Can't believe you are still spouting the Enron verbage. Have you forgotten about this:
DRUDGE REPORT WED JAN 30 2002 10:36:09 ET
INTRIGUE SURROUNDS $400 MILLION GOVERNMENT AWARD TO
GLOBAL CROSSING
**Exclusive**
Last summer the Bush Administration canceled a Defense Department
contract valued up to $400 million with the soon-to-be bankrupt
GLOBAL CROSSING after question were raised about the bidding
process -- a process top-level GOP insiders now suggest was
sweetened by players from the previous administration!
GLOBAL CROSSING filed the 4th largest bankruptcy in history this
week. Chairman Gary Winnick saw his stock fortune plunge to zero
from a high of more than $5 billion.
During his run Winnick showered political players with cash and
options, helping DNC head Terry McAuliffe turn a $100,000 stock
investment into $18,000,000 in the late 1990s. Winnick gave a million
dollars to help build Clinton's presidential library; hosted fundraising
dinners for Senator Tom Daschle; gifted thousands of dollars to Rep.
Henry Waxman and other key lawmakers on both sides of the aisle.
Six months before Winnick's stunning bankruptcy call -- the United
States awarded GLOBAL CROSSING a massive contract, which
called for an extensive phone and data network linking more than
6,000 scientists and engineers at far-flung defense test centers,
laboratories, universities and industry locations.
The three-year fiber-optic contract, valued at $137 million for the initial
phase and more than $400 million if the Defense Department
exercised all options, was canceled just a month after it was awarded
when serious question were raised about the bidding process.
"We think there's something smelly here," said Ray Bjorklund, vice
president of Federal Sources Inc., a market research and consulting
firm. "Something was wrong in the award."
Protests were lodged by AT&T CORP., QWEST COMMUNICATIONS
INTERNATIONAL INC., SPRINT CORP. and WORLDCOM INC. after
a lengthy bidding window, which began during the Clinton
administration.
"Flags have been raised all over the place about GLOBAL CROSSING
winning this deal," a top congressional source told the DRUDGE
REPORT late Tuesday. "It sure looks like someone in high office
wanted GLOBAL CROSSING from the git-go."
"The U.S. taxpayers sure are fortunate the Defense Department made
a quick reversal," said the congressional source. "[However,] I sure
would like to know how a company that was on the verge of
bankruptcy got the contract! Spread a little money around? Give some
cash to a presidential library, take some folks out to fancy dinners?
That's all it took? We've got to take a look at this."
A finance executive at Winnick's CROSSING warned last August -- just
weeks after the lucrative Defense Department contract was awarded
-- how the company's financial condition was being enhanced with
misleading accounting techniques.
The five-page letter, written by the former vice president of finance,
contains a detailed analysis of deceptive accounting practices:
including inflating revenue and cash-flow figures, numbers that may
have helped convince investors and analysts that GLOBAL
CROSSING was healthier than it was, the LOS ANGELES TIMES
reported in Wednesday editions.
GBLXQ: GLO |
