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January 25, 2002 - Image 2

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The Michigan Daily, 2002-01-25

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2 - The Michigan Daily - Friday, January 25, 2002


Anderson auditor remains silent

WASHINGTON (AP) - Fired Enron outside
auditor David Duncan refused to testify to Congress
yesterday about the shredding of the energy compa-
ny's documents, invoking his Fifth Amendment pro-
tection against self-incrimination.
His silence came as his former colleagues, top
officials of the Arthur Andersen accounting firm,
sought to lay the blame squarely on him. Their
denials of involvement in the shredding drew skepti-
cal responses from members of a House panel inves-
tigating Enron's collapse.
Duncan, who had been Andersen's lead auditor on
the Enron account, was the first witness before the
House Energy and Commerce's investigations and
oversight subcommittee.
"Enron robbed the bank, Arthur Andersen provid-
ed the getaway car and they say you were at the

wheel," the subcommittee chairman, Rep. Jim
Greenwood (R-Pa.) told Duncan.
But when Greenwood began to question Duncan,
asking him if he had deliberately given an order to
destroy documents to "subvert governmental investi-
gations," Duncan cited his constitutional right to
Duncan invoked it twice, telling the panel,
"Respectfully, that will be my response to all your
questions." He was not questioned further and was
Dorsey Baskin Jr., managing director of Ander-
sen's professional standards group, told the panel
that Duncan directed the destruction of a substan-
tial number of documents just as an investigation
was beginning.
' "We are not proud" of the destruction of the

records, Baskin said.
Andersen lawyer Nancy Temple denied repeatedly
that an Oct. 12 e-mail she wrote helped trigger the
wave of document destruction. "I was not aware of
any shredding activities," she said.
The efforts by Baskin and other Andersen offi-
cials to deflect the full blame on Duncan for the
shredding drew criticism from some subcommit-
tee members.
As the meeting concluded five hours after it
began, Greenwood told the Anderson officials, "We
may have to have you back. At the end of the day
here we still don't have evidence to suggest that Mr.
Duncan, who did not testify, is a rogue employee of
"We have a lot of information we need to
gather," Greenwood said.

Bush to increase
security spending

Palestinians demand attacks to stop
A senior Hamas commander died in an Israeli helicopter strike in Gaza late
yesterday, the Israeli military said, and five other Palestinians were killed in sep-
arate incidents.
Tension ran high amid expectations of further violence. Because of the
flare-up, U.S. officials put a truce mediation effort by envoy Anthony
Zinni on indefinite hold.
In Gaza after nightfall, witnesses said an Israeli helicopter fired missiles at a
car, killing one Palestinian and wounding two others.
The Israeli military identified the dead Palestinian as Adli Hamdan and
said he was the senior Hamas commander in Khan Younis, responsible for
dozens of attacks.
But Palestinians gave a differing description. They identified him as Bakr
Hamdan, a member of the Hamas military wing and a relative of the top Hamas
leader in the Gaza city of Khan Younis.
The attack took place in the Khan Younis refugee camp. It was the lat-
est Israeli targeted killing of suspected militants in Palestinian areas.
Palestinians denounce the attacks are assassinations and demand that they
be stopped.
Greenspan: U.S. recession could be near
Federal Reserve Chairman Alan Greenspan said yesterday there are mounting
signs the economy is recovering from recession, an upbeat assessment that encour-
aged Wall Street.
Those comments pulled the stock market lower, but Greenspan's more optimistic
remarks to the Senate Budget Committee yesterday helped push stocks solidly
higher. The Dow Jones industrial average closed up 65.52 points at 9,796.48.
Asked by lawmakers about his changed tone, Greenspan said he had been trying
on Jan. 11 to dampen expectations on Wall Street that the economy would come
roaring back this year. He said the rebound will probably be less robust, given that
the recession has been a mild one.
"The markets, however, had been assuming a far more rapid snap-back than I,
frankly, think is likely to happen," Greenspan said.
But he said he had overdone his pessimism. "That created, unfortunately, I think,
phraseology, which in retrospect I should have done differently," Greenspan said.
He said his comments implied "that I didn't think the economy was in the process
of turning, and I tried to rectify that in today's remarks."


WASHINGTON - President Bush
said yesterday that he wants to nearly
double the nation's spending on home-
land security, telling an audience of
mayors that his request for $37.7 bil-
lion signals the start of a long-term
commitment to an antiterrorism cam-
paign that will rely heavily on local
police, firefighters and other "first
Reflecting the changing priorities
brought on by the Sept. 11 terrorist
attacks, Bush said he will ask Con-
gress to set aside $3.5 billion to
train, equip and aid police, fire and
emergency medical technicians, a
tenfold jump from the current fis-
cal year.
Although the allotment for first
responders represents the biggest
increase in the homeland security
budget, it isn't the largest expense.
Border security leads the list, with
$11 billion, according to sources
familiar with the proposal.

