The Real Tragedy of Corruption
Roll Call reports that Sec. of Defense Rumsfeld stands to benefit personally and hugely from Sen. Frist's plan to prevent a possible avian influenza pandemic.
Rumsfeld -- as a stock holder and former CEO of Gilead Sciences Inc., the sole patent owner of Tamiflu, the antiviral drug now being stockpiled by the Defense Department and other agencies -- stands to make millions of dollars if legislation is passed that allocates additional federal money to stockpile the anti-viral medications.Indeed, according to calculations by Roll Call, the secretary of Defense has already seen his personal portfolio in Gilead shares rise in value by 54 percent since the date that his holdings were last calculated for a financial disclosure form.
Since that date, Dec. 31, 2004, appreciation in the stock's price has meant that the value of Rumsfeld's personal holdings in Gilead has risen by between $2.8 million and $13.77 million. His total personal holdings in the company -- assuming he has made no transactions in calendar 2005, as he has indicated -- now range between $8.1 million and $39.3 million, according to Roll Call's calculations.
A colleague summed up the outrage of this situation in an email to me this morning:
One terrible consequence of this administration's and this Congress' record of corruption and misrepresentation is that it puts us in the position of not knowing what and who to believe. Avian Flu may or may not be the threat that is described. Now that we know the enormous personal stake Rumsfeld has in the issue, coupled with the (potentially similiar) record on Iraq and Halliburton, lead everyone to fear/suspect that this is another exaggerated risk and that its solution is advanced precisely because there will be a great financial advantage to administration insiders and associates. The Frist speech the other day was a redux version of W on Iraq, full of WMD/world-about-to-end equivalents.So the tragedy of all this corruption and manipulation is that even if Rumsfeld (and any others with a stake in, or money from Gilead and Roche) now gave up the stock or gave back campaign contributions from the companies in an effort to clear the air, we do not know whether we are being properly informed and lead.















Why NOT? How many other lootings of the treasury are there? Or is it more an organic thing? Either way it's a vast shakedown of the American people, with some forty percent squealing, "yes, oh please please take our money from us." Is Rumsfeld really such a Numbskull, after all? There he is doin' it right in front of our faces. And the Blogs played on.
December 15, 2005 12:18 PM | Reply | Permalink
There are a couple of problems with the corruption explanation in this case. First, the US is actually behind most of the rest of the developed world in stockpiling of tamiflu. A US-specific explanation (whether linked to Rumsfeld or some broader corruption) fails to explain the rest of the world's behavior.
Second, the US response seems to me to have been in large part driven by outside concerns. It's the press and others that have pushed the avian flu story, rather than the government. The government has dragged its heels and has only recently started addressing the problem aggressively. Again, this is not what you'd expect if the whole thing was a made up crisis to funnel government money to Rumsfeld and other stockholders.
December 15, 2005 1:13 PM | Reply | Permalink
There are a couple of problems with the corruption explanation in this case.
But it's sooooo much more satisfying to wail and tear at you clothes and point out the inate evil within the Repblican party, I'm sure Haliburton developed the "Bird-Flu" and spread it with the hopes of starting a pandemic and then they'd make money in a no bid contract to pick up all of the bodies.
December 15, 2005 3:46 PM | Reply | Permalink
The evil invite their own punishment and it will be delivered. The Lord will not be checking Party affiliation nor issuing press passes. Enjoy your complacency, for it will not outlive you.
mp
December 15, 2005 4:25 PM | Reply | Permalink
Once again you know Halliburton has nothing to do with this, but you'd rather mock people than acknowledge that Rummy has somewhere between $5 million and 25 million in stock in the company he used to be CEO of. If you think these guys don't factor stuff like that into their decisions I will renew my offer I made to you last week to sell you a very nice bridge in Brooklyn.
December 15, 2005 4:47 PM | Reply | Permalink
Time out folks on sleaze and corruption -
As far as I understand Rumsfeld did nothing wrong. It is entirely logical he maintained investments in is old company. I see not a conflict of interest with his DOD responsibilities.
I don't see how we can imply that Frist is trying to help Rumsfeld. Frist is guilty of all sorts of mistakes and ommissions but there is no evidence of causation that I can see.
As to how the US should be handling the flu risk, prevention and care after infection I have no personal idea. I want to hear from medical professionals and not politicians. Frist is first and foremost a politician.
December 15, 2005 5:22 PM | Reply | Permalink
Avian flu is a serious threat. Many human diseases are thought to have originally been animal diseased and jumped to humans. An Avian flu has already occurred in recent history (1918) and killed hundreds of thousands in the US alone. There will be another pandemic it is a biological certainty. The only question is when. It could be next year it could be in 100 years. Regardless it would be extremely foolish not to prepare for it.
If you want to look for corruption ask why is the government paying full market value for this Swiss made drug when it could be easily and cheaply synthesized here at home and stockpiled for use if a pandemic broke out. When Roche (the producers of Tamiflu) they said they did not have the supply to meet the recent orders in Asia, The Chinese said they were going to ignore the patent protection on the drug and make their own generic version. Now all of a sudden Roche changed its tune and has granted Shanghai Pharmaceutical permission to make as much generic Tamiflu as it wants but only for use in the event of a pandemic not for the general flu season. Meanwhile the USA plans to spend how much?
December 15, 2005 5:50 PM | Reply | Permalink
The classic model of corruption involves sinister conspiracies, grand schemes, Nixonian-style nastiness. I suspect that whatever corruption may exist here is of the "lite version."
