Corporate Corruption News Stories

Excerpts of Key Corporate Corruption News Stories in Major Media

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The Food and Drug Administration does very little to ensure the safety of the millions of people who participate in clinical trials, a federal investigator has found. The inspector general of the Department of Health and Human Services, Daniel R. Levinson, said federal health officials did not know how many clinical trials were being conducted, audited fewer than 1 percent of the testing sites and, on the rare occasions when inspectors did appear, generally showed up long after the tests had been completed. The F.D.A. has 200 inspectors, some of whom audit clinical trials part time, to police an estimated 350,000 testing sites. Even when those inspectors found serious problems in human trials, top drug officials in Washington downgraded their findings 68 percent of the time, the report found. Among the remaining cases, the agency almost never followed up with inspections to determine whether the corrective actions that the agency demanded had occurred. “In many ways, rats and mice get greater protection as research subjects in the United States than do humans,” said Arthur L. Caplan, chairman of the department of medical ethics at the University of Pennsylvania. Animal research centers have to register with the federal government, keep track of subject numbers, have unannounced spot inspections and address problems speedily or risk closing, none of which is true in human research, Mr. Caplan said. Because no one collects the data systematically, there is no way to tell how safe the nation’s clinical research is or ever has been. The drug agency oversees just the safety of trials by companies seeking approval to sell drugs or devices. Using an entirely different set of rules, the Office for Human Research Protections oversees trials financed by the federal government. Privately financed noncommercial trials have no federal oversight.

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A consumer advocacy group [has] released a study alleging credit card companies use arbitration firms that they know will rarely rule in favor of consumers. Nearly all credit card customer service agreements mandate binding arbitration because it is a cheaper and faster way to resolve disputes, industry officials say. Public Citizen though says the companies hire arbitration firms that almost always rule in favor of the card issuer. Arbitration firms used by companies such as Mastercard Inc., Visa, Discover Financial Services LLC and American Express Co. ruled against consumers in 32,300 of 34,000 disputes that went to arbitration, according to Public Citizen's study. 'This is a system that is unfair to consumers,' Joan Claybrook, the group's president said at a press briefing. Sen. Russ Feingold, D-Wis. and Rep Hank Johnson, D-Ga., attended the briefing to say they have introduced legislation that would let credit card customers choose arbitration or civil court in a dispute. 'People shouldn't have to give up their legal rights just to get a credit card,' Claybrook said. Public Citizen's study singled out arbitration disputes in California because it is the only state that requires arbitration resolutions be disclosed. Public Citizen also singled out the Minneapolis-based National Arbitration Forum, which has arbitrated many of the disputes analyzed.

For years, the [Bush] administration has been quietly auctioning off U.S. foreign policy to the highest corporate bidder -- and it may be too late for us to buy it back. Look at Blackwater. Blackwater increasingly promises to do everything the U.S. government can do, but better. Blackwater's facility in North Carolina is the world's largest private military facility -- it's so good that the U.S. military uses it for training. Since its founding, it has trained 50,000 "consultants" who can be deployed anywhere in the world. With no geographical limits, the company is eager to prove its value. Blackwater has trained police in Afghanistan and naval commandos in Azerbaijan, and it sent heavily armed employees to New Orleans after Hurricane Katrina. They started off offering their services as volunteers -- or vigilantes, some critics said. FEMA, playing catch-up, followed with contracts, as did a number of other agencies. Increasingly, Blackwater looks like a miniature government. It has people, infrastructure and hardware. For instance, it is buying Brazilian-made fighter bombers -- great in combat but not really necessary if you're merely providing civilian bodyguards. Blackwater is unusual, but it's not entirely unique. Other corporations ... are also eagerly filling the vacuum as the U.S. government retreats worldwide from the business of governing. The White House's motives are obvious. Why fight another war, with all the bother of convincing Congress, if you can quietly hire a private military company to fight it for you? Why interrogate suspected insurgents if you can outsource the whole messy business? As for the corporations so eagerly lapping up the contracting dollars, there's no conspiracy -- it's just the good old profit motive.

