Saturday, January 28, 2006
Abramoff Tip Saved Tyco Government Contract
It really pays to have someone with inside info who is willing for whatever reason to tip you off to unpleasant developments, giving you an opportunity to save your ass.
When you are a big corporation, this maxim applies even more.
Lobbyist Jack Abramoff gave his client Tyco International an early warning in 2003 that the government was about to suspend Tyco's federal contracts -- inside information he received from a General Services Administration official now under indictment, federal prosecutors alleged yesterday.David H. Safavian, who has been charged with obstructing the Abramoff corruption investigation, alerted Abramoff in November 2003 that the GSA was about to suspend the contracts of four Tyco subsidiaries, prosecutors said in court papers. Safavian provided "sensitive and confidential information" about internal GSA deliberations, as well as advice about how to get around the suspension, the prosecutors said...
George Terwilliger, Tyco's attorney, said yesterday that Abramoff's tip was of substantial benefit to Tyco but was unsolicited. Tyco's senior lawyer, Timothy Flanigan, contacted the GSA and "asked for an opportunity to address the suspension issue on the merits," Tyco said in a statement yesterday.
Tyco said it turned the matter over to its law firm, McKenna, Long and Aldridge, which persuaded the agency that the suspension was unwarranted.
Good move.
Not to mention exquisite timing.