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Cheney, Romney and the Iran Sanctions Busters

Three weeks ago, CBS 60 Minutes revealed Iran's continued success in acquiring sensitive, weapons-related U.S. technologies despite the American regime of sanctions. Now, the New York Times has documented a long list of multinational American companies receiving billions in federal contracts while they were doing business with Tehran.

If that seems like an ironic turn of events for right-wingers taking a hard line towards Iran, it should. After all, Mitt Romney's brief divestment crusade backfired when it turned out his old company was doing deals with the mullahs. And Halliburton CEO turned Vice President Dick Cheney was opposed to the Iran sanctions before he was for them.

Even as the Obama administration is seeking tougher UN sanctions to press Tehran into curbing its nuclear program, "of the 74 companies The Times identified as doing business with both the United States government and Iran, 49 continue to do business there with no announced plans to leave."

The federal government has awarded more than $107 billion in contract payments, grants and other benefits over the past decade to foreign and multinational American companies while they were doing business in Iran, despite Washington's efforts to discourage investment there, records show.

That includes nearly $15 billion paid to companies that defied American sanctions law by making large investments that helped Iran develop its vast oil and gas reserves.

Among the U.S. contractors also profiting from Iran was Halliburton, which pocketed $27.1 billion from American taxpayers between 2000 and 2009:

Halliburton, former Vice President Cheney's old company, provided oil and gas drilling services to Iran through foreign subsidies. After a political furor erupted over the work, the company announced it would do no new business in Iran, and it exited the country altogether in 2007. While still operating in Iran, Halliburton won huge contacts from the federal government, including a no-bid contract to restore Iraq's oil sector, as did its subsidiary at the time, Kellogg Brown & Root.

As Perrspectives detailed three years ago, Halliburton had side-stepped the U.S. sanctions regime in place against Iran since the 1990's by using a Cayman Islands subsidiary. And what should come as a surprise to no one, CEO Dick Cheney opposed those very sanctions until, of course, he became George W. Bush's Vice President.

In 2004, the CBS newsmagazine 60 Minutes detailed the Iranian business dealings of Cheney's former company, Halliburton. Despite the prohibitions signed into law by President Clinton with his 1995 executive order and the Iran and Libya Sanctions Act of 1996, Halliburton continued to reap the profits of business with Iran through its non-U.S. subsidiaries. While U.S. law bans virtually all commerce with the rogue nations, Halliburton was able to jump through its major loophole: the rules do not apply to any foreign or offshore subsidiary so long as it is run by non-Americans. As CBS documented:

That subsidiary, Halliburton Products and Services, Ltd., is wholly owned by the U.S.-based Halliburton and is registered in a building in the capital of the Cayman Islands -- a building owned by the local Calidonian Bank. Halliburton and other companies set up in this Caribbean Island, because of tax and secrecy laws that are corporate friendly.

Halliburton is the company that Vice President Dick Cheney used to run. He was CEO from 1995 to 2000, during which time Halliburton Products and Services set up shop in Iran. Today, it sells about $40 million a year worth of oil field services to the Iranian government.

In the wake of the January 2004 60 Minutes piece, the company moved quickly to declare that "Halliburton's business in Iran is clearly permissible under applicable laws and regulations" and cited its October 2003 disclosures to the New York City police and fire pension funds. Despite those assurances, Dick Cheney's old firm was subpoenaed by a U.S grand jury in June 2004. In early 2005, Halliburton announced that it would end its business activities there when after fulfilling its ongoing contracts, including a $35 million gas drilling project it had just won the previous month. Halliburton's exit was completed in 2007.

Though he did not benefit directly from the Iran contracts of Halliburton's foreign-based subsidiaries, Cheney continued to have financial ties to his former firm. Despite Cheney's assurances that "I've severed all my ties with the company, gotten rid of all my financial interest," a 2003 report by the Congressional Research Service found that the Vice President retained 433,000 shares of Halliburton. In addition, Cheney received $162,392 and $205,298 in deferred payments in 2001 and 2002, respectively.

Given the stakes, it's no wonder Dick Cheney had a born-again experience on Iranian sanctions when he entered the Bush administration. While Vice President, Cheney in 2002 denounced Iran as "the world's leading exporter of terror." But during his tenure as Halliburton CEO in the 1990's, Cheney strenuously argued against Clinton's sanctions regime and expanded Halliburton's business with Tehran. In 1998, he complained that U.S. firms were "cut out of the action." And back in 1996, Cheney railed against the Clinton prohibitions on Iranian trade and financial activity for American firms:

"We seem to be sanction-happy as a government. The problem is that the good Lord didn't see fit to always put oil and gas resources where there are democratic governments."

For his part, Dick Cheney never made tough but hypocritical talk about Iran sanctions part of a run for the White House. That comic fate fell to Mitt Romney.

