Reply #10: More on ES&S connections [View All]

Who Makes the Voting Machines?

Appearance of Impropriety — New Questions About the Integrity and Security of USA Elections

The story is not about allegations of fraud — it's about an appearance of impropriety that is stunning in its magnitude.

Unfettered by any disclosure regulations about ownership or political affiliations, just a few companies create and control almost all the voting machines in the U.S. Do the people who own them have conflicts of interest? We don't know, they won't tell us. Do they employ anyone with a criminal record? We don't know, they say it's private. Can we have someone check the vote-counting code to make sure no one tampered with it? Nope, they say its proprietary.

Election Systems & Software, the firm whose machines were involved in the 2002 flubbed Florida primary election — and the company that now makes the voting machines for most of America — is a private company that does not like to tell the public who owns it. But at least one major shareholder is Michael R. McCarthy, who runs the McCarthy Group. The McCarthy Group has been a primary owner of Election Systems & Software, including its predecessor, American Information Systems for more than a decade. Michael R. McCarthy is the current campaign Treasurer for Republican senator Chuck Hagel. Prior to his election, Republican Senator Hagel was president of McCarthy & Company. In fact, he decided to run for office while his own company was making the vote-counting machines!

Who cares? Poll workers count the votes, not election machines, right?

Wrong. The machines count the votes, and if you have any doubt about how critical it is for owners to disclose their information (as they must if they run lottery companies) read this: article by Ronnie Dugger, who will show you how easy it is for a single insider to fudge the vote-counting on these machines, in ways that can never be detected.

Why isn't tampering detectable?

Well, for one thing because the voting machine-makers fought in court to make their computerized vote-counting code "proprietary." Only their own programmers, it seems, are allowed to look at the innards of the code. Independent computer consultants almost unanimously cite the voting machine's impenetrable code as a security flaw. Difficult to detect tampering, yet relatively simple to implant an undetectable Trojan Horse to change counting algorithms.

And many of the new machines don't have paper trails

In Florida when votes were lost, election workers had to retrieve the hard drive as a back- up, because there were no paper ballots. But, if there was mischief in the computerized counting code, there would be absolutely no way to prove it. In California, thousands of votes just disappeared due to a computer glitch. What's up with this? Even the tax guys insist on a paper trail. (Just try telling an IRS auditor that your computer ate it.)

The other owner: Databases, personal information, mass communications, voter registration and vote-counting machines

The World-Herald Company, who owns the largest part of Election Systems & Software, likes to offer up a warm, fuzzy, "family and employee-owned" newspaper company as the owner. The company is actually something quite different. The newspaper is a small part of the overall business — the real business of The World Companies is controlling a vast nationwide communications network: elections services, including all forms of voting machines (punch card, optical scanning and touch-screen); databases containing personal information on almost everyone in the USA, huge direct mailing firms, phone message broadcasting, fax blasting, mass e-mailing, publicity, advertising, Internet services and printing, and affiliations with cellular communication systems. The World Companies have operations in Texas, Illinois, Georgia, Nebraska, California, Iowa and Arizona — and most have nothing to do with newspapers.

Wouldn't it be prudent to obtain names, political activities and corporate affiliations of major shareholders, directors and executives of the privately held companies who make our vote-counting machines? And could it be a bit reckless for Democracy to hand voter registration assignments over to a firm with active ties to political campaigns, which also has access to databases containing the race and political preferences of almost everyone in the USA?

Seventy percent of Election Systems & Software is owned by a partnership of the World Companies and the McCarthy Group. But who owns the McCarthy Group (besides Republican operative Michael R. McCarthy)? World Investments, a wholly- owned subsidiary of the Omaha World-Herald Co. (the conglomerate, not the newspaper), is a primary investor in the McCarthy Group. Round and round we go.

But speaking of newspapers, thank goodness a thoroughly objective organization like the Omaha World-Herald is involved with Election Systems & Software. "The delays were the result of start-up errors by poll workers, not malfunctions by the company's election equipment," the Omaha World-Herald reports.

Who are these people, anyway?

