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Vol. 9, No. 2021 - The American Reporter - January 20,
2003


 Reporting: Politics

SECRECY SURROUNDS A BUSH BROTHER'S ROLE IN 9/11
SECURITY

by Margie Burns
American Reporter Correspondent

Washington, D.C.
WASHINGTON, Jan 19, 2003 -- A company that provided
security at New York City's World Trade Center, Dulles
International Airport in Washington, D.C., and to
United Airlines between 1995 and 2001, was backed by a
private Kuwaiti-American investment firm with ties to
a brother of President Bush and the Bush family,
according to records obtained by the American
Reporter.

Two planes hijacked on Sept. 11, 2001 were United
Airlines planes, and another took off from Dulles
International Airport; two, of ocurse, slammed into
the World Trade Center. But the Bush Administration
has never disclosed the ties of a presidential brother
and the Bush family with the firm that intersected the
weapons and targets on a day of national tragedy.

Marvin P. Bush, a younger brother of George W. Bush,
was a principal in the company from 1993 to 2000, when
most of the work on the big projects was done. But
White House responses to 9/11 have not publicly
disclosed the company's part in providing security to
any of the named facilities, and many of the public
records revealing the relationships are not public.

Nonetheless, public records reveal that the firm,
formerly named Securacom, listed Bush on its board of
directors and as a significant shareholder. The firm,
now named Stratesec, Inc., is located in Sterling,
Va., a suburb of Washington, D.C., and emphasizes
federal clients. Bush is no longer on the board.

Marvin Bush has not responded to repeated telephoned
and emailed requests for comment on this story.

The American Stock Exchange delisted Stratesec's stock
in October 2002. Securacom also had a contract to
provide security at Los Alamos National Laboratories,
notorious for its security breaches and physical and
intellectual property thefts.

According to its present CEO, Barry McDaniel, the
company had an ongoing contract to handle security at
the World Trade Center "up to the day the buildings
fell down." Yet instead of being investigated, the
company and companies involved with it have benefited
from legislation pushed by the Bush White House and
rubber-stamped by Congressional Republicans.
Stratesec, its backer KuwAm, and their corporate
officers stand to benefit from limitations on
liability and national-security protections from
investigation provided in bills since 9/11.

HCC Insurance Holdings, Inc., a reinsurance
corporation on whose board Marvin Bush sat as director
until November 2002, similarly benefits from terrorism
insurance protections. (Bush's first year on the board
at HCC coincided with his last year on the board at
Stratesec.) HCC, formerly Houston Casualty Company,
carried some of the insurance for the World Trade
Center. It posted a loss for the quarter after the
attacks of Sept. 11 and dropped participation in
worker's compensation as a result. Bush remains an
adviser to the chairman and the Board of Directors, as
well as a member of the company's investment
committee.

The former CEO of Stratesec is Wirt D. Walker III, who
is still chairman of the board. Although he has also
been the managing director of KuwAm for several years,
Walker states definitively in phone interviews that
there was no exchange of talent between Stratesec and
KuwAm during the World Trade Center and other
projects.

As Walker put it, "I'm an investment banker." He
continued, "We just owned some stock." The investment
company "was not involved in any way in the work or
day-to-day operations" of the security company. He
explained clearly and pleasantly that there was no
sharing of information or of personnel between the two
companies.

In December 2000 - when the outcome of the U.S.
presidential election was determined - Stratesec added
a government division, providing "the same full range
of security systems services as the Commercial
Division," the company says. Stratesec now has "an
open-ended contract with the General Services
Administration (GSA) and a Blanket Purchase Agreement
(BPA) with the agency that allows the government to
purchase materials and services from the Company
without having to go through a full competition."

The company lists as government clients "the U.S.
Army, U.S. Navy, U.S Air force, and the Department of
Justice," in projects that "often require
state-of-the-art security solutions for classified or
high-risk government sites." In 2000, the U.S. Army
accounted for 29 percent of the company's earned
revenues, or about $6.9 million.

The White House opposed an independent commission to
investigate 9/11 until after the terrorism insurance
protections and protections for security companies had
safely passed Congress. It has also quietly intervened
in lawsuits against United Airlines in New York,
brought by relatives of the victims.

Marvin Bush joined Securacom's Board of Directors in
1993, as part of new management hired when the company
separated from engineering firm Burns and Roe. The new
team was capitalized by KuwAm, the D.C.-based
Kuwaiti-American investment company. Bush also served
on the Board of Directors at KuwAm, along with Mishal
Yousef Saud al-Sabah, Chairman of KuwAm and also a
Director on Securacom's (Stratesec's) board.

The World Trade Center and the Metropolitan Washington
Airport Authority - which operates Dulles - were two
of Securacom's three biggest clients in 1996 and 1997.
(The third was MCI, now WorldCom.)

