In the most pro-corporate administration of the last 100 years, there
isn't much that big business wants that it doesn't get.
In this issue of Multinational Monitor, we explore just a handful of
the countless handouts, bailouts, regulatory rollbacks, exemptions, refusals
to enforce, giveaways and subsidies that the Bush administration has gifted
to Corporate America.
As diverse as the examples we investigate here, consider a sampling of
what we do not cover in this issue:
- Serial tax cuts to the nation's wealthiest, including the cynical
and successful PR campaign to characterize inheritance taxes that in
fact only affect the wealthy few as a broadly applicable "death tax"
that unfairly burdens small business-owning families.
- A soaring defense budget replete with waste, fraud and allocations
for outrageous technologies that can't be justified even on paranoid
national security grounds.
- Favoring high-priced brand-name pharmaceuticals over more affordable
generics for the administration's global AIDS program, and undermining
a World Health Organization project to ensure quality and facilitate
use of generic AIDS drugs in poor countries.
- Undermining the World Health Organization's initiatives on the growing
worldwide obesity problem, as a favor to the sugar and junk food industries.
- The farthest-reaching privatization scheme in the history of the U.S.
federal government, designed to erode the public sector and aid corporate
crony contractors.
- A 2002 (December 24) Christmas gift to employers: No more federal
reporting of mass layoffs and plant shutdowns.
- Efforts to redefine labor laws to undermine the already paltry protections
for workers' right to organize, including a review of rules regarding
"card-check recognition" -- where an employer simply recognizes a union
after a majority of workers sign cards indicating they wish to join
the union.
- An overtime rule that would strip millions of workers of their right
to overtime pay if they are required to work more than 40 hours a week.
- A diverse set of props for the failing nuclear power industry, including
proposals for tax credits for new nuclear construction and to permit
nuclear and mixed waste to be disposed in facilities not licensed to
handle radioactive waste.
- Solicitation from industry of regulatory hit lists -- industry-generated
wish lists of regulations they would like to see repealed. These exercises
are followed by Office of Management and Budget-led regulatory rollbacks
to turn these wish lists into reality.
- Blockage of legislation to permit imports of lower-priced pharmaceuticals
from Canada, justified on trumped-up concerns for safety -- even as
the administration oversees the ongoing erosion of the Food and Drug
Administration's drug safety regulatory capacity.
- An obsession with opening up pristine areas of Alaska to oil and
gas development, and a general policy of handing over to private firms
the rights to drill, mine or graze public lands.
- Attempted repeal of electric utility regulation -- a move sure to
lead to rapid consolidation of the utility industry, setting the stage
for unparalleled consumer ripoffs (remember California's 1998 energy
"crisis," induced by Enron and other electricity generators?).
- Regulatory maneuvers to facilitate destructive mountaintop mining
-- involving the literal removal of mountaintops and dumping tons of
waste rock, dirt and vegetation into valleys and streams.
- Weakening nursing home regulations and standards, so that workers
with just a single day's training may assist elderly nursing home residents,
no matter their condition, with eating and drinking.
In whatever corner of the Bush government you look, you'll find special
advantages conferred on big business.
In this special double issue of Multinational Monitor, we've organized
our dissection of the Bush administration's pro-corporate policies into
five categories: corporate power, labor, environment, consumer rights
and democracy. We investigate 16 cases of administration favoritism to
big business. These are important cases, to be sure -- but, unfortunately,
this compilation is merely representative, not comprehensive.
I.
Corporate Power
The Halliburton Fix
In a tv ad rolled out in February, Halliburton chairman David Lesar addressed
rising concerns about the company's work in Iraq: "Will things go wrong?
Sure they will. It's a war zone. But when they do, we'll fix it. We always
have -- for 60 years for both political parties."
The "fix" Lesar was referring to clearly is not the no-bid contract
the company received before the war, which crowned Halliburton king of
the Bush administration's corporate cronies. The expansion of that contract
from a contingency plan to handle oil well fires after the war to virtual
monopoly control over half of the country's oil production and distribution
infrastructure has critics fulminating about corruption and oil-related
imperialism.
