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According to a former AT&T employee, the government has warrantless access to a great deal of Internet traffic should they care to take a peek. As information is traded between users it flows also into a locked, secret room on the sixth floor of AT&T's San Francisco offices and other rooms around the country -- where the U.S. government can sift through and find the information it wants, former AT&T employee Mark Klein alleged Wednesday at a press conference on Capitol Hill. "An exact copy of all Internet traffic that flowed through critical AT&T cables -- e-mails, documents, pictures, Web browsing, voice-over-Internet phone conversations, everything -- was being diverted to equipment inside the secret room," he said. Klein ... said that as an AT&T technician overseeing Internet operations in San Francisco, he helped maintain optical splitters that diverted data en route to and from AT&T customers. One day he found that the splitters were hard-wired into a secret room on the sixth floor. Documents he obtained [from] AT&T showed that highly sophisticated data mining equipment was kept there. Conversations he had with other technicians and the AT&T documents led Klein to believe there are 15 to 20 such sites nationwide, including in Seattle, Los Angeles, San Jose, San Diego and Atlanta, he said. Brian Reid, a former Stanford electrical engineering professor who appeared with Klein, said the NSA would logically collect phone and Internet data simultaneously because of the way fiber optic cables are intertwined. He said ... the system described by Klein suggests a "wholesale, dragnet surveillance." Of the major telecom companies, only Qwest is known to have rejected government requests for access to data. Former Qwest CEO Joseph Nacchio, appealing an insider trading conviction last month, said the government was seeking access to data even before Sept. 11.
As record numbers of homeowners default on their mortgages, questionable practices among lenders are coming to light in bankruptcy courts, leading some legal specialists to contend that companies instigating foreclosures may be taking advantage of imperiled borrowers. Because there is little oversight of foreclosure practices and the fees that are charged, bankruptcy specialists fear that some consumers may be losing their homes unnecessarily or that mortgage servicers, who collect loan payments, are profiting from foreclosures. Bankruptcy specialists say lenders and loan servicers often do not comply with even the most basic legal requirements, like correctly computing the amount a borrower owes on a foreclosed loan or providing proof of holding the mortgage note in question. “Regulators need to look beyond their current, myopic focus on loan origination and consider how servicers’ calculation and collection practices leave families vulnerable to foreclosure,” said Katherine M. Porter, associate professor of law at the University of Iowa. In an analysis of foreclosures in Chapter 13 bankruptcy, the program intended to help troubled borrowers save their homes, Ms. Porter found that questionable fees had been added to almost half of the loans she examined, and many of the charges were identified only vaguely. Collectively they could raise millions of dollars for loan servicers at a time when the other side of the business, mortgage origination, has faltered. In one example, Ms. Porter found that a lender had filed a claim stating that the borrower owed more than $1 million. But after the loan history was scrutinized, the balance turned out to be $60,000. And a judge in Louisiana is considering an award for sanctions against Wells Fargo in a case in which the bank assessed improper fees and charges that added more than $24,000 to a borrower’s loan.
A wave of foreclosures and evictions is about to sweep the United States in the wake of the sub-prime mortgage lending crisis. This could destabilise the US housing market and may also lead to further turmoil in financial institutions, who collectively own $1 trillion (Ł480.6bn) worth of sub-prime debt. Cleveland, Ohio, is an industrial city on the banks of Lake Erie in the US "rust belt". It is the sub-prime capital of the United States. One in ten homes in the city is now vacant, and whole neighbourhoods have been blighted by foreclosed, vandalized and boarded-up homes. Cleveland is facing a rising crime wave, and the cost of demolishing the vacant houses alone will cost the city $100m of its tax base. According to Jim Rokakis, the County Treasurer for Cleveland's Cuyahoga County, "Wall Street strategies that made the cycle of no-money-down, no-questions-asked lending possible have sucked the life out of my city". As the credit crunch continues to bite "families all over the country continue to lose homes in record numbers, stripping families of their wealth and destroying entire neighbourhoods," says Michael Calhoun of the Center for Responsible Lending, which tracks these issues. There have already been 1.7 million foreclosure proceedings in the US in the first eight months of 2007, and up to 2 million families are expected to lose their homes over the next two years, according to estimates by the US Congress's Joint Economic Committee. Many of these mortgages were sold by unscrupulous and little regulated mortgage brokers, who received handsome commissions for selling expensive and unsuitable products. Some customers were not told that their interest rates would go up sharply after two years; others were promised they could refinance their home before higher rates took effect. Others found that when they had difficulties paying, huge unexplained fees were added to their bills, putting them further in debt.
