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.

A sheaf of documents that a federal court forced the Treasury Department to release indicate there have been repeated complaints from American consumers who have been falsely linked to terrorism or drug trafficking during routine credit checks, the organization that sought the documents in a lawsuit said Tuesday. The more than 100 pages of documents released Monday to the organization, the Lawyers’ Committee for Civil Rights in San Francisco, include a variety of complaints about the list maintained by the Office of Foreign Asset Control in the Treasury Department, said Philip Hwang, a lawyer for the group. The released documents include e-mail messages and letters from consumers who have been denied cars or home loans or faced difficulties with other financial transactions because their names allegedly appear on the list. Financial institutions are supposed to check clients’ names against the list, which is known officially as the Specially Designated Nationals List. A Federal District Court judge in San Francisco last month ordered the Treasury Department to release all the complaints after a Freedom of Information Act request, Mr. Hwang said. He said his organization believed that what they received was only a small fraction of the complaints filed. Among other indications, he said, was that Henry Paulson Jr., the Treasury secretary, said in Congressional testimony last year that his department fielded up to 90,000 telephone complaints about the list over one year. Mr. Hwang said most consumers discovered the problem only when they asked for a credit report and were shocked to find a notation on it associating them with terrorists or drug traffickers.

Note: For many disturbing reports of increasing threats to civil liberties, click here.

What are the consequences of a world in which regulators rescue even the financial institutions whose recklessness and greed helped create the titanic credit mess we are in? Will the consequences be an even weaker currency, rampant inflation, a continuation of the slow bleed that we have witnessed at banks and brokerage firms for the past year? Or all of the above? Stick around, because we’ll soon find out. And it’s not going to be pretty. Agreeing to guarantee a 28-day credit line to Bear Stearns, by way of JPMorgan Chase, the Federal Reserve Bank of New York conceded last Friday that no sizable firm with a book of mortgage securities or loans out to mortgage issuers could be allowed to fail right now. It was the most explicit sign yet of the Fed’s “Rescues ‘R’ Us” doctrine that already helped to force the marriage of Bank of America and Countrywide. But why save Bear Stearns? “Why not set an example of Bear Stearns, the guys who have this record of dog-eat-dog, we’re brass knuckles, we’re tough?” asked William A. Fleckenstein, president of Fleckenstein Capital in Issaquah, Wash., and co-author with Fred Sheehan of Greenspan’s Bubbles: The Age of Ignorance at the Federal Reserve. After years of never allowing any of our financial institutions to fail, they have become so enormous that nobody will be allowed to sink beneath the waves. Otherwise, a tsunami would swamp the hedge funds, banks and other brokerage firms that remain afloat. If Bear Stearns failed, for example, it would result in a wholesale dumping of mortgage securities and other assets onto a market that is frozen and where buyers are in hiding. This fire sale would force surviving institutions carrying the same types of securities on their books to mark down their positions, generating more margin calls and creating more failures.

Note: This excellent article should be read in its entirety by anyone who wants to understand the impending financial meltdown and the government's response to it.

Last week, it was a $200 billion cash-for-bond swap for the banks. This week, it was a $200 billion bond-for-bond swap for the big investment houses. If they keep this up, pretty soon you'll be able to walk into any Federal Reserve bank and hock that diamond brooch you inherited from Aunt Mildred. Forget all that nonsense about the Bernanke Fed being too timid or behind the curve. In the face of what is turning into the most serious financial market crisis since the Great Depression, the Fed has been more aggressive and more creative in using its limitless balance sheet -- in effect, its ability to print money -- than at any time in history. We can argue till the cows come home about whether this is a bailout for Wall Street. It is -- but only to the extent that it is also a bailout for all of us, meant to prevent a financial and economic meltdown that drags everyone down with it. In broad strokes, we're going through a massive "de-leveraging" of the economy, wringing out trillions of dollars of debt that had artificially driven up the price of real estate and financial assets, and, more generally, allowed Americans to live beyond their means. Fed officials warn that this de-leveraging is nowhere near finished. It's anyone's guess how long this credit crunch will last, but the chances are that we'll have several more market meltdowns and Fed rescues before it's over, probably in the fall. Until then, the dollar will continue to get hammered and stocks will continue their fitful decline. And if the last two financially induced recessions are any guide, it will be well into 2009 before the economy hits bottom, followed by a couple of years of slow growth and "jobless" recovery.

