Why Obama May Be About to Give a Giant Handout Out to the Billionaire Koch Brothers

Πηγή: Alter net
By Jamie Henn

Oct 20 2011

The brothers control nearly 25% of the tar sands crude that is imported into the US and own mining companies, oil terminals, and refineries all along the Keystone XL route.

Here's a unique political strategy for you: in the lead up to a crucial election, as anti-corporate sentiment is sweeping the nation, consider giving a huge handout to a major corporation that happens to be your biggest political enemy and is already spending hundreds of millions to defeat you and your agenda.

If that seems too crazy to believe, welcome to the Obama 2012 campaign.

Right now, President Obama is faced with the most crucial environmental decisions he is going to face before the 2012 election: whether or not to approve the permit for the controversial Keystone XL pipeline, a 1,700 mile fuse to the largest carbon bomb on the continent, the Canadian tar sands.

The Keystone XL isn't just an XL environmental disaster -- the nation's top climate scientists say that fully exploiting the tar sands could mean "essentially game over" for the climate -- it also happens to be an XL sized handout to Big Oil and, you guessed it, the Brothers Koch. You want fries with that?

Earlier this year, when Representative Henry Waxman (D-Calif.) attempted to investigate whether or not the Koch Brothers stood to gain from the pipeline, the chairman of the House Committee on Energy and Commerce, Fred Upton (R-Mich.) called the idea an "outrageous accusation" and "blatant political sideshow." Is it even necessary to mention that reports show Koch and its employees gave $279,500 to 22 of the energy committee's 31 Republicans and $32,000 to five Democrats?

As you might expect, Upton was completely wrong. Reporters at InsideClimateNews and elsewhere proved that the Koch's stand to make a fortune with the construction of the pipeline. The brothers already control close to 25 percent of the tar sands crude that is imported into the United State and own mining companies, oil terminals, and refineries all along the pipeline route. You can bet that the champagne will be flowing in Koch HQ when toxic tar sands crude starts moving down the pipe.

Which brings us back to Obama. It's not too late for the president to intervene and stop the Koch Brothers from pocketing another profit at the expense of the American people. Because it crosses an international border, in order for the Keystone XL pipeline to be built the Obama administration must grant it a "presidential permit" that states that the construction project is in the national interest of the United States.

President Obama can deny the permit, right now, and shut down this flow of cash to the Kochs. In doing so, he'll show that our national interest isn't always determined by the 1%, in this case a few big oil companies and the Koch Brothers, but by the 99% of us who have to pay the price for their greed.

Denying the permit will also send a jolt of electricity through President Obama's base, the millions of us who went out and volunteered and donated to the campaign because we believed in a candidate who said that it was time to "end the tyranny of oil." In fact, this November 6, thousands of us former believers will be descending on Washington, DC to #surround the White House with people carrying placards with the President's own words in an attempt to resuscitate the 2008 Obama who seemed capable of standing up to folks like the Kochs. You can join here.

I can't say that I'm privy to what the Obama 2012 campaign will advise the president to do when it comes to the pipeline. But if I was sitting in Chicago watching the Koch Brothers assembled their army of lobbyists across the nation, I'd be thinking that XL handout wasn't such a good idea.

Koch Brothers Flout Law Getting Richer With Secret Iran Sales

Πηγή: Warisacrime
By Asjylyn Loder and David Evans (Bloomberg Markets Magazine)

Oct 18 2011

In May 2008, a unit of Koch Industries Inc., one of the world’s largest privately held companies, sent Ludmila Egorova-Farines, its newly hired compliance officer and ethics manager, to investigate the management of a subsidiary in Arles in southern France. In less than a week, she discovered that the company had paid bribes to win contracts.

“I uncovered the practices within a few days,” Egorova- Farines says. “They were not hidden at all.”

She immediately notified her supervisors in the U.S. A week later, Wichita, Kansas-based Koch Industries dispatched an investigative team to look into her findings, Bloomberg Markets magazine reports in its November issue.

By September of that year, the researchers had found evidence of improper payments to secure contracts in six countries dating back to 2002, authorized by the business director of the company’s Koch-Glitsch affiliate in France.

