Government Corruption News Stories

Excerpts of Key Government Corruption News Stories in Major Media

Below are key excerpts of revealing news articles on government corruption from reliable news media sources. If any link fails to function, a paywall blocks full access, or the article is no longer available, try these digital tools.

Note: This comprehensive list of news stories is usually updated once a week. 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.

Chris Liu is an Army veteran and a helicopter pilot who rose to the rank of captain before leaving the military to pursue a career in commercial aviation - first as an instructor, ultimately as a pilot for a major airline. He volunteered for the Federal Flight Deck Officer program, begun after 9/11, that trains and deputizes select pilots to carry firearms in the cockpit. After psychological and background checks, he was accepted. Now Liu is in trouble with the government that only a few weeks ago entrusted him with the lives of airline passengers. On Dec. 2, six federal agents and sheriff's deputies arrived at his home outside Sacramento to confiscate his FFDO credentials and his government-issued handgun. Days later, the Transportation Security Administration sent Liu a letter stating that he had violated the FFDO's rules for nondisclosure and standards of conduct. How? In November, Liu anonymously posted videos on YouTube, since removed, showing security weaknesses at San Francisco International Airport. While passengers and even flight crews endure body scans and pat-downs, ground crews face limited screening. "The doors, gates and other access points where they can access the tarmac are not being manned by TSA and certainly do not have the same metal detectors, body scanners, x-ray equipment, dogs or other security measures that the rest of us are all too painfully forced to undergo," Liu writes on his website.

Note: The government is happy to spend billions on invasive body scans (think big profits), yet fails to even consider huge holes in airport security. Could this be about money?

A federal appeals court yesterday backed the president's power to indefinitely detain a U.S. citizen captured on U.S. soil without any criminal charges, holding that such authority is vital during wartime to protect the nation from terrorist attacks. The ruling, by the U.S. Court of Appeals for the 4th Circuit, came in the case of Jose Padilla, a former gang member and U.S. citizen arrested in Chicago in 2002 and a month later designated an "enemy combatant" by President Bush. Padilla has been held without trial in a U.S. naval brig for more than three years, and his case has ignited a fierce battle over the balance between civil liberties and the government's power to fight terrorism since the Sept. 11, 2001, attacks. A host of civil liberties groups and former attorney general Janet Reno weighed in on Padilla's behalf, calling his detention illegal and arguing that the president does not have unchecked power to lock up U.S. citizens indefinitely. In its ruling yesterday, the three-judge panel overturned a lower court. Avidan Cover, a senior associate at Human Rights First, said the ruling "really flies in the face of our understanding of what rights American citizens are entitled to." Opponents have warned that if not constrained by the courts, Padilla's detention could lead to the military being allowed to hold anyone who, for example, checks out what the government considers the wrong kind of reading materials from the library.

Note: For many disturbing reports from major media sources on government threats to civil liberties, click here.

By one count, only 61 of the 2,500 senior policy staff members working for the Senate are black. There are, however, no exact records -- because Congress has exempted itself from equal-opportunity and affirmative-action laws. -- House Speaker Jim Wright's office catches fire, but there are no sprinklers. The laws requiring them do not apply to the Capitol or other federal buildings. -- A controversy erupts over dangerous working conditions in the Capitol's mail-folding room, where newsletters are processed. Congress does not fall under the occupational safety and health (OSHA) regulations that bedevil other employers. -- Legislators are about to decide whether to raise the federal minimum-wage level for the first time in seven years. At the moment, however, the minimum-wage laws do not protect the 15,000 people who work for Congress. -- Michael Deaver and Lyn Nofziger face jail terms because their lobbying ran afoul of the Ethics in Government Law. Congressmen and their staffers who become lobbyists and do the same things have no fear: the law does not apply to them. Congress's attitude, says Senator John Glenn, "is the rankest form of hypocrisy. Laws that are good enough for everybody else ought to be good enough for us." Instead, Congress has exempted itself from a broad array of laws covering civil rights, minimum wages, and safety requirements and discrimination. "Congress would exempt itself from the laws of gravity if it could," says Illinois Congressman Henry Hyde.

