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April, 2003

Pentagon Hawk Advisor to Bankrupt Corporation
By Jim Scanlon

The Chairman of the influential US Defense Policy Board, Richard Perle is an advisor---but not apparently a lobbyist --- for the Global Crossing Corporation whose CEO legally sold some $800,000 million in company stock as he ran it into bankruptcy.

Perle received $725,000 to represent Global Crossing before the Defense Department's Committee on Foreign Investment in the US (CFIUS) which has held up, on National Security grounds, plans for Global Crossing to be taken over by a Chinese Company. He will receive $600,000 more if the deal goes through, a contingency reported to be highly unusual in lobbying in Washington.

Perle was an undersecretary for defense during the Reagan administration and has close ties with prominent Republicans in the GW Bush administration, including Donald Rumsfeld the Secretary of Defense, who appointed him to the policy board in 2001. He is a long term advocate of war with Iraq, a policy he, and others in the GW Bush administration, also recommended to the Israeli government of Benjamin Netanyahu a few years ago.

Perle filed papers with CIFUS in which the following phrase appeared, "As Chairman of the Defense Policy Board I have a unique perspective on and intimate knowledge of the national defense and security issues that will be raised by the CFIUS review process..."

After a reporter raised questions as to whether Mr. Perle was using his position in the Defense Department to benefit a client, Perle claimed he had taken the phrase out of a draft, but it was replaced in "... a clerical error and not my error."

Global Crossing is one of the many bankrupt US corporations that have cost shareholders billions of dollars while maintaining close ties to the Bush Administration and prominent republicans. George Bush Sr. was paid $14 million dollars in stock options for making two speeches for the company, a handsome fee which netted Bush $4.5 million cash. He sold his stock just days before the stock fell to junk level.

Coincidence? Some say not!

 

 

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