14 December 2004
Gaming the System
Recent reports of the $9.5 billion secret satellite project that has been included in the nation’s intelligence budget has run up against opposition from members of Congress, like Senator Jay Rockefeller, who believe it has been oversold by those who favor electronic over human spy methods. It cannot be denied that the more you know, the potentially safer you are. However, it does come down to a matter of cost effectiveness. Could the $9.5 billion be better spent on foreign language-speaking operatives, rather than on space cameras that improve the resolution of what can be seen from space in clear daylight.
The most direct benefit of this $9.5 billion program goes to the makers of the systems – those companies that manufacture, launch, operate and maintain the equipment. These companies and their executives, boards, and employees are also large contributors to the political campaigns of Congressmen whose votes are needed to appropriate these funds.
Gary Winnick, the former CEO of Global Crossing Ltd., has learned a lesson from this. He has just been relieved of the threat of SEC security charges and fines. As was pointed out in the Wall Street Journal on December 13, 2004, he “has been an active political donor, spreading his wealth on both sides of the aisle.” The suppliers of intelligence satellites know that spending their cash to help prolong the political careers of elected officials. Mr. Winnick has learned that lesson well. He has at least reduced Congressional pressure on the SEC to pursue him for alleged disclosure violations by judiciously contributing to the expensive re-election campaigns of officials, regardless of their Party or overall political orientation, who are responsible for regulatory oversight.
Recent reports of the $9.5 billion secret satellite project that has been included in the nation’s intelligence budget has run up against opposition from members of Congress, like Senator Jay Rockefeller, who believe it has been oversold by those who favor electronic over human spy methods. It cannot be denied that the more you know, the potentially safer you are. However, it does come down to a matter of cost effectiveness. Could the $9.5 billion be better spent on foreign language-speaking operatives, rather than on space cameras that improve the resolution of what can be seen from space in clear daylight.
The most direct benefit of this $9.5 billion program goes to the makers of the systems – those companies that manufacture, launch, operate and maintain the equipment. These companies and their executives, boards, and employees are also large contributors to the political campaigns of Congressmen whose votes are needed to appropriate these funds.
Gary Winnick, the former CEO of Global Crossing Ltd., has learned a lesson from this. He has just been relieved of the threat of SEC security charges and fines. As was pointed out in the Wall Street Journal on December 13, 2004, he “has been an active political donor, spreading his wealth on both sides of the aisle.” The suppliers of intelligence satellites know that spending their cash to help prolong the political careers of elected officials. Mr. Winnick has learned that lesson well. He has at least reduced Congressional pressure on the SEC to pursue him for alleged disclosure violations by judiciously contributing to the expensive re-election campaigns of officials, regardless of their Party or overall political orientation, who are responsible for regulatory oversight.
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