The nation’s biggest telecommunications companies, working closely with the White House, have mounted a secretive lobbying campaign to get Congress to quickly approve a measure wiping out all private lawsuits against them for assisting the U.S. intelligence community’s warrantless surveillance programs. The campaign — which involves some of Washington's most prominent lobbying and law firms — has taken on new urgency in recent weeks because of fears that a U.S. appellate court in San Francisco is poised to rule that the lawsuits should be allowed to proceed. If that happens, the telecom companies say, they may be forced to terminate their cooperation with the U.S. intelligence community — or risk potentially crippling damage awards for allegedly turning over personal information about their customers to the government without a judicial warrant. But critics say the language proposed by the White House — drafted in close cooperation with the industry officials — is so extraordinarily broad that it would provide retroactive immunity for all past telecom actions related to the surveillance program. Its practical effect, they argue, would be to shut down any independent judicial or state inquires into how the companies have assisted the government in eavesdropping on the telephone calls and e-mails of U.S. residents in the aftermath of the September 11 terror attacks. “It’s clear the goal is to kill our case," said Cindy Cohn, legal director of the Electronic Frontier Foundation, [which] filed the main lawsuit against the telecoms after The New York Times first disclosed, in December 2005, that President Bush had approved a secret program to monitor the phone conversations of U.S. residents without first seeking judicial warrants. “I find it a little shocking that Congress would participate in the covering up of what has been going on," added Cohn.

A globalized world that could bring down the Berlin Wall, and deliver fresh fruit in the middle of the coldest winter months, wasn't supposed to foster one of the darkest of human practices — slavery. This version of the world was supposed to make life for everyone, everywhere, better. Better medicine, better prices, better democracies. Not so, says John Bowe in his incredible book, Nobodies: Modern American Slave Labor and the Dark Side of the New Global Economy. Not only is slavery a reality, but how we've executed this rush toward globalization may have created the very conditions necessary for slavery to gain a toehold in the modern world. Nobodies is investigative, immersion reporting at its best. The line between observer and participant blurs, and the reality of time, place and subject come crashing out in full detail. Bowe is a master storyteller whose work is finely tuned and fearless. When the time is appropriate, he goes so far as to question his own assumptions, ideals and practices without holding back. "Go out into this newly globalized world you're profiting from," he writes, "go visit the people being 'lifted' out of poverty, the workers who are making your products. Go live in their huts, eat their rice and plantains, squat on their floors, and listen to their babies cry. Sniff some glue and pray with them. Try to get justice from their police if someone hurts you. And then come back and let's talk about freedom." There's a chill in the air when he writes: "If you can read this page, you are on top of the world and billions of people are beneath you. Your ignorance and your lack of a program will likely equal the squalor of your grandchildren's existence."

Li Runsen, the powerful technology director of China’s ministry of public security, is best known for leading Project Golden Shield, China’s intensive effort to strengthen police control over the Internet. But last month Mr. Li took an additional title: director for China Security and Surveillance Technology, a fast-growing company that installs and sometimes operates surveillance systems for Chinese police agencies, jails and banks, among other customers. The company has just been approved for a listing on the New York Stock Exchange. The company’s listing and Mr. Li’s membership on its board are just the latest signs of ever-closer ties among Wall Street, surveillance companies and the Chinese government’s security apparatus. Wall Street analysts now follow the growth of companies that install surveillance systems providing Chinese police stations with 24-hour video feeds from nearby Internet cafes. Hedge fund money from the United States has paid for the development of not just better video cameras, but face-recognition software and even newer behavior-recognition software designed to spot the beginnings of a street protest and notify police. Executives of Chinese surveillance companies say they are helping their government reduce street crime, preserve social stability and prevent terrorism. They note that London has a more sophisticated surveillance system, although the Chinese system will soon be far more extensive. Wall Street executives also defend the industry as necessary to keep the peace at a time of rapid change in China. They point out that New York has begun experimenting with surveillance cameras in Lower Manhattan and other areas of the city.

The Defense Department is paying private contractors more than $1 billion in more than 30 separate contracts to collect and analyze intelligence for the four military services and its own Defense Intelligence Agency, according to contract documents and a Pentagon spokesman. The disclosure marks the first time a U.S. intelligence service has made public its outside payments. Intelligence payments to contractors have climbed dramatically since the terror attacks in September 2001, but none had been made public, according to a report filed in April by the Office of the Director of National Intelligence. Outside contracting ... places critical security tasks and sensitive information in the hands of private parties, says Steven Aftergood, a government secrecy specialist at the Federation of American Scientists, a Washington privacy group. "Private contractors don't have to undergo congressional oversight or justify their budgets to appropriators," Aftergood says. "We're starting to create a new kind of intelligence bureaucracy, one that is both more expensive and less accountable (than government's own intelligence agencies)." Most of the contracts, which extend up to five years, pay for analysis of intelligence data and for related services, such as translation and interpretation of photo and electronic intelligence. A small fraction, which [a Pentagon spokesman] declined to specify, pay for private spies. Private contractors often hire former intelligence officers, sometimes leasing them back at higher salaries to the agencies that first recruited and trained them.

