Defense nominee's business ties raise concerns
Robert M. Gates' affiliations have some watchdogs worried about a revolving door between the private sector and government.
By Walter F. Roche Jr., Times Staff Writer
December 2, 2006
WASHINGTON — In the 14 years since he left government, former CIA director Robert M. Gates has jetted cross-country to advise 10 different companies, assessing issues as varied as Saudi oil drilling, mutual fund performance and restaurant sales at Romano's Macaroni Grill.
"I first sought him out because I considered him to be of exceptional good judgment and intelligence," said Rodney B. Mitchell, president of the Mitchell Group, a Houston investment firm that used Gates as a senior advisor. Impressed with Gates' recent performance as president of Texas A&M University, Mitchell believed Gates offered "pragmatism" to a firm that aims "to exploit the rapidly changing dynamics of world energy markets."
But as Gates awaits Senate confirmation as President Bush's secretary of Defense, ethics watchdogs worry about the revolving door between government and private business that allowed Gates to align himself with defense contractors, investment houses and a global drilling company involved with Vice President Dick Cheney's former employer, Halliburton Co.
Companies with which Gates has been affiliated have secured hefty no-bid Pentagon contracts, and "you have to wonder if these companies will continue to get around bidding requirements once Gates is secretary," said Alex Knott, political director of the Center for Public Integrity, a Washington-based watchdog group.
Common Cause, another nonprofit watchdog, believes Gates should take steps now to insulate himself, including placing his stock holdings — some of which he acquired in return for board service — in a blind trust to avoid conflicts of interest with companies seeking federal work....
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