Andersen video puts Cheney on spot

BBC News ^ | Wednesday, 10 July, 2002, 14:49 GMT

[HAL9000]

It has emerged in the United States that Vice-President Dick Cheney took part in a promotional video for the disgraced accounting firm Andersen.

The news came just before an anti-corruption pressure group filed a lawsuit against Mr Cheney, alleging fraudulent accounting practices.

In the video Mr Cheney - then Chief Executive of the oil company Halliburton - describes how Andersen gave advice "over and above" what would normally be expected from auditors.

Last month, the firm was convicted of obstructing justice by shredding documents relating to the failed US energy giant Enron.

On Tuesday President George W Bush tried to distance himself from corporate fraud, proposing tougher penalties as a way of restoring confidence in the wake of recent business scandals that have shaken the US.

'Good advice'

The Andersen video, obtained by the Wall St Journal newspaper, is a further embarrassment for President Bush's administration.

Correspondents say its business connections are fast becoming a serious liability.

The video was recorded in 1996.

"I get good advice, if you will, from their people based upon how we're doing business and how we're operating over and above the just sort of normal by-the-book auditing arrangement," Mr Cheney says in a short section of the video.

Andersen's reputation has been destroyed in recent weeks after it emerged that it had destroyed documents for the Enron energy giant.

Enron has admitted to grossly exaggerating its profits to attract investors.

'Share overvaluation'

In a separate development, pressure group Judicial Watch, says Mr Cheney deceived investors while he was a director of the Halliburton oil company in the 1990s.

In its lawsuit, filed in Miami, Florida, on Wednesday, the organisation alleges Mr Cheney and Halliburton engaged in practices which led to the overvaluation of the company's shares.

"Halliburton overstated profits that many American citizens relied upon," Larry Klayman of Judicial Watch told reporters.

"That's fraudulent security practices and it resulted in those Americans suffering huge losses."

In Washington White House spokesman Ari Fleischer appeared dismissive of the case.

He said officials in Mr Cheney's "believe the suit is without merit, and that's where it stands," he said.

Earlier, a Halliburton spokeswoman also said the case had no substance.

Harsher punishments

In a speech in New York's financial district on Tuesday, President Bush said he wanted to tighten measures against corporate fraud.

He announced a doubling - to 10 years - of the maximum prison sentence, and the formation of a special investigative task force.

But Judicial Watch said that Mr Bush's rush to crack down on corporate fraud seemed intended to deflect attention away from his and Mr Cheney's own business practices.

Mr Bush has already faced questions about his work as a director of Texas-based Harken Energy Corp a decade ago, when the firm faced an inquiry for masking huge losses.

[Illbay]

Business = 'Evil'

If the socialists can get that to stick in the minds of the public, they can do whatever they want.

[gaspar]

The Marxists at the BBC have come to the conclusion that all Arthur Andersen accountants are crooks, rather than the few that destroyed a great company.

[laotzu]

I have it on excellent authority that all of the management at Anderson regularly consumed Coca Cola, and often coffee as well.

This is yet another blow to the once mighty soft drink manufacturer, who is still reeling from their disasterous introduction of "New Coke".

Company spokesmen declined to make any statement.

[Semper Paratus]

Judicial Watch never got this much publicity for their Clinton lawsuits.

[Oldeconomybuyer]

Memo To: The Bush White House
From: Olde
Subject: "Setting a new tone in Washington"

It ain't gonna happen. Take the gloves of fer cryin' out loud!

Sincerely,

Olde

[denydenydeny]

The Democratic Party's private detectives have been busy lately, I see.

[zook]

Three months ago, everyone thought that AA was about the greatest firm in the world, a great place to work, a great reputation, etc. So Cheney touts them in a video in 1996. Hell, I've touted them to my job-seeking students for years!

The left is soooooooo transparent

[backhoe]

Cheney ought to give a press conference or two, and soon. His presence is very calming. It'll all blow over.

I agree.

[jumpstartme]

It has emerged in the United States that 3 former DNC spinmeisters, and former White House staffers, have engaged in advertising and promotional activities for Andersen. While it remains to be seen whether the hypocritical left leaning media will pick up both sides of the story, it nevertheless deflates their trial balloon of "guilt by association". Take that, @ssholes!

Joe Lockhart's Glover Park Ad Agency: Glover Park Group's website

[Cousin Eddie]

News of this video came out 3 or 4 months ago. Old news. Big companies put together customer testimonials for employee pep rallies all the time. Big deal!

[hove]

"Business = 'Evil'"

I don't think this is the message. It is corruption in business...which is rampant in America today....that is evil. Business, if done ethically is wonderfull. What is happening to our economy, because of corporate and political fraud, is tantamount to terrorism. The effect on America will be worse than a few worn out threats from Osama.

[FreeTheHostages]

Yeah, I was thinking how much more publicity Judicial Watch got with this lawsuit.

Well, it's more proof that what Judicial Watch really wants is publicity to get fund-raising dollars. I think it's scandalous that it's suing Cheney. I don't think it's a good thing to do from a conservative perspective.

I don't trust Judicial Watch, as I guess I've said often in posts here.

[RedWing9]

It has emerged in the United States that 3 former DNC spinmeisters, and former White House staffers, have engaged in advertising and promotional activities for Andersen.

This needs a Downside-Legacy bump...(see link in jumpstartme's post)

[Fred Mertz]

I hate to say this, but the Dims every week are succeeding in their campaign of creating a "wedge issue" of corporate corruption to bash the pubbies with.

The lamestream media are their willing lapdogs of course.

[Registered]

How dare you post this "hit-piece"!!!!


;-)

[Alamo-Girl]

Aha! Thank you for the heads up!

[Registered]

The Andersen video, obtained by the Wall St Journal...

Oh Noooooooo, the Journal is now in on this Axis-of-Evil diabolical plan against Bush!

[Steve_Seattle]

This could backfire if the Dems try to use it. Until the Enron scandal broke, Arthur Anderson was a respected company in its field and no one - including Dick Cheney - had any reason to believe otherwise. This reminds me of when my dad found out that former WA governor Dan Evans (Republican) had once written a letter of recommendation for Ted Bundy for some government job. My dad (a Democrat) acted as if this somehow constituted an endorsement of Bundy's later actions. At the time Evans wrote the letter, Bundy was generally regarded as a bright, up-and-coming law student, and was a volunteer at a local crisis clinic.