It's Carlyle's world, we're just killing in it.
Congratulations to California-boy (Los Gatos) Francis Harvey, who has become the first of President Bush's appointments to receive U.S. Senate approval (85-12). As the newly-made Army secretary, he will report to Secretary of Defense Donald Rumsfeld and oversee a budget of $98.5 BILLION. Although he has little direct experience with the U.S. Army, he does bring to the job an extensive defense industry background in the private sector:
- former Chief Operating Officer of a division of Westinghouse Electric, a leading defense contractor,
- serves on the boards of two Carlyle Group-affiliated companies (Duratek and Kuhlman)
DING-DING-DING-DING-DING!!!
The Carlyle Group was the ninth largest U.S. defense contractor between 1998 and 2003. In the very recent past, a dozen companies in which Carlyle owned a controlling interest earned more than $9.3 BILLION in U.S. military contracts (that's taxpayer money, yours and mine).
United Defense Industries is the leading maker of combat vehicles, artillery, and missile launchers. It is no longer owned by The Carlyle Group, BUT is currently chaired by Carlyle Managing Director William Conway, another Carlyle Managing Director Peter Clare, and Carlyle Group chairman emeritus Frank Carlucci. That's right, the same Frank Carlucci who served as Deputy CIA Director under President Carter and Secretary of Defense under President Reagan.
From July to September 2004, United Defense Industries made $300 million from U.S. Army Contracts. Last year, they posted record sales of $2 BILLION (half the company's revenue comes from U.S. Army contracts).
Duratek specializes in the disposal of radioactive materials, and enjoys contracts with the Department of Defense and the Department of Energy. The company reported $286 million in sales last year. Harvey has served on Duratek's board since 1999.
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