Note: The fact that Congress exempts itself from its own laws is one of the major sources of corruption in the US. For lots more from reliable sources on government corruption, click here.

A year after a Nigerian man allegedly tried to blow up a Detroit-bound airliner, officials say they have made it easier to add individuals' names to a terrorist watch list. The failure to put Umar Farouk Abdulmutallab on the watch list last year renewed concerns that the government's system to screen out potential terrorists was flawed. Even though Abdulmutallab's father had told U.S. officials of his son's radicalization in Yemen, government rules dictated that a single-source tip was insufficient to include a person's name on the watch list. Since then, senior counterterrorism officials say they have altered their criteria so that a single-source tip, as long as it is deemed credible, can lead to a name being placed on the watch list. But civil liberties groups argue that the government's new criteria, which went into effect over the summer, have made it even more likely that individuals who pose no threat will be swept up in the nation's security apparatus, leading to potential violations of their privacy and making it difficult for them to travel. "They are secret lists with no way for people to petition to get off or even to know if they're on," said Chris Calabrese, legislative counsel for the American Civil Liberties Union. The list, which stands at 440,000 people, [is now] about 5 percent larger than last year.

Note: For lots more from reliable sources on growing threats to civil liberties, click here.

About eight of every 10 registered lobbyists who work for scanner-technology companies previously held positions in the government or Congress, most commonly in the homeland security, aviation or intelligence fields, a Washington Post review of lobbying-disclosure forms and other data shows. Industries routinely employ well-connected lobbyists to seek favorable legislation and regulations in the nation's capital. But the extent of the connections to the federal government is particularly notable given the relatively small size of the scanner industry, which is dominated by half a dozen specialized businesses with heavy investments in airport and border security technology. The roster of lobbyists for L-3 Communications includes former U.S. senator Alfonse M. D'Amato (R-N.Y.) and Linda Daschle, a former federal aviation official who is married to Thomas A. Daschle (D-S.D.), a former Senate majority leader. L-3 has won nearly $900 million worth of TSA business, including for its "millimeter-wave" machines used for airport body scans. Former homeland security chief Michael Chertoff, a longtime advocate for increased use of passenger scanners, worked until recently as a consultant for Rapiscan, which provides "backscatter" X-ray scanners to the TSA. Privacy and civil liberties advocates and other critics argue that the industry's lobbying ties have encouraged a frenzy of TSA spending on technologies that are often untested or ineffective.

Note: For key reports from major media sources on corporate and government corruption, click here and here.

The Army's official history of the battle of Wanat - one of the most intensely scrutinized engagements of the Afghan war - largely absolves top commanders of the deaths of nine U.S. soldiers and instead blames the confusing and unpredictable nature of war. An initial draft of the Wanat history, which was obtained by The Washington Post and other media outlets in the summer of 2009, placed the preponderance of blame for the losses on the higher-level battalion and brigade commanders who oversaw the mission, saying they failed to provide the proper resources to the unit in Wanat. The final history, released in recent weeks, drops many of the earlier conclusions and instead focuses on failures of lower-level commanders. Family members of the deceased at Wanat reacted with anger and disappointment to the final version of the Army history. "They blame the platoon-level leadership for all the mistakes at Wanat," said retired Col. David Brostrom, whose son was killed in the fighting. "It blames my dead son. They really missed the point." The initial investigation, conducted by a three-star Marine Corps general and completed in the spring, found that the company and battalion commanders were "derelict in their duty" to provide proper oversight and resources to the soldiers fighting at Wanat.

Note: For many key reports from reliable sources on the horrific realities of the US wars of aggression in Afghanistan and Iraq, click here.

The Drug Enforcement Administration has been transformed into a global intelligence organization with a reach that extends far beyond narcotics, and an eavesdropping operation so expansive it has to fend off foreign politicians who want to use it against their political enemies, according to secret diplomatic cables. The cables, from the cache obtained by WikiLeaks [offer glimpses of drug agents] in places where it can be hard to tell the politicians from the traffickers, and where drug rings are themselves mini-states whose wealth and violence permit them to run roughshod over struggling governments. Officials of the D.E.A. and the State Department declined to discuss what they said was information that should never have been made public. The D.E.A. now has 87 offices in 63 countries and close partnerships with governments that keep the [CIA] at arm’s length. Created in 1973, the D.E.A. has steadily built its international turf. Since the 2001 terrorist attacks, the agency’s leaders have cited what they describe as an expanding nexus between drugs and terrorism in further building its overseas presence.