“Those activities constitute violations of criminal law,” Koch Industries wrote in a Dec. 8, 2008, letter giving details of its findings. The letter was made public in a civil court ruling in France in September 2010; the document has never before been reported by the media.

Egorova-Farines wasn’t rewarded for bringing the illicit payments to the company’s attention. Her superiors removed her from the inquiry in August 2008 and fired her in June 2009, calling her incompetent, even after Koch’s investigators substantiated her findings. She sued Koch-Glitsch in France for wrongful termination.

Obsessed with Secrecy

Koch-Glitsch is part of a global empire run by billionaire brothers Charles and David Koch, who have taken a small oil company they inherited from their father, Fred, after his death in 1967, and built it into a chemical, textile, trading and refining conglomerate spanning more than 50 countries.

Koch Industries is obsessed with secrecy, to the point that it discloses only an approximation of its annual revenue -- $100 billion a year -- and says nothing about its profits.

The most visible part of Koch Industries is its consumer brands, including Lycra fiber and Stainmaster carpet. Georgia- Pacific LLC, which Koch owns, makes Dixie cups, Brawny paper towels and Quilted Northern bath tissue.

Charles, 75, and David, 71, each worth about $20 billion, are prominent financial backers of groups that believe that excessive regulation is sapping the competitiveness of American business. They inherited their anti-government leanings from their father.

Abolishing Social Security

Fred was an early adviser to the founder of the anti- communist John Birch Society, which fought against the civil rights movement and the United Nations. Charles and David have supported the Tea Party, a loosely organized group that aims to shrink the size of government and cut federal spending.

These are long-standing tenets for the Kochs. In 1980, David Koch ran for vice president on the Libertarian ticket, pledging to abolish Social Security, the Federal Reserve System, welfare, minimum wage laws and federal agencies -- including the Department of Energy, the Federal Bureau of Investigation and the Central Intelligence Agency.

What many people don’t know is how the Kochs’ anti- regulation political ideology has influenced the way they conduct business.

A Bloomberg Markets investigation has found that Koch Industries -- in addition to being involved in improper payments to win business in Africa, India and the Middle East -- has sold millions of dollars of petrochemical equipment to Iran, a country the U.S. identifies as a sponsor of global terrorism.

The ‘Koch Method’

Internal company documents show that the company made those sales through foreign subsidiaries, thwarting a U.S. trade ban. Koch Industries units have also rigged prices with competitors, lied to regulators and repeatedly run afoul of environmental regulations, resulting in five criminal convictions since 1999 in the U.S. and Canada.

From 1999 through 2003, Koch Industries was assessed more than $400 million in fines, penalties and judgments. In December 1999, a civil jury found that Koch Industries had taken oil it didn’t pay for from federal land by mismeasuring the amount of crude it was extracting. Koch paid a $25 million settlement to the U.S.

Phil Dubose, a Koch employee who testified against the company said he and his colleagues were shown by their managers how to steal and cheat -- using techniques they called the Koch Method.

Refused to Falsify

In 1999, a Texas jury imposed a $296 million verdict on a Koch pipeline unit -- the largest compensatory damages judgment in a wrongful death case against a corporation in U.S. history. The jury found that the company’s negligence had led to a butane pipeline rupture that fueled an explosion that killed two teenagers.

Former Koch employees in the U.S. and Europe have testified or told investigators that they’ve witnessed wrongdoing by the company or have been asked by Koch managers to take what they saw as improper actions.

Sally Barnes-Soliz, who’s now an investigator for the State Department of Labor and Industries in Washington, says that when she worked for Koch, her bosses and a company lawyer at the Koch refinery in Corpus Christi, Texas, asked her to falsify data for a report to the state on uncontrolled emissions of benzene, a known cause of cancer. Barnes-Soliz, who testified to a federal grand jury, says she refused to alter the numbers.

“They didn’t know what to do with me,” she says. “They were really kind of baffled that I had ethics.”

Koch’s refinery unit pleaded guilty in 2001 to a federal felony charge of lying to regulators and paid $20 million in fines and penalties.