

Bush Adviser's Tie to BCCI
Deputy campaign manager works for the bank's major owners

an article reposted without permission, written by the  Associated Press
as it appeared in the San Francisco Chronicle on Feb. 28, 1992, Page: A14
---------------------------

Washington

President Bush's new deputy campaign manager has earned more than $200,000 for 
his firm by providing public relations services for the principal owners of 
the scandal-ridden Bank of Credit and Commerce International.  The Center for 
Public Integrity, a nonprofit group that researches public officials and 
ethics issues, said yesterday that James Lake's work simultaneously for the
campaign and for the main owner of a bank prosecuted by the Bush
administration is a conflict of interest, although legal.  "For a president
who claims he's concerned with ethics and who says he's going to get to the
bottom of the BCCI scandal, it is preposterous for him to have a top-level
campaign adviser representing a majority investor in the bank," said Chuck
Lewis, the center's executive director. "There's simply no good explanation
for it." Lake and the Bush campaign, however, deny that any conflict exists,
saying they have consulted with the White House and taken all steps to avoid
even the appearance of a conflict.  According to documents Lake filed with the
Justice Department, he and his consulting firm were paid $201,375 last fall by
the Abu Dhabi Investment Authority.  Family Owns Much of BCCI

The authority is owned by the Al Nahayan family, which rules over the Persian 
Gulf emirate of Abu Dhabi and owns 77 percent of BCCI along with other Abu
Dhabi investors.  BCCI, accused of laundering drug money, aiding arms
traffickers and secretly buying three U.S. banks, recently forfeited its
entire $550 million in U.S. assets to settle criminal racketeering charges.
Lake has been working as a senior communications adviser to Bush's campaign.
He was promoted yesterday to deputy campaign manager for surrogates, advance
and scheduling. He is not being paid by the campaign.  Lake said he continues
to advise the Abu Dhabi company on communicating with U.S. news media in the
BCCI scandal. He said he has taken precautions to avoid conflicts, including
avoiding any lobbying for the Abu Dhabi group.  "They have not asked nor have
I given them any advice on dealing with this government, only advice in 
dealing with the media," Lake said. "I have not and do not intend to discuss 
this client's business in any way with the campaign." Suggestion of Fraud

Abu Dhabi, and the Al Nahayan family have not been directly implicated in the 
international bank's alleged wrongdoing. But BCCI's former auditor has 
suggested that members of the family participated in fraudulent activities, a 
charge the family denies.  U.S. and foreign investigators continue to probe 
BCCI, and seven grand juries are still at work in the United States alone, 
prosecutors say.  Lake is the second Bush aide known to have a BCCI-related 
client. Last fall, former White House aide Ed Rogers canceled under pressure a 
$600,000 lawyer's contract to represent a central figure in the BCCI scandal.  
Rogers had just left as an assistant to then-chief of staff John Sununu when 
he got the contract to work for Sheik Kamal Adham, who the government said 
acted as a front man for BCCI's secret purchase of First American Bankshares 
Inc. of Washington.  The Center for Public Integrity released a study titled 
"Under the Influence," in which it identified more than 100 paid and unpaid 
advisers to the seven major presidential candidates and their outside 
interests.  It identifies Lake as one of 31 advisers who work as agents for 
foreign interests or for firms registered as foreign agents.  The group also 
said some of Washington's prominent consulting firms have or recently had 
officials advising rival campaigns. One lawyer, former Jimmy Carter aide 
Stuart Eizenstat, has been simultaneously advising the Clinton and Kerrey 
campaigns, it said.

------------------------------------------------
(This file was found elsewhere on the Internet and uploaded to the
Patriot FTP site by S.P.I.R.A.L., the Society for the Protection of
Individual Rights and Liberties. E-mail alex@spiral.org)