Note: The title of this article is quite revealing. A bailout for the big banks is considered to be a bailout for everyone. If you believe this, we most highly encourage you to read our powerful two-page summary of the banking cover-up available here.

Almost 32 years to the day after President Ford created an independent Intelligence Oversight Board made up of private citizens with top-level clearances to ferret out illegal spying activities, President Bush issued an executive order that stripped the board of much of its authority. The White House did not say why it was necessary to change the rules governing the board when it issued Bush's order [on February 29]. But critics say Bush's order is consistent with a pattern of steps by the administration that have systematically scaled back Watergate-era intelligence reforms. "It's quite clear that the Bush administration officials who were around in the 1970s are settling old scores now," said Tim Sparapani, senior legislative counsel to the American Civil Liberties Union. "Here they are even preventing oversight within the executive branch. They have closed the books on the post-Watergate era." Ford created the board following a 1975-76 investigation by Congress into domestic spying, assassination operations, and other abuses by intelligence agencies. The probe prompted fierce battles between Congress and the Ford administration, whose top officials included Dick Cheney, Donald Rumsfeld, and the current president's father, George H. W. Bush. Some analysts said the order is just the latest example of actions the administration has taken since the 2001 terrorist attacks that have scaled back intelligence reforms enacted in the 1970s. Frederick A. O. Schwarz Jr., the former chief counsel to the Senate committee that undertook the 1975-76 investigation into intelligence abuses, said "It's profoundly disappointing if you understand American history, and it's profoundly harmful to the United States."

Note: For many key articles on government secrecy, click here.

Despite ordering improvements more than two years ago, President Bush has barely made a dent in the huge backlog of unanswered requests under the Freedom of Information Act. At the same time, an audit by the National Security Archive found that Bush has provided citizens someone to talk to about how long it is going to take to get the government records they want or to be turned down. The archive, a private research group at The George Washington University, released its seventh audit ... of the 1967 law that gives people the power to request information from federal government files. The audit of 90 government agencies found mixed results from Bush's executive order on Dec. 14, 2005, to agencies to clear the backlog and be more responsive to requesters. "Behind its ambitious facade, the order lacked both carrot and stick," the audit said, because it provided no additional money to do the job and no way to force agencies to set substantial goals or step up their efforts if they fell short. "Many of the same old scofflaw agencies are still shirking their responsibilities to the public," said Tom Blanton, director of the archive, whose FOIA audits are funded by the John S. and James L. Knight Foundation. The archive found that unanswered requests government-wide dropped just over 2 percent, from 217,000 to 212,000, from the end of 2005 to the end of 2007. Of those agencies with backlogs, 31 percent even saw pending requests rise during the two years, including some agencies that significantly reduced very old unanswered requests but saw gains wiped out by a surge of new requests. The audit particularly criticized the Treasury Department for trying to "wait out the requester."

Note: For many key articles on government secrecy, click here.

Two and a half years after Hurricane Katrina, tens of thousands of homeowners are still waiting for their government rebuilding checks, and many complain they can't even get their calls returned. But the company that holds the contract to distribute the aid is doing quite well. ICF International of Fairfax, Va., has posted strong profits, gone public, landed additional multimillion-dollar government contracts -- and recently secured a potentially big raise from the state of Louisiana. In the waning days of Democratic Gov. Kathleen Babineaux Blanco's administration, state officials increased the management contract ceiling from $756 million to $912 million -- this, after the Legislature wanted to fire ICF over its handling of the homeowner recovery program, called Road Home. "It is outrageous that ICF couldn't do the job for more than $750 million and that they were given a pay raise after their history of disappointing service," Blanco's successor, Republican Gov. Bobby Jindal, said in an e-mail Thursday. Displaced residents expressed anger. Road Home was created in June 2006 as a state-run, federally funded plan to compensate homeowners for the breach of New Orleans' government-run levees. Homeowners can apply for grants to repair their homes or to obtain buyouts if they don't want to fix things up. As of last month, 56,000 applicants -- nearly 40% of the qualified total -- had yet to receive a cent. Plagued by cost overruns and delays, Road Home is expected to cost federal taxpayers $10 billion and has become a glaring symbol of frustration in post-Katrina New Orleans.

