Nation Topics - Corporations
News and Features
George W. Bush must be feeling an acute sense of déjà vu these days, as the dubious dealings of the accounting firm Arthur Andersen, LLP take center stage in the Enron scandal.
The Supreme Court has made a decision that is wrongheaded, and wrong.
For weeks, conservative commentators and Bush White House defenders have been huffing that the Enron matter is a corporate scandal, not a political controversy--that it is an affair of business sku
The pirate ship has sunk beneath the waves.
The swabs who haven't gone to wat'ry graves
Row desperately, though all of them now know
Their water and their food are running low.
They row their wretched boats and curse their lot.
Receding in the distance is a yacht
That carries all their officers, who knew
The ship was doomed but didn't tell the crew.
The officers stand tall. They saw their duty:
Desert the ship by night and take the booty.
Last spring Richard Pollak asked in these pages, "Is GE Mightier Than the Hudson?" (May 28, 2001). Given the Environmental Protection Agency's December 4 decision to dredge the PCB-contaminated river, it is tempting to ring in the new year with a resounding No. Despite the company's multimillion-dollar blitz of lawyering, lobbying and PR, the Bush Administration, in the person of its EPA Administrator, Christine Todd Whitman, has come down squarely on the side of those in New York's historic Hudson River Valley who have been agitating for years to make GE clean up the lethal mess it created by dumping more than a million pounds of polychlorinated biphenyls in the river from the 1940s into the 1970s. This pollution has turned 200 miles of the Hudson, from just above Albany south to New York Harbor, into the biggest Superfund site in the nation; EPA law requires that GE pay the cost of removing the toxic chemicals, which the agency estimates at $460 million. More than once, the company has told its stockholders it can well afford this sum, as a multinational with a market value of some $500 billion surely can.
Still, it may be premature to pop the champagne corks. This past fall, fearing that Whitman might follow the lead of her Clinton Administration predecessor, Carol Browner, and endorse the cleanup, GE filed a federal suit attacking as unconstitutional a Superfund provision that allows the EPA, if the company refuses to dredge, to do the job itself and bill GE for three times the final cost plus penalties of $27,500 a day. GE has plenty of time (and cash) to pursue this and other maneuvers against dredging, which is needed to remove some 150,000 pounds of PCBs still in the Hudson. The EPA estimates it will take at least three years to work out the project's engineering and other details--e.g., what kind of equipment is needed, how much stirred-up sediment is acceptable and what landfills can safely handle the contaminated mud. Many residents along the banks of the river are divided--sometimes angrily--on these and several other issues. During the EPA's 127-day comment period in 2001 it received about thirty-eight boxes of letters and 35,000 e-mails, many spurred by GE's scare campaign--on billboards, in newspaper ads and on TV infomercials--warning that dredging will destroy the river.
The EPA has pledged that the public will have even more of a voice in the project's design decisions over the coming months--a welcome process but one that GE is likely to exploit with more propaganda. At its enviro-friendly-sounding website (hudsonwatch.com), for example, the company continues to insist, on no hard evidence, that the citizens of the Hudson River Valley oppose dredging "overwhelmingly." Some residents do resist dredging and the inevitable inconvenience it will bring to their communities, and not all have arrived at their view because of GE's PR tactics. But after almost two decades of review by the EPA, the burden of scientific evidence shows that the remaining PCBs, which cause cancer in laboratory animals and probably in humans, continue to poison the river a quarter-century after their use was banned and GE stopped dumping them.
The EPA's December 4 order could be the precedent that requires the company to clean up forty other sites where it has dumped PCBs. This would cost several billion dollars, a hit not so easy to reassure shareholders about. Even with GE master-builder Jack Welch retired and busy flogging his bestselling How-I-Did-It book, don't look for the company to roll over anytime soon.
With developments in the Mumia Abu-Jamal case and Pacifica's re-emergence, the left has a couple of victories under its belt; the Enron scandal develops further.
It's time to ask "borderless" corporations: Which side are you on?