Note: Isn't it odd that this report fails to mention the recent revelation in The New York Times itself that the American accused of masterminding the Mumbai attacks, David C. Headley, was a DEA agent while attending a "terrorism training camp" in Pakistan in the years before the attacks?

America's big businesses are less and less American. They're going abroad for sales and employees. That's one reason they've showed record-breaking profits in 2010 while creating almost no American jobs. Consider one of the most popular products for Christmas gifts of all time - Apple's iPhone. Researchers from the Asian Development Bank Institute have dissected an iPhone, whose wholesale price is around $179, to determine where the money actually goes. Only about $11 of that iPhone goes to American workers, mostly researchers and designers. Even old-tech American companies made big money abroad in 2010 - and created scads of jobs there. General Motors, for example, is now turning a nice profit, and American investors are bullish about its future. That doesn't mean GM will be creating lots more blue-collar jobs in America, though. 2010 was a banner year for GM's foreign sales - already two-thirds of its total sales, and rising. In October, GM became the first automaker to sell more than 2 million cars a year in China. The company is now making more cars in China than in the United States. Meanwhile, back home in the United States, GM has slashed its labor costs. New hires are brought in at roughly half the wages and benefits of former GM employees, under a two-tier wage structure accepted by the United Auto Workers. Almost all of GM's U.S. suppliers have also cut their payrolls.

Note: Robert Reich, former U.S. secretary of labor, is professor of public policy at UC Berkeley and the author of the new book Aftershock: The Next Economy and America's Future. He blogs at www.robertreich.org.

There is [a] financial crisis looming involving state and local governments. In the two years since the "great recession" wrecked their economies and shriveled their income, the states have collectively spent nearly a half a trillion dollars more than they collected in taxes. There is also a trillion-dollar hole in their public pension funds. The states have been getting by on billions of dollars in federal stimulus funds, but the day of reckoning is at hand. The debt crisis [could] cost a million public employees their jobs and require another big bailout package that no one in Washington wants to talk about. "The most alarming thing about the state issue is the level of complacency," Meredith Whitney, one of the most respected financial analysts on Wall Street. "It has tentacles as wide as anything I've seen. I think next to housing this is the single most important issue in the United States, and certainly the largest threat to the U.S. economy," she [said]. California, which faces a $19 billion budget deficit next year, has a credit rating approaching junk status. It now spends more money on public employee pensions than it does on the state university system, which had to increase its tuition by 32 percent. Arizona is so desperate it sold off the state capitol, Supreme Court building and legislative chambers to a group of investors and now leases the buildings from their new owner. The state also eliminated Medicaid funding for most organ transplants.

Note: For key reports from major media sources on the devastating consequences for Main Street of the criminal bailout of Wall Street, click here.

A New Orleans law firm is challenging government assurances that Gulf Coast seafood is safe to eat in the wake of the BP oil spill, saying it poses “a significant danger to public health.” Citing what the law firm calls a state-of-the-art laboratory analysis, toxicologists, chemists and marine biologists retained by the firm of environmental attorney Stuart Smith contend that the government seafood testing program, which has focused on ensuring the seafood was free of the cancer-causing components of crude oil, has overlooked other harmful elements. And they say that their own testing — examining fewer samples but more comprehensively — shows high levels of hydrocarbons from the BP spill that are associated with liver damage. “What we have found is that FDA simply overlooked an important aspect of safety in their protocol,” contends William Sawyer, a Florida-based toxicologist on Smith’s team. Five months after crude oil stopped gushing from the broken BP wellhead into the Gulf of Mexico, the federal government has reopened more than 90 percent of fishing waters that were in danger of contamination from the broken Deepwater Horizon rig. But many fishermen have yet to return to sea, and consumer confidence in Gulf seafood remains lukewarm.

