- WASHINGTON (Reuters) - A
senior Democrat called for an investigation of Richard Perle, an influential
architect of the war on Iraq, for possible conflicts of interest in his
roles as corporate adviser and Pentagon consultant.
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- Rep. John Conyers, the top Democrat on the House of Representatives
Judiciary Committee, 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.
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- 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.
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- "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.
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- "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.
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- 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.
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- Critics have questioned Perle's activities when not advising
Secretary of Defense Donald Rumsfeld.
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- GLOBAL CROSSING REVIEW
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- 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.
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- 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.
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- 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.
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- Perle has said he would be paid $125,000 for his advice
and another $600,000 if the government approves the deal.
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- 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.
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- "The fact that Mr. Perle may be reconsidering filing
the affidavit does not alter the existence of the alleged conflict,"
Conyers said.
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- 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.
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- "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.
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- A Goldman Sachs spokesman had no immediate comment.
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- 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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