Stratesec (Securacom) differs from other security
companies which separate the function of consultant
from that of service provider. The company defines
itself as a "single-source" provider of "end-to-end"
security services, including everything from diagnosis
of existing systems to hiring subcontractors to
installing video and electronic equipment. It also
provides armored vehicles and security guards.

When, following the 1993 bombing of the World Trade
Center, the Port Authority of New York and New Jersey
began its multi-million-dollar, multiyear revamping of
security in and around the Twin Towers and Buildings 4
and 5, Securacom was among numerous contractors hired
in the upgrade.

The companies doing security jobs received due mention
in print, in security industry publications and
elsewhere. The board membership of a son of former
President Bush went unnoticed, at least in print.

According to SEC filings, Securacom/Stratesec acquired
the $8.3 million World Trade Center contract in
October 1996. The project generated 28 percent of all
revenues for the company in 1996. SEC filings indicate
that revenues from the World Trade Center project
commenced in 1996 at $1.6 million, peaked in 1997 at
$6.6 million ($4.1 million in the first half), and
diminished in 1998 to less than $1 million.

A key concept in security is "access control." In
hindsight, as the security industry's reportage on the
World Trade Center precautions makes clear, further
attacks would have to come from the air.
Unfortunately, such detailed reports did not convey
that message at home. Nobody thought outside the box
enough to deduce that a jumbo jet could overcome even
the extraordinary controls at the World Trade Center.
With 20-20 hindsight, it is obvious that the intricate
procedures in the building's lobbies and on its
perimeters were useless in trying to stop a 767 loaded
with jet fuel.

Barry McDaniel, CEO of the company since January 2002,
declines on security grounds to give specific details
about work the company did at the World Trade Center.
According to McDaniel, the contract was ongoing (a
"completion contract"), and "not quite completed when
the Center went down." The company designed a system,
but - as he points out - that obviously "didn't have
anything to do with planes flying into buildings."

The key words "access control" are less feeble and
irrelevant, however, in regard to airports and
airlines. Had the hijackers failed on the ground, they
would have lost their airborne weapon.

Two of the hijacked planes were United Airlines
planes, and another took off from Dulles
International. Two hit the Twin Towers, leading to a
collapse of both buildings that killed nearly 3,000
people.

McDaniel makes clear that Securacom's contract with
United Airlines was a single-site contract, in
Indianapolis (at least five years ago), and not local.
The work was finished several years before he joined
the board, and was not in or near Washington.

The Dulles Internation contract is another matter.
Dulles is regarded as "absolutely a sensitive
airport," according to security consultant Wayne
Black, head of a Florida-based security firm, due to
its location, size, and the number of international
carriers it serves.

Black has not heard of Stratesec, but responds that
for one company to handle security for both airports
and airlines is somewhat unusual. It is also delicate
for a security firm serving international facilities
to be so interlinked with a foreign-owned company:
"Somebody knew somebody," he suggested, or the
contract would have been more closely scrutinized.

As Black points out, "when you [a company] have a
security contract, you know the inner workings of
everything." And if another company is linked with the
security company, then "What's on your computer is on
their computer."

In this context, retired FAA special agent Brian F.
Sullivan is angry, and eloquent. "You can have all the
security systems in the world, but the people behind
the systems make the difference." The Bush
administration, says Sullivan, "spit in the faces" of
the victims' families, in pushing for last-minute
protections for foreign-owned security companies (in
the Homeland Security bill). Sullivan points out that
"not one single person" in an upper-level position has
lost a job as a result of 9/11, "not in the FBI, CIA,
FAA, DOT." As he sums up, "No accountability, no
progress."

Stratesec got its first preventive maintenance
contract with Dulles Airport in 1995, generating $0.3
million that year. The Dulles project generated
revenue of $1.2 million in 1996, $2.5 million in 1997,
and $2.3 million in 1998, accounting for 22% of the
company's revenues in 1996 and in 1998

Like other specialists, Professor Dale B. Oderman of
Purdue University's aviation technology department,
concurs that Dulles "was considered a very high
profile target" as the primary international airport
near the nation's capital. It serves as port of entry
to about 15 international airlines as well as serving
eight of the 11 major us passenger carriers. In
comparison, Reagan Airport hosts only Air Canada from
outside the U.S., and Baltimore-Washington Airport
hosts about a half dozen."

Stratesec did not handle screening of passengers at
Dulles. According to a contracting official for the
Metropolitan Washington Airport Authority, its
three-year contract was for maintenance of security
systems: It maintained the airfield access system, the
CCTV (closed circuit television) system, and the
electronic badging system.