We know that Bush takes care of "his own" in the extreme, and is prepared to punish, exile, career-wreck, etc. any disharmonious voice or anyone within one degree of family relation thereto, skills he honed well in his (ahem) successful career in the oil industry. We also know that Bush believes in Indonesian style crony capitalism, not only as a business model but as a fundamental element of his success model ideologically, tactically and financially and has done so for 25 years. If TPM readers know it, careerists in Congress, NIH and the Executive Branch must focus on that fact the way I focus on my commuter train schedule to DC to get to my law office.
If you worked for George Bush or Bill Frist, or in public life even 5 degrees of separation from them, and you suspected that there was no avian flu, or that the intelligence scientific data re same had been manipulated, or that perhaps Senator Frist had not received all of the information regarding the weapons microbes of mass destruction, and you knew that Donald Rumsfeld once ran the company that supplies the food for the soldiers and oil drilling equipment flu pills and probably still had at least a 7 figure stake in it, exactly when would you call Bob Woodward Judith Miller a real news reporter who worked for a living so that you and your undercover CIA agent wife immediate family could get attacked by Team Crawford?
No, you would gripe to a few friends, maybe talk someone else into taking the hit but otherwise shut up and punch out at 5 PM. You would rationalize it - at least no one would die because the U.S. Government made an unnecessary, expensive and bad faith war against Iraq the flu bug. You would not decide to become Deep Cough, especially if you do not have a half million dollar retainer for the white collar lawyer you will need after the FDA, the Defense Department, the Justice Department, Team Crawford and Gilead's corporate counsel all decide to eat you, your spouse and your children for dinner under 100 theories of civil, criminal and administrative wrongdoing.
There doesn't need to be a deep conspiracy. Team Crawford has telegraphed its particular methods of political non-consensual sodomy clearly to all involved; in this sense they have been remarkably fair and open. Fool with Bush and we won't kill you, but you will definitely beg us to do so.
A lot of corruption is about slowing down, stepping off the gas, delays in the ordinary procedures of due process and sunlight, skipping procedural review under "exigent circumstances." It involves deferring tough decisions until the next guy/higher pay grade/proper authorization gives the OK. When all is said and done, you do not need a conspiracy to keep people from picking up a turd; you just need an easy way for them to keep walking past it.
I have no idea whether Gilead is really "Halliburton Antiviral Solutions" in waiting. But whoever might have a decent guess about it is probably mentally healthy enough to want not to commit financial and career suicide. Thus works Corruption Lite (R), a registered trademark of the Republican Party.
December 15, 2005 8:08 PM | Reply | Permalink
But it's sooooo much more satisfying to wail and tear at you clothes and point out the inate evil within the Repblican party, I'm sure Haliburton developed the "Bird-Flu" and spread it with the hopes of starting a pandemic and then they'd make money in a no bid contract to pick up all of the bodies.
Link please? I can't seem to find such a statement on this thread when you commented.
The Roll Call article is simply reporting on a possible conflict of interest, a very legitimate thing for the press to do. I would hope reporting like that would happen in any administration.
Ellen Miller's friend is simply reporting on her fear of being able to trust what the Bush administration will say about the story because of their previous history, something which should very much concern the GOP:
Meanwhile, you're dreaming of imaginary tin-foil lefty comments to come (perhaps even giving some of them ideas,) classic Limbaughian narratives ala tree huggers and feminazis. There's no audience for that here. Ya know, if you want people here to respect you in the morning, debating with phantom liberals is probably not the best way to go about it. Cheers.
December 15, 2005 10:29 PM | Reply | Permalink
The accusations never end. Where can a person invest their money and not be accussed of this stuff by the left? The guy is ancient, and was rich before he got back into the game. Do you actually think that the Bush administration is manipulating the stock portfolio of Donald Rumsfeld with the type of anti-viral they try to purchase to stave off a bird flu epidemic? It's these wild accusations that make the left look ridiculous, I'm sorry if anyone was offended by my style of pointing out the baselessness of the accusation (except tlees if you keep sticking your finger in the socket you will continue to get shocked). As a matter of fact why don't we see if the Kerry's or Kennedy's have any money invested in the oil/pharmacutical industries, oh that's right, all their money is hidden over seas in off shore trusts to avoid the crushing tax code they want to force on me!
December 16, 2005 2:42 AM | Reply | Permalink
Culture of Corruption
Lobbyist Abramoff's 'Equal Money' Went to Republicans
By Kristin Jensen and Jonathan D. Salant
Bloomberg.com
Wednesday 21 December 2005
Washington - US President George W. Bush calls indicted lobbyist Jack Abramoff "an equal money dispenser" who helped politicians of both parties. Campaign donation records show Republicans were a lot more equal than Democrats.
Between 2001 and 2004, Abramoff gave more than $127,000 to Republican candidates and committees and nothing to Democrats, federal records show. At the same time, his Indian clients were the only ones among the top 10 tribal donors in the US to donate more money to Republicans than Democrats.
Bush's comment about Abramoff in a Dec. 14 Fox News interview was aimed at countering Democratic accusations that Republicans have brought a "culture of corruption" to Washington. Even so, the numbers show that "Abramoff's big connections were with the Republicans," said Larry Noble, the former top lawyer for the Federal Election Commission, who directs the Washington-based Center for Responsive Politics.
December 29, 2005 5:01 PM | Reply | Permalink