"The entire Halliburton affair represents the worst in government contracts
with private companies: influence peddling, kickbacks, overcharging and
no-bid deals," Senator Frank Lautenberg, D-New Jersey, charged in March.
The company's close relationship with former CEO Vice President Dick
Cheney has done nothing to douse charges of war profiteering and corruption.
Cheney -- who pushed the nation towards war like an ideological pile-driver
-- told "Meet the Press" host Tim Russert last September that he has "no
financial interest in Halliburton of any kind and haven't had, now, for
over three years."
The claim was clearly bogus (Cheney received $178,437 from the company
in 2003). While the Vice President is technically exempt from federal
ethics laws, investigators from the Congressional Research Service concluded
that deferred compensation payments like the ones Cheney will receive
from Halliburton until 2005 constitute an "ongoing financial interest."
The Inside Track
Halliburton staked out its advantage in the lucrative Iraq contract bonanza
long before the war began. Although Bush administration officials say
Cheney had nothing to do with the contracts, the Wall Street Journal reported
in January 2003 that executives from Halliburton and other big oil companies
had met with Vice President Dick Cheney's staff in late 2002 to discuss
how to jump-start Iraq's oil production after the war. Details of that
meeting, like the Vice President's National Energy Task Force, remain
a secret.
In June, GAO investigators confirmed that Pentagon officials had broken
competitive contracting requirements and overruled objections from an
army lawyer to grant the first Iraq oil-related work order to Halliburton.
According to Representative Henry Waxman, D-California, Michael Mobbs,
a neoconservative political appointee working under the direction of Under
Secretary of Defense for Policy Douglas Feith, made the decision to award
the oil contract to Halliburton. At the same time, an Army Corps of Engineers
e-mail message surfaced, suggesting that the decision had been "coordinated
w VP's office."
In a letter to Cheney asking for more information, Waxman described an
October 2002 meeting in which Cheney's chief of staff, I. Lewis "Scooter"
Libby, was informed of the decision, along with other White House officials.
Halliburton's advantage was not just the result of its high-level contacts
in the Bush White House. It was the product of a decades-long process
through which Halliburton subsidiary KBR (formerly known as Kellogg, Brown
& Root) has embedded itself deep into the Pentagon's decision-making structure.
After the first Gulf War, when Cheney was secretary of defense under
Bush Sr., he hired KBR to plan the privatization of military support services.
As a result, KBR received the first global military logistics support
contract (LOGCAP) in 1992.
Although Halliburton lost the LOGCAP in 1997 after problems were discovered
with its performance in Bosnia, Halliburton won the LOGCAP back soon after
Cheney became Vice President in 2001. Although the company says it gained
the 10-year contract through an open-bidding process, the LOGCAP has given
KBR an inside track for multiple subsequent task orders associated with
the administration's military operations.
"We are the only company in the United States that had the kind of systems
in place, people in place, contracts in place, to do that kind of thing,"
Chuck Dominy, Halliburton's vice president for government affairs and
its chief lobbyist on Capitol Hill, suggested in response to charges that
the company had an inside track on the Iraq oil fire contract, an assertion
backed up by the Army Corps of Engineers.
That was news to GSM Consulting's CEO Bob Grace, who led a team that
extinguished more than 300 oil-well fires set by Saddam Hussein's troops
after the first Gulf War.
Grace contacted the Pentagon repeatedly in the fall of 2002 to try to
bid on the post-war oil-fire work, but was effectively told to get lost.
When Senator John Breaux inquired on behalf of GSM, he received a terse
response from Alan Estevez, an Army supply chain management official,
who asserted that: "The department is aware of a broad range of well firefighting
capabilities and techniques available. However, we believe it is too early
to speculate what might happen in the event that war breaks out in the
region. If for any reason the U.S. government is called upon to suppress
well fires through contractor support, we would do so in accordance with
the Competition in Contracting Act and implementing regulations."