We could go on for a week on this, and probably will. We've collected over 58 pages of information and there's more to come. Let's get started:

Election Systems & Software was formed by a merger of American Information Systems (AIS), a huge election company featuring several Republican owners, and Business Records Corp., part of Cronus Industries, in turn partially owned by a member of the Hunt oil family of Texas.

World Companies, Inc.: This is a wholly owned subsidiary of the Omaha World- Herald. It is a holding company with substantial ownership in Election Systems & Software, and it also controls World Marketing Inc., which operates gigantic databases and mammoth direct marketing companies. Election Systems & Software is also involved in voter registration services, and no one has questioned whether there is a conflict of interest with voter registration activity and access to the nation's largest databases containing race, political affiliations and other demographics.

Let me amend that: Investigative reporter Greg Palast can fill you in on exactly how to embezzle an election using tainted voter registration procedures. Jump to the bottom of this article for a list of "Six Ways to Fix Pesky Votes" uncovered by Palast. And by all means read Chapter 1 of his new book, The Best Democracy Money Can Buy, very carefully.

Questionable associations and relationships abound in the conglomerate that owns Election Systems & Software. One person with shares in the World Companies Inc. is Harold W. Andersen, who is on the board of directors for The Williams Companies — yes, that Williams Energy, recently exposed by CBS for creating a sham energy crisis in California. CBS cites tapes, now sealed by the government, that prove Williams Energy turned off the juice, faking an energy shortage.

M. Gene Aldridge, the president and CEO of Omaha World-Herald subsidiary World Marketing, Inc. (the one that runs all those databases — he knows if you've been black or white, he knows if you are poor...) is part of a conservative think tank, the New Mexico Independence Research Institute, and when he's not busy running the jumbo- sized database and direct marketing company, he is writing letters to Congress advocating that we take the huge future tax cuts and give them to the rich RIGHT NOW.

Here's more information on how Election Systems & Software came about, and who owns it:

From a 1996 article in The Omaha World-Herald:

"An Omaha company would become the nation's No. 1 ballot counter in a planned $59.3 million combination with a Dallas-based competitor...

"BRC is headed by a former Omahan, P.E. "Bill" Esping, who was a founder of First Data Resources.

"Under the agreement, American Information Systems would acquire the election division of Business Records. Both companies sell election counting and voter registration equipment and services based on optical scanners and paper ballots marked with pencils.

"Of the purchase price, $35 million would be in cash, $17.5 million in a note and the rest in stock of American Information, giving BRC about 20 percent ownership of the Omaha company. Stock owned by American Information employees would account for an additional 10 percent with the remaining 70 percent owned by a partnership of the Omaha World-Herald Co. and the McCarthy Group, an Omaha investment banking company. American Information's share of the U.S. election automation market would increase to more than 50 percent..."

Let's have happy thoughts:

Before the 2002 Election, let's get disclosure from the handful of companies who make the voting machines that count our votes. These companies have nothing to hide (right?) so they should do this voluntarily. Then, Senator Hagel will lead the charge (won't he?) and he'll protect us from a situation that is, frankly, dangerous to Democracy, by getting some regulations in place:

(1) Require that any company who makes voting machines publicly disclose identities and political activities. And while we're at it, maybe criminal background checks are a nice idea, because if Republicans can control the big corporations that make the voting machines, just think what would happen if some crooks got into it. But I repeat myself.

(2) Require that all voting machines produce tamper-proof audit trails — and that means retaining a paper trail — using transparent computer code so that independent experts can investigate allegations of election tampering whenever needed.

More info:

Before Repiglicans start the squealing ("How DARE you bring this up so close the the
election, you know we have no time to rebut this") — well, you can verify the facts yourself, in most cases using their own documents, if you go to google and run the following search terms:
"Election Systems & Software"
"McCarthy Group"
"Michael R. McCarthy"
"Charles T. Hagel"
"World Marketing Inc."
"World Investments Inc."
— You'll find enough traceable leads to keep you busy for a week, if you run searches on the names and other related companies. * * * * *

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