In 1997, the World Trade Center and Dulles accounted
for 55 percent and 20 percent of the company's earned
revenues, respectively. The World Trade Center and
Dulles projects figured largely in both Securacom's
growing revenues from 1995 to 1997 and its decreases
from 1997 to 1998.

Stratesec continued to refer to "New York City's World
Trade Center" as a former client through April 2001.
It listed Dulles Airport and United Airlines as former
clients through April 2002.

As with the World Trade Center - which also had
electronic badging, security gates, and CCTV - the
ultimate problem with Dulles' security controls was
not the controls themselves, but that they could be
sidestepped. All the hijackers had to do was buy a
ticket. As former FAA special agent Sullivan comments,
"If they [attackers] knew about the security system,
they knew how to bypass it."

One obvious question for investigators is how much
potential hijackers could have known about the
security system.

>From 1993 to 1999, KuwAm - the Kuwait-American
Corporation -- held a large and often controlling
interest in Securacom. In 1996, KuwAm Corporation
owned 90 percent of the company, either directly or
through partnerships like one called Special
Situations Investment Holdings and another called
"Fifth Floor Company for General Trading and
Contracting." KuwAm owned 31 percent of Securacom in
1998 and 47 percent of Stratesec in 1999. It currently
holds only about 205,000 shares of Stratesec; Walker,
KuwAm's managing director, holds 650,000.

Marvin Bush was reelected annually to Securacom's
board of directors from 1993 through 1999. His final
reelection was on May 25, 1999, for July 1999 to June
2000. Throughout, he also served on the company's
Audit Committee and Compensation Committee, and his
stock holdings grew during the period. Directors had
options to purchase 25,000 shares of stock annually.
In 1996, Bush acquired 53,000 shares at 52 cents per
share. Shares in the 1997 IPO sold at $8.50. Records
since 2000 no longer list Bush as a shareholder.

Stratesec and KuwAm were and still are intertwined at
the top. Walker, while a principal at Stratesec (a
director since 1987, chairman of the board since 1992,
and formerly CEO since 1999), was also on the board of
directors at KuwAm and is still managing director
(both since 1982). Mishal Yousef Saud Al Sabah, the
chairman at KuwAm, also served on Stratesec's board
from 1991 to 2001. Walker and Al Sabah had major stock
holdings in each other's companies. The sons of both
also held shares in the two companies.

Stratesec, which currently lists 45 employees, hired
KuwAm for corporate secretarial services in 2002, at
$2,500 per month.

For several years, Walker has also been chairman and
CEO of an aircraft company, Aviation General, about 70
percent owned by KuwAm.

The Saudi Arabian embassy, the Kuwait embassy, and
KuwAm have office suites in the Watergate complex,
where both Stratesec and Aviation General held their
annual shareholders' meetings in 1999, 2000, and 2001.
Bush was reelected to his annual board position there,
across the hall from a Saudi Arabian Airlines office.
(This year, the companies' shareholders meetings
switched to the fifth floor, in space also hleased by
Saudis and Kuwaitis.)

Incidentally, Saudi Princess Haifa Al-Faisal had her
checking account at Riggs Bank, which has a large
branch in the Watergate. Given that Jonathan Bush, the
president's uncle, is a Riggs executive, it is
difficult to understand any obstacle for American
authorities pursuing the recently reported "Saudi
money trail." The princess's charitable activities
were processed through Riggs, but attention focused on
the Saudis seems not to extend to the
politically-connected bank they used.

McDaniel was asked in a brief telephone interview
whether FBI or other agents have questioned him or
others at Stratesec about the company's security work
in connection with 9/11. The concise answer: "No."
Asked the same question regarding KuwAm, Walker
declined further comment, and referred a reporter to
the public record.

According to a spokesman in an FBI regional office,
since October 2001, "the investigation [of 9/11] is
being coordinated at the national level, directly from
the White House." If so, you'd think that an
administration that could seriously consider
infiltrating American mosques would ask a few
questions closer to home.

But the suggestion is inescapable that any
investigation into security arrangements preceding
9/11, at some of the nation's most sensitive
facilities, has been impeded to this day by narrowly
political concerns in the White House.

Margie Burns is a Texas native who now writes from
Washington, D.C. Email her at
[EMAIL PROTECTED]



Copyright 2003 Joe Shea The American Reporter. All
Rights Reserved.

http://www.american-reporter.com/2021/3.html

peace,
Tom


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sordid matters and 'conspiracy theory'—with its many half-truths, mis-
directions and outright frauds—is used politically by different groups with
major and minor effects spread throughout the spectrum of time and thought.
That being said, CTRLgives no endorsement to the validity of posts, and
always suggests to readers; be wary of what you read. CTRL gives no
credence to Holocaust denial and nazi's need not apply.

Let us please be civil and as always, Caveat Lector.
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