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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?


To: Mannie who wrote (2905)7/22/2002 9:43:12 PM
From: stockman_scott  Respond to of 89467
 
Steal a little, and they put you in jail. Steal a lot, and they make you king.

- Bob Dylan



To: Mannie who wrote (2905)7/26/2002 8:48:40 AM
From: stockman_scott  Respond to of 89467
 
Deadline has CEOs quivering

By Jules Witcover
Columnist
The Baltimore Sun
published Jul 26, 2002

WASHINGTON - While keeping one eye on the stock market ticker, major corporate chief executive officers and chief financial officers are probably keeping the other eye, with some trepidation, on Aug. 14. That's the deadline imposed on them by the Securities and Exchange Commission to, in the SEC's words, "personally certify - in writing, under oath, and for publication - that their most recent reports filed with the Commission are both complete and accurate. Officers who make false certifications," the notice specifies, "will face personal liability."

The SEC isn't saying specifically now what that will be. But under the corporate responsibility bill of Maryland Democratic Sen. Paul Sarbanes that is moving toward the president's desk, culpable CEOs and CFOs will have to forfeit any profits from stock sales and bonuses received in the year following an erroneous or incomplete financial statement.

In setting the deadline June 28, Harvey Pitt, the beleaguered SEC chairman, declared the requirement "an unprecedented step to help restore investor confidence. We are demanding that CEOs and CFOs swear that the numbers they've reported in their final reports are correct and that they've left nothing important out."

The personal certification is being sought from the top executives of 945 public companies and corporations with reported income in excess of $1.2 billion. They must say whether the financial statements have been reviewed by an audit committee or by independent members of the firms' boards of directors. Further, the SEC says, they are being asked if not, why not, and if there are any incorrect statements or numbers in the reports, what are they?

In other words, the biggest corporate leaders in the business world are being told to come clean and are being warned that they can no longer shunt off responsibility to faceless green-eyeshade types to take the fall.

This, when you come to think of it, is pretty radical stuff. Harry Truman was famous for keeping a sign on his Oval Office desk that said "The Buck Stops Here." But there never was a stampede for such signs by big bosses in the corporate world.

The big question is whether other greed merchants like those who took Enron, WorldCom and other stockholders to the cleaners with phony financial statements will own up on Aug. 14 and take the heat, or try to continue their scams and dodge SEC sleuths whose ranks are being beefed up.

Mr. Pitt has a lot at stake in the success of the effort because Democratic congressmen, and a few Republicans, such as Sen. John McCain of Arizona, are screaming for his scalp. They say he has been too cozy with the accounting business in the past and, according to Mr. McCain, too slow on the draw in moving against the bad guys.

At the same time, President Bush and the leaders of Congress should worry that this notion could catch on - of having responsible parties put themselves on the line for numbers reported by the organizations they head. Can you imagine what would happen if federal leaders were required to put in jeopardy their own retirement money or what they've socked away for the kids' college education as support for the accuracy of their budget projections?

In the budget-balancing game that goes on in this town annually, it's standard operating procedure for presidents to include new sources of revenue they know they don't have a snowball's chance in hell of getting from Congress. And the good legislators of both parties never hesitate to say they can provide this or that item for only $X billion when they know full well it will cost at least $XXX billion.

But it's the corporate top dogs who are the target right now, not the White House or Congress. If the "personal liability" they will face if caught in charge of cooked books is only the loss of some of the ill-gotten gains, the public outcry may not be stilled.

Demands for jail time for lying and dissembling CEOs are being heard from irate investors. Anything less could mean even greater pressure from them for tougher enforcement by the SEC, and a tougher enforcer.
________________________________________

Jules Witcover writes from The Sun's Washington bureau. His column appears Mondays, Wednesdays and Fridays.

Copyright © 2002, The Baltimore Sun

sunspot.net



To: Mannie who wrote (2905)7/28/2002 5:20:45 AM
From: stockman_scott  Respond to of 89467
 
Mission Accomplished: Now It's Time to Pull Out

Civilians have become the chief victims of U.S. military power

By JAY TAYLOR
Editorial
The Los Angeles Times
July 28, 2002

ARLINGTON, Va. -- The first phase of our military involvement in Afghanistan had a clear-cut purpose: toppling the Taliban. But with that mission accomplished, American-led military operations in Afghanistan are now doing more harm than good.