Note: For many more revealing reports on the aftermath of Hurricane Katrina, click here.

The FBI has increasingly used administrative orders to obtain the personal records of U.S. citizens rather than foreigners implicated in terrorism or counterintelligence investigations, and at least once it relied on such orders to obtain records that a special intelligence-gathering court had deemed protected by the First Amendment, according to two government audits released yesterday. The episode was outlined in a Justice Department report that concluded the FBI had abused its intelligence-gathering privileges by issuing inadequately documented "national security letters" from 2003 to 2006. The report makes it clear that the abuses persisted in 2006 and disclosed that 60 percent of the nearly 50,000 security letters issued that year by the FBI targeted Americans. Because U.S. citizens enjoy constitutional protections against unreasonable searches and seizures, judicial warrants are ordinarily required for government surveillance. But national security letters are approved only by FBI officials and are not subject to judicial approval; they routinely demand certain types of personal data, such as telephone, e-mail and financial records, while barring the recipient from disclosing that the information was requested or supplied. "The fact that these are being used against U.S. citizens, and being used so aggressively, should call into question the claim that these powers are about terrorists and not just about collecting information on all kinds of people," said Jameel Jaffer, national security director at the American Civil Liberties Union. "They're basically using national security letters to evade legal requirements that would be enforced if there were judicial oversight."

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

The Environmental Protection Agency weakened one part of its new limits on smog-forming ozone after an unusual last-minute intervention by President Bush, according to documents released by the EPA. EPA officials initially tried to set a lower seasonal limit on ozone to protect wildlife, parks and farmland, as required under the law. Bush overruled EPA officials and on Tuesday ordered the agency to increase the limit, according to the documents. "It is unprecedented and an unlawful act of political interference for the president personally to override a decision that the Clean Air Act leaves exclusively to EPA's expert scientific judgment," said John Walke, clean-air director for the Natural Resources Defense Council. The president's order prompted a scramble by administration officials to rewrite the regulations to avoid a conflict with past EPA statements on the harm caused by ozone. Solicitor General Paul D. Clement warned administration officials ... that the rules contradicted the EPA's past submissions to the Supreme Court, according to sources familiar with the conversation. As a consequence, administration lawyers hustled to craft new legal justifications for the weakened standard. The dispute involved one of two distinct parts of the EPA's ozone restrictions: the "public welfare" standard, which is designed to protect against long-term harm from high ozone levels. The other part is known as the "public health" standard, which sets a legal limit on how high ozone levels can be at any one time. The two standards were set at the same level Wednesday, but until Bush asked for a change, the EPA had planned to set the "public welfare" standard at a lower level.

Note: For a treasure trove of reports from reliable, verifiable sources on government corruption, click here.

A plan by the Environmental Protection Agency to close several of its 26 research libraries did not fully account for the impact on government staffers and the public, who rely on the libraries for hard-to-find environmental data, congressional investigators reported yesterday. The report by the Government Accountability Office found that the EPA effort, begun in 2006 to comply with a $2 million funding cut sought by the White House, ... hurt access to materials and services in the 37-year-old library network. Rep. Bart Gordon (D-Tenn.), chairman of the House Science and Technology Committee, said the report reveals a "grim picture" of mismanagement at the EPA. The libraries provide technical information and documentation for enforcement cases and help EPA staff members track new environmental technologies and the health risks associated with dangerous chemicals. They also are repositories of scientific information that is used to back up the agency's positions on new regulations and environmental reports and data that are tapped by people such as developers and state and local officials. The collections include hard-to-find copies of documents on federal Superfund hazardous waste sites, water-quality data and the health of regional ecosystems. Under the plan, EPA closed physical access to three regional office libraries in Chicago, Kansas City and Dallas, and to the headquarters library and the Chemical Library in Washington. Operating hours were reduced at libraries in Seattle, San Francisco, New York and Boston. Investigators noted that users of the Chemical Library -- which served EPA scientists who review industry requests to sell new chemicals -- did not learn of the facility's closure until after it occurred.

