Perle in more hot water for Global Crossing contract

[Dave Farber <dave () farber net>]

------ Forwarded Message
From: James Ausman <ausman () CSUA Berkeley EDU>
Date: Tue, 25 Mar 2003 11:26:42 -0800 (PST)
To: dave () farber net
Subject: Perle in more hot water for Global Crossing contract

Dave,

This is the guy who called Sy Hersh a "terrorist" for questioning his
conflicts of interest as an investor in Trireme Partners.

Cheers,
Jim

----

http://story.news.yahoo.com/news?tmpl=story&ncid=584&e=1&cid=584&u=/nm/20030
325/pl_nm/congress_perle_dc

WASHINGTON (Reuters) - A senior Democrat called for an investigation of
Richard
Perle, an influential architect of the war on Iraq (news - web sites), for
possible conflicts of interest in his roles as corporate adviser and
Pentagon (news - web sites) consultant.

Rep. John Conyers, the top Democrat on the House of Representatives
Judiciary 
Committee (news - web sites), asked the Pentagon's inspector general to
probe 
Perle's work as a paid adviser to bankrupt telecommunications company Global
Crossing Ltd. and guide to companies on investment opportunities resulting
from the Iraq conflict.

Perle was not available for comment on Tuesday but has said he has always
followed ethics rules. A spokesman for the Defense Department was not
available for comment on the issue.

"I am aware of several potential conflicts that warrant your immediate
review,"
Conyers said on Monday in a letter to the Defense Department's Inspector
General Joseph Schmitz. The letter was made available on Tuesday.

"Mr. Perle is considered a 'special government employee' and is subject to
government ethics prohibition -- both regulatory and criminal -- on using
public office for private gain," Conyers' letter said.

Perle chairs the Defense Policy Board, created in 2001 to advise the
Pentagon, 
but has no official policymaking role and is not paid. A leading Washington
hawk, he has played an influential role in developing the Bush
administration's
blueprint for ousting Iraqi President Saddam Hussein (news - web sites).

Critics have questioned Perle's activities when not advising Secretary of
 Defense Donald Rumsfeld.

GLOBAL CROSSING REVIEW

Perle signed on to help Global Crossing, a bankrupt operator of an
international fiber-optic network, win U.S. approval to sell a 61.5 percent
stake to Hutchison Whampoa Ltd. and Singapore Technologies Telemedia Pte.

The plan has run into trouble with a little-known panel called the
Committee on Foreign Investment in the United States. The panel, made up of
Rumsfeld and other top national security officials, examines mergers and
acquisitions for potential harm to U.S. interests and can block such deals.

Global Crossing began talks to restructure its deal after the panel raised
concern that its network would be controlled by a company with strong ties
to 
China. Hutchison is majority owned by Hong Kong's richest man, Li Ka-shing.

Perle has said he would be paid $125,000 for his advice and another $600,000
if the government approves the deal.

Conyers noted a New York Times article citing a March 7 affidavit in which
Perle discussed his "unique perspective" on national defense and security
issues and said he had contacted a government official on Global Crossing's
behalf.

"The fact that Mr. Perle may be reconsidering filing the affidavit does not
alter the existence of the alleged conflict," Conyers said.

Conyers also asked the Pentagon to probe reports that Perle participated in
a 
conference call sponsored by Goldman Sachs to discuss investment
opportunities 
emerging from the war in Iraq and that he received stock options from a
company
that does business with the U.S. military.

"I would submit that it is a conflict of interest for a high-ranking
government
official to be proffering advice on how to profit from the war," Conyers
said.

A Goldman Sachs spokesman had no immediate comment.

Conyers also pointed out that Perle sits on the board of Autonomy Corp.,
which 
lists the U.S. Army and military as customers, and received stock options.


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