[Mb-civic] Tyco Exec: Abramoff Claimed Ties to Administration - Washington Post

[William Swiggard]

Tyco Exec: Abramoff Claimed Ties to Administration

By R. Jeffrey Smith
Washington Post Staff Writer
Friday, September 23, 2005; Page A06

Republican lobbyist Jack Abramoff bragged two years ago that he was in 
contact with White House political aide Karl Rove on behalf of a large, 
Bermuda-based corporation that wanted to avoid incurring some taxes and 
continue receiving federal contracts, according to a written statement 
by President Bush's nominee to be deputy attorney general.

Timothy E. Flanigan, general counsel for conglomerate Tyco International 
Ltd., said in a statement to the Senate Judiciary Committee last week 
that Abramoff's lobbying firm initially boasted that Abramoff could help 
Tyco fend off a special liability tax because he "had good relationships 
with members of Congress," including House Majority Leader Tom DeLay 
(R-Tex.).

Abramoff later said "he had contact with Mr. Karl Rove" about the issue, 
according to the statement by Flanigan, who oversaw Tyco's dealings with 
Abramoff and his firm and received reports from Abramoff about progress 
in the lobbying campaign. Flanigan's statement is the latest indication 
that Abramoff promoted himself as having ready access to senior 
officials in the Bush administration.

A White House spokeswoman, Erin Healy, said Rove "has no recollection" 
of being contacted by Abramoff about Tyco's concerns.

Abramoff was indicted last month on unrelated wire fraud and conspiracy 
charges and has lost his high-stakes lobbying clients. He was hired in 
2003 by Tyco when the company was in turmoil. Abramoff's firm, Greenberg 
Traurig, promoted him as Tyco's savior on the tax issue, according to 
Flanigan's statement and others familiar with the process.

Tyco -- whose executive L. Dennis Kozlowski had just departed under an 
ethics cloud -- was worried that the Bush administration might embrace 
legislation promoted by Democrats that would impose higher taxes on 
domestic-centered companies that had moved offshore to cut their tax 
bills. The legislation was motivated by popular anger over such offshore 
moves, and carried the additional penalty of barring such firms from 
receiving federal contracts.

http://www.washingtonpost.com/wp-dyn/content/article/2005/09/22/AR2005092202204.html
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