AP Online April 12, 2002 Friday Lawmaker Questions Bush Action
Fellow lawmakers on Friday criticized Rep. Cynthia McKinney's allegations that Bush administration officials may have ignored advance warning of the Sept. 11 attacks and their political allies have profited from the war on terrorism.
Georgia Sen. Zell Miller, a conservative Democrat who has clashed before with McKinney, D-Ga., said her statement was "loony," also "dangerous and irresponsible." He said it was an example of McKinney trying to draw attention to herself. McKinney made the statements in a March 25 interview on radio station KPFA in Berkeley, Calif.
"What did this administration know and when did it know it about the events of Sept. 11," McKinney said. "Who else knew, and why did they not warn the innocent people of New York who were needlessly murdered? What do they have to hide?"
McKinney alleged the military action that followed the attacks has benefited investment firms specializing in defense contracts. She singled out the Carlyle Group, where President Bush's father is an adviser.
In a statement Friday, McKinney acknowledged she had no evidence anyone with ties to the Bush administration profited from the attacks. But she didn't back off her allegations that Bush officials may have had prior notice.
Carlyle Group spokesman Chris Ullman and White House press secretary Ari Fleischer dismissed the allegation as a baseless conspiracy theory.
"All I can tell you is the congresswoman must be running for the Hall of Fame of the Grassy Knoll Society," Fleischer said.
Erik Smith, spokesman for House Minority Leader Dick Gephardt, D-Mo., said Gephardt disagreed with McKinney's comments but defended her right to make them.
McKinney, a five-term House member from Atlanta, is an outspoken liberal who has angered both parties with her comments over the years.
In August 2000, McKinney, who is black, issued a statement contending then-Vice President Al Gore had a low "Negro tolerance level" and refused to travel with more than one black person at a time. More than a week later, McKinney's office explained the statement was a draft and never meant for publication.
More recently, she was criticized for writing a letter scolding former New York City Mayor Rudolph Giuliani for returning a Saudi prince's $10 million check for Sept. 11 victims. Giuliani returned it because, during a visit to New York, Prince Alwaleed Bin Talal had suggested U.S. policies toward the Mideast were partly to blame for the attacks.
McKinney also is active on foreign policy issues, opposing U.S. sanctions against Iraq and strongly supporting the Palestinians in the Middle East.
April 12, 2002, Friday 10:59 AM Eastern Time
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HEADLINE: UNITED DEFENSE CEO'S BONUS ROSE ALMOST FIVE-FOLD
BYLINE: Jonathan Berr in the Princeton newsroom (609) 750-4516 or jberr at Bloomberg.net. Editor: Bostick.
DATELINE: Arlington, Virginia
BODY: United Defense Industries Inc. Chief Executive Thomas Rabaut got a $2.14 million bonus in 2001, an almost five-fold increase from the previous year, for leading a debt refinancing and initial public offering.
Rabaut's bonus was part of an $11.1 million payout United Defense gave to some directors and top executives, the company said in a proxy filed with the Securities and Exchange Commission. Rabaut, 53, saw his base salary increase 12 percent to $456,250.
The bonuses were allocated for United Defense going public in December, said Douglas Coffey, a company spokesman. They were a reward for leading the company through "a challenging year."
Shares of United Defense rose 11 percent last year and have risen 47 percent since being sold to the public. The company, which makes the U.S. Army's crusader artillery system, is controlled by Carlyle Group Inc., a Washington-based buyout firm whose advisers include former U.S. President George H.W. Bush.
John Shalikashvili, the former chairman of the Joint Chiefs of Staff, who is an outside director of United Defense received a payout of $102,856. Outside director J.H. Binford Peay III, a former Army general, was paid $160,000. Former U.S. Ambassador to Germany Robert Kimmitt received a payment of $192,000. Each outside director also receives an annual retainer of $25,000.
United Defense shares fell 2 cents to $27.98 today. The Arlington, Virginia-based company's net income fell 53 percent to $8.78 million last year from $18.85 million in 2000. Sales rose 11 percent to $1.31 billion from $1.18 billion.