Hold the Line: Harvard
Watch's "Trading Truth: A Report on Harvard's Enron Entanglements"
by Catherine Austin Fitts © 2002, Solari
http:///www.solari.com
In the movie "The Patriot", farmer-turned-soldier Benjamin Martin, played by Mel
Gibson, develops the battle plan that wins the day. Because it is widely
believed that the militia can never hold the line, Martin promises that he and
his men can. The British attack at the center, are outflanked and lose the
battle because the militia does the impossible --- it holds the line.
When I read the Harvard Watch's report "Trading Truth: A Report on Harvard's
Enron Entanglements" I was reminded of that scene. The young men and women of
Harvard Watch are holding the line if Harvard's reputation and credibility are
to have a future. They are holding the line because their "elders" charged with
managing Harvard's conduct have abrogated their fiduciary duties to Harvard and
the wider community that Harvard was created to serve.
Harvard Watch's report [Click]
is a first step in illuminating the syndicate which has hijacked the Harvard
Endowment and used it and Harvard's extraordinary academic and intellectual
resources for profiteering of the most corrupt and base kind. We urge the
Harvard community to adopt these recommendations immediately.
As Assistant Secretary of Housing-Federal Housing Commissioner in the first Bush
Administration, as an investment banker to one of Harvard's HUD property
management/mortgage banking companies and then as lead financial advisor to the
Federal Housing Administration, I watched a pattern of inside dealing between
Harvard Endowment, Harvard's Kennedy School and Harvard affiliated appointees at
the Department of Housing and Urban Development, the Office of Management and
Budget, the Department of Justice, the White House and Congress. The Harvard
players continuously pushed for and profited from policies that were not in the
interest of the American people and the communities that HUD federal investment
and mortgage insurance were supposed to serve.
Some of the policies and tactics were particularly disturbing given the role
that Harvard Corporation member Herbert ("Pug") S. Winokur and DynCorp played in
contracting to HUD and DOJ on the War on Drugs. DynCorp enjoys extensive
contracts with the enforcement and intelligence communities. This was a period
of explosive growth of prison populations and questionable enforcement practices
driven by perverse incentive systems. This included asset forfeiture and other
means of organizing enforcement to generate profits for government agencies,
contractors and their informants without regard for the best interests of the
citizens. Indeed, the more taxpayers pay for the War on Drugs the worse
narcotics trafficking gets.
The potential conflicts of interest when Harvard was providing appointees to a
government agency as well as contract and advisory services, and investing in
related companies receiving substantial monies and credit from that agency while
other affiliated companies were doing the regulatory and enforcement work
related to those very investments are manifest. These conflicts are particularly
disturbing when year after year the agency was missing billions of dollars
despite being run by a large number of Harvard graduates and the Harvard
Endowment's profits were growing like gangbusters.
Recently, Anne Williamson has documented Harvard's role promoting insider
trading and bid rigging as financial advisor in Russia as well as the Harvard
Endowment's participation in the profits of these activities. A similar pattern
of inside dealing between the Endowment, the school and the Harvard affiliated
appointees in government emerges. Harvard makes money. Government loses money.
And now, we have questions regarding the same patterns between the Harvard
Endowment, the Kennedy School and the Administration on Enron. We sit daily
while the Department of Justice and the SEC allow Enron and their auditors to
shred documents, transfer assets, maintain government contracts and enjoy all
the time necessary to cover the cash trail. They have failed to take any of the
steps on a timely basis that DOJ takes when they want to get the cash back or
illuminate what really happened. Again, Mr. Winokur's DynCorp has significant
responsibilities helping to run these very enforcement operations. As Congress
and the White House did with Iran Contra's S&L scandal, these groups are
protecting the cash winnings for the criminal syndicates by having long hearings
on what to do next time. Of course, they know the only way to stop the next time
from happening is to get the cash back today and throw the bums in jail.
Rather than doing that, it appears the chairman of the Enron finance committee
who created the mess is instead assisting in the "investigations". According to
Associated Press tonight, "Harvard spokesman Joe Wrinn released a statement
saying the university has not had the opportunity to study the report in detail.
''Mr. Winokur is a valued member of the Harvard Corporation,'' the statement
said. ''We understand that he is assisting Enron investigations under way. The
university is reviewing the situation for any developments that have a genuine
bearing on Harvard.''
One of Harvard's finest graduates, Sam Smith, Publisher of "The Progressive
Review", once wrote that corruption in Washington is not a conspiracy, rather it
is a culture. Mr. Wrinn's comment underscores the arrogance that Harvard's
financially successful profiteering breeds.
Harvard and its endowment enjoy a tax exempt status as an educational
institution. I would suggest to the Harvard community, that if Harvard is simply
an investment network and government contractor that uses its school to give
intellectual air cover to its profiteering at the expense of the country and the
world, the time has come for the Harvard Endowment to contribute its fair share
to paying our country's out-of-pocket expenses --- including for the messes at
HUD, in Russia and now at Enron that Harvard helped create. Why should the
taxpayers underwrite the costs of Harvard messes when indeed they are also
paying the cost of the very absence of sound government and a sound
financial system encouraged by Harvard's behavior?
I would like to thank the young men and women of "Harvard Watch". Their courage
and intelligence in producing and publishing this extraordinary report is to be
commended. They have shown themselves to have the kind of integrity and
professionalism that is needed if Harvard is to remain a leader for reasons
other than what money can buy.
Harvard Watch is holding the line.
John and Abigail Adams would be proud.
Don't wait another second. Call and write every Harvard alum, professor,
employee and friend you know and tell them to get behind Harvard Watch and their
recommendations and help them hold the line. If you are Harvard grad or
connected with Harvard in any way, call Harvard's leaders and tell them you want
these recommendations adopted immediately.
Do it right now.
"Trading Truth: "Trading Truth: A Report on Harvard's Enron Entanglements"
http://www.harvardwatch.org