When the U.S. Food and Drug Administration approved implanting microchips in humans, the manufacturer said it would save lives, letting doctors scan the tiny transponders to access patients' medical records almost instantly. The FDA found "reasonable assurance" the device was safe, and a sub-agency even called it one of 2005's top "innovative technologies." But neither the company nor the regulators publicly mentioned this: A series of veterinary and toxicology studies, dating to the mid-1990s, stated that chip implants had "induced" malignant tumors in some lab mice and rats. "The transponders were the cause of the tumors," said Keith Johnson, a retired toxicologic pathologist, explaining ... the findings of a 1996 study he led at the Dow Chemical Co. Leading cancer specialists reviewed the research for The Associated Press and ... said the findings troubled them. Some said they would not allow family members to receive implants, and all urged further research before the glass-encased transponders are widely implanted in people. To date, about 2,000 of the so-called radio frequency identification, or RFID, devices have been implanted in humans worldwide. Did the agency know of the tumor findings before approving the chip implants? The FDA declined repeated AP requests to specify what studies it reviewed. The FDA is overseen by the Department of Health and Human Services, which, at the time of VeriChip's approval, was headed by Tommy Thompson. Two weeks after the device's approval took effect on Jan. 10, 2005, Thompson left his Cabinet post, and within five months was a board member of VeriChip Corp. and Applied Digital Solutions. He was compensated in cash and stock options.

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Ten days ago, the Consumer Product Safety Commission announced another in a series of well-publicized recalls of Chinese-made goods: children's art sets containing crayons, markers, pastels, pencils, water colors -- and lead -- distributed by Toys "R" Us. "Consumers should immediately take the products away from children," warned a news release from the federal government's watchdog for thousands of household items. "The CPSC is committed to protecting consumers and families." But 13 months earlier, in July 2006, the CPSC ... authorized a Los Angeles company to export to Venezuela 16,520 art sets that violated the same CPSC standard protecting children from dangerous art supplies. The following month, the agency authorized a Miami company to export to Jamaica 5,184 sets of wax crayons that also violated the standard. For decades the federal agency has allowed American-based companies to export products deemed unsafe here. Those products can present an even greater danger in a country that has only a handful of government employees devoted to consumer protection, said R. David Pittle, a former acting CPSC chairman who spent 22 years as a senior vice president for Consumers Union. "If the United States doesn't have very many inspectors, how many do you think there are in Honduras or Jamaica or Trinidad or Bulgaria?" Pittle asked. Using the CPSC's database of exports of non-approved products and hundreds of pages of documents obtained through the federal Freedom of Information Act, The Bee found that between October 1993 and September 2006, the CPSC received 1,031 requests from companies to export products the agency had found unsafe for American consumers. The CPSC approved 991 of those requests, or 96 percent.

In an attempt to raise the nation's historically low rate of breast-feeding, federal health officials commissioned an attention-grabbing advertising campaign a few years ago to convince mothers that their babies faced real health risks if they did not breast-feed. It featured striking photos of insulin syringes and asthma inhalers topped with rubber nipples. Plans to run these blunt ads infuriated the politically powerful infant formula industry, which hired a former chairman of the Republican National Committee and a former top regulatory official to lobby the Health and Human Services Department. Not long afterward, department political appointees toned down the campaign. The ads ran instead with more friendly images of dandelions and cherry-topped ice cream scoops, to dramatize how breast-feeding could help avert respiratory problems and obesity. In a February 2004 letter (pdf), the lobbyists told then-HHS Secretary Tommy G. Thompson they were "grateful" for his staff's intervention to stop health officials from "scaring expectant mothers into breast-feeding," and asked for help in scaling back more of the ads. The formula industry's intervention -- which did not block the ads but helped change their content -- is being scrutinized by Congress in the wake of last month's testimony by former surgeon general Richard H. Carmona that the Bush administration repeatedly allowed political considerations to interfere with his efforts to promote public health. "This is a credible allegation of political interference that [may] have had serious public health consequences," said [Rep. Henry] Waxman, a California Democrat. The milder campaign HHS eventually used had no discernible impact on the nation's breast-feeding rate, which lags behind the rate in many European countries.

