Big Business of War

Throwing a Better Party May Mean Getting a Better War, Terror Contract

By Brian Ross and Rhonda Schwartz

N E W Y O R K - For lobbyists seeking to profit from valuable homeland security and Iraq contracts, throwing big parties at the Republican National Convention may mean more lucrative deals.

Watch Brian Ross’ Money Trail this week on World News Tonight with Peter Jennings.

"We’re supporters of the Republican cause," said Ed Rogers, vice chairman of the powerhouse lobbying firm Barbour Griffith & Rogers. "Unashamed and unabashed."

When asked if that is good for business, Rogers said, "Well, not so much good for business, but good for America."

Business is booming for the lobbying industry, as Tuesday night’s lavish party in the Chrysler Building showed. The crowded event was sponsored by Blank Rome, one of the firms that have helped clients secure multimillion-dollar homeland security and Iraq contracts.

Blank Rome’s chairman, David Girard-diCarlo, is a longtime political supporter of Homeland Security Secretary Tom Ridge. Another powerful player is the firm’s executive partner, Carl Bucholz, who served as special assistant to President Bush for homeland security from 2001 to 2002.

The Blank Rome lobbyists say they observe all rules of professional ethics.

But what are lobbyists getting out of all this?

"What you’ve got here is people with the insider access, selling that access in order to profit and they’re profiting on this war," said Craig Aaron, a senior researcher at Public Citizen’s Congress Watch, a government watchdog organization.

Among the guests at the party Tuesday night was Health and Human Services Secretary Tommy Thompson, whose department oversees more than $5 billion in contracts for terror preparedness programs.

When asked if it was appropriate for him to be at the party, Thompson replied, "I don’t see anything wrong with it at all."

Bush Connection

The "war lobby," as it has been described, counts a number of important connections, including President Bush’s brother Neil, who plays a little-known role at Houston-based Crest Investments.

Crest is a financial partner with Newbridge Strategies, a group of former officials from both Bush administrations who help U.S. companies seeking contracts in Iraq.

This week in New York, Neil Bush would not answer questions about his ties to Crest. "It’s not my company," he said.

But in a videotaped deposition last year, obtained by ABC News, Neil Bush said he is paid $60,000 a year for the three to four hours of work he puts in weekly as co-chairman of Crest.

"Whether he does anything active or whether they just trade on his name, having the president’s brother involved has got to be a huge asset," said William Hartung, a senior fellow at World Policy Institute, a policy research group at New School University.

ABC News’ David Scott, Vic Walter, Yoruba Richen, Jill Rackmill, Maddy Sauer, Simon Surowicz, and Jessica Wang contributed to this report.

http://abcnews.go.com/sections/Politics/Vote2004/RNC_war_business_040901-1.html