Note: For many key articles on government secrecy, click here.

Former Attorney General John Ashcroft responded angrily Tuesday to Congressional Democrats who suggested that a no-bid private contract directed to him by the Justice Department last year amounted to a “back-room sweetheart deal” worth tens of millions of dollars to his consulting firm. “There is not a conflict; there is not an appearance of a conflict,” Mr. Ashcroft said at a hearing of a House Judiciary subcommittee exploring the circumstances of the contract. He repeatedly tried to talk over the panel’s Democratic chairwoman, Representative Linda T. Sánchez of California, who offered the severest questioning. Mr. Ashcroft stepped down from the Justice Department three years ago and now runs a Washington consulting and lobbying firm that bears his name. Ms. Sánchez opened the hearing by suggesting the appearance of a conflict of interest in the department’s decision last year to steer a monitoring contract worth $28 million to $52 million to Mr. Ashcroft’s firm as part of an out-of-court settlement with a medical supply company under criminal investigation. The Indiana company, Zimmer Holdings, hired the Ashcroft firm as the settlement monitor at the direction of Christopher J. Christie, the United States attorney in New Jersey, who had pursued the investigation and had worked under Mr. Ashcroft at the Justice Department. “You don’t believe that it may be a conflict of interest in a former employee hiring the former boss, or suggesting that he be hired, for a very lucrative contract?” she said of the 18-month contract, which requires Mr. Ashcroft to make sure that Zimmer complies with the terms of its settlement of kickback allegations. Ms. Sánchez described the contract as a “back-room sweetheart deal” in which “Mr. Ashcroft was selected with no public notice and no bidding.”

Note: For a treasure trove of reports from reliable, verifiable sources on government corruption, click here.

The members of Mike Hurley's [9/11 Commisson investigative] team were ... alarmed by the revelations, week by week, month by month, of how close the commission's chief director, Philip Zelikow, was to Rice and others at the White House. They learned early on about Zelikow's work on the Bush transition team in 2000 and early 2001, and about how much antipathy there was between him and ["Counterterrorism Czar"] Richard Clarke. They heard the stories about Zelikow's role in developing the "pre-emptive war" strategy at the White House in 2002. Zelikow's friendships with Rice and others were a particular problem for Warren Bass, since Rice and Clarke were at the heart of his part of the investigation. It was clear to some members of team that they could not have an open discussion in front of Zelikow about Rice and her performance as National Security Adviser. For Hurley's team, there was a reverse problem with Clarke. It was easy to talk about Clarke in Zelikow's presence, as long as the conversation centred on Clarke's failings at the NSC and his purported dishonesty. Long before Bass had seen Clarke's files, Zelikow made it clear to the team's investigators that Clarke should not be believed, that his testimony would be suspect. He argued that Clarke was a braggart who would try to rewrite history to justify his errors and slander his enemies, Rice in particular.

Note: This critique of the close ties to the White House of Philip Zelikow, Executive Director of the 9/11 Commission, is an excerpt from Philip Shenon's new book, The Commission: The Uncensored History of the 9/11 Investigation. For an even deeper analysis of the Commission's failings, read WantToKnow.info team member David Ray Griffin's book, The 9/11 Commission Report: Omissions and Distortions.

