Cheney's Job at Risk

Electronic Telegraph ^ | July 21, 2002 | David Wastell

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Cheney's job at risk as White House fights corporate scandals
By David Wastell
(Filed: 21/07/2002)
Dick Cheney may be sacrificed to distance the administration from corporate scandals

As the Dow Jones index slumped to its lowest level since October 1998, falling almost five per cent on Friday alone, officials privately admitted that investigations into the American vice-president's past business dealings have turned him into a political problem.

The Securities and Exchange Commission, America's financial watchdog, is investigating Mr Cheney's previous role running the beleaguered Halliburton oilfield services company.

Last week's stock market plunges gave rise to unprecedented speculation among Republicans that Mr Cheney, seen until recently as the steadying hand on the tiller, may have to be sacrificed as Mr Bush's running mate for the 2004 election.

Among the candidates being privately discussed around Washington to replace him are Colin Powell, the secretary of state, Condoleezza Rice, the national security adviser, and John Ashcroft, the attorney general.

A Republican congressional official said:"Any of those would have at least one big advantage over Cheney."

He said: "They have not made personal fortunes in big business. In the last election it seemed to be an advantage that both names on the ticket had track records in business. Next time, unless something changes, it will be a liability."

Mr Cheney is being investigated over allegedly questionable accounting methods employed while he was Halliburton's chief executive.

Eyebrows have also been raised by the revelation that he made $18.5 million (£11.8 million) profit from his sale of company stock in August 2000, two months before the share price began to fall.

Halliburton shares have been propelled downward to a quarter of their peak value amid warnings of shrinking profits and the announcement of the SEC investigation.

Last week, Mr Bush was forced to confront the subject in public. Asked at a press conference if he was confident that the SEC would not find any evidence of wrong-doing by Mr Cheney while at Halliburton, Mr Bush said, "Yes, I am."

Democrats, who are already demanding the resignation of Harvey Pitt, the SEC chairman who was appointed by Mr Bush, said that the president's reply indicated that the financial watchdog was now under pressure from the White House to clear Mr Cheney.

One Democratic official said:"One minute Mr Bush is defending Mr Pitt from criticism, the next minute he is saying what he expects Mr Pitt's people will find. The implication is obvious."

Mr Cheney is attempting to keep a low profile, but said on Friday that the Bush administration would vigorously pursue corporate wrongdoers.

"When there are reports of fraud, the American people can be certain that the government will fully investigate them," he said. "We must not and will not allow the deeds of a few to tarnish our free enterprise system."

Gen Powell, one of the most popular figures in American public life, is being floated as a vice-presidential candidate by moderate Republicans, who argue that his presence on the ticket would all but guarantee Mr Bush a second term. He would be a controversial choice with conservative Republicans, however, because they regard him as too liberal.

Dr Rice has said publicly that she would not be a candidate, but Mr Bush likes to feel comfortable with those with whom he works closely, and Dr Rice fits that bill.

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