| Topic: |
Politics > Politics-USA |
| User: |
"Harry Hope" |
| Date: |
23 Mar 2006 05:56:18 AM |
| Object: |
Nephew Georgie Bush's war a windfall for his "Uncle Bucky" Bush |
http://www.southcoasttoday.com/daily/03-06/03-23-06/11world-nation.htm
March 22, 2006
Bush uncle benefits from war spending
By WALTER F. ROCHE JR. , Los Angeles Times
WASHINGTON --
As President Bush embarks on a new effort to shore up public support
for the war in Iraq, an uncle of the chief executive is collecting
$2.7 million in cash and stock from the recent sale of a company that
profited from the war.
A report filed with the U.S. Securities and Exchange Commission shows
that William H.T. Bush collected a little less than $1.9 million in
cash plus stock valued at more than $800,000 as a result of the sale
of Engineered Support Systems Inc. to DRS Technologies of New Jersey.
The $1.7 billion deal closed Jan. 31.
Both businesses have extensive military contracts.
The elder Bush was a director of Engineered Support Systems.
Recent SEC filings show he was paid cash and DRS stock in exchange for
shares and options he obtained as a director.
Missouri-based ESSI experienced record growth prior to its purchase by
DRS through expanded U.S. military contracts -- many to supply current
U.S. efforts in Iraq and Afghanistan -- and an aggressive buyout
strategy targeted at other defense contractors.
The military contracts, some awarded on a sole-source basis, include a
$77 million pact to refit military vehicles used in Iraq with armor.
Other ESSI products used in the war include radar and detection
services, field medical stations and field electrical generator units.
SEC filings show there are two ongoing federal investigations of ESSI
-- one involving a stop order issued by the federal government on the
ESSI contract to supply field generators.
The order was issued because of operational problems with the units.
The field-generator contract was a major source of revenue, but SEC
files show ESSI did not inform stockholders of the stop order until
last June, about seven months after it was issued.
During the interim, several ESSI executives, including Bush's uncle,
cashed in stock and stock options worth millions of dollars, SEC
filings show.
According to one recent filing, both the SEC and the U.S. attorney in
St. Louis are investigating the delayed disclosure and other matters.
Unnamed members of the ESSI board and corporate officers have been
subpoenaed, according to documents filed with the SEC.
William Bush, 67, SEC filings show, exercised options on 8,348 shares
of ESSI stock Jan. 18, 2005, about two months after the stop order was
issued.
He collected about $450,000 in cash.
Bush, known in the president's family as "Uncle Bucky," joined ESSI's
board in 2000, several months before his nephew became president.
The Bush uncle heads a St. Louis investment firm and is a younger
brother of former President Bush.
William Bush declined to comment yesterday.
However, in an interview last year, he said he played no role in ESSI
getting federal contracts.
"I don't make any calls to the 202 (Washington, D.C.) area code," he
said.
Patricia Williamson, a spokeswoman for DRS, would not comment on the
status of the federal investigations.
The company has disclosed that it is cooperating in the
investigations, which also involve an inquiry into an ESSI insurance
contract.
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Yup. We're just looking at another example of Bush Family Values.
Harry
.
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