Loopholes
Five and a half years after September 11th, two Democratic Senators have decided to take steps to crack down on American companies doing business with state sponsors of terrorism, such as Iran. It’s illegal to do business with terrorist states, but a loophole in the law has allowed companies to do business with states that sponsor terrorism through foreign subsidiaries.
Democratic Senators Sherrod Brown and Byron Dorgan have sponsored legislation targeting companies which do business with Iran through foreign subsidiaries or who reincorporate off shore.
Sen. Dorgan of North Dakota points out: “We have some companies that are very big defense contractors with our federal government who, have foreign subsidiaries with which they're doing business with Iran. I think that's horribly inconsistent in terms of public policy, and we can do something about that, and I think we should.”
Dick Cheney's former company Halliburton even rated a special mention by name in the press release. "Halliburton, one of America's largest contractors, used this loophole to conduct extensive business with Iran, through a subsidiary in Dubai." Halliburton's current CEO recently announced that he’s moving to Dubai, apparently to be closer to some of his clients. Halliburton claims that it will remain a proud American company, incorporated in the United States, and that all of its business has been allowed under U.S. law.
Senator Brown of Ohio insists: “We're not going to let it disappear. This is the kind of issue the public will get behind. This is the kind of issue, while it might be controversial in Washington, D.C., it's not controversial in Canton, Ohio, or Toledo, Ohio. And nor is it controversial anywhere else in the heartland.”
Ten states have passed or are considering passing bills, to order asset managers of state money to divest their holdings of companies doing business with terrorist states. The Brown-Dorgan legislation would not outlaw companies from reincorporating offshore, but it would outlaw giving such companies government contracts.
Democratic Senators Sherrod Brown and Byron Dorgan have sponsored legislation targeting companies which do business with Iran through foreign subsidiaries or who reincorporate off shore.
Sen. Dorgan of North Dakota points out: “We have some companies that are very big defense contractors with our federal government who, have foreign subsidiaries with which they're doing business with Iran. I think that's horribly inconsistent in terms of public policy, and we can do something about that, and I think we should.”
Dick Cheney's former company Halliburton even rated a special mention by name in the press release. "Halliburton, one of America's largest contractors, used this loophole to conduct extensive business with Iran, through a subsidiary in Dubai." Halliburton's current CEO recently announced that he’s moving to Dubai, apparently to be closer to some of his clients. Halliburton claims that it will remain a proud American company, incorporated in the United States, and that all of its business has been allowed under U.S. law.
Senator Brown of Ohio insists: “We're not going to let it disappear. This is the kind of issue the public will get behind. This is the kind of issue, while it might be controversial in Washington, D.C., it's not controversial in Canton, Ohio, or Toledo, Ohio. And nor is it controversial anywhere else in the heartland.”
Ten states have passed or are considering passing bills, to order asset managers of state money to divest their holdings of companies doing business with terrorist states. The Brown-Dorgan legislation would not outlaw companies from reincorporating offshore, but it would outlaw giving such companies government contracts.
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