Estevez's letter was dated December 30, 2002 -- a month and a half after
the Pentagon had issued the "Iraq Oil Field Plan" task order to Halliburton
subsidiary KBR under the LOGCAP. That decision in fact violated the Competition
in Contracting Act because, as David Walker, the Comptroller General,
later determined, the oil infrastructure work was not "within the scope
of the overall LOGCAP contract."
The "Don't Worry About Price" company
Although the November 2002 task order was worth only $2 million, it was
just the first of many administration maneuvers that favored the Vice
President's former firm. Waxman's persistent probing has uncovered a trail
of evidence that suggests that the company received a huge no-bid contract
months later, giving Halliburton authority over the "operation" of Iraq's
oil fields and the "distribution" of Iraqi oil. The contract ultimately
would cost U.S. taxpayers as much as $7 billion.
Officials from the Army Corps of Engineers repeatedly stated that the
no-bid contract would be a short-term "bridge" contract that would only
last until a new contract could be competitively bid. But the inside track
established by Halliburton continued to give it at an advantage over other
potential bidders for subsequent contracts. Former Bechtel employee Sherryl
Tappan has alleged that the San Francisco firm withdrew from bidding on
the oil contracts after finally realizing that the bidding process was
a sham. In December 2003, Waxman wrote in a letter to Admiral Nash of
the Pentagon's Program Management Office that "Halliburton has a monopoly
on all oil work."
Meanwhile, Halliburton has come under fire for a variety of contract
abuses associated with LOGCAP:
� Federal prosecutors opened a criminal probe after a Defense Contract
Audit Agency audit found that Halliburton overcharged by $61 million for
fuel deliveries from Kuwait to civilians in Iraq.
� A Pentagon audit concluded Halliburton charged millions of dollars
for meals that it never served to troops. (Halliburton officials say problems
might have occurred because the number of troops in and near Iraq often
changed quickly and drastically.)
� The Defense Department is probing allegations a Kuwaiti subcontractor
paid kickbacks to two former Halliburton employees. The company says it
repaid $6 million to the government after it discovered the scheme and
fired the employees as soon as the corrupt deals were discovered.
� This May, a dozen current and former truck drivers told reporters that
the company ordered them to drive empty trucks on phantom missions across
the desert, billing the Pentagon for unnecessary work, and putting their
lives at risk. Thirty-four Halliburton employees and subcontractor employees
have been killed since the war began.
In June, Representative Tom Davis, R-Virginia, blocked an attempt by
Waxman to bring whistleblowers into a Congressional committee hearing.
They were ready to testify about specific abuses they observed at the
company, including the ditching of $80,000 trucks because of a flat tire,
a $100 average charge for 15-pound bags of laundry, $45 cases of soda
and the use of five-star hotels in Kuwait.
Critics suggest the way Halliburton's contracts were structured ("cost-plus"
contracts reimburse the contractor for its actual costs, adding a percentage
fee as profit) have provided an inherent incentive for these kinds of
waste, abuse, and possible fraud. Halliburton whistleblowers have testified
in Congress that it was common for high- and mid-level Halliburton officials
to tell subordinates: "Don't worry about price. It's cost-plus."
The People's Confidence?
In January 2004, Representative Jim Leach, R-Iowa, introduced a resolution
calling for the creation of a bipartisan committee to "investigate the
awarding and carrying out of contracts" in Iraq, Afghanistan and elsewhere.
Leach's proposal is modeled after Harry Truman's World War II committee
-- which saved taxpayers billions by rooting out corruption, and was established
by a Congress controlled by the same party as the president.
"Just as it was then, oversight should not be considered partisan," Leach
asserted. "It should be viewed solely in the context of protecting and
preserving public resources and bolstering people's confidence in their
government."