Kellogg Brown & Root, the nation's top Iraq war contractor and until last year a subsidiary of Halliburton Corp., has avoided paying hundreds of millions of dollars in federal Medicare and Social Security taxes by hiring workers through shell companies based in [the Cayman Islands]. More than 21,000 people working for KBR in Iraq - including about 10,500 Americans - are listed as employees of two companies that exist in a computer file on the fourth floor of a building on a palm-studded boulevard here in the Caribbean. Neither company has an office or phone number in the Cayman Islands. The Defense Department has known since at least 2004 that KBR was avoiding taxes by declaring its American workers as employees of Cayman Islands shell companies. With an estimated $16 billion in contracts, KBR is by far the largest contractor in Iraq, with eight times the work of its nearest competitor. The no-bid contract it received in 2002 to rebuild Iraq's oil infrastructure and a multibillion-dollar contract to provide support services to troops have long drawn scrutiny because Vice President Dick Cheney was Halliburton's chief executive from 1995 until he joined the Republican ticket with President Bush in 2000. The largest of the Cayman Islands shell companies - called Service Employers International Inc., which is now listed as having more than 20,000 workers in Iraq, according to KBR - was created two years before Cheney became Halliburton's chief executive. But a second Cayman Islands company called Overseas Administrative Services, which now is listed as the employer of 1,020 mostly managerial workers in Iraq, was established two months after Cheney's appointment.

Note: To read a powerful personal statement about the reality of war profiteering by a highly decorated Marine Corps general, click here.

Several thousand law enforcement agencies are creating the foundation of a domestic intelligence system through computer networks that analyze vast amounts of police information. As federal authorities struggled to meet information-sharing mandates after the Sept. 11, 2001 terrorist attacks, police agencies from Alaska and California to the Washington region poured millions of ... records into shared digital repositories called data warehouses, giving investigators and analysts new power to discern links among people, patterns of behavior and other hidden clues. Those network efforts will begin expanding further this month, as some local and state agencies connect to a fledgling Justice Department system called the National Data Exchange, or N-DEx. The expanding police systems illustrate the prominent roles that private companies play in homeland security and counterterrorism efforts. They also underscore how the use of new data -- and data surveillance -- is evolving faster than the public's understanding or the laws intended to check government power and protect civil liberties. Three decades ago, Congress imposed limits on domestic intelligence activity after revelations that the FBI, Army, local police and others had misused their authority for years to build troves of personal dossiers and monitor political activists and other law-abiding Americans. Since those reforms, police and federal authorities have observed a wall between law enforcement information-gathering, relating to crimes and prosecutions, and more open-ended intelligence that relates to national security and [politics]. That wall is fast eroding following the passage of laws expanding surveillance authorities, the push for information-sharing networks, and the expectation that local and state police will play larger roles.

Note: For many revealing reports from reliable sources of serious threats to civil liberties, click here.

Under pressure from the chemical industry, the Environmental Protection Agency has dismissed an outspoken scientist who chaired a federal panel responsible for helping the agency determine the dangers of a flame retardant widely used in electronic equipment. Toxicologist Deborah Rice was appointed chair of an EPA scientific panel reviewing the chemical a year ago. Federal records show that she was removed from the panel in August after the American Chemistry Council, the lobbying group for chemical manufacturers, complained to a top-ranking EPA official that she was biased. The chemical, a brominated compound known as deca, is [commonly] used in the plastic housings of television sets. Rice, an award-winning former EPA scientist ... has studied low doses of deca and reported neurological effects in lab animals. The EPA is in the process of deciding how much daily exposure to deca is safe - a decision, expected next month, that could determine whether it can still be used in consumer products. The role of the expert panel was to review and comment on the scientific evidence. Sonya Lunder, a senior analyst at the Environmental Working Group, an advocacy group in Washington, said it was unprecedented for the EPA to remove an expert for expressing concerns about the potential dangers of a chemical. "It's a scary world if we create a precedent that says scientists involved in decision-making are perceived to be too biased," she said. In 2004, the EPA gave Rice and four colleagues an award for what it called "exceptionally high-quality research" for a study that linked lead exposure to premature puberty in girls.

Note: For many revealing articles on government corruption, click here.