Note: For important reports from reliable sources on government corruption, click here.

A genetically engineered fish infused with genes from other species, including an eel-like creature, could soon be on dinner plates in the Bay Area and around the United States. The U.S. Food and Drug Administration is considering an application by AquaBounty Technologies Inc. of Massachusetts to bioengineer a sterile salmon that would grow extremely fast and, if all goes as planned, never set so much as a fin in a natural body of water. It would be the first genetically engineered animal to be approved for human consumption. The proposal, which is awaiting an environmental assessment and a preliminary decision by the FDA, has created a furor among environmentalists, who have dubbed the species "Frankenfish." They claim the doctored salmon could spread disease in humans or circulate mutant genes in the wild if an accident or sabotage ever set them loose. "The effect of what happens if these genetically engineered fish escape is largely unknown and has been largely unquestioned by the FDA," said Colin O'Neil, the regulatory policy analyst for the Center for Food Safety, an environmental nonprofit based in Washington, D.C. "These fish have been demonstrated to be less healthy. Consumers clearly do not want to eat genetically engineered salmon."

Note: For a superb summary of the dangers posed by genetically-modified foods, click here.

An aspiring model who died at the home of former Anheuser-Busch chief executive August Busch IV had a rare heart condition, according to her ex-husband. Adrienne Martin, 27, was found dead at Busch's suburban St. Louis home on Dec. 19. The St. Louis Post-Dispatch reported [that] it took someone at Busch's mansion more than 40 minutes to call 911 after Adrienne Martin was found dead at 12:30 p.m.. Frontenac police, who responded to the scene, did not disclose her death until four days later. Officials said an initial autopsy was inconclusive and didn't reveal signs of trauma to her body or obvious natural causes of death. A ruling stating the cause of death is expected after results of toxicology tests come back. That could take up to six weeks. In 1983, Busch, then a 20-year-old University of Arizona student, left a bar near Tucson, Ariz., with a 22-year-old woman. His black Corvette crashed, and the woman, Michele Frederick, was killed. Busch was found hours later at his home. He suffered a fractured skull and claimed he had amnesia. After a seven-month investigation, authorities declined to press charges, citing a lack of evidence. Two years later, Busch was acquitted on assault charges resulting from a police chase that ended with an officer shooting out a tire on his Mercedes-Benz.

Note: Is our justice system partial to the ruling elite?

RACHEL MADDOW: Going public seems to sort of be a theme this week for [South Carolina Governor Mark] Sanford and other associates of C Street, the secretive ministry and living quarters for several members of Congress at which Gov. Sanford and Sen. John Ensign of Nevada both received some sort of counseling during their extramarital affairs. Joining us now is Jeff Sharlet who wrote about ... C Street in his book The Family: The Secret Fundamentalism at the Heart of American Power. While you were undercover in the family doing the reporting for Harper‘s and for your book, you actually attended a meeting between Congressman [Rep. Todd Tiahrt, Republican of Kansas] and Doug Coe, who is the long-time leader of the family. What happened at that meeting and what impression did you get of Mr. Tiahrt‘s position in the family? SHARLET: Yes. It was a spiritual counseling session, precisely the sort that Ensign and Sanford were having. Tiahrt also sort of had sex on the brain but of a different sort. He was very concerned with the number of babies Muslims are having. He said Americans are killing too many of their babies while Muslims are having too many, and we need to have more babies and outlaw abortion so that we can win the race with the Muslims. What happened was that Doug Coe, the leader of the family, said that‘s fine as far as it goes, but doesn‘t go far enough. He said to Congressman Tiahrt, “I want you to think bigger. I want you to think of Jesus plus nothing,” that‘s what he said. It‘s a phrase they mean to suggest something they call the totalitarianism of Christ. I think he was introducing Tiahrt into the sort of the advanced lessons of the family.

Note: For lots more highly revealing information on the secretive C Street group and "The Family," click here.

