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Washington,
D.C. WASHINGTON, Jan 19, 2003
-- A company that provided security at New York City's World Trade
Center, Dulles International Airport in Washington, D.C., and to
United Airlines between 1995 and 2001, was backed by a private
Kuwaiti-American investment firm with ties to a brother of
President Bush and the Bush family, according to records obtained
by the American Reporter.
Two
planes hijacked on Sept. 11, 2001 were United Airlines planes, and
another took off from Dulles International Airport; two, of
course, slammed into the World Trade Center. But the Bush
Administration has never disclosed the ties of a presidential
brother and the Bush family with the firm that intersected the
weapons and targets on a day of national tragedy.
Marvin
P. Bush, a younger brother of George W. Bush, was a principal in
the company from 1993 to 2000, when most of the work on the big
projects was done. But White House responses to 9/11 have not
publicly disclosed the company's part in providing security to any
of the named facilities, and many of the public records revealing
the relationships are not public.
Nonetheless,
public records reveal that the firm, formerly named Securacom,
listed Bush on its board of directors and as a significant
shareholder. The firm, now named Stratesec, Inc., is located in
Sterling, Va., a suburb of Washington, D.C., and emphasizes
federal clients. Bush is no longer on the board.
Marvin
Bush has not responded to repeated telephoned and emailed requests
for comment on this story.
The
American Stock Exchange delisted Stratesec's stock in October
2002. Securacom also had a contract to provide security at Los
Alamos National Laboratories, notorious for its security breaches
and physical and intellectual property thefts.
According
to its present CEO, Barry McDaniel, the company had an ongoing
contract to handle security at the World Trade Center "up to
the day the buildings fell down." Yet instead of being
investigated, the company and companies involved with it have
benefited from legislation pushed by the Bush White House and
rubber-stamped by Congressional Republicans. Stratesec, its backer
KuwAm, and their corporate officers stand to benefit from
limitations on liability and national-security protections from
investigation provided in bills since 9/11.
HCC
Insurance Holdings, Inc., a reinsurance corporation on whose board
Marvin Bush sat as director until November 2002, similarly
benefits from terrorism insurance protections. (Bush's first year
on the board at HCC coincided with his last year on the board at
Stratesec.) HCC, formerly Houston Casualty Company, carried some
of the insurance for the World Trade Center. It posted a loss for
the quarter after the attacks of Sept. 11 and dropped
participation in worker's compensation as a result. Bush remains
an adviser to the chairman and the Board of Directors, as well as
a member of the company's investment committee.
The
former CEO of Stratesec is Wirt D. Walker III, who is still
chairman of the board. Although he has also been the managing
director of KuwAm for several years, Walker states definitively in
phone interviews that there was no exchange of talent between
Stratesec and KuwAm during the World Trade Center and other
projects.
As
Walker put it, "I'm an investment banker." He continued,
"We just owned some stock." The investment company
"was not involved in any way in the work or day-to-day
operations" of the security company. He explained clearly and
pleasantly that there was no sharing of information or of
personnel between the two companies.
In
December 2000 - when the outcome of the U.S. presidential election
was determined - Stratesec added a government division, providing
"the same full range of security systems services as the
Commercial Division," the company says. Stratesec now has
"an open-ended contract with the General Services
Administration (GSA) and a Blanket Purchase Agreement (BPA) with
the agency that allows the government to purchase materials and
services from the Company without having to go through a full
competition."
The
company lists as government clients "the U.S. Army, U.S.
Navy, U.S Air force, and the Department of Justice," in
projects that "often require state-of-the-art security
solutions for classified or high-risk government sites." In
2000, the U.S. Army accounted for 29 percent of the company's
earned revenues, or about $6.9 million.
The
White House opposed an independent commission to investigate 9/11
until after the terrorism insurance protections and protections
for security companies had safely passed Congress. It has also
quietly intervened in lawsuits against United Airlines in New
York, brought by relatives of the victims.
Marvin
Bush joined Securacom's Board of Directors in 1993, as part of new
management hired when the company separated from engineering firm
Burns and Roe. The new team was capitalized by KuwAm, the
D.C.-based Kuwaiti-American investment company. Bush also served
on the Board of Directors at KuwAm, along with Mishal Yousef Saud
al-Sabah, Chairman of KuwAm and also a Director on Securacom's (Stratesec's)
board.
The
World Trade Center and the Metropolitan Washington Airport
Authority - which operates Dulles - were two of Securacom's three
biggest clients in 1996 and 1997. (The third was MCI, now
WorldCom.)
Stratesec
(Securacom) differs from other security companies which separate
the function of consultant from that of service provider. The
company defines itself as a "single-source" provider of
"end-to-end" security services, including everything
from diagnosis of existing systems to hiring subcontractors to
installing video and electronic equipment. It also provides
armored vehicles and security guards.
When,
following the 1993 bombing of the World Trade Center, the Port
Authority of New York and New Jersey began its
multi-million-dollar, multiyear revamping of security in and
around the Twin Towers and Buildings 4 and 5, Securacom was among
numerous contractors hired in the upgrade.