Candidate Romney began his grandstanding on Iranian disinvestment by targeting the Democratic-controlled states of New York and Massachusetts. On February 22, 2007, Romney sent letters to New York Governor Eliot Spitzer, Senators Chuck Schumer and Hillary Clinton as well as state comptroller Thomas P. DiNapoli urging a policy of "strategic disinvestment from companies linked to the Iranian regime." Romney's theatrics continued:

"With your new responsibilities overseeing one of America's largest pension funds, you have a unique opportunity to lead an effort to isolate Iran as it pursues nuclear armament. I request that you immediately launch a policy of strategic disinvestment from companies linked to the Iranian regime. Screening pension investments and divesting from companies providing financial support to the Iranian regime or linked to Iran's weapons programs and terrorist activities could have a powerful impact. New investments should be scrutinized as long as Iran's regime continues its current, dangerous course."

Sadly for Governor Romney, as the AP detailed within 24 hours of the letter's publication, Romney's former employer and the company he founded had recent links to recent Iranian business deals:

Romney joined Boston-based Bain & Co., a management consulting firm, in 1978 and worked there until 1984. He was CEO of Bain Capital, a venture capital firm, from 1984 to 1999, despite a two-year return as Bain & Co.'s chief executive officer from 1991 to 1992.

Bain & Co. Italy, described in company literature as "the Italian branch of Bain & Co.," received a $2.3 million contract from the National Iranian Oil Co., in September 2004. Its task was to develop a master plan so NIOC -- the state oil company of Iran -- could become one of the world's top oil companies, according to Iranian and U.S. news accounts of the deal.

Bain Capital, the venture capital firm that Romney started and made him a multimillionaire, teamed up with the Haier Group, a Chinese appliance maker that has a factory in Iran, in an unsuccessful 2005 buyout effort.

In response to the revelations, Romney played dumb -- and blind. The former Massachusetts governor claimed his investments were in Boston-managed blind trust beyond his control. And more importantly, Romney feebly declared that his new-found distrust of the Ahmadinejad regime in Tehran would only apply going forward:

"This is something for now-forward. I wouldn't begin to say that people who, in the past, have been doing business with Iran, are subject to the same scrutiny as that which is going on from a prospective basis."

As the New York Times noted Saturday, the Iran Sanctions Act was also devised "to punish foreign companies that invest more than $20 million in a given year to develop Iran's oil and gas fields. But in the 14 years since the law was passed, the government has never enforced it, in part for fear of angering America's allies." Which, needless to say, has drawn the ire of one John Bolton. Bolton, American ambassador to the UN under George W. Bush, said:

Failing to enforce the law by punishing such companies both sent "a signal to the Iranians that we're not serious" and undercut Washington's credibility when it did threaten action.

Of course, as the Iran follies of Bolton's allies Dick Cheney and Mitt Romney showed, credibility begins at home.

(This piece also appears at Perrspectives.)

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39 Comments
Liberal AND Proud's picture

Capitalists did business with the Nazis, so....this is hardly an earth shattering revelation.


Vote GOP and move forward to the 18th Century.

Dateline Baghdad 2108's picture

Capitalists did business with the Nazis, so...

Prescott Bush.

Isn't it amazing that it is the same wealthy family names that keep popping up to use us as trench meat for their world domination money games all directed from multi-million dollar secure walled compounds for the past 500 or so years.

The same families that play us off against one another, that wave a colored cloth that doesn't represent anything remotely American either in concept or certainly not by deed each and every time we question their murderous actions and then march off to die in made-up wars for their personal gain without response as they sip champagne on 150 foot yachts.

Just how stupid are we?


Frank Zappa - Make A Jazz Noise Here

Just another day in the Corporate States of America. I pledge allegiance to the profit and to the Board to which belongs.

Old Billy's picture
...

CEO: Richard Stands

Old Billy's picture

I amshocked to see that these companies felt the need to hide behind subsidiaries.

Also, too, I am shocked that Iran would do business with companies that don't allow due process for employees who are rape victims.

For being the greatest country on Earth, we seem to have more than our share of putrid boils on our soft underbelly.

You know what would help? More nuclear power plants!!

Furkriesake, I need to go for a long walk.

derekthered's picture

them iranians is crazy, you can't trust them with stuff like that!

of course i myself would prefer that the islamic republic not have nuclear weapons, but they are a sovereign country, and if other countries have that right, then so do they.

stories like this are quite possibly a buildup to war, lets face it.

NavSpecWarVet's picture

Well, as the good book says, Oceania is always at war with East Asia. Or is it EurAsia? I can never keep them straight.