The Prince Group, the holding company that owns Blackwater Worldwide, has been building an operation that will [develop] intelligence ... for clients in industry and government. The operation, Total Intelligence Solutions, has assembled a roster of former ... high-ranking figures from agencies such as the CIA and defense intelligence. Its chairman is Cofer Black, the former head of counterterrorism at CIA known for his leading role in many of the agency's more controversial programs, including the rendition and interrogation of ... suspects and the detention of some of them in secret prisons overseas. Its chief executive is Robert Richer, a former CIA associate deputy director of operations who was heavily involved in running the agency's role in the Iraq war. Because of its roster and its ties to owner Erik Prince, the multimillionaire former Navy SEAL, the company's thrust into this world highlights the blurring of lines between government, industry and activities formerly reserved for agents operating in the shadows. Richer, for instance, once served as the chief of the CIA's Near East division and is said to have ties to King Abdullah of Jordan. The CIA had spent millions helping train Jordan's intelligence service in exchange for information. Now Jordan has hired Blackwater to train its special forces. "Cofer can open doors," said Richer, who served 22 years at the CIA. "I can open doors. We can generally get in to see who we need to see. We ... can deal with the right minister or person." "They have the skills and background to do anything anyone wants," said RJ Hillhouse, who writes a national security blog called The Spy Who Billed Me. "There's no oversight. They're an independent company offering freelance espionage services. They're rent-a-spies."
A federal judge yesterday issued a rare ruling that ordered Secretary of State Condoleezza Rice and more than 10 other prominent current and former government officials to testify on behalf of two pro-Israel lobbyists accused of violating the Espionage Act at their upcoming criminal trial. U.S. District Judge T.S. Ellis III in Alexandria [VA] directed that subpoenas be issued to officials who include Rice, national security adviser Stephen J. Hadley, former high-level Department of Defense officials Paul D. Wolfowitz and Douglas J. Feith, and Richard L. Armitage, the former deputy secretary of state. Their testimony has been sought by attorneys for Steven J. Rosen and Keith Weissman, former employees of the American Israel Public Affairs Committee, or AIPAC, who are accused of conspiring to obtain classified information and pass it to members of the media and the Israeli government. Attorneys for Rosen and Weissman say Rice and the other officials could help clear them because they provided the former lobbyists with sensitive information similar to what they were charged for. Prosecutors have been trying to quash the subpoenas during secret hearings and in classified legal briefs, but Ellis wrote that the testimony could help "exculpate the defendants by negating the criminal states of mind the government must prove." The lobbyists are the first non-government civilians charged under the 1917 espionage statute with verbally receiving and transmitting national defense information. Rosen and Weissman were indicted in 2005 on charges of conspiring to violate the Espionage Act by receiving national defense information and transmitting it to journalists and employees of the Israeli Embassy who were not entitled to receive it. Among those ordered to testify are William Burns, the U.S. ambassador to Russia; Elliot Abrams, deputy national security adviser; and Kenneth Pollack, former director of Persian Gulf affairs for the National Security Council.