For half a century, the Defense Advanced Research Projects Agency - a low-profile but vital division of the Defense Department - has ... been the force behind dozens of weapons, from the M-16 rifle and night-vision goggles to smart bombs and stealth aircraft. Now, DARPA is planning for a long war in which U.S. troops will be expected to face guerrilla adversaries. And just as during the Cold War, DARPA is counting on high-tech Silicon Valley to give U.S. forces the edge. More than 3,000 scientists, entrepreneurs and military leaders ... gathered in Anaheim ... for the agency's 50th anniversary conference. The agency is operating on a $3.1 billion budget, up 8 percent from fiscal 2006. Virtually every Silicon Valley company, from the obvious candidates like Lockheed Martin Missiles and Space to ... Google, has been touched in some way by DARPA. "Almost every great digital oak has a DARPA acorn at the bottom," said futurist Paul Saffo. During three days in Anaheim, DARPA and Pentagon officials made 60 presentations, painting a picture of a future in which the United States will have to spend $1 million on countermeasures for every dollar shelled out by bomb-building guerrillas like those U.S. forces are encountering in Iraq. But DARPA's high-tech dreams have their critics, who view its "visions" as boondoggles the nation can't afford. "I think it (DARPA) is basically a jobs program," said Chalmers Johnson, a retired University of California political scientist. Thomas Barnett, author of The Pentagon's New Map, one of the treatises that lay out the scenario for these asymmetrical wars that planners expect, [said] "The million-to-one (ratio) is unsustainable."

The Bush administration ... plans to turn again to a legal tool, the “state secrets” privilege, to try to stop a suit against a Belgian banking cooperative [known as Swift] that secretly supplied millions of private financial records to the United States government. The “state secrets” privilege, allowing the government to shut down litigation on national security grounds, was once rarely used. The Bush administration has turned to it more than 30 times, seeking to end public discussion of cases like the claims of an F.B.I. whistle-blower and the abduction of a German terrorism suspect. Most notably, the administration has sought to use the privilege to kill numerous suits against telecommunications carriers over the National Security Agency’s eavesdropping program. Swift is considered the nerve center of the global banking industry, routing trillions of dollars each day among banks, brokerage houses and other financial institutions. Its partnership with Washington ... gave Central Intelligence Agency and Treasury Department officials access to millions of records on international banking transactions. Months after the Sept. 11, 2001, attacks, Swift began turning over large chunks of its database in response to a series of unusually broad subpoenas from the Treasury Department. Two American banking customers ... sued Swift on invasion-of-privacy grounds. [Steven E. Schwarz, the lawyer for the plaintiffs, said the Swift program] “is an Orwellian example of government overreaching and unfettered access to private financial information that is not consistent with the values upon which our country was founded. We’ve seen a real erosion of the ‘state secrets’ privilege in the last year. I think it is from overuse. We’ve seen it used in record numbers, in situations where it was inappropriate, and the courts are starting to recognize that.”

A three-year veil of secrecy in the name of national security was used to keep the public in the dark about the handling of highly enriched uranium at a nuclear fuel processing plant -- including a leak that could have caused a deadly, uncontrolled nuclear reaction. The leak turned out to be one of nine violations or test failures since 2005 at privately owned Nuclear Fuel Services Inc., a longtime supplier of fuel to the U.S. Navy's nuclear fleet. The public was never told about the problems when they happened. The Nuclear Regulatory Commission revealed them for the first time last month when it released an order demanding improvements at the company, but no fine. In 2004, the government became so concerned about releasing nuclear secrets that the commission removed more than 1,740 documents from its public archive -- even some that apparently involved basic safety violations at the company. Environmental activists are still suspicious of the belated revelations and may challenge the commission's decision not to fine Nuclear Fuel Services for the safety violations. "That party is not over -- the full story of what is going on up there," said Ann Harris, a member of the Sierra Club's national nuclear task force. While reviewing the commission's public Web page in 2004, the Department of Energy's Office of Naval Reactors found what it considered protected information about Nuclear Fuel Service's work for the Navy. The commission responded by sealing every document related to Nuclear Fuel Services. Under the policy, all the documents were stamped "Official Use Only," including papers about the policy itself and more than 1,740 documents from the commission's public archive.