Old Billy's picture

Oceania has always been at war with EastAsia, were you not appropriately enthusiastic for the two minutes of hate this morning?

derekthered's picture

the national security state will never go away, but we keep trying because of the kids; we need a department of defense, that's for damn sure, but we have been misusing our military for a hundred years.

miss_kitty's picture

...then we can bomb them for having it!!!"

-shorter Cheney et cie.

Peter G's picture

replacements. Ah sweet capitalism!


Hasa Diga Eebowai

ron's picture

Capitalism A Love Story is now in the video stores. I will be watching it tonight. Funny how I never saw it advertised in the MSM. Wonder why?

Peter G's picture

immensely I hope. I know I did.


Hasa Diga Eebowai

NavSpecWarVet's picture

Funny that you should mention that. I am currently reading "In the Graveyard of Empires" by Seth G. Jones. He mentions that in the early 1970's that USAID built a hydroelectric plant in Afghanistan for electricity generation. Then, guess what? The USAF destroyed it in 2001 with laser guided bombs. How is that for irony? Now, they are trying to rebuild it but the Taliban are resisting their efforts. What a mess. Wonder what USAID built in Iran that is already on targeting lists?

We "knew" that Iraq had WMDs because we sold it to them. Of course at the time we also "knew" that what we sold them was because of its age was degraded to the point of being no more harmful than a can of Raid. Politics and political posturing in general is an abstract concept that the corporate elite argue about at parties but business is business. No amount of death would ever stand in the way of making money.

Pete Seattle's picture
yup

It worked for Iraq.

ron's picture

For being the greatest country on Earth, we seem to have more than our share of putrid boils on our soft underbelly.
=====================================================
Rush must be involved in this too. He must have added a more value
to the investment with the boils on his ass.

for having hundreds of nuclear weapons and the missiles to deliver them all over the Middle East and to parts of Europe.

Israel refuses to allow any I.A.E.A. inspections of it's nuclear sites.

Israel refuses to become a signatory to the Nuclear Non-proliferation Treaty.

Israel has been rightly accused of war crimes against the people of Gaza for, among other things, it's use of white phosphorus explosives.

Iran HAS allowed inspections of it's nuclear power generating sites.

Iran DOES have legal licenses to generate nuclear power for energy/medical purposes.

Iran IS a signatory to the Nuclear Non-proliferation Treaty.

So, the question here is: When will the United States Congress/the Obama Administration begin discussions regarding sanctions against Israel?

And when will the United States Congress force AIPAC to register as a foreign agent?

When will Obama/Holder/the Congress speak out against the assassination of the military leader of Hamas in Dubai by the Israeli Mossad?


"The US has an army of 90,000 soldiers in Afghanistan and is spending $100bn a year, but has still been unable to defeat 20,000-25,000 Taliban who receive no pay at all." - Patrick Cockburn

Old Billy's picture

Good luck with that waiting. I wouldn't recommend holding your breath.

Liberal AND Proud's picture

When will Obama/Holder/the Congress speak out against the assassination of the military leader of Hamas in Dubai by the Israeli Mossad?

When the devil starts ordering space heaters.


Vote GOP and move forward to the 18th Century.

Old Billy's picture

And the space heaters will be made in America! Ha! That'll be the day.

Peter G's picture

about not signing treaties. You don't have to abide by them. Hence the IAEA has nothing to say about it.


Hasa Diga Eebowai

JerryO's picture

....no one is supposed to know that the Israeli Government officially has nukes...it's a secret. Besides they are just little itty-bitty strategic ones, plus they're our friends...right???


Government + the Federal Reserve = organized crime

Old Billy's picture

John Bolton is strangely consistent, at least when dealing with the Islamic Republic of Iran.

Mitt Romney has given yet another example demonstrating that he really isn't the sharpest tool in the shed, but he sure has nice hair.

See that pile of twisted metal lying by the side of the road?

That's a Principlemobile that got between a 'conservative' and a bucket of money.

mudshark's picture

Obviously this started with the last admin. Probably back a few decades. But it is still going on today. If nothing is done about this, I give up. I throw in the towel.
I won't pay any attention to what's going on anymore. What's the point?

I fully expect this admin to get something started on this. I DEMAND Congressional hearings on this!
oh well.........
Is this not treason?

Actually, now that I think about it. This explains Ahmadinajad's behavior. He knows he can't be called out.


What is your conceptual, continuity?

Selling weapons to them during the Hostage crisis?
Yes, so maybe we'll name an airport after the dickhead!

or put your picture on a $50?

Old Billy's picture

I wonder what picture of the gipper it is that conservatives want to use. I would be in favor of the idea if we could use the one of him dancing on the bodies of dead nuns in El Salvador.

Dave Wolf's picture

To get determine the truth...

http://www.youtube.com/watch?v=5dLccPF5E2o

We know how successful it is.

chervilant's picture

Anyone who asserts that Cheney 'no longer has ties' to 'his old company, Halliburton,' needs to see me about my bridge to Nirvana and my beachfront property near Area 51, where I keep all my alien corpses that crash landed many decades ago...

ricky's picture

.


