That port security deal? The one that sailed right through without the legally-mandated investigation? The one that will provide a nice little windfall to the Secretary of the Treasury? The one Bush angrily defended by threatening to veto any legislation that put a stop to the deal to actually, you know, perform the legally-mandated investigation?
It’s even worse than you thought.
WASHINGTON – The Bush administration secretly required a company in the United Arab Emirates to cooperate with future U.S. investigations before approving its takeover of operations at six American ports, according to documents obtained by The Associated Press. It chose not to impose other, routine restrictions.
And what were those routine restrictions?
The administration did not require Dubai Ports to keep copies of business records on U.S. soil, where they would be subject to court orders. It also did not require the company to designate an American citizen to accommodate U.S. government requests. Outside legal experts said such obligations are routinely attached to U.S. approvals of foreign sales in other industries.
Okay, this one just raises all kinds of hairs on the back of my neck. You’re going to let them operate SIX U.S. ports and not require them to keep business records on U.S. soil? Or to designate an American citizen (who would be subject to a federal court’s jurisdiction anywhere in the world) to respond to the government’s requests?
I’m involved in a big-ass fraud litigation with a defendant who’s been playing hide-the-ball with document discovery for the past five years. They just got sanctioned today for blowing off court orders to cough up documents. Getting relevant records from them has been like pulling teeth — and these records are in Connecticut, AND our client is well able to afford our fees for chasing them down. I can’t even imagine what it would be like to be, say, an injured seaman trying to get discovery from a company not required to keep records in the U.S.
In addition, letting them keep records off U.S. soil and not designate an American citizen to respond to the government’s requests means that the government is going to be hindered in any investigation of the company’s operations. They could easily just refuse to comply, they could alter records, destroy them, whatever. Is that the best idea for a company charged with port security for six major U.S. ports?
But most importantly, this is a completely standard and routine requirement for foreign companies doing business in the U.S. Why was it waived in this case?