UANI Legislation Introduced in the U.S. House of Representatives

FOR IMMEDIATE RELEASE
October 22, 2009
Contact: Kimmie Lipscomb, [email protected]
Phone: (212) 554-3296

UANI Legislation Introduced in the U.S. House of Representatives

New York, NY - Representatives Ron Klein (FL-22) and John Mica (FL-7) today introduced in the House of Representatives a bill to preclude companies that conduct business in Iran from receiving U.S. government contracts.

The Accountability for Business Choices in Iran Act (ABC Iran Act) will require companies that receive federal taxpayer funding such as stimulus spending, bailout support or contracts, to certify that they do not conduct business in Iran. The bill is based on similar efforts to prevent U.S. government contractors from doing business with Sudan. The Sudan legislation was signed into law in 2007.

United Against Nuclear Iran (UANI) worked closely with Representatives Klein and Mica on developing this bill and bringing it to today's introduction.

"It is time for companies to choose whether they want to do business with Iran or with the United States, and that is what this bill requires. Current U.S. sanctions do not affect multinational companies that have a heavy presence in the U.S., such as Siemens and Nokia. Now more than ever, the U.S. government must be accountable for every taxpayer dollar that it spends. By continuing to do business with companies that conduct business in Iran, the U.S. undermines its own strategic interests," said UANI President, Ambassador Mark D. Wallace.

"UANI applauds Representatives Ron Klein and John Mica for sponsoring legislation that keeps in mind the best interests of our pocketbook as well as our national security. We urge our supporters to send letters to Congress in support of the Accountability for Business Choices in Iran Act," Wallace said.

UANI maintains on its website the Iran Business Registry, a list of over 175 companies that have been reported to do business in Iran. UANI calls on all of these companies to voluntarily sign the Iran Business Declaration and certify that they do not and will not conduct business in Iran.

The Accountability for Business Choices in Iran Act:

• Requires any company that has a U.S. government contract to certify that it does not conduct business in Iran
• Prohibits a contractor that provides false certification from conducting business with the U.S. government

BACKGROUND:

It was recently reported that Nokia and Siemens, a major U.S. government contractor, provided the Iranian regime with the technology it needs to spy on Iranians, monitor their communication and activities and brutally crackdown on dissent. Nokia and Siemens have contributed directly to the Iranian regime's ability to repress its citizens' protesting the results of the Iranian presidential election. Additionally, as part of the federal bailout of AIG it has recently come to light that billions of taxpayer dollars went through AIG to a series of European banks, such as Barclays, Credit Suisse and Deutsche Bank, that are currently conducting or have recently conducted business in Iran.

Iran Uses Siemens and Nokia Technology To Spy On Citizens

The Iranian regime has developed, with the assistance of European telecommunications companies, one of the world's most sophisticated mechanisms for controlling and censoring the Internet, allowing it to examine the content of individual online communications on a massive scale...The monitoring capability was provided, at least in part, by a joint venture of Siemens AG, the German conglomerate, and Nