The Bush Crony Full-Employment Act of 2003

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http://www.dissidentvoice.org/Oct04/Pringle1026.htm

 

The Bush Crony Full-Employment Act of 2003

by Evelyn J. Pringle

 

 

www.dissidentvoice.org

October 26, 2004

 

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Josh Marshall writes a column for The Hill, a Congressional newspaper.

Josh says that every big new piece of legislation needs a catchy

title to set it apart, and he came up with a good title for the $87

billion allocated to rebuilding Iraq. " The Bush Crony Full-Employment

Act of 2003. " I like that, it's very fitting.

Who is Joe Allbaugh?

 

Anybody remember Joe Allbaugh? He was part of the inner circle in

Bush's 2000 presidential campaign, along with Karl Rove and Karen

Hughes. In January 2001, Bush put Allbaugh in charge of the Federal

Emergency Management Agency (FEMA), which dispenses disaster money and

loans after hurricanes, floods and fires.

New Bridge Strategies

 

I think Joe missed his calling. He should be a fortune teller,

because somehow he knew a couple of weeks before Bush declared war on

Iraq that he should quit his government job and go into the business

of helping wealthy clients secure Iraqi reconstruction contracts.

 

Of course Joe didn't say that at the time. When he announced his

resignation from FEMA on March 1, 2003 he said, " Now I am going to

take the opportunity to spend some time with my wife and children. "

Well his family could not have enjoyed too much quality time with Joe

because in a matter of weeks he opened a new firm called New Bridge

Strategies.

 

True to form, with the press seemingly unwilling to publicize the war

profiteering aspects of the war in Iraq, the formation of New Bridge

basically went unnoticed by the American public and only briefly

showed up in the headlines.

 

It deserved public attention because of the Republican heavyweights on

its board that were linked to one or the other Bush administrations or

to the family itself. The members not only included Allbaugh, but

also Ed Rogers and Lanny Griffith, former George H.W. Bush aids.

 

The president of the company, John Howland, and principal Jamal Daniel

were business partners of first brother Neil Bush.

 

Josh Marshall says New Bridge is actually an outgrowth of Haley

Barbour's lobbying firm, Barbour Griffith & Rogers (BGR). Josh says

he came to this conclusion after he learned that both firms were

located in the same office space. And also because Griffith is the

CEO of New Bridge and Rogers is the vice president. Sounds to me like

he reached the right conclusion.

 

Others agree. " The bottom line on New Bridge is that it appears to be

very closely linked to BGR, which has many overlapping ties to the

highest levels of the Republican Party, " said Thomas Ferguson, a

campaign finance expert at the University of Massachusetts, the

October 15, 2004 Village Voice reports.

 

So here's the setup. Bush's main man Joe quits FEMA to spend time

with his family, right before the bombs start falling in Iraq. He

then moves into the offices of one of the biggest and most politically

connected GOP lobbying firms in Washington and starts advertising

services to clients who want to win reconstruction contracts in Iraq.

How could it possibly get any sweeter than this?

Allbaugh Has A Big Heart

 

According to the Oct 6, 2003 New York Times, Allbaugh " is here to tell

you that his new company, which advises clients on how to get business

in Iraq, is not trading on his White House connections. The Iraqis

need assistance ... and he can help. "

 

Although its connections to the administration may not have received

much attention in the media, the company itself was not shy about

advertising its contacts. Its website as much as brags about the

company's links to Bush, by specifically pointing out that Allbaugh

was " chief of staff to then-Gov. Bush of Texas and was the national

campaign manager for the Bush-Cheney 2000 presidential campaign. "

 

It says New Bridge is " a unique company that was created specifically

with the aim of assisting clients to evaluate and take advantage of

business opportunities in the Middle East following the conclusion of

the U.S.-led war in Iraq. " I'm surprised that the site doesn't have a

blinking neon sign saying AKA war profiteering.

 

Initially, it said, " the opportunities evolving in Iraq today are of

such an unprecedented nature and scope that no other existing firm has

the necessary skills and experience to be effective both in

Washington, D.C., and on the ground in Iraq. " But someone must have

warned Allbaugh that that particular sentence was a little too obvious

because that phrasing has since been changed on the web site.

 

Allbaugh himself didn't seem to give his ties to the administration a

second thought. According to a Sept 30, 2003 article in Mother Jones,

he claimed, " It's beneficial to clients that I know who the players

are and I know who the decision makers are. "

 

Middle East specialist, Richard Murphy, viewed it differently and was

quick to point out that the Bush ties to New Bridge would only

validate what was already suspected. " In the Middle East, it will be

received as confirming the weary cynicism prevailing in the area about

US intentions in launching the attack on Iraq in the first place, "

said Murphy.

 

Allbaugh denied having any improper motives. " The stories I've seen

have been couched as if people are trying to game the system, and

that's not what we're about, " he said. " We are trying to help Iraq

become a capitalist country, and a leader throughout the Middle East.

Iraqis themselves are asking for help, " wrote the New York Times.

 

That's funny, I thought the Iraqis had said they wanted us to get the

hell out of their country and leave them alone. I wonder why I never

knew that they asked Joe to help?

 

Joe seems baffled that anyone would question his assertion about

wanting to help the poor Iraqis. " We fought a war, we displaced a

horrible, horrible regime, and as a part of that we have an obligation

to help Iraqis, " he said. " We can't just leave in the middle of the

night. "

 

He gets downright defensive if you question his business practices. On

Oct 6, 2003, he told a New York Times reporter, " Because my friend is

president of the United States, I'm supposed to check out of life? "

 

To that I would say no Joe, of course you don't have to check out of

life. But you also don't quit your government job before the

president even admits that he's taking the country to war and set up

shop to start advertising to get contracts for work in a country that

you somehow know we're about to destroy.

Another Funnel: Diligence Security Company

 

Its clear that BGR was instrumental in bringing other companies into

New Bridge's fold, including Diligence, a security firm set up by

former US and British intelligence officers.

 

On Oct 6, 2003, Allbaugh told the New York Times that, " As part of his

package for clients ... he offered security in the form of yet another

new company, Diligence Iraq, which worked hand-in-hand with New

Bridge. New Bridge is a minority partner in Diligence Iraq, which is

just opening up in Baghdad. Mike Baker, the head of Diligence Iraq,

serves as an advisory board member of New Bridge. "

 

In other words, explained the Times, " if your company wants to send

over three people from New York to investigate business opportunities

in Baghdad, Mr. Baker will secure the way in: a three-car convoy of

armed S.U.V.s driving 90 miles an hour, to avoid bandits, in an

eight-hour-plus streak across the desert from the border of Jordan or

Kuwait, " it said.

 

BGR provided the initial funding for Diligence, according to Nick Day,

a co-founder of the firm. Like New Bridge, it was given office space

at BGR's Washington office. BGR also provided the firm's advisory

board. Many of the names on the Diligence board, including the

Carlyle Group's Ed Mathias, match the names on the board of New Bridge.

 

And the web of ties in this grand war profiteering scheme just keeps

getting more and more entwined. In return for finding an investor for

Diligence in Iraq, New Bridge got a minority shareholding in the firm.

 

According to a June 22, 2004 article on Corporate Watch, Diligence is

now headed by Richard Burt, former US Ambassador to Germany and a

consultant in the Carlyle Group (which also has George Bush Sr, John

Major and James Baker on its payroll). Whitley Bruner, formerly head

of the CIA Baghdad station, is now director of the Iraq branch of

Diligence.

 

And guess what? The deputy chairman of Diligence is none other than

Joe Allbaugh.

Objections to Cronyism and Privatization

 

Is it any wonder that critics are questioning the propriety of the

reconstruction effort? " I'm appalled that the war is being used by

people close to the Bush Administration to make money for themselves, "

Democratic Rep Henry Waxman said. " At a time when we're asking young

men and women to make perhaps the ultimate sacrifice, it's just unseemly. "

 

Bush keeps bringing up the fact that Kerry and Edwards voted against

the $87 billion. But he fails to mention their reasons, and

specifically those that pertain to Allbaugh.

 

On Sept 30, 2003, while the bill was being debated in the Senate,

Edwards explained why he was against the bill. He said, " This is an

administration of the insiders, for the insiders, and by the insiders.

Learning that George Bush's campaign manager, Joe Allbaugh, has

started his own consulting firm to profit from the war in Iraq proves

this point, " Edwards said. " First, Vice President Cheney's Halliburton

receives more than $2 billion in Iraq reconstruction contracts and now

this. "

 

Edwards said, " It is an outrage and disrespectful to the young men and

women who are serving in Iraq today. President Bush should start

addressing this credibility gap by calling on Joe Allbaugh and his

friends to stop using their influence to secure government contracts

in Iraq, and by agreeing to an independent oversight panel to ensure

that contracts in Iraq are administered fairly. "

 

" In this enormously expensive mission, the American people ought to be

assured that any dollar we spend there is for the rebuilding of Iraq,

and not just the building of profit for the president's friends and

political supporters, " he said.

 

On Oct 14, 2003, Edwards said he would vote against $87 billion

because Bush had failed to outline a credible long-term plan for

rebuilding the country, failed to persuade allies to help shoulder the

costs, and failed to stop sweetheart deals for politically-connected

companies.

 

" We used to talk about this money as a blank check. Well, now we know

it's not really a blank check. We know the president is writing it out

to Joe Allbaugh and Halliburton, and it's all endorsed by Vice

President Cheney, " Edwards said.

Always Close By: Bush Family Funnel

 

True to form, if there's a tax dollar to be skimmed off a business

deal a Bush family funnel will be there to grab it. This time it's

First Brother Neil Bush. On Dec 11, 2003, The Financial Times of

London reported that, " Two businessmen instrumental in setting up New

Bridge Strategies, a well-connected Washington firm designed to help

clients win contracts in Iraq, have previously used an association

with Neil, the younger brother of President Bush, to seek business in

the Middle East. "

 

That would be New Bridge president John Howland and Jamal Daniel, a

principal. As it turns out, Neil landed a $60,000 a year consultant

contract for which, according to his testimony in a divorce

deposition, he is required to take phone messages for about 3 hours a

week.

 

However, Neil is being far too modest about his consultant work.

According to the Times, he is doing much more than answering phones.

Three people contacted by the Financial Times said they have seen

letters written by Neil that recommend business ventures promoted by

New Bridge in the Middle East. So in a nutshell, Neil is being paid an

annual fee to " help companies secure contracts in Iraq, " the Times

reports.

Bush Sends Bremer To Privatize Iraq

 

According to a Sept 2004 article in Harper's Magazine by Naomi Klein,

" before the fires from the 'shock and awe' military onslaught were

even extinguished, [former US proconsul of Iraq L. Paul] Bremer

unleashed his shock therapy, pushing through more wrenching changes in

one sweltering summer than the International Monetary Fund has managed

to enact over three decades in Latin America. "

 

In his first major act on the job, Bremer " fired 500,000 state

workers, most of them soldiers, but also doctors, nurses, teachers,

publishers, and printers. Next, he flung open the country's borders to

absolutely unrestricted imports: no tariffs, no duties, no

inspections, no taxes. Iraq, Bremer declared, was " open for business, "

says Harper's.

 

Before the war, Iraq's non-oil-related economy consisted of 200

state-owned companies, that produced everything from cement to paper

to washing machines. In June, Bremer attended an economic summit in

Jordan and announced that the firms would be privatized immediately.