The package also includes about $6
billion for bioterrorism prevention,
including medical research of vac-
cines; $5 billion for aviation security;
$1 billion for intelligence systems; and
more than $11 billion for a variety of
other programs, including making
structural improvements and shoring
up security and at government build-
ings, the sources said.
Bush mostly confined his remarks
yesterday in the East Room of the
White House to the overall size of the
spending, repeatedly comparing it
with the $19.5 billion spent on home-
land defense in the current fiscal year.
He revealed only the first-responder
part of his agenda, tailoring his pre-
sentation for the mayors, who have
been clamoring for help with
unprecedented costs.
"This is a two-front war," Bush told
300 mayors here for a meeting of the
U.S. Conference of Mayors. "Overseas
we're fighting, and at home we're


In a speech yesterday, President Bush unveiled his plan to ask for $37.7 billion to
increase homeland and national security spending.

Appearing at the White House
with Homeland Security Director
Tom Ridge, Bush promised that his
fiscal 2003 budget request to Con-
gress marks "the beginning of a
homeland defense initiative which

is going to last throughout my
The announcement came as the
White House continued a push to build
momentum leading into next Tues-
day's State of the Union address and
the subsequent budget process.
U.S. troops
seize 27
fighte rs
KANDAHAR, Afghanistan (AP) -
U.S. Army Special Forces attacked a
Taliban headquarters north of Kanda-
har, killing a number of fighters and
taking 27 prisoners, U.S. officials said
yesterday. One American soldier was
wounded in the attack.
Gen. Richard Myers, chairman of
the Joint Chiefs of Staff, said in Wash-
ington that American troops attacked
adjacent sites in a mountain region 60
miles north of Kandahar.
"Our forces attacked two com-
pounds and detained 27 individuals,"
Myers said at the Pentagon. "There
were enemy forces killed in this action
and one U.S. special forces soldier was
slightly injured. He was wounded in
the ankle and was then evacuated."
The soldier, who was not identified,
was the first American battlefield casu-
alty since Army Sgt. 1st Class Nathan
Chapman was killed Jan. 4 in an
ambush in eastern Afghanistan.
Eleven U.S. troops have been killed in
aviation crashes during the Afghan
U.S. officials said they believed the
prisoners seized may include both Tal-
iban and members of Osama bin
Laden's al-Qaida terrorist network but
they were unsure whether senior lead-
ers were among them.
"There's a whole lot more of these,"
Defense Secretary Donald Rumsfeld
said of Taliban and al-Qaida outposts.
"We're going to keep at them until we
get them."
Also yesterday, the Pakistan-based
Afghan Islamic Press reported that
U.S. warplanes bombed a suspected al-
Qaida terrorist camp near the eastern
town of Khost. The agency quoted res-
idents as saying the camp had been
abandoned for some time.
The report could not be indepen-
dently confirmed.
The airstrike would be the first since
several days of intensive bombing of a
suspected al-Qaida tunnel complex
near Khost ended Jan. 14. Residents
said many houses were destroyed and
at least a dozen people killed.
Although the air campaign has
diminished, special forces have been
stepping up the search for Taliban and
al-Qaida renegades. On Tuesday, U.S.
troops conducted a house-to-house
search in four villages of Helmand
province, west of Kandahar, looking
for the deposed Taliban's supreme

BEIRUT, Lebanon
Lebanese warlord
killed in bombing
A former Lebanese Christian war-
lord who was linked to the 1982 mas-
sacre of Palestinians at two refugee
camps during his country's civil war
was killed yesterday in a car bombing.
Three bodyguards also were killed.
A previously unknown group
claimed responsibility, saying it killed
Elie Hobeika, to protest Syria's med-
dling in Lebanese affairs. Hobeika was
a Syrian ally.
Hobeika led the right-wing Lebanese
Forces militia, which tore through the
Sabra and Chatilla Palestinian refugee
camps in Muslim west Beirut 20 years
ago, slaughtering hundreds of men,
women and children.
The militia was allied with Israel,
and an Israeli =commission of
inquiry later found that then-
defense minister Ariel Sharon -
now the prime minister - was indi-
rectly responsible for the killings.
Campaign finance
bill sent to the floor
Supporters of campaign finance
legislation claimed victory yester-
day in their drive to force the issue
to the House floor, setting the stage
for a vote this year on a bill to
reduce the role of money in political
"The American people deserve a
full debate about how campaigns are
financed," said Rep. Richard Neal (D-

Mass), who provided the 218th signa-
ture on a legislative petition to force
the bill to the floor.
No date was immediately set for
debate and vote on the bill, which
would make the most far-reaching
changes in the nation's political
finance system since the Watergate
reforms of a quarter-century ago.
The bill would virtually ban soft
money, the unlimited donations that
unions, corporations and individuals
make to the political parties.
Religious leaders join
Pope in non-violence
Declaring that religious people must
repudiate violence following the Sept.
11 attacks, Pope John Paul II led an
extraordinary assembly of patriarchs
and imams, rabbis and monks yesterday
in this historic hilltop town in praying
for peace.
Buddhist chants aid Christian hymns
resounded inside a huge plastic tent dec-
orated with a single olive tree.
About 200 religious leaders accept-
ed the pope's invitation to the daylong
retreat and agreed on a joint, 10-point
pledge proclaiming that religion must
never be used to justify violence.
John Paul, looking down at a dis-
play of turbans, veils and yarmulkes
from a red-carpeted stage, said reli-
gious leaders must fend off "the
dark clouds of terrorism, hatred,
armed conflict, which in these last
few months have grown particularly
ominous on humanity's horizon."
- Compiled from Daily wire reports.


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