Yet Leach's bill was quietly quashed by Republican leaders who clearly
understood that any investigation of Halliburton would be political suicide
during an election year.
-- Charlie Cray
Entrenching
the Media Monopoly
In a move that critics say opens the doors to media conglomerates' domination
of local markets, the Federal Communications Commission (FCC) last June
loosened some of the few remaining restrictions on corporate media monopolies.
In the end, the decision may end up looking like a hollow victory for
companies like Viacom, CBS, Disney and Rupert Murdoch's News Corporation,
since the FCC's decision provoked unprecedented grassroots engagement
with the issue and widespread opposition across the political spectrum.
The new rules loosen "cross ownership" standards that restrict media
conglomerates from owning newspapers, television stations and radio stations
in the same local markets; raise the number of radio stations one company
can own in a single market; and raise the share of the national TV audience
that any single company through ownership of local stations can reach
to 45 percent, an increase from 35 percent (the standard was later reduced
to 39 percent by an irate Congress.)
FCC Commissioner Michael Powell led the drive to loosen the rules on
media monopolies. "Monopoly is not illegal by itself in the United States,"
Powell asserted in early 2002. "There is something healthy about letting
innovators try to capture markets."
Powell claimed that court decisions required the FCC to strike down existing
broadcast-ownership limits promoting diversity, localism and competition.
Many of the rules extended back decades. According to Powell, the courts
held that the growth of cable TV, satellite broadcasts, the Internet and
other technologies had long ago rendered these rules obsolete.
"Keeping the rules exactly as they are, as some so stridently suggest,
was not a viable option," Powell explained.
Yet opponents pointed out that the courts did not require the FCC to
gut the rules, but simply use up-to-date market facts to explain them.
FCC Commissioner Jonathan Adelstein, who voted against Powell, called
the decision "the most sweeping and destructive rollback of consumer-protection
rules in the history of American broadcasting."
"This plan is likely to damage the media landscape for generations to
come," Adelstein said. "In the end, this order simply makes it easier
for existing media giants to gobble up more outlets and fortify their
already massive market power."
Adelstein and Commissioner Michael Copps, who also voted against Powell,
were not alone in opposition to the rule changes. The FCC received an
unprecedented 750,000 public comments on the proposals, over 99.9 percent
of them reportedly in opposition.
But Powell dismissed the outpouring of opposition, for failing to address
the specific technical questions at issue. The comments "didn't provide
the kind of record evidence that leads to very specific decisions," he
suggested. But as Common Cause and others who encouraged people to comment
point out, the FCC had failed to make any formal, detailed proposal available
to the public, Congress, or even Copps and Adelstein until three weeks
before the vote.
Getting access to the draft rules was apparently not much of a problem
for 63 executives from the nation's top broadcast companies -- including
Rupert Murdoch of NewsCorp and Mel Karmazin of Viacom -- who reportedly
met with FCC staff over 70 times behind closed doors before the commission
reached its decision. In fact, the Wall Street Journal reported on the
day of the vote, Bear Stearns media analyst Victor Miller helped FCC staff
draft the regulations themselves.
Meanwhile, the Center for Public Integrity reported on another indicator
of close ties between FCC regulators and the media they regulate: FCC
staff had accepted more than 2,500 junkets worth nearly $2.8 million from
the telecommunications and broadcast industries over the previous eight
years.
By contrast, the FCC held just one official public hearing before issuing
its new rules and met with opponents to discuss the rules in their offices
just five times.
"In the digital age, you don't need a nineteenth-century whistle-stop
tour to hear from America," Powell explained.
Concerned about the lack of attention the media itself was paying to
the issue, commissioners Copps and Adelstein attended a series of informal
public meetings organized by the Center for Digital Democracy and local,
nonpartisan civic groups across the country.
The meetings highlighted the impact the new rules would have at the local
level, where the media giants would soon be able to own the daily newspaper,
two or three TV stations, and up to eight radio stations.