A little-remarked feature of pending legislation on domestic surveillance has provoked alarm among university and public librarians who say it could allow federal intelligence-gathering on library patrons without sufficient court oversight. Draft House and Senate bills would allow the government to compel any "communications service provider" to provide access to e-mails and other electronic information within the United States. The Justice Department has previously said that "providers" may include libraries, causing three major university and library groups to worry that the government's ability to monitor people targeted for surveillance without a warrant would chill students' and faculty members' online research activities. "It is fundamental that when a user enters the library, physically or electronically," said Jim Neal, the head librarian at Columbia University, "their use of the collections, print or electronic, their communications on library servers and computers, is not going to be subjected to surveillance unless the courts have authorized it." The librarians said their concern about such monitoring is rooted in recent history. In the summer of 2005, FBI agents handed an administrative subpoena called a national security letter (NSL) to a Connecticut librarian, and demanded subscriber, billing and other information on patrons who used a specific computer at a branch library. NSLs can be approved by certain FBI agents without court approval. The agents ordered the librarian to keep the demand secret. But he refused to produce the records, and his employer filed suit, challenging the gag order. A federal judge in September 2005 declared the gag order unconstitutional. The Association of Research Libraries, ... the American Library Association ... and the Association of American Universities ... each say they seek to amend the draft bills to make clear that the term "communications provider" does not include libraries.
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The nation is at risk if FDA science is at risk. In recognition of this threat, in December 2006, FDA Commissioner Andrew von Eschenbach, MD requested that the Science Board, which is the Advisory Board to the Commissioner, form a Subcommittee to assess whether science and technology at the FDA can support current and future regulatory needs. This report is the product of that assessment. The Subcommittee concluded that science at the FDA is in a precarious position: the Agency suffers from serious scientific deficiencies and is not positioned to meet current or emerging regulatory responsibilities. The FDA cannot fulfill its mission because its scientific base has eroded and its scientific organizational structure is weak. The FDA cannot fulfill its mission because its scientific workforce does not have sufficient capacity and capability. FDA does not have the capacity to ensure the safety of food for the nation. The FDA science agenda lacks a structure and vision, as well as effective coordination. The FDA has an inadequate and ineffective program for scientist performance. Recommendations of excellent FDA reviews are seldom followed.
Note: The above excerpts are all taken from the chapter headings in the initial table of contents and the second page of the initial overview.
Pharmaceutical ingredients exported from China are often made by chemical companies that are neither certified nor inspected by Chinese drug regulators, The New York Times has found. Because the chemical companies are not required to meet even minimal drug-manufacturing standards, there is little to stop them from exporting unapproved, adulterated or counterfeit ingredients. The substandard formulations made from those ingredients often end up in pharmacies in developing countries and for sale on the Internet, where more Americans are turning for cheap medicine. [At a pharmaceutical trade show in Milan], the Times identified at least 82 Chinese chemical companies that said they made and exported pharmaceutical ingredients — yet not one was certified by the State Food and Drug Administration in China, records show. Nonetheless, the companies were negotiating deals at the pharmaceutical show, where suppliers wooed customers with live music, wine and vibrating chairs. In China, chemical manufacturers that sell drug ingredients fall into a regulatory hole. Pharmaceutical companies are regulated by the food and drug agency. Chemical companies that make products as varied as fertilizer and industrial solvents are overseen by other agencies. The problem arises when chemical companies cross over into drug ingredients. “We have never investigated a chemical company,” said Ms. Yan [Jiangying], deputy director of policy and regulation at the State Food and Drug Administration. “We don’t have jurisdiction.” China has an estimated 80,000 chemical companies, and the United States Food and Drug Administration does not know how many sell ingredients used in drugs consumed by Americans. The Times examined thousands of companies selling products on major business-to-business Internet trading sites and found more than 1,300 [Chinese] chemical companies offering pharmaceutical ingredients.
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FEMA has truly learned the lessons of Katrina. Even its handling of the media has improved dramatically. For example, as the California wildfires raged Tuesday, Vice Adm. Harvey E. Johnson, the deputy administrator, had a 1 p.m. news briefing. Reporters were given only 15 minutes' notice of the briefing, making it unlikely many could show up at FEMA's Southwest D.C. offices. They were given an 800 number to call in, though it was a "listen only" line, the notice said -- no questions. Parts of the briefing were carried live on Fox News. Johnson ... was apparently quite familiar with the reporters -- in one case, he appears to say "Mike" and points to a reporter. FEMA press secretary Aaron Walker interrupted at one point to caution he'd allow just "two more questions." Later, he called for a "last question." "Are you happy with FEMA's response so far?" a reporter asked. Another asked about "lessons learned from Katrina." "I'm very happy with FEMA's response so far," Johnson said, hailing "a very smoothly, very efficiently performing team. And so I think what you're really seeing here is the benefit of experience, the benefit of good leadership and the benefit of good partnership, none of which were present in Katrina." Very smooth, very professional. But something didn't seem right. The reporters were lobbing too many softballs. And the media seemed to be giving Johnson all day to wax on and on about FEMA's greatness. Of course, that could be because the questions were asked by FEMA staffers playing reporters. The staff played reporters for what on TV looked just like the real thing. "If the worst thing that happens to me in this disaster is that we had staff in the chairs to ask questions that reporters had been asking all day, Widomski said, "trust me, I'll be happy." Heck of a job, Harvey.