The
companies doing security jobs received due mention in print, in
security industry publications and elsewhere. The board membership
of a son of former President Bush went unnoticed, at least in
print.
According
to SEC filings, Securacom/Stratesec acquired the $8.3 million
World Trade Center contract in October 1996. The project generated
28 percent of all revenues for the company in 1996. SEC filings
indicate that revenues from the World Trade Center project
commenced in 1996 at $1.6 million, peaked in 1997 at $6.6 million
($4.1 million in the first half), and diminished in 1998 to less
than $1 million.
A
key concept in security is "access control." In
hindsight, as the security industry's reportage on the World Trade
Center precautions makes clear, further attacks would have to come
from the air. Unfortunately, such detailed reports did not convey
that message at home. Nobody thought outside the box enough to
deduce that a jumbo jet could overcome even the extraordinary
controls at the World Trade Center. With 20-20 hindsight, it is
obvious that the intricate procedures in the building's lobbies
and on its perimeters were useless in trying to stop a 767 loaded
with jet fuel.
Barry
McDaniel, CEO of the company since January 2002, declines on
security grounds to give specific details about work the company
did at the World Trade Center. According to McDaniel, the contract
was ongoing (a "completion contract"), and "not
quite completed when the Center went down." The company
designed a system, but - as he points out - that obviously
"didn't have anything to do with planes flying into
buildings."
The
key words "access control" are less feeble and
irrelevant, however, in regard to airports and airlines. Had the
hijackers failed on the ground, they would have lost their
airborne weapon.
Two
of the hijacked planes were United Airlines planes, and another
took off from Dulles International. Two hit the Twin Towers,
leading to a collapse of both buildings that killed nearly 3,000
people.
McDaniel
makes clear that Securacom's contract with United Airlines was a
single-site contract, in Indianapolis (at least five years ago),
and not local. The work was finished several years before he
joined the board, and was not in or near Washington.
The
Dulles Internation contract is another matter. Dulles is regarded
as "absolutely a sensitive airport," according to
security consultant Wayne Black, head of a Florida-based security
firm, due to its location, size, and the number of international
carriers it serves.
Black
has not heard of Stratesec, but responds that for one company to
handle security for both airports and airlines is somewhat
unusual. It is also delicate for a security firm serving
international facilities to be so interlinked with a foreign-owned
company: "Somebody knew somebody," he suggested, or the
contract would have been more closely scrutinized.
As
Black points out, "when you [a company] have a security
contract, you know the inner workings of everything." And if
another company is linked with the security company, then
"What's on your computer is on their computer."
In
this context, retired FAA special agent Brian F. Sullivan is
angry, and eloquent. "You can have all the security systems
in the world, but the people behind the systems make the
difference." The Bush administration, says Sullivan,
"spit in the faces" of the victims' families, in pushing
for last-minute protections for foreign-owned security companies
(in the Homeland Security bill). Sullivan points out that
"not one single person" in an upper-level position has
lost a job as a result of 9/11, "not in the FBI, CIA, FAA,
DOT." As he sums up, "No accountability, no
progress."
Stratesec
got its first preventive maintenance contract with Dulles Airport
in 1995, generating $0.3 million that year. The Dulles project
generated revenue of $1.2 million in 1996, $2.5 million in 1997,
and $2.3 million in 1998, accounting for 22% of the company's
revenues in 1996 and in 1998
Like
other specialists, Professor Dale B. Oderman of Purdue
University's aviation technology department, concurs that Dulles
"was considered a very high profile target" as the
primary international airport near the nation's capital. It serves
as port of entry to about 15 international airlines as well as
serving eight of the 11 major us passenger carriers. In
comparison, Reagan Airport hosts only Air Canada from outside the
U.S., and Baltimore-Washington Airport hosts about a half
dozen."
Stratesec
did not handle screening of passengers at Dulles. According to a
contracting official for the Metropolitan Washington Airport
Authority, its three-year contract was for maintenance of security
systems: It maintained the airfield access system, the CCTV
(closed circuit television) system, and the electronic badging
system.
In
1997, the World Trade Center and Dulles accounted for 55 percent
and 20 percent of the company's earned revenues, respectively. The
World Trade Center and Dulles projects figured largely in both
Securacom's growing revenues from 1995 to 1997 and its decreases
from 1997 to 1998.
Stratesec
continued to refer to "New York City's World Trade
Center" as a former client through April 2001. It listed
Dulles Airport and United Airlines as former clients through April
2002.
As
with the World Trade Center - which also had electronic badging,
security gates, and CCTV - the ultimate problem with Dulles'
security controls was not the controls themselves, but that they
could be sidestepped. All the hijackers had to do was buy a
ticket. As former FAA special agent Sullivan comments, "If
they [attackers] knew about the security system, they knew how to
bypass it."
One
obvious question for investigators is how much potential hijackers
could have known about the security system.
From
1993 to 1999, KuwAm - the Kuwait-American Corporation -- held a
large and often controlling interest in Securacom. In 1996, KuwAm
Corporation owned 90 percent of the company, either directly or
through partnerships like one called Special Situations Investment
Holdings and another called "Fifth Floor Company for General
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