Last week, there were rumors about a Bloomberg News piece that was going to make right-wing financiers Charles and David Koch look pretty bad. As Justin Elliott put it, “Here’s a rule of thumb about public relations: When P.R. pros begin furiously spinning a story before it has even come out, there’s a pretty good chance the story is going to be damaging to the reputation of said P.R. pros’ bosses.”
And now we know what the Kochs were afraid of. As it turns out, Bloomberg News has uncovered credible evidence of Koch Industries making “improper payments” (read: bribes) to “secure contracts in six countries dating back to 2002.” One of those countries, it turns out, is Iran, which has purchased millions of dollars of petrochemical equipment from the Kochs’ company, despite a trade ban and the U.S. labeling Iran a state sponsor of terrorism.
Internal company documents show that the company made those sales through foreign subsidiaries, thwarting a U.S. trade ban. Koch Industries units have also rigged prices with competitors, lied to regulators and repeatedly run afoul of environmental regulations, resulting in five criminal convictions since 1999 in the U.S. and Canada.
From 1999 through 2003, Koch Industries was assessed more than $400 million in fines, penalties and judgments. In December 1999, a civil jury found that Koch Industries had taken oil it didn’t pay for from federal land by mismeasuring the amount of crude it was extracting. Koch paid a $25 million settlement to the U.S.
Phil Dubose, a Koch employee who testified against the company said he and his colleagues were shown by their managers how to steal and cheat — using techniques they called the Koch Method. […]
For six decades around the world, Koch Industries has blazed a path to riches — in part, by making illicit payments to win contracts, trading with a terrorist state, fixing prices, neglecting safety and ignoring environmental regulations. At the same time, Charles and David Koch have promoted a form of government that interferes less with company actions.
I think we now know why Koch Industries was so worried about this article — it’s pretty devastating.
Much of the institutional right has grown quite dependent on the Koch Brothers’ generosity, which has helped finance Tea Party efforts and scores of conservative groups and institutions. But given Koch Industries’ alleged misdeeds, the Kochs’ money may soon need to be considered far more controversial than we’d even been led to believe.
Feed the Political AnimalDonate
Washington Monthly depends on donations from readers like you.