Concentration's Costs
Recent changes in the commercial radio market illustrate the potential
threat that the new rules could pose. After Congress removed radio ownership
limits in 1996, Clear Channel's list of radio stations grew from just
43 in 1995 to 1,233 stations by 2004.
The impact of the Texas company's monopoly on local culture and even
national security is illustrated by what happened after a freight train
derailed in Minot, North Dakota in 2002. A deadly cloud of anhydrous ammonia
floated over the small city, posing a public emergency. Police called
town radio stations to attempt to alert the public. But all of the six
radio stations in the city of 36,500 were owned by Clear Channel, which
had largely done away with local programming and local staff. Nobody answered
the phones for more than an hour and a half. Three hundred people were
hospitalized, some partially blinded. Pets and livestock were killed.
The propagandistic power of Clear Channel's monopoly was also clear during
the Bush administration's buildup to the war in Iraq, when Clear Channel
stations organized a series of flag-waving pro-war rallies in Atlanta,
Cleveland, San Antonio, Cincinnati and other cities. (Clear Channel vice
chair Tom Hicks is an old Texas buddy of President Bush, from whom he
bought the Texas Rangers.) Although Clear Channel promoted the rallies
on its corporate web site, company officials claim there was no corporate
directive that stations organize the rallies, or that the rallies had
anything to do with pending regulatory matters the company had before
the FCC.
Objections to the FCC ownership rules have come from a diverse array
of groups from across the political spectrum, including the National Rifle
Association, religious and civil rights groups, consumer, labor and even
certain industry groups, such as the National Association of Broadcasters,
which represents smaller broadcasting corporations.
Media moguls Barry Diller and CNN founder Ted Turner also spoke up against
the rules.
"When the smaller businesses are gone, where will the new ideas come
from?" Turner asked. "Under the new rules, there will be more consolidation,
and more news sharing. That means laying off reporters or, in other words,
downsizing the workforce that helps us see our problems and makes us think
about solutions. Even more troubling are the warning signs that large
media corporations -- with massive market power -- could abuse that power
by slanting news coverage in ways that serve their political or financial
interests."
Yet Powell and the other commissioners wouldn't budge. But after the
FCC's 3-2 decision, the battle was far from over. In some ways, it had
just begun: A bipartisan group of senators led by Byron Dorgan, D-North
Dakota, and Trent Lott, R-Mississippi, responded by leading an effort
to overturn the rule changes. They won a 55-40 vote to overturn the rules
in the Senate.
With over 200 members of the House of Representatives demanding that
the matter be brought to a vote, Republican leaders struggled to keep
a lid on the issue. To avoid a situation where Bush might have to veto
a popular law in an election year, Republican leaders instead forced the
matter into an omnibus budget bill towards the end of 2003, where they
managed to rig a "compromise" that left the big conglomerates happy. The
omnibus bill kept the Powell rules in place, but capped TV station ownership
at 39 percent -- just high enough to keep Viacom and Murdoch's News Corporation
in compliance with the law.
The battle was also taken to the courts. The Media Access Project filed
a petition on behalf of the Philadelphia-based Prometheus Radio Project
with the Third Circuit Court of Appeals, arguing that the rule changes
violated federal law. The court agreed to hear the case and issued an
immediate stay so that the rule changes would not be put into effect until
the case was decided.
Meanwhile, in November, more than 2,000 activists converged in Madison,
Wisconsin for a landmark national conference on media reform, a sign that
the battle against corporate control of the media was escalating.
As Michael Copps said in explaining his dissenting vote against the FCC's
decision, "The obscurity of this issue that many have relied upon in the
past, where only a few dozen inside-the-beltway lobbyists understood this
issue, is gone forever."
-- Charlie Cray
The
Government's Business
At a gathering of top law enforcement officials held during the peak
of the 2002 corporate crime wave, President Bush proclaimed that his administration's
efforts to crack down on corporate crime were "sending a clear warning
and a clear message to every dishonest corporate leader: You will be exposed
and you will be punished."
