back to work

After the USAID awarded controversial contracts to Bechtel and Halliburton for work in Iraq, should it come as any surprise that WorldCom can be added to the list?

One day after agreeing to pay a $500 million dollar fine with the SEC for an $11 billion dollar accounting fraud, it was announced that WorldCom had snagged a $45 million dollar contract for work in Iraq. According to an AP news report, the company is "to build a small wireless network with 19 cell towers that can serve 5,000 to 10,000 mobile phones used by reconstruction officials and aid workers in the Baghdad area." There is no evidence the contract was competitively bid.

Motorola Corporation has been awarded a contract for up to $25 million to set up a radio communications network for Iraqi security and coalition forces in Baghdad. Motorola also manages contracts for similar services in nearby Oman.

Company WorldCom (also known as MCI)
Award $45 million
Agency Department of Defense
Pre-planning
Date of RFP
Date of Award early May 2003
Nature of work To build a small wireless network for use by reconstruction officials and aid workers in the Baghdad area.
Reference

Company Motorola Corp
Award $25 million
Agency Department of Defense
Pre-planning
Date of RFP
Date of Award May 2003
Nature of work To set up a radio communications network for Iraqi security and coalition forces in Baghdad.
Reference

meanwhile, back in Texas

The law firm of Haynes & Boone has announced a new specialty division:

Haynes and Boone, LLP, an international corporate law firm, recently announced the formation of its Iraq Transactions and Claims Practice Group, built to assist clients in securing business opportunities in the risky and uncertain markets emerging in Iraq. The firm will leverage its attorneys' expertise in working with countries in transition, its excellent governmental contacts, and the firm's extensive knowledge and experience of establishing a viable business presence in the international arena.

Now just who would those excellent governmental contacts be? Well, President George W. Bush would be one. Haynes & Boone contributed $52,600 to Bush's 2000 presidential campaign by 'bundling' contributions supposedly from employees. Co-founder Michael M. Boone has been a long time Bush supporter having also personally contributed to Bush's earlier Texas Gubernatorial campaigns. Boone is also one of the 'Pioneers' each of who raised at least $100,000 for Bush's Presidential Campaign.

Boone and Bush go back a bit. In 1990, Haynes & Boone advised Harken Energy on Bush's pending stock sale and whether it would represent a conflict of interest.

On June 22 1990, George W. Bush sold 212,140 of his 317,152 shares in Harken Energy in an allegedly prearranged stock trade for a total of $848,560; 41 days before Iraq invaded Kuwait and 8 days prior to the end of the second quarter during which it had become apparent that Harken would have to restate its 1989 earnings (major loss) in addition to other operating losses it had incurred that quarter. He managed to sell his stock near its high at $4/share. He made a 200% profit on the trade. This insider trade was not disclosed to the SEC until some 8 months later.

Haynes & Boone issued a 9 page memo outlining their point of view. The memo was withheld from the SEC until one day after their inquiry into the sale had ended.

Harken Energy executive's claimed client-attorney privilege for withholding the Haynes and Boone memo from the SEC. It should come as no surprise that Vice President Dick Cheney is claiming executive priviledge for why he will not release his notes on energy meetings to the GAO.