One after another, the men and women who have stepped forward to report corruption in the massive effort to rebuild Iraq have been vilified, fired and demoted. Or worse. For daring to report illegal arms sales, Navy veteran Donald Vance says he was imprisoned by the American military in a security compound outside Baghdad and subjected to harsh interrogation methods. He had thought he was doing a good and noble thing when he started telling the FBI about the guns and the land mines and the rocket-launchers — all of them being sold for cash, no receipts necessary, he said. The buyers were Iraqi insurgents, American soldiers, State Department workers, and Iraqi embassy and ministry employees. The seller, he claimed, was the Iraqi-owned company he worked for, Shield Group Security Co. “It was a Wal-Mart for guns,” he says. “It was all illegal and everyone knew it.” So Vance says he blew the whistle, supplying photos and documents and other intelligence to an FBI agent in his hometown of Chicago because he didn’t know whom to trust in Iraq. For his trouble, he says, he got 97 days in Camp Cropper, an American military prison outside Baghdad. Congress gave more than $30 billion to rebuild Iraq, and at least $8.8 billion of it has disappeared. “If you do it, you will be destroyed,” said William Weaver, professor of political science at the University of Texas-El Paso and senior advisor to the National Security Whistleblowers Coalition. “Reconstruction is so rife with corruption. Sometimes people ask me, ‘Should I do this?’ And my answer is no. If they’re married, they’ll lose their family. They will lose their jobs. They will lose everything,” Weaver said.

The Bush administration acknowledged for the first time that telecommunications companies assisted the government's warrantless surveillance program and were being sued as a result, an admission some legal experts say could complicate the government's bid to halt numerous lawsuits challenging the program's legality. "[U]nder the president's program, the terrorist surveillance program, the private sector had assisted us," Director of National Intelligence Mike McConnell said in an interview with the El Paso Times. His statement could help plaintiffs in dozens of lawsuits against the telecom companies, which allege that the companies participated in a wiretapping program that violated Americans' privacy rights. David Kris, a former Justice Department official, ... said McConnell's admission makes it difficult to argue that the phone companies' cooperation with the government is a state secret. "It's going to be tough to continue to call it 'alleged' when he's just admitted it," Kris said. McConnell has just added to "the list of publicly available facts that are no longer state secrets," increasing the plaintiffs' chances that their cases can proceed, Kris said. McConnell's statement "does serious damage to the government's state secrets claims that are at the heart of its defenses," said Greg Nojeim, senior counsel at the Center for Democracy and Technology. Bruce Fein, an associate deputy attorney general in the Reagan administration, said that McConnell's disclosure shows that "an important element of a program can be discussed publicly and openly without endangering the nation. These Cassandran cries that the earth is going to fall every time you have a discussion simply are not borne out by the facts," he said.

Last year, officials at the Department of Homeland Security's counter-narcotics office took a shortcut that has become common at federal agencies: They hired help through a no-bid contract. And the firm they hired showed them how to do it. A contract worth up to $579,000 was awarded to the consultant's firm in September. Though small by government standards, the counter-narcotics contract illustrates the government's steady move away from relying on competition to secure the best deals for products and services. A recent congressional report estimated that federal spending on contracts awarded without "full and open" competition has tripled, to $207 billion, since 2000, with a $60 billion increase last year alone. The category includes deals in which officials take advantage of provisions allowing them to sidestep competition for speed and convenience and cases in which the government sharply limits the number of bidders or expands work under open-ended contracts. Government auditors say the result is often higher prices for taxpayers and an undue reliance on a limited number of contractors. "The rapid growth in no-bid and limited-competition contracts has made full and open competition the exception, not the rule," according to the report, by the House Oversight and Government Reform Committee. Keith Ashdown, chief investigator at Taxpayers for Common Sense, a nonpartisan watchdog group, said that in many cases, officials are simply choosing favored contractors as part of a "club mentality." "Contracting officials are throwing out decades of work to develop fair and sensible rules to promote competition," Ashdown said. "Government officials are skirting the rules in favor of expediency or their favored contractors."