Nine years after the terrorist attacks of 2001, the United States is assembling a vast domestic intelligence apparatus to collect information about Americans, using the FBI, local police, state homeland security offices and military criminal investigators. The system, by far the largest and most technologically sophisticated in the nation's history, collects, stores and analyzes information about thousands of U.S. citizens and residents, many of whom have not been accused of any wrongdoing. The months-long investigation [by The Washington Post], based on nearly 100 interviews and 1,000 documents, found that: * Technologies and techniques honed for use on the battlefields of Iraq and Afghanistan have migrated into the hands of law enforcement agencies in America. * The FBI is building a database with the names and certain personal information, such as employment history, of thousands of U.S. citizens and residents whom a local police officer or a fellow citizen believed to be acting suspiciously. * Law enforcement agencies have hired as trainers self-described experts whose extremist views on Islam and terrorism are considered inaccurate and counterproductive by the FBI and U.S. intelligence agencies. * The Department of Homeland Security sends its state and local partners intelligence reports with little meaningful guidance, and state reports have sometimes inappropriately reported on lawful meetings.

Note: This report is part of a series, "Top Secret America," by The Washington Post. For more, click here.

The Obama administration is preparing an executive order that would formalize indefinite detention without trial for some detainees at the U.S. military prison at Guantanamo Bay, Cuba ..., U.S. officials said. Some civil liberties groups oppose any form of indefinite detention. "Indefinite detention without charge or trial is wrong, whether it comes from Congress or the president's pen," said Laura W. Murphy, director of the American Civil Liberties Union's Washington legislative office. "Our Constitution requires that we charge and prosecute people who are accused of crimes. You cannot sell an indefinite detention scheme by attaching a few due-process baubles and expect that to restore the rule of law. That is bad for America and is not the form of justice we want other nations to emulate." Legislation supported by some Republicans ... would create a system of indefinite detention not only for some Guantanamo detainees but also for future terrorism suspects seized overseas.

Note: Why are so few people speaking out about indefinite detention, when it is done in a way that gives the person detained virtually no legal rights or recourse? This clearly violates the sixth amendment to the US Constitution which states, "the accused shall enjoy the right to a speedy and public trial."

A seven-year effort by the Central Intelligence Agency to hide its relationship with a Swiss family who once acted as moles inside the world’s most successful atomic black market hit a turning point on [December 23] when a Swiss magistrate recommended charging the men with trafficking in technology and information for making nuclear arms. The prospect of a prosecution, and a public trial, threatens to expose some of the C.I.A.’s deepest secrets if defense lawyers try to protect their clients by revealing how they operated on the agency’s behalf. The three men — Friedrich Tinner and his two sons, Urs and Marco — helped run the atomic smuggling ring of A. Q. Khan, an architect of Pakistan’s nuclear bomb program, officials in several countries have said. In return for millions of dollars, according to former Bush administration officials, the Tinners secretly worked for the C.I.A. as well, not only providing information about the Khan network’s manufacturing and sales efforts, which stretched from Iran to Libya to North Korea, but also helping the agency introduce flaws into the equipment sent to some of those countries. A trial ... could also expose in court a tale of C.I.A. break-ins in Switzerland, and of a still unexplained decision by the agency not to seize electronic copies of a number of nuclear bomb designs found on the computers of the Tinner family. Ultimately, copies of those blueprints were found around the globe on the computers of members of the Khan network.

Note: This report establishes yet another connection between a secret nuclear materials network linking both Khan and US government officials, parts of which were divulged by FBI whistleblower Sibel Edmonds, who identified moles working with Khan in both the US State Department and the Pentagon. For more on these highly suspicious networks, click here.

Nigeria announced today that in exchange for $250 million, the African nation has dropped bribery charges against Dick Cheney, eight others and Halliburton, the oil-services company he headed before becoming vice president. African and U.S. media say Halliburton and Cheney have not commented on the deal, which the head of Nigeria's anti-corruption agency said was offered by Texas-based Halliburton. As The Wall Street Journal points out, "U.S. regulators collected $1.28 billion in penalties and criminal fines in the Bonny Island case after settling charges of violating the Foreign Corrupt Practices Act, a 1977 law that bans the bribery of foreign officials to obtain business." Femi Babafemi, a spokesman for the Economic and Financial Crimes Commission, said that the $250 million would include roughly $130 million frozen in a Swiss bank, and that remainder would be paid as fines, Agence France-Presse reported Tuesday. But a source told AFP $100 million was in Switzerland and $30 million was in Monaco, saying the money was paid to an intermediary but never passed on as part of the bribery scheme.