“Why would anyone with a functioning brain believe this guy?”
Some guy with an eating disorder

crossing borders to dabble in socialized health care.


“Why would anyone with a functioning brain believe this guy?”
Some guy with an eating disorder

David762's picture

USA-ians can count their blessings that the Islamic Republic of Iran is far more tolerant of Israeli and American meddling in their (Iranian) domestic matters that they (iran) has not retaliated in kind.

The USA overthrew a duly elected and democratic Iranian government in 1953, in order to install the ruthless Shah and gain increased access to Iranian OIL wealth. When the people of Iran overthrew the Shah in 1979 and installed a theocratically headed nominally democratic regime, the USA retaliated with sanctions. While the Iranians did seize the USA embassy in Tehran at that time, as well as taking embassy personnel hostage, it could be argued with some strong evidence that this was a defensive move against unwarranted CIA involvement in their internal domestic affairs. It isn't as if the USA's CIA and Department of Defense have not been involved in propping up dictators across the globe with counter-intelligence and counter-democracy training, including the illegal use of torture.

From 1979 forward, the USA has promulgated and led international efforts to punish the Islamic Republic of Iran non-stop -- embargoes and economic sanctions against Iran have crippled their economy. Iraq's protracted and devastating war against Iran would not have been possible, except for the assistance in money, weapons, WMDs, and intel provided by the USA government. To this day, even though Iran is awash in OIL and natural GAS resources, they do not have the capability to refine enough gasoline and diesel fuel to meet domestic demand, all due to USA-led Western economic sanctions. And the USA is leading efforts to embargo the delivery of gasoline and diesel fuel shipments to Iran, in order to further crush their economy. All these efforts at destabilizing Iran don't even touch upon the $400 Million USD that the US Congress voted in 2008 explicitly to overtly destabilize the current government of the Islamic Republic of Iran. This does not include any on-going covert efforts by USA government intelligence agencies to wreak ruin upon the Iranian economy. (Just what are all of those Blackwater/Xe mercenaries doing in both Iraq and Afghanistan, if not to do the USA's bidding without public accountability??)

Yes, it is a wonder that the Iranian people and their government actually like the people of the USA, if not the continued Machiavellian actions of our (supposedly our) government to overthrow one of the real democracies in the Middle East. Granted, the Islamic Republic of Iran's democracy doesn't much resemble the USA's democracy, but then the USA's democracy hardly resembles the USA's democracy of even the 1950's. And don't we, as well as our ally Israel, also have problems with our own home-grown religious fundamentalists trampling over our supposed democratic ideals ?? But the Iranian government continues to be pressed from every external source, economically, militarily, and diplomatically, to their certain doom.

The last time I checked, economic embargoes and sanctions fell under the guise of acts of war -- with exactly what justification again -- the Iranians' attempt at defending their country as well as attempting to remain independent, both economically and energy-wise. That is the crux of their current and thus far civilian nuclear program, fabricated evidence of military nuclear ambitions to the contrary -- to obtain and remain energy independent. If it were not for the USA's constant interference in the internal affairs of Middle Eastern and Southwest Asian independent nations, the USA might have emerged as energy independent as well.


"Those who make peaceful revolution impossible will make violent revolution inevitable."
-- John F. Kennedy

This is what the neocons do. They and their forebears have been doing it for a long, long time. They call it managed conflict: foment wars, and strife by arming and instigating both sides in a potential conflict. Egg them on until conflict erupts. Keep the conflict going as long as possible, at least long enough so that both sides are weakened. Derive profits throughout the process, but manage things so that governments are weakemed and what emerges from the chaos when conflict ether ends or peters out is controlled by you. Ultimately it is a way of slowly bleeding power away from governments over the course of generations and slowly concentrating into the hands of private entities thatcan end up controlling governments from glare of public scrutiny. Thesis and antithesis, both manipulated to produce a pre-engineered outcome that benefits only the very, very few.

This is just more of the same.

BTW, I think this is one of the reasons Haliburton moved their corporate headquarters to Dubai...they new that sooner or later this would come out (isn't flight to avoid prosecution itself a crime?). What I'm wondering is why the government, the DoD (!), continues to do business with this criminal enterprise, one that is also a foreign corporation?

NavSpecWarVet's picture

How do you think we got the Panama Canal?

I'm shocked I tell ya , just shocked !


Insanity , it is what it is , there is no understanding it .

ikalbertus's picture

are the capitalists.

Conservative playbook: always accuse your opponents of what you are guilty of.

Auximinus's picture

...about how pretty much everything we've heard about this Iranian "situation" from our government and media has been a LIE.

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