More than 1 percent of adult Americans are in jail or prison, an all-time high that is costing state governments nearly $50 billion a year, in addition to more than $5 billion spent by the federal government, according to a report released Thursday. With more than 2.3 million people behind bars at the start of 2008, the United States leads the world in both the number and the percentage of residents it incarcerates, leaving even far more populous China a distant second, noted the report by the nonpartisan Pew Center on the States. The ballooning prison population is largely the result of tougher state and federal sentencing laws enacted since the mid-1980s. Minorities have been hit particularly hard: One in 9 black men age 20 to 34 is behind bars. For black women age 35 to 39, the figure is 1 in 100, compared with 1 in 355 white women in the same age group. When it comes to preventing repeat offenses by nonviolent criminals - who make up about half of the incarcerated population - alternative punishments such as community supervision and mandatory drug counseling that are far less expensive may prove just as or more effective than jail time. About 91 percent of incarcerated adults are under state or local jurisdiction, and the report documents the trade-offs state governments have faced as they have devoted ever larger shares of their budgets to house them. For instance, over the past two decades, state spending on corrections (adjusted for inflation) increased by 127 percent, while spending on higher education rose by 21 percent.

The Bush Administration was wrong about the benefits of the war and it was wrong about the costs of the war. The president and his advisers [forecast] a quick, inexpensive conflict. Instead, we have a war that is costing more than anyone could have imagined. The cost of direct US military operations - not even including long-term costs such as taking care of wounded veterans - already exceeds the cost of the 12-year war in Vietnam and is more than double the cost of the Korean War. And, even in the best case scenario, these costs are projected to be almost ten times the cost of the first Gulf War, almost a third more than the cost of the Vietnam War, and twice that of the First World War. The only war in our history which cost more was the Second World War, when 16.3 million U.S. troops fought in a campaign lasting four years, at a total cost (in 2007 dollars, after adjusting for inflation) of about $5 trillion. Most Americans have yet to feel these costs. The price in blood has been paid by our voluntary military and by hired contractors. The price in treasure has, in a sense, been financed entirely by borrowing. Taxes have not been raised to pay for it - in fact, taxes on the rich have actually fallen. Deficit spending gives the illusion that the laws of economics can be repealed, that we can have both guns and butter. But of course the laws are not repealed. The costs of the war are real even if they have been deferred, possibly to another generation. From the unhealthy brew of emergency funding, multiple sets of books, and chronic underestimates of the resources required to prosecute the war, we have attempted to identify how much we have been spending - and how much we will, in the end, likely have to spend. The figure we arrive at is more than $3 trillion. Our calculations are based on conservative assumptions.

Note: For many reports from major media sources which reveal massive war profiteering, click here.

The Army has shut down public access to the largest online collection of its doctrinal publications, a move criticized by open-government advocates as unnecessary secrecy by a runaway bureaucracy. Army officials moved the Reimer Digital Library behind a password-protected firewall on Feb. 6, restricting access to an electronic trove that is popular with researchers for its wealth of field and technical manuals and documents on military operations, education, training and technology. All are unclassified, and most already are approved for public release. "Almost everything connected to the Army is reflected in some way in the Reimer collection," said Steven Aftergood, director of the Project on Government Secrecy at the nonprofit Federation of American Scientists. "It provides the public with an unparalleled window into Army policy. It provides unclassified resources on military planning and doctrine." Aftergood ... said the collection offers specialized military manuscripts that do not appear on the shelves of local libraries. These include documents on the Army's use of unmanned aircraft [and] tactics and techniques for the use of nonlethal weapons. "All of this stuff had been specifically approved for public release," Aftergood said. "I think it's a case of bureaucracy run amok. And it's a familiar impulse to secrecy that needs to be challenged at every turn." In 2006, the National Archives acknowledged that the CIA and other agencies had withdrawn thousands of records from the public shelves ... and inappropriately reclassified many of them. Early in 2002, then-Attorney General John D. Ashcroft issued a memo urging federal agencies to use whatever legal means necessary to reject Freedom of Information Act requests for public documents.

Note: For reliable reports on escalating government secrecy from reliable, verifiable sources, click here.