First, there's the issue of civilian casualties. Speaking to reporters at a base north of Kabul on July 15, Deputy Defense Secretary Paul D. Wolfowitz voiced his regrets about the killing of 48 civilians--including a number of children--in a July 1 U.S. air attack on a village in the Deh Rawod district of Uruzgan province. But, he said, "bad things happen in combat zones," and we should have "no regrets about going after bad guys." Defense Secretary Donald H. Rumsfeld issued a similar nonapology at the Pentagon on July 22. "If a mistake was made," he said, "a mistake was made, but it was made with our people on the ground with eyes on the target."

The way we went after the "bad guys" in the July 1 incident was to unload the massive and indiscriminate firepower of an AC-130 gunship on a village from which a bombing crew saw, or believed it saw, fire directed at the plane. Rumsfeld said he saw a video of the attack and "clearly there was ground fire," but he could not say what type of weapons were in use on the ground.

In the end, no antiaircraft shells or equipment was found by American troops searching the remains of the village, which would be consistent with the villagers' assertion that they were firing rifles to celebrate a wedding. But even assuming that people on the ground were deliberately firing on the AC-130, responding by bombarding a village with what must have been close to half a ton of bullets, shells and shrapnel is indefensible. It's as if police here shot indiscriminately into a crowd at a mall because someone in the crowd had fired a gun. The use of such lethal weapons is morally acceptable against organized military units in a full-scale war, but it is indefensible against villages in an anti-guerrilla campaign. This incident calls to mind the futile destruction of Vietnamese hamlets by U.S. forces "in order to save them."

In Indochina, we lost our sense of proportion in weighing the effects of destructive firepower against the likely military gains. The same seems to be happening in Afghanistan.

By mid-December of last year, the Taliban and Al Qaeda military organizations had been smashed, and we had recovered for intelligence purposes whatever useful material had been left behind. Judging by media reports, in the operations since then American forces have accidentally killed more than 200 Afghan civilians, a number Rumsfeld dismisses as being small by historical standards. If these civilian casualties had occurred during the real war, lasting from October to December, he might have a valid case. Certainly by Vietnam standards, the numbers are small. But judging from media interviews with U.S. soldiers and pro-government Afghan commanders in the field, the Americans have killed only a small number of terrorists and other enemy allies this year--perhaps even fewer than the 200 civilians killed.

Beyond the problem with civilian casualties, the Pentagon gives virtually no hard data to support its claims that its ongoing operations are accomplishing much beyond finding arms caches. As was reported last week, there has not been a major engagement with Taliban or Al Qaeda forces since March. The previous commander of coalition forces in the country, Maj. Gen. Franklin L. Hagenbeck, said the bulk of Al Qaeda and its leadership was no longer in Afghanistan. Canadian, British and Australian troops involved in the continuing American-led search-and-destroy operations this year report frankly that they have not killed or captured one terrorist. The Canadians, having lost four soldiers to a mistaken attack by a U.S. F-16 jet, recently went home. The British are also packing up.

The Taliban army and its Al Qaeda allies were crushed without the involvement of any significant American ground forces. Yet for some reason American rather than Afghan forces now carry out most of the ongoing ground combat operations in what is clearly a mopping-up phase of the conflict. Wolfowitz praised the U.S. military campaign in Afghanistan as "amazing" and "remarkable." This assessment is certainly valid if applied only to last year's air war, but it doesn't describe operations since. As happened in South Vietnam, the government in Kabul--critically dependent on American aid--has refrained from criticizing U.S. tactics. President Hamid Karzai has "temporarily" replaced his bodyguards with American troops. After the July 1 attack, six provincial leaders demanded that U.S. troops get permission from them before conducting operations in their areas. But in a July 17 meeting, three of the leaders changed their minds, apparently at the urging of Ahmed Wali Karzai, the president's brother and special envoy. Last week the plan's author, Gov. Gul Agha Sherzai, denounced his original demand as a "mistranslation" and claimed he had asked only for U.S. consultation on military actions. The American and the Afghan people deserve a detailed explanation of what has been achieved by U.S. military operations over the last six months and how many civilian casualties those achievements have caused. Stung by the Vietnam experience, the Pentagon no longer issues a "body count" estimating the number of enemy killed in action. But surely there are such estimates from field commanders. Aside from the eight Americans killed in a skirmish during Operation Anaconda, only two other Americans have been killed by enemy fire this year. Is an Afghan civilian death rate of 20 times that number at the hands of our military really acceptable?
_____________________________

Jay Taylor, a former Marine, was a deputy secretary of State for intelligence and research in the Reagan administration. He is currently writing a biography of Chiang Kai-shek.

latimes.com