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Lawmakers on Capitol Hill blasted the Bush administration for forcing edits in the testimony of a government expert speaking to Congress about the health effects of global warming. When [Julie Gerberding, director of the Centers for Disease Control and Prevention,] testified about the health effects of global warming, her testimony was a bit vague. "Weather is inextricably linked to health," she said. It turned out six pages of specific warnings about diseases that could spread because of global warming were edited out by the White House, as well as a line that the CDC considered this a serious public health concern that remained "largely unaddressed." When a draft of Gerberding's testimony went to the White House for review, two sections - "Climate Change is a Public Health Concern" and "Climate Change Vulnerability" - were removed, cutting the 12-page document in half. The original draft contained much greater detail on the potential disease and other health effects of climate change than was in either Gerberding's prepared remarks or in her other comments during the hearing. "The public health effects of climate change remain largely unaddressed. CDC considers climate change a serious public health concern," the draft says. The phrase was not in the testimony given the committee or in her other remarks at the hearing. “It appears the White House has denied a Congressional committee access to scientific information about health and global warming," said Dr. Michael McCally, Executive Director of Physicians for Social Responsibility. "This misuse of science and abuse of the legislative process is deplorable.”
Executives at the two biggest phone companies contributed more than $42,000 in political donations to Senator John D. Rockefeller IV this year while seeking his support for legal immunity for businesses participating in National Security Agency eavesdropping. The surge in contributions came from a Who’s Who of executives at the companies, AT&T and Verizon, starting with the chief executives and including at least 50 executives and lawyers at the two utilities, according to campaign finance reports. The money came primarily from a fund-raiser that Verizon held for Mr. Rockefeller in March in New York and another that AT&T sponsored for him in May in San Antonio. Mr. Rockefeller, chairman of the Senate Intelligence Committee, [has emerged] as the most important supporter of immunity in [the Senate]. Mr. Rockefeller’s office said ... that the sharp increases in contributions from the telecommunications executives had no influence on his support for the immunity provision. “Any suggestion that Senator Rockefeller would make policy decisions based on campaign contributions is patently false,” Wendy Morigi, a spokeswoman for him, said. AT&T and Verizon have been lobbying hard to insulate themselves from suits over their reported roles in the security agency program by gaining legal immunity from Congress. The effort included meetings with Mr. Rockefeller and other members of the intelligence panels. Mr. Rockefeller received little in the way of contributions from AT&T or Verizon executives before this year, reporting $4,050 from 2002 through 2006. From last March to June, he collected a total of $42,850 from executives at the two companies. The increase was first reported by the online journal Wired, using data compiled by the Web site OpenSecrets.org. [Telecommunications] industry executives have given significant contributions to a number of other Washington politicians, including two presidential contenders, Senators Hillary Rodham Clinton and John McCain.
When previous Republican administrations were accused of illegality in the FBI and CIA spying abuses of the 1970s or the Iran-Contra affair of the 1980s, Democrats in Congress launched investigations or pushed for legislative reforms. But last week, faced with admissions by several telecommunication companies that they assisted the Bush administration in warrantless spying on Americans, leaders of the Senate intelligence committee took a much different tack -- proposing legislation that would grant those companies retroactive immunity from prosecution or lawsuits. The proposal marks the second time in recent years that Congress has moved toward providing legal immunity for past actions that may have been illegal. The Military Commissions Act, passed by a GOP-led Congress in September 2006, provided retroactive immunity for CIA interrogators who could have been accused of war crimes for mistreating detainees. Legal experts say the granting of such retroactive immunity by Congress is unusual, particularly in a case involving private companies. "It's particularly unusual in the case of the telecoms because you don't really know what you're immunizing," said Louis Fisher, a specialist in constitutional law with the Law Library of the Library of Congress. Civil liberties groups and many academics argue that Congress is allowing the government to cover up possible wrongdoing and is inappropriately interfering in disputes that the courts should decide. The American Civil Liberties Union [said] in a news release Friday that "the administration is trying to cover its tracks."