Once a month, Pakistan's Defense Ministry delivers 15 to 20 pages of spreadsheets to the U.S. Embassy in Islamabad. They list costs for feeding, clothing, billeting and maintaining 80,000 to 100,000 Pakistani troops in the volatile tribal area along the Afghan border. No receipts are attached. In response, the Defense Department has disbursed about $80 million monthly, or roughly $1 billion a year for the past six years, in one of the most generous U.S. military support programs worldwide. But vague accounting, disputed expenses and suspicions about overbilling have recently made these payments to Pakistan highly controversial -- even within the U.S. government. Questions have already been raised about where the money went and what the Bush administration got in return. In perhaps the most disputed series of payments, Pakistan received about $80 million a month in 2006 and 2007 for military operations during cease-fires with pro-Taliban tribal elders along the border, including a 10-month truce in which troops returned to their barracks. U.S. officials say the payments to Pakistan -- which over the past six years have totaled $5.7 billion -- were cheap compared with expenditures on Iraq, where the United States now spends at least $1 billion a week on military operations alone. Congressional officials and others are concerned that the administration has been so eager to prop up Musharraf that it overlooked U.S. foreign aid and accounting standards. A congressional oversight subcommittee is also set to begin an investigation next month, while the Government Accountability Office plans to finish its own inquiry in April.

How big do you have to be to earn the wrath of the United Nations and Internet giant Google? If you're journalist Matthew Lee, all it takes are some critical articles and a scrappy little Web site. Lee is the editor-in-chief, Webmaster and pretty much the only reporter for Inner City Press, a pint-sized Internet news operation that's taken on Goliath-sized entities like Citigroup since 1987. Since 2005, he's been focusing almost entirely on stories that deal with internal corruption inside the U.N., posting several stories online almost daily. Many of Lee's stories were featured prominently whenever Web users looked for news about the U.N. using the powerful Google News search engine, a vital way for media outlets both large and small to get their articles read. But beginning Feb. 13, Google News users could no longer find new stories from the Inner City Press. "I think they said, 'If we can't get this guy out of the U.N., let's disappear him from the Internet,'" Lee said. It began with an innocuous-sounding yet chilling form letter from Google to Lee, e-mailed on Feb. 8: "We periodically review news sources, particularly following user complaints, to ensure Google News offers a high quality experience for our users," it said. "When we reviewed your site we've found that we can no longer include it in Google News." As soon as he read it, Lee immediately suspected one thing: That someone at the [UN] had pressured Google into "de-listing" him from Google News — essentially preventing Inner City Press from being classified on Google News as a legitimate news source and from having its stories pop up when someone conducts a Google News search.

Saudi Arabia's rulers threatened to make it easier for terrorists to attack London unless corruption investigations into their arms deals were halted, according to court documents revealed yesterday. Previously secret files describe how investigators were told they faced "another 7/7" and the loss of "British lives on British streets" if they pressed on with their inquiries and the Saudis carried out their threat to cut off intelligence. Prince Bandar, the head of the Saudi national security council, and son of the crown prince, was alleged in court to be the man behind the threats to hold back information about suicide bombers and terrorists. He faces accusations that he himself took more than Ł1bn in secret payments from the arms company BAE. He was accused in yesterday's high court hearings of flying to London in December 2006 and uttering threats which made the prime minister, Tony Blair, force an end to the Serious Fraud Office investigation into bribery allegations involving Bandar and his family. The threats halted the fraud inquiry. Lord Justice Moses, hearing the civil case with Mr Justice Sullivan, said the government appeared to have "rolled over" after the threats. He said one possible view was that it was "just as if a gun had been held to the head" of the government. The SFO investigation began in 2004, when Robert Wardle, its director, studied evidence unearthed by the Guardian. This revealed that massive secret payments were going from BAE to Saudi Arabian princes, to promote arms deals. Yesterday, anti-corruption campaigners began a legal action to overturn the decision to halt the case. They want the original investigation restarted, arguing the government had caved into blackmail.

Note: This report comes very close to confirming the close link between terrorist attacks and high-level policy of certain states. For many revealing clues along these lines from reliable sources, 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.