But months before, Bush administration officials had sent corporate criminals
a very different message: we're open for business.
In 2001, the administration quietly repealed a contractor accountability
standard passed by the Clinton administration, which clarified Federal
Acquisition Regulation (FAR) standards for "integrity and business ethics"
that prospective bidders for federal contracts were required to meet.
Government officials admit that without the rule, specific decisions
regarding suspension and debarment are left to individual agencies. Critics
say the lack of a consistent standard has allowed politics to influence
enforcement of acquisition regulations. The evidence for that, they say,
is clear from the administration's debarment of a few infamous companies
(e.g. Enron) at the same time that other, less notorious, corporate criminals
continue to receive federal contracts.
"The debarment process is obviously broken, and we need to find a way
to fix it," says Danielle Brian, executive director of the government-watchdog
group the Project on Government Oversight (POGO).
According to a 2002 POGO investigation of top federal contractors, between
1990 and 2001 the top 10 federal contractors had 280 instances of misconduct
and alleged misconduct and paid more than $1.97 billion in fines, penalties,
restitution, settlements and cleanup costs. Four of the top 10 government
contractors had at least two criminal convictions. Yet only one of the
top 43 contractors was ever suspended or debarred from doing business
with the government -- in that case for just five days.
The year after the POGO study, in 2003, the Air Force barred three Boeing
space contract units from federal contracts after company employees had
been caught with thousands of proprietary documents stolen from rival
Lockheed Martin. Although it was one of the largest government sanctions
ever against a military contractor, it only applied to the specific Boeing
divisions involved. Industry analysts say the lost contracts represent
less than 1 percent of the giant contractor's projected revenues through
2009.
A Pattern of Inconsistency
When the FAR rule was first proposed, business leaders such as the U.S.
Chamber of Commerce attacked it as a draconian "blacklisting" standard
that threatened "the interests of American workers" [see "Controlling
Corporate Scofflaws or Blacklisting?" Multinational Monitor, July/August
1999].
Yet a GAO investigation released in 2002 found that only 39 of 17,000
contractors awarded new contracts during 2000 might have been captured
by the rules for violating one or more federal laws between 1997 and 1999.
"Suspension from government procurements is appropriate where adequate
evidence shows that a company or person has committed misconduct related
to business ethics and integrity, or other irregularities relevant to
their present responsibility, and where a pending investigation or legal
proceeding is examining those questionable activities," the GSA announced
when it banned Enron and its accounting firm Arthur Andersen from federal
contracts in March 2002, prior to the accounting firm's June 2002 conviction
for obstruction of justice.
If anything, the repeal of the FAR rule has increasingly politicized
the procurement process by reverting to the vague provisions that stood
before the rule was enacted.
In May, for example, Public Citizen challenged a Department of Defense
decision to grant an exclusive $36 million electricity contract to Reliant
Energy for Andrews Air Force base and Walter Reed Army Medical Center
while the company was under indictment for its role in creating the California
energy crisis. According to Public Citizen, Reliant has contributed $539,000
to President Bush and the Republican National Committee from the 2000
elections on.
Too Big to Debar?
Without a clear standard, critics also point out that small firms are
penalized much more often than big, well-connected companies. While the
General Services Administration (GSA, which oversees government contracting
and procurement) currently has a list of over 2,700 companies that it
has suspended or debarred from government contracts, there are few well-known
names on the excluded party list.
Perhaps the best example is the embarrassing history of the federal government's
treatment of WorldCom. On the same day in May 2003 that the SEC announced
a proposed penalty for the biggest accounting fraud in history (estimated
at $11 billion), the Pentagon awarded WorldCom a $45 million contract
to rebuild Iraq's wireless network (even though the company had no previous
experience with wireless technology).
In fact, the Iraq contract was just one of many the company received
after its book cooking was revealed. WorldCom/MCI racked up $507 million
worth of contracts in 2002 and another $772 million in the first half
of 2003 before the GSA finally announced that it was suspending the company
from receiving any more contracts.