An unprecedented national survey of pilots by [NASA] has found that safety problems like near collisions and runway interference occur far more frequently than previously recognized. But the government is withholding the information, fearful it would upset air travelers and hurt airline profits. NASA gathered the information ... through telephone interviews with roughly 24,000 commercial and general aviation pilots over nearly four years. Since shutting down the project more than one year ago, the space agency has refused to divulge its survey data publicly. Last week, NASA ordered the contractor that conducted the survey to purge all related data from its computers. Congress on Monday announced a formal investigation of the pilot survey and instructed NASA to halt any destruction of records. A senior NASA official, associate administrator Thomas S. Luedtke, said earlier that revealing the findings could damage the public's confidence in airlines and affect airline profits. Luedtke acknowledged that the survey results "present a comprehensive picture of certain aspects of the U.S. commercial aviation industry. Release of the requested data, which are sensitive and safety-related, could materially affect the public confidence in, and the commercial welfare of, the air carriers and general aviation companies whose pilots participated in the survey," Luedtke wrote. NASA also cited pilot confidentiality as a reason, although no airlines were identified in the survey, nor were the identities of pilots, all of whom were promised anonymity. Among other results, the pilots reported at least twice as many bird strikes, near mid-air collisions and runway incursions as other government monitoring systems show. The survey also revealed higher-than-expected numbers of pilots who experienced "in-close approach changes" -- potentially dangerous, last-minute instructions to alter landing plans.
One year ago, a 32-year-old trader at a giant hedge fund named Amaranth held huge sway over the price the country paid for natural gas. Trading on unregulated commodity exchanges, he made risky bets that led to the fund's collapse -- and, according to a congressional investigation, higher gas bills for homeowners. But as another winter approaches, lawmakers and federal regulators have yet to set up a system to prevent another big fund from cornering a vital commodity market. Called by some insiders the Wild West of Wall Street, commodity trading is a world where many goods that are key to national security or public consumption, such as oil, pork bellies or uranium, are traded with almost no oversight. Part of the problem is that the regulator, the federal Commodity Futures Trading Commission, has had a hard time keeping up with the sector it oversees. Commodity trading has exploded in complexity and popularity, growing six-fold in trading volume since 2000 -- the year that a handful of giant energy companies, including Enron, successfully lobbied to get Congress to exempt energy markets from government regulation. Meanwhile CFTC's staffing has dropped to its lowest level in the agency's 33-year history. Its computer systems that monitor trades are outdated. Its leadership has seen frequent turnover. "We are facing flat budgets and exponential growth in the industry," said CFTC Acting Chairman Walter Lukken. "Over the long term this type of budgetary situation is not sustainable." Commodities markets also have become complex with many trading futures contracts as well as financial tools called derivatives and swaps, whose value is based on the risk of futures contracts. Gathering data on these products has been a challenge for the CFTC. The evolution of the markets has led to some tension between the CFTC and the Federal Energy Regulatory Commission.
