.

The public financial disclosure report Mr. Giuliani filed in May to run for
president doesn't require him to disclose such contracts as the one with
Qatar. It requires him only to reveal his 30% equity stake in Giuliani &
Company LLC, the holding company that is the umbrella corporate structure of
Giuliani Partners, Giuliani Security & Safety and other related entities.

Other 2008 presidential hopefuls also have faced scrutiny of their
private-sector ties and investments. Democratic hopeful John Edwards worked
as a consultant for a private-equity fund before running for the 2008
nomination but has faced questions about his $16 million stake in the firm.

Former Massachusetts Gov. Mitt Romney helped found and run private-equity
firm Bain Capital, but he retired from the firm in 1999 before holding
public office. He still has stakes in Bain funds but has no say in how Bain
makes or disposes of its investments, his financial-disclosure report says.

No candidate's wealth is as closely tied to one entity as Mr. Giuliani's. He
earned income of more than $4 million from Giuliani & Company between
January 2006 and May 2007, his financial-disclosure report shows. He values
his 30% stake in the company at between $5 million and $25 million.

Barring disclosure from Mr. Giuliani, it isn't known how much the consulting
contract in Qatar contributed toward his income. In addition, Mr. Giuliani
receives $1 million in guaranteed income each year from his law firm,
Bracewell & Giuliani, which opened an office in Dubai, United Arab Emirates
in June.

Write to Mary Jacoby at [EMAIL PROTECTED]

Corrections & Amplifications:

Republican presidential nominee Rudy Giuliani's law firm, Bracewell &
Giuliani, opened an office in Dubai, United Arab Emirates in June. An
earlier version of this article incorrectly said the firm opened an office
in Doha, Qatar.

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