" Getting inefficient state enterprises into private hands, " he said,

" is essential for Iraq's economic recovery, " according to Harper's.

 

In September, to entice investors to buy the state-owned companies,

Bremer enacted a new set of laws. For example, Order 37 lowered

Iraq's corporate tax rate from roughly 40% to a flat 15%. Order 39

allowed foreign companies to own 100% of Iraqi assets outside of the

natural-resource sector.

 

Investors could take 100% of the profits they made in Iraq out of the

country. They would not be required to reinvest and would not be

taxed. Under Order 39, they could sign leases and contracts that would

last for forty years. Order 40 welcomed foreign banks to Iraq under

the same favorable terms, said Harper's.

 

At first, privatization seemed likely. For as Harper's notes,

" Iraqis, reeling from violence both military and economic, were far

too busy staying alive to mount a political response to Bremer's

campaign. Worrying about the privatization of the sewage system was an

unimaginable luxury with half the population lacking access to clean

drinking water; the debate over the flat tax would have to wait until

the lights were back on, " it said.

 

By fall, rebuilding trade shows were being held all over the place.

The Economist described Iraq under Bremer as " a capitalist dream, " and

a flurry of new consulting firms were launched promising to help

companies get access to the Iraqi market, their boards of directors

stacked with well-connected Republicans, Harper's said.

 

The most prominent was New Bridge and it was absolutely jubilant over

the potential opportunities in Iraq. " Getting the rights to

distribute Procter & Gamble products can be a gold mine, " one of the

company's partners enthused. " One well-stocked 7-Eleven could knock

out thirty Iraqi stores; a Wal-Mart could take over the country, "

Harper's quoted.

 

Iraq seemed like a gold mine. There were rumors that a McDonald's

would be opening, funding was almost in place for a Starwood luxury

hotel, and General Motors was planning to build a factory. On the

financial side, HSBC would have branches all over the country,

Citigroup was preparing to offer loans guaranteed against future sales

of Iraqi oil, and the bell was going to ring on a New York style stock

exchange in Baghdad any day, said Harper's.

 

However none of that came to pass. For good reason. Klein explained

that Bremer's illegal changes to Iraqi law may have made the country

the most friendly in the world to corporations, but they were the

least useful to Iraqi workers suffering an unemployment rate over 60%.

 

During the past year and a half, the whole world has watched as the

Iraqis refused to hand over their country to Bremer and the plan for

privatization went right down the tubes.

 

Bush cronies who drooled at the prospect of making mega-bucks in Iraq

are no longer drooling. According to Harper's, " New Bridge

Strategies, the company that had gushed about how " a Wal-Mart could

take over the country, " is sounding distinctly humbled. " McDonald's is

not opening anytime soon, " company partner Ed Rogers told the

Washington Post. Neither is Wal-Mart. "

What Happens To Iraq Now?

 

God only knows what will happen to Iraq now. The Financial Times has

called it " the most dangerous place in the world in which to do

business. " Harper's described the mess created by the Bush gang:

" It's quite an accomplishment: in trying to design the best place in

the world to do business, the neocons have managed to create the

worst, the most eloquent indictment yet of the guiding logic behind

deregulated free markets. "

 

But don't worry about old Joe. Things may not have gone as planned in

Iraq, but he's branching out and finding other ways to cash in on the

war. According to the Sept 30, 2004 Fairfield County Weekly, Allbaugh

started yet another consulting company with Andrew Lundquist, the

former director of Dick Cheney's secretive energy policy task force.

The firm's first client? Lockheed Martin, one of the country's

largest defense contractors.

 

Never fear, wherever there's an opportunity for profiteering, a Bush

funnel will be there.

 

Evelyn J. Pringle is an Ohio-based investigative journalist, and a

columnist for Independent Media TV. She can be reached at:

e.pringle. © Copyright 2004 Evelyn J. Pringle.