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Four Air Force colonels have been relieved of their commands and more than 65 lower-ranking officers and airmen have been disciplined over a series of errors that led to a B-52 flight from North Dakota to Louisiana with six nuclear-armed cruise missiles that no one realized were under the wing. The Fifth Bomb Wing commander at Minot, Colonel Bruce Emig, was removed from command, along with his chief munitions officer and the operations officer of the B-52 unit at Barksdale. The munitions squadron commander at Minot was relieved of command shortly after the incident. The problems began with a breakdown in the formal scheduling process used to prepare the AGM-129 cruise missiles in question for decommissioning. In March, the Pentagon decided to retire it in favor of an older AGM-86. Part of the preparation involved removing the W-80 nuclear warhead and replacing it with a steel dummy on missiles to be flown aboard B-52s to Barksdale for destruction. On the morning of Aug. 29, the loading crew at Minot used a paper schedule that was out of date when members picked up 12 missiles from a guarded weapons-storage hangar, six with dummy warheads and six they did not realize had nuclear warheads. The trailer that would carry the pylons to the B-52 arrived early, and its crew did not inspect the missiles as it should have before loading them on the trailer. The driver called the munitions control center to verify the numbers, but the staff there failed to check them. At the aircraft, the crew that loaded the pylons, one under each wing, failed again to check the missiles, which have a small glass porthole to view whether a dummy or nuclear warhead is installed. The next morning, Aug. 30, the plane's navigator failed to do a complete check of the missiles, as required, looking under only one wing and not the one where the nuclear-armed missiles were.
Note: How is it possible that 65 military people were involved in this? Could it be that they were part of a rogue operation that was uncovered? There's more here than meets the eye.
The medicines long used by parents to treat their children's coughs and colds don't work and shouldn't be used in those younger than 6, federal health advisers recommended. "The data that we have now is they don't seem to work," said Sean Hennessy, a University of Pennsylvania epidemiologist. The recommendation applies to medicines containing one or more of the following ingredients: decongestants, antihistamines and antitussives. In two separate votes ... the panelists said the medicines shouldn't be used in children younger than 2 or in those younger than 6. A third vote, to recommend against use in children 6 to 11, failed. The panel's advice dovetails with a petition filed by pediatricians that argued the over-the-counter medicines shouldn't be given to children younger than 6, an age group they called the most vulnerable to potential ill effects. The American Academy of Pediatrics and other groups back the petition. But FDA officials and panelists agreed there's no evidence they work in older children, either. Still, panelists held off from recommending against use in those 6 and older. And some said they feared such a prohibition wouldn't eliminate use of the medicines by parents. "They will administer adult products to their children because they work for them or feel they work for them," said the panel's patient and family representative, Amy Celento of Nutley, N.J. Some of the drugs — which include Wyeth's Dimetapp and Robitussin, Johnson & Johnson's Pediacare and Novartis AG's Triaminic products — have never been tested in children, something flagged as long ago as 1972 by a previous FDA panel. An FDA review found just 11 studies of children published over the last half-century. Those studies did not establish that the medicines worked in those cases, according to the agency.
Note: For a powerful exposé of corporate and government corruption in the health industry, click here.
The Halle Orchestra, one of Great Britain's oldest symphony orchestras, has not toured the United States in more than a decade, so spirits were high when the group secured dates at Lincoln Center and in Upstate New York for performances last winter. But when the orchestra learned that to get their entry visas, all 85 musicians -- every last cellist, oboist and piccolo player -- would have to travel from their Manchester headquarters to the U.S. Embassy in London for personal interviews, electronic fingerprinting and facial-recognition scans, it scrapped the trip. Budgeting for airfare and travel costs to New York was one thing, but simply getting everyone to the embassy at the same time, along with hotel bills and fees for the visas themselves, would have cost an additional $80,000, said marketing director Andy Ryans. "It was very simply money that we didn't have," Ryans explained. "We were desperate to go to the States, but our hands were absolutely tied." Theirs aren't the only ones. To perform in this country, foreign artists of all stripes -- punk rockers, ballet dancers, folk musicians, acrobats -- are funneled through a one-size-fits-all "nonimmigrant" visa process whose costs and complications have become prohibitive, according to booking agents, managers and presenters, such as the Kennedy Center, who program and market the performers. Visiting businesspeople face similar security hurdles put in place since Sept. 11, 2001. But artists' visa petitions also require substantial documentation to satisfy the "sustained international recognition" requirement for the type of visa (called a "P-1") issued to many performing artists. Arts organizations say they have become reluctant to book foreign performers because of the risk of bureaucratic snags. Soon after Sept. 11, the State Department rolled out its Biometric Visa Program, requiring all applicants to undergo fingerprinting and have photographs taken at the nearest U.S. consulate each time they apply.