Nearly two dozen gas station owners in California [have] sued Shell Oil, Chevron (CVX) and Saudi Refining ... claiming the companies conspired to fix prices for 23,000 franchise owners nationwide. The plaintiffs ... say chairmen of the three oil companies met privately nearly every month starting in March 1996 for the "purpose of forming and organizing a combination." The lawsuit alleges executives destroyed documents from the meetings, and a defunct joint venture violated U.S. antitrust laws and caused artificially high wholesale gas prices in nearly every state from 1999 to 2001. The lawsuit hinges on a marketing deal that, plaintiffs say, allowed former rivals to collude on prices starting in 1998, when Shell and Texaco formed Equilon Enterprises [and] Motiva Enterprises LLC. Equilon and Motiva began operating when ... crude oil prices hit their lowest levels since the Great Depression, according to ... lawyer Joseph M. Alioto, who [represents] the plaintiffs. Yet gas prices soared for franchise owners, forcing them to pass on the cost to consumers or cut profit margins. "These executives get together and say, 'OK, we're going to raise Texaco's price to Shell's price, then we're going to raise both of them 50 to 75%, and we're going to do it after we've already had all these cost savings,'" Alioto said. [He] argues wholesale prices were higher by at least 20 cents a gallon and possibly as much as 40 cents per gallon from 1999 to 2001. Station owners had little choice but to pay higher prices. Franchises typically sign long-term contracts with oil suppliers, making it tough to switch to another brand or an independent supplier.

US cash dispenser and security company Diebold has admitted that it has failed to find a buyer for its troubled electronic voting machine business. Diebold and other manufacturers of such voting machines have been hit by criticism that they are unreliable and vulnerable to tampering. Growing unease about the machines in the US has led to a number of delayed orders from states. Diebold said that as a result, its 2007 revenues would fall $120m (Ł61m). It added that it would now allow the unit to operate more independently, with a separate board of directors and, possibly, a new management structure. Diebold said it had not ruled out another attempt at a full or partial sale. Some 50 million Americans, about 30% of registered voters, used electronic machines to cast their vote in the 2004 presidential election. The machines were introduced in the aftermath of the problems caused by antiquated punch-card systems in the 2000 presidential election. However, there has since been growing concern that electronic machines may be equally as unreliable.

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The Defense Intelligence Agency is preparing to pay private contractors up to $1 billion to conduct core intelligence tasks of analysis and collection over the next five years, an amount that would set a record in the outsourcing of such functions by the Pentagon's top spying agency. The proposed contracts ... reflect a continuing expansion of the Defense Department's intelligence-related work and fit a well-established pattern of Bush administration transfers of government work to private contractors. Since 2000, the value of federal contracts signed by all agencies each year has more than doubled to reach $412 billion, with the largest growth at the Defense Department. Outsourcing particularly accelerated among intelligence agencies after the [Sept. 11] 2001 terrorist attacks. The DIA's action comes a few months after CIA Director Michael V. Hayden, acting under pressure from Congress, announced a program to cut the agency's hiring of outside contractors by at least 10 percent. The DIA is the country's major manager and producer of foreign military intelligence, with more than 11,000 military and civilian employees worldwide and a budget of nearly $1 billion. It has its own analysts from the various services as well as collectors of human intelligence in the Defense HUMINT Service. DIA also manages the Defense attaches stationed in embassies all over the world. Unlike the CIA, the DIA outsources the major analytical products known as all-source intelligence reports, a senior intelligence official said.

At least 20,000 police surveillance cameras are being installed along streets here [in Shenzhen] in southern China and will soon be guided by sophisticated computer software from an American-financed company to recognize automatically the faces of police suspects and detect unusual activity. Starting this month in a port neighborhood and then spreading across Shenzhen, a city of 12.4 million people, residency cards fitted with powerful computer chips programmed by the same company will be issued to most citizens. Data on the chip will include not just the citizen’s name and address but also work history, educational background, religion, ethnicity, police record, medical insurance status and landlord’s phone number. Even personal reproductive history will be included, for enforcement of China’s controversial “one child” policy. Plans are being studied to add credit histories, subway travel payments and small purchases charged to the card. Security experts describe China’s plans as the world’s largest effort to meld cutting-edge computer technology with police work to track the activities of a population. But they say the technology can be used to violate civil rights. “We have a very good relationship with U.S. companies like I.B.M., Cisco, H.P., Dell,” said Robin Huang, the chief operating officer of China Public Security. “All of these U.S. companies work with us to build our system together.” The role of American companies in helping Chinese security forces has periodically been controversial in the United States. Executives from Yahoo, Google, Microsoft and Cisco Systems testified in February 2006 at a Congressional hearing called to review whether they had deliberately designed their systems to help the Chinese state muzzle dissidents on the Internet; they denied having done so.

Important Note: Explore our full index to revealing excerpts of key major media news stories on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.