Note: It sounds like Cheney and Halliburton basically bribed their way out of a potentially very damaging court case. For lots more from major media sources on corporate and government corruption, click here and here.

Excerpts from complaint by New York State Attorney General (and Governor-Elect) Andrew Cuomo: E&Y [Ernst and Young] substantially assisted Lehman Brothers Holdings Inc., now bankrupt, to engage in a massive accounting fraud, involving the surreptitious removal of tens of billions of dollars of securities from Lehman’s balance sheet in order to create a false impression of Lehman’s liquidity, thereby defrauding the investing public. As the financial crisis deepened in 2007 and 2008 and Lehman’s liquidity problems intensified, E&Y ... assisted Lehman in defrauding the public about the Company’s deteriorating financial condition, particularly its leverage. As the public auditor for Lehman, E&Y had the absolute obligation to ensure that Lehman’s financial statements ... did not mislead the public. Instead of fulfilling this obligation ... E&Y sat by silently while Lehman deceived the public by concealing [fraulent] transactions and misrepresenting the Company’s leverage. By doing so, E&Y directly facilitated a major accounting fraud, and helped Lehman mislead the public as to its true financial condition. E&Y, which reaped over $150 million in fees from Lehman, must be held accountable for its role in this fraud.

Note: For key reports from reliable sources detailing the fraud that led to the financial crisis and bailout of Wall Street by taxpayers, click here.

No one, including himself, would argue that Bradley Birkenfeld, 44, is a saint. But at the same time, almost no one in the U.S. government would deny that Birkenfeld was absolutely essential to its landmark tax-evasion case against Swiss banking giant UBS. The former UBS employee turned whistle-blower exposed the previously hidden world of offshore tax shelters, which cheats the Treasury out of about $100 billion a year. Thanks to his insider information, UBS was fined $780 million, and it promised to "exit entirely" from the U.S. tax-shelter business and to provide the names of thousands of American tax dodgers, from which hundreds of millions of dollars still might be collected. It also led to new tax treaties with the Swiss that should provide unprecedented tax information in civil cases and better access to such data in criminal cases. Considering Birkenfeld's help, many observers wonder why the Justice Department decided to arrest and prosecute him. Many critics believe the decision to prosecute Birkenfeld, whom some consider the most important whistle-blower in years, sends the worst possible message to other financial-industry insiders who might be considering coming forward. The Government Accountability Project (GAP), a Washington watchdog organization that has extensive whistle-blower experience, says a chilling effect is already apparent: a senior executive at a European bank that offers similar U.S. tax shelters is having second thoughts about going public because of the Birkenfeld case.

Note: For lots more, including Obama's tight ties with UBS, see the New York Daily News article here.

Gordon R. England's appointment to a top Pentagon post in 2006 came at a high price. The Senate committee overseeing his confirmation demanded that he give up lucrative stocks and options he held in companies that do business with the military. England said he took a big hit on his taxes and lost out on more than $1 million in potential profits that year when he divested himself of interests in companies that included General Dynamics. If he had been a senator, he would not have had to sell anything. The Senate Armed Services Committee prohibits its staff and presidential appointees requiring Senate confirmation from owning stocks or bonds in 48,096 companies that have Defense Department contracts. But the senators who sit on the influential panel are allowed to own any assets they want. And they have owned millions in interests in these firms. The committee's prohibition is designed to prevent high-ranking Pentagon officials from using inside information to enrich themselves or members of their immediate family. But panel members have access to much of the same inside information, because they receive classified briefings from high-ranking defense officials about policy, contracts and plans for combat strategies and weapons systems. "I think Congress should live by the rules they impose on other people," said England, who served as deputy defense secretary under George W. Bush until 2009.

Note: Congress is amost always exempt from it's own rules, as further described in this powerful Time magazine article. This is one major source of rampant corruption in US government. For more on government corruption, click here.

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.