"It is important that all companies and individuals doing business with
the federal government be ethical and responsible," GSA Administrator
Stephen Perry explained when the suspension was finally announced in July,
adding that the agency needed to "protect the interests of the government
and taxpayers."
Even after the suspension, U.S. agencies continued to grant WorldCom
more than $100 million worth of work through an obscure waiver process.
Six months later, the GSA reinstated the company, just in time for MCI
to receive a new one-year contract extension to provide telecommunications
service for numerous government agencies.
"I question whether GSA made the right decision in reinstating MCI when
allegations involving the company remain under investigation by federal
authorities," Senator Susan Collins, R-Maine, stated.
Crony Contracting
A series of fraudulent billing, kickbacks, cost overruns and "systemic"
deficiencies associated with Halliburton's work in Iraq has caused a number
of Democrats, including Senate Minority Leader Tom Daschle, D-South Dakota,
to call for a freeze on any new contracts until the ongoing investigations
are resolved.
According to a Defense Contract Audit Agency audit filed on December
31, "Halliburton repeatedly violated the Federal Acquisition Regulation."
Halliburton is also still under investigation by various federal agencies
for accounting fraud, conducting business with state sponsors of terror
(e.g. Iran) and allegations of bribery associated with its operations
in Nigeria.
Yet army suspension officer Robert Kittel, the Army's representative
to the Interagency Suspension and Debarment Coordinating Committee, says
no decision to suspend or debar the company will be made until ongoing
investigations are concluded. Even then, it's unlikely the company would
be suspended unless it was indicted for a crime.
"Do I have to wait for, or does any suspension or debarment official
have to wait for a criminal action to be filed? If you look at the FAR,
of course you don't," Kittel told the Monitor. "But you're supposed to
be fair. You're supposed to ensure that the government is protected �
and you want to know what the facts are before you take an action."
Moreover, Kittel says, even if Halliburton were proposed for suspension
or debarment, under the existing standards, contracting officials would
still be able to create an exception, "based on the compelling needs of
that agency." Given the inside track Halliburton has had so far in obtaining
the no-bid contracts it operates under in Iraq, even procurement officers
who wanted to suspend the company might find it difficult to convince
officials higher up the ladder to agree.
Contractor Accountability
The federal government is the largest single consumer in the world
-- spending an estimated $265 billion a year of taxpayer money on goods
and services. Federal contracting standards therefore can potentially
exert a meaningful impact on corporate behavior.
To remedy the lack of consistent suspension and debarment standards,
a bipartisan group of representatives introduced the Contractor Accountability
Act of 2003, which would create a central database of legal actions taken
by the government against federal contractors and "provide debarring officials
with the information they need" to protect U.S. taxpayers. "The federal
government should not be in the business of repeatedly awarding contracts
to companies that repeatedly break the rules," says Representative Carolyn
Maloney, D-New York, a co-sponsor of the bill.
Maloney's bill has not made it out of committee.
-- Charlie Cray
AUTHORS OF BUSH DISSECTION ARTICLES
Charlie Cray, a contributing writer to Multinational Monitor, is director
of the Center for Corporate Policy and co-author of the forthcoming The
Peoples Business: Controlling Corporations and Restoring Democracy
(Berrett-Kohler).
Lee Drutman is communications director for Citizen Works and co-author
of the forthcoming The Peoples Business: Controlling Corporations
and Restoring Democracy (Berrett-Kohler).
David Helvarg is president of the Blue Frontier Campaign and author of
The War Against the Greens, (Johnson Books, 2004).
Jason Mark is the co-author, with Kevin Danaher, of Insurrection: Citizen
Challenges to Corporate Power (Routledge, 2004). He works for Global Exchange.
Jeff Shaw is a freelance writer based in Oregon.
Patrick Woodall is a writer in Washington, D.C. and co-author of Whose
Trade Organization? (New Press, 2004).
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