UTNE Reader
Tuesday, April 8, 2003Poppy Strikes Gold
April 2003
By Greg Palast,
From The Best Democracy Money Can Buy (Penguin/Plume, 2003)In this excerpt from the recently-released U.S. edition of his book The Best Democracy Money Can Buy, renowned investigative reporter Greg Palast details the shady—and extremely lucrative—connections between former president George H. W. (“Poppy”) Bush, a little-known Canadian gold mining company, and the political fortunes of Poppy’s son Dubya. This damning story, and a second one we’ll run next week, were deleted from the British edition of Palast’s book for fear they would run afoul of that country’s draconian libel law—which makes it a crime even to print a true story if the facts could harm the reputation of a person or company.
—Ed....
They could well afford it. In the final days of the Bush (Senior) administration, the Interior Department made an extraordinary but little noticed change in procedures under the 1872 Mining Law, the gold rush-era act that permitted those whiskered small-time prospectors with their tin pans and mules to stake claims on their tiny plots. The department initiated an expedited procedure for mining companies that allowed Barrick to swiftly lay claim to the largest gold find in America. In the terminology of the law, Barrick could “perfect its patent” on the estimated $10 billion in ore—for which Barrick paid the U.S. Treasury a little under $ 10,000. Eureka!
Barrick, of course, had to put up cash for the initial property rights and the cost of digging out the booty (and the cost of donations, in smaller amounts, to support Nevada’s Democratic senator, Harry Reid). Still, the shift in rules paid off big time: According to experts at the Mineral Policy Center of Washington, DC, Barrick saved—and the U.S. taxpayer lost—a cool billion or so.
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Barrick says it had no contact whatsoever with the president at the time of the rules change.<1> There was always a place in Barrick’s heart for the older Bush—and a place on its payroll. In 1995, Barrick hired the former president as Honorary Senior Advisor to the Toronto company’s International Advisory Board. Bush joined at the suggestion of former Canadian prime minister Brian Mulroney, who, like Bush, had been ignominiously booted from office. I was a bit surprised that the president had signed on. When Bush was voted out of the White House, he vowed never to lobby or join a corporate board. The chairman of Barrick openly boasts that granting the title “Senior Advisor” was a sly maneuver to help Bush tiptoe around this promise.
I was curious: What does one do with a used president? Barrick vehemently denies that it appointed Bush “in order to procure him to make contact with other world leaders whom he knows, or who could be of considerable assistance” to the company. Yet, in September 1996, Bush wrote a letter to help convince Indonesian dictator Suharto to give Barrick a new, hot gold-mining concession.
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http://www.gregpalast.com/detail.cfm?artid=207&row=4