Bob Barr, July 26, 2002

From handcuffed corporate executives being led to prison, to the passage of comprehensive corporate accountability legislation, President Bush and Republicans in Congress have sent America an important message this past week on the growing problem of corporate fraud -- it will not be tolerated. It does not and will not matter how much money someone makes, or how high they have climbed the corporate ladder. If they break the law, they will go to jail and under the legislation just passed, they will be going to jail for a very long time.

Our free market economy is anchored in the rule of law, and like anything else in our society, honesty and integrity are essential if it is to grow and succeed. Over the last several months, we have seen firsthand the devastating effects of corporate fraud. Thousands have lost jobs. Millions more have had their retirement funds diminished and placed in jeopardy. Confidence in the stock market has plummeted.

The recent arrests of several members of the Rigas family, who looted Adelphia Cable, are likely to be just the beginning of a number of serious prosecutions of corporate fraud by the Bush Administration. Some have criticized the President for not moving quickly enough in the investigation of Enron. As a former federal prosecutor, however, I can tell you that complicated cases such as these require serious due diligence. I am confident that as the evidence is clearly established and the pieces fall into place, those who defrauded the investors of companies like Enron and WorldCom will feel the full force of the American justice system.

Among the provisions included in the recently-passed corporate accountability legislation (H.R. 3763) are:

· Creates a Public Company Accounting Oversight Board to enforce auditing, quality control, and independence standards and rules.

· Enhances corporate disclosure, including immediate disclosure of any information affecting the material health of the company.

· Ensures investors who have lost money in the markets as a result of corporate malfeasance receive compensation from any legal settlement.

· Increases criminal penalties for many white-collar crimes (including 20 years for document shredding and obstruction of justice).

· Makes it a crime to retaliate against corporate whistleblowers.

We must fight corporate corruption with as much fervor as we fight political corruption. I can state without hesitation, that unless we act quickly and aggressively, the American people -- and foreign investors -- will continue to lose confidence in our government and our economy. To that end, I introduced an amendment in the House recently, which was included in the annual Treasury Appropriations bill. It would prevent a corporation with a documented history of defrauding the federal government from receiving a $700 million taxpayer-funded, government contract. It is inconceivable to me that some in the federal government would even consider rewarding a company with a history of fraud and corruption, with even more taxpayer money.

As a federal prosecutor and as a Member of Congress for the past eight years, my record against corruption has been clear and unambiguous. We will root it out -- we will fight it -- and we will defeat it. Working hand-in-hand with President Bush, we are on the right track and I am confident the future of America is becoming more secure.

Barr represents Georgia’s Seventh District. He serves on the House Financial Services, Judiciary, and Government Reform Committees.