There may be problems with big government, but there are also problems with big business.
Big businesses are very unethical entities at times. Left unchecked, they would do nothing but exploit the land and the people of this country (as well as the land and people of any other country in which it does business).
Big government activities are under constant scrutiny by numerous watchdog organizations. It's easy to identify government corruption, mismanagement and waste.
Big businesses are also capable of corruption, mismanagement, and waste. However, it is very difficult to identify when and where businesses are stealing from the public without a strong and properly financed government.
Don't be fooled, big businesses are well financed and sophisticated. Without a well financed and sophisticated government, big businesses would get away with murder. Enron and Worldcom are two great examples of why I don't want big businesses running the United States.
One of the goals of big business: reduce the size and strength of government control. If accomplished, big business would be free to exploit the people and the land, then roll in the profits with no accountability for their actions.
Consider the following from local newspapers.
Senator: Lockheed trying $100M scam; 'Accounting trick' gouges taxpayers, Harkin charges, by Edward T. Pound of the USA Today
WASHINGTON -- Lockheed Martin Space Systems has created fictitious losses on the sale of some defense facilities in a scheme to reap tens of millions of dollars in windfall profits at taxpayers' expense, Sen. Tom Harkin, D-Iowa, alleges.
In an interview and in a letter to the Defense Department, Harkin accuses the space systems unit of Lockheed Martin of using ''an apparent accounting trick'' in an attempt to gouge taxpayers of perhaps $100 million. He cites three confidential reports by Pentagon auditors. He says they found that the unit's accounting methods on the sale of facilities in California's Silicon Valley and elsewhere were ''flawed, unreasonable, and inequitable to the government.''
Lockheed Martin, the nation's largest defense contractor, says its actions are proper. But, company officials say, there is ''an honest disagreement'' between Pentagon auditors and the company over accounting methods.
''We are in negotiations with'' Pentagon auditors ''about that disagreement,'' says James Fetig, chief spokesman for Lockheed Martin, ''and we are committed to reaching a mutually acceptable agreement on the issue.''
Lockheed Martin's space systems unit is based in Denver. It has $5.5 billion in contracts with the Pentagon and NASA.
Harkin is a leading critic of wasteful defense spending. He says the Pentagon paid for improvements on the buildings, depreciation, repair and maintenance expenses under its defense contracts with Lockheed Martin and should benefit from the sales. When the company sold the facilities, however, it applied the proceeds to the land and none to the buildings, Harkin says. That meant the Pentagon could not receive any of the proceeds. Regulations prohibit it from sharing in gains on land sales.
Harkin says Lockheed Martin considered the buildings worthless. He says the company now wants the Pentagon to pay it $95 million to cover its losses on ''the supposedly worthless buildings.''
Harkin says Pentagon auditors described the losses as ''fictitious.'' He says that the buildings were valued at millions of dollars on tax rolls and that Lockheed Martin had made $22 million in improvements on some facilities as late as 1999. He says it now ''plans to lease back some of the 'worthless' buildings'' at a cost of several million dollars to the Defense Department.
Lockheed Martin maintains that the buildings had no value. Officials say various buyers wanted only the land and have torn down the buildings or plan to do so. The buyers are putting up new office facilities on the sites, Lockheed Martin says.
Harkin worries that the case is not unique, that other contractors might be attempting to use the same scheme. Senior defense officials say they are taking the case ''very seriously'' and plan to look into it.
Reference: Senator: Lockheed trying $100M scam; 'Accounting trick' gouges taxpayers, Harkin charges, by Edward T. Pound, USA Today, April 9, 2001, Page 1A
23 brokers charged in IPO scheme
Twenty-three current and former brokers were charged with securities fraud Monday for allegedly making $18 million in illegal profit by tricking thousands of investors into buying worthless IPOs.
As account executives or supervisors with Investors Associates from 1995 to 1997, prosecutors said the defendants manipulated the stock of five initial public offerings in a "pump-and-dump" scheme.
(Reference: 23 brokers charged in IPO scheme, USA Today, Tuesday, March 13, 2001, page 1B)
FAA fines Alaska Airlines
$1M for upkeep violations
Federal regulators hit Alaska Airlines with nearly $1 million in fines on Monday for maintenance violations uncovered in an audit after last January's crash of one of the airline's jets.
Federal regulators hit Alaska Airlines with nearly $1 million in fines on Monday for maintenance violations uncovered in an audit after last January's crash of one of the airline's jets.
The fines by the Federal Aviation Administration are for putting jets into service without proper documentation of maintenance work, failing to perform required inspections on jets and flying jets with faulty equipment.
Problems with maintenance operations at Alaska -- which had developed a reputation as one of the nation's best-run airlines before the accident -- were announced earlier this year.
Airlines frequently contest fines issued by the FAA, so the fine Alaska eventually pays may be smaller.
Alaska Airlines Flight 261, an MD-80 carrying 88 people, crashed into the Pacific Ocean off of Southern California on Jan. 31 after a panel on the jet's tail that was used to maintain level flight malfunctioned. Everyone aboard died.
The National Transportation Safety Board, which investigates accidents, will hold its first public hearing on the crash Dec. 13-15. The hearing will not yield a cause for why the jet's horizontal stabilizer failed, but sources familiar with the investigation say Alaska Airline's maintenance procedures will be scrutinized.
Other issues under examination include whether the part that failed, known as a ''jackscrew,'' was designed properly and whether the government's certification process on the jet was adequate.
Last June, Alaska voluntarily put in place a series of changes to its maintenance program, including hiring more workers, to satisfy the FAA. The company also conducted its own audit of maintenance work, which found similar problems but concluded the airline was performing adequately.
''We believe that the action plan that was put in place earlier this year, which was approved by the FAA, addressed the issues,'' Alaska spokesman Jack Evans said.
The carrier also faces a federal criminal investigation of its maintenance work. Maintenance records indicate that the piece that failed on Flight 261 had been ordered replaced by one mechanic, but his measurements were later overruled and the part remained on the jet.
The fines, which total $988,500, were issued for violations that included:
* On April 12, an MD-80 was returned to service with a hydraulic leak, a fuel leak and a malfunctioning air-conditioning valve. Discovery of this incident prompted a more complete audit.
* At least 21 jets were put into service after maintenance without proper records of the completed work. On three of those aircraft, required inspections were not performed. These jets were flown in violation of FAA standards on thousands of flights.
* On April 8, a 737 was operated with a ''glideslope,'' a navigational aid used in landing, that was cleared by an unqualified mechanic for use. There was no problem with the glideslope.
* For nearly one year, Alaska opted not to repair faulty equipment on three jets. The equipment included a circuit breaker and a stair light.
* An MD-80