Over the past four years, the amount of money the State Department pays to private security and law enforcement contractors has soared to nearly $4 billion a year from $1 billion, ... but ... the department had added few new officials to oversee the contracts. Auditors and outside exerts say the results have been vast cost overruns, poor contract performance and, in some cases, violence that has so far gone unpunished. A vast majority of the money goes to companies like DynCorp International and Blackwater [Worldwide] to protect diplomats overseas, train foreign police forces and assist in drug eradication programs. There are only 17 contract compliance officers at the State Departments management bureau overseeing spending of the billions of dollars on these programs, officials said. Two new reports have delivered harsh judgments about the State Departments handling of the contracts, including the protective services contract that employs Blackwater guards whose involvement in a Sept. 16 shooting in Baghdad has raised questions about their role in guarding American diplomats in Iraq. The ballooning budget for outside contracts at the State Department is emblematic of a broader trend, contracting experts say. The Bush administration has doubled the amount of government money going to all types of contractors to $400 billion, creating a new and thriving class of post-9/11 corporations carrying out delicate work for the government. But the number of government employees issuing, managing and auditing contracts has barely grown. Thats a criticism thats true of not just State but of almost every agency, said Jody Freeman, an expert on administrative law at Harvard Law School.
The US arms industry is backing Hillary Clinton for President and has all but abandoned its traditional allies in the Republican party. Mrs Clinton has also emerged as Wall Street's favourite. Investment bankers have opened their wallets in unprecedented numbers for the New York senator over the past three months and, in the process, dumped their earlier favourite, Barack Obama. An analysis of campaign contributions shows senior defence industry employees are pouring money into her war chest in the belief that their generosity will be repaid many times over with future defence contracts. Employees of the top five US arms manufacturers – Lockheed Martin, Boeing, Northrop-Grumman, General Dynamics and Raytheon – gave Democratic presidential candidates $103,900, with only $86,800 going to the Republicans. "The contributions clearly suggest the arms industry has reached the conclusion that Democratic prospects for 2008 are very good indeed," said Thomas Edsall, an academic at Columbia University in New York. Republican administrations are by tradition much stronger supporters of US armaments programmes and Pentagon spending plans than Democratic governments. Relations between the arms industry and Bill Clinton soured when he slimmed down the military after the end of the Cold War. His wife, however, has been careful not to make the same mistake. After her election to the Senate, she became the first New York senator on the armed services committee, where she revealed her hawkish tendencies by supporting the invasion of Iraq. Her position on Iran is among the most warlike of all the candidates – Democrat or Republican. While on the armed services committee, Mrs Clinton has befriended key generals and has won the endorsement of General Wesley Clarke, who ran Nato's war in Kosovo. The arms industry has duly taken note.
Note: For a revealing personal account of the "War Racket" by a U.S. general, click here.
More than half of department chairs at U.S. medical schools and teaching hospitals have financial ties with the drug industry, a new study finds. "There is not a single aspect of medicine in which the drug companies do not have substantial and deep relationships, [including] doctors-in-training, resident physicians, researchers, physicians-in-practice, the people who review drugs for the federal government and the people who review studies," said lead researcher Eric Campbell, associate professor at the Institute for Health Policy at Massachusetts General Hospital and Harvard Medical School in Boston. "Drug companies have relationships with everyone," he continued. "They're involved in every aspect of medicine. Someone has to decide which of these is OK." The study, the first to examine the extent of these institutional relationships, is published in the Oct. 17 issue of the Journal of the American Medical Association. "I think the paper is a very valuable contribution, in that it provides what's probably the first comprehensive documentation of the extent of relationships that involve department chairs, and department chairs are certainly the key agents of overseeing and maintaining the day-to-day operations of a medical school or teaching hospital," said Dr. David Korn ... at the Association of American Medical Colleges in Washington, D.C. The issue of medicine's ties to industry has been a hot one of late. One study found that third-year medical students get, on average, one gift or attend one activity sponsored by a drug maker each week. "Now it's up to the policymakers and people who run medical schools," said Campbell. "They need to come up with some rules and they need to be new rules. I believe there's very little reasonable justification for why drug companies should be involved in the education of medical students."
Note: For a powerful overview of medical corruption, click here.
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