The attacks of September 11 have not only exposed the failures of our intelligence apparatus and the "blowback" problem of US foreign policy. They have also stripped bare how one branch of corporate America, the $273 billion airline industry, has successfully captured the government agency supposed to oversee it and bought off the people's watchdogs in Congress. This situation argues for far-reaching changes in how campaigns are financed and how government agencies are staffed.
The vulnerability of our airports can be traced, in part, to the role of the airline industry in lobbying year after year against any federal takeover of airport security and its insistence on contracting the work out to low-bidding companies that often pay little more than the minimum wage to the people who check passengers' luggage and X-ray their handbags. Last year the General Accounting Office found that starting salaries for screeners at all nineteen of the nation's largest airports was $6 per hour or less, with five boasting starting salaries of just $5.15 per hour. According to the Federal Aviation Administration (FAA), from May 1998 through April 1999 turnover at those same nineteen airports ranged from 100 percent to more than 400 percent. Argenbright, one of the four big companies that dominate the private airport security business in America, pleaded guilty in 2000 to several charges and agreed to pay $1.2 million in fines for falsifying records, doing inadequate background checks and hiring at least fourteen airport workers in Philadelphia who had criminal convictions for burglary, firearm possession, drug dealing and other crimes. In 1978, reports the New York Times, the FAA "found that screeners failed to detect guns and pipe bombs 13 percent of the time in compliance tests, while in 1987 the agency found that screeners missed 20 percent of the time. Since then, the agency has stopped releasing figures."
Despite these worrisome facts, the airlines and their lobby, the Air Transport Association (ATA), fought against any federal takeover of airport security because they didn't want to have to pay more for it and because they didn't want potential passengers scared off by longer lines or fears of a hijacking. And the FAA dragged its heels, in part because its mandate, written by a Congress addicted to millions in transportation-industry campaign contributions, has been not only to insure air safety but also to promote air travel. The airlines alone have given more than $65 million to federal candidates and parties since 1990, and spent roughly the same amount lobbying the federal government between 1997 and 2000.
Much of that boodle helped to weaken the implementation of new security procedures recommended by a 1996 presidential commission chaired by Vice President Al Gore, set up after the TWA 800 crash. For example, according to a report by Public Citizen, the commission's recommendation that the background of all airport employees be checked for criminal records was opposed by the industry because it would create administrative and financial burdens. Even Gore himself backed down on his commission's insistence that all bags be matched to passengers on all flights. The day after he wrote the ATA about his change of heart, campaign contributions started to pour in from the airlines to various Democratic Party committees at double their previous pace.
Many people in Washington have enriched themselves by maintaining this sordid status quo. Current or recent lobbyists for the airlines and/or the ATA include Linda Hall Daschle (wife of Senate majority leader Tom Daschle), Haley Barbour (former Republican National Committee chair), Harold Ickes (deputy chief of staff in the Clinton White House), Ken Duberstein (chief of staff for Ronald Reagan and a crony of Colin Powell), Nick Calio (now President Bush's Congressional liaison) and former Senators Dale Bumpers and Bob Packwood. Three recent FAA administrators, including Linda Hall Daschle, have come from the industry.
So far, nothing has changed in the wake of the September 11 attacks. According to Paul Hudson, director of the Aviation Consumer Action Project, Transportation Secretary Norman Mineta has "excluded all aviation security proponents, consumer or public representatives, air crash victim groups, former FAA security officials critical of aviation security and the manufacturers of advanced aviation security equipment from his advisory group" on new security measures, relying instead on the industry alone. The airlines finally came out in favor of federalizing airport screening, though by September 12 their lobbyists were already plotting the $15 billion taxpayer bailout. A month later, the thousands of laid-off employees, who lack a similarly well-heeled lobby, are still waiting to find out if they will get emergency unemployment, healthcare and job-training support.
US employers like Coca-Cola are implicated in Colombia's brutality.
Industry has been doing all it can to keep an EPA report from being published.
Facebook Like Box