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Wednesday, March 02, 2005

The Monkey's Uncle, part two

W's uncle, William Henry Trotter "Bucky" Bush, joined the board of a defense contractor in St. Louis called ESSI:
In 2003, the Defense Department gave ESSI a huge deal to provide the Army with equipment to search for Iraq's non-existent chemical and biological weapons. Part of this package included a $19 million contract to provide protective tents for US troops from chemical bombs. The tents didn't arrive in Iraq until after it was evident to nearly everyone that the Iraqi military didn't have access to such weapons. This didn't stop the money from flowing into ESSI's coffers and it didn't stop ESSI's executives from playing along in the grand charade. "The potential threat of our troops facing a chemical or biological attack during the current conflict in Iraq remains very real," huffed Michael Shananan, the company's former chairman.

As the invasion transformed into a military occupation of Iraq, ESSI continued to pluck off sweet deals. In late 2003, the Coalition Provisional Authority, whose contracts passed across the Pentagon desk of arch neocon Douglas Feith, awarded ESSI an $18 million deal to engineer a communications system for the CPA offices, barricaded inside Baghdad's Green Zone.

Its executives openly clucked at the likelihood for protracted war. "The increasing likelihood for a prolonged military involvement in Southwest Asia by US forces well into 2006 has created a fertile environment for the type of support products and services we offer," gloated Gerald L. Daniels, the company's Chief Executive Officer. Rarely has corporate glee over the prospects of war profiteering been expressed so brazenly.

But Daniels had a point. Even as things began to go sour for the US in Iraq, ESSI stood to make lots of money. One of its biggest no-bid contracts came in 2004 in the wake of mounting causalities in light-armored vehicles hit by roadside bombs. ESSI won a deal to upgrade the armor of thousands of vehicles in or bound for Iraq. The company's annual report for 2005 forecast that ESSI might make as much as $200 million from this bloody windfall alone.

As the flood of new contracts poured in, ESSI's stock soared. In January of 2005, it reached its all-time high of $60.39 per share. A few days before the stock hit this lofty peak, Uncle Bucky quietly exercised his option to sell 8,438 shares of ESSI stock. He walked away from that transaction with at least $450,000. The stock sale occurred a few days after ESSI announced that the Pentagon had awarded it $77 million in new contracts for the Iraq war and a few days before word leaked to the press that the company was under investigation for its handling of older Pentagon contracts. The timing of the trade was perfect.

In a February 2005 filing with the Securities Exchange Commission, ESSI discreetly disclosed to its shareholders that the inspector general of Pentagon had launched an inquiry into a series of contracts awarded to the company in 2002 for work on the Air Force's troubled automated cargo loading machine called the Tunner.
Crime on a grand scale--that IS the Bush family.