Joshua Frank: Democratic Blood Money

[babylonsister]

As much as it pains me, I think this article needs to be read for the sake of fairness.

http://www.informationclearinghouse.info/article17485.htm

Senator Feinstein's War Profiteering

Democratic Blood Money

By JOSHUA FRANK
04/05/07 "ICH" - - -- - Democratic Senator Dianne Feinstein of California silently resigned from her post on the Military Construction Appropriations subcommittee (MILCON) late last week as her ethical limbo with war contracts began to surface in the media, including an excellent investigative report written by Peter Byrne for Metro in January. MILCON has supervised the appropriations of billions of dollars in reconstruction contracts since the Bush wars began.

Feinstein, who served as chairperson and ranking member for the committee from 2001-2005, came under fire early last year in these pages for profiting by way of her husband Richard Blum who held large stakes in two defense contracting companies. Both businesses, URS and Perini, have scored lucrative contracts in Iraq and Afghanistan in the last four years, and Blum has personally pocketed tens of millions of dollars off the deals his wife, along with her colleagues, so graciously approved.

Here’s a brief rundown of the Feinstein family’s blatant war profiteering. In April 2003, the U.S. Army Corps of Engineers gave $500 million to Perini to provide services for Iraq's Central Command. A month earlier in March 2003, Perini was awarded $25 million to design and construct a facility to support the Afghan National Army near Kabul. And in March 2004, Perini was awarded a hefty contract worth up to $500 million for "electrical power distribution and transmission" in southern Iraq.

But it is not just Perini that has made Feinstein and Blum wealthy. Blum also held over 111,000 shares of stock in URS Corporation, which is now one of the top defense contractors in the United States. Until 2005 Blum was an acting director of URS, which bought EG&G, a leading provider of technical services and management to the U.S. military, from the neocon packed Carlyle Group back in 2002.

"As part of EG&G's sale price," reports the San Francisco Chronicle, "Carlyle acquired a 21.74 percent stake in URS -- second only to the 23.7 percent of shares controlled by Blum Capital."

URS and Blum have since banked on the war in Iraq, attaining a $600 million contract through EG&G, which Sen. Feinstein permitted. As a result, URS has seen its stock price more than triple since the war began in March of 2003. Blum has cashed in over $2 million on this venture alone and another $100 million for his investment firm.

more...

[orwell]

1. Cozy...

...and disgusting, but par for the course.

This reminds me of the revolving door which exists between capitol hill and K Street, a very profitable sideline for our so called leaders granting them an endless supply of money and influence.

Hey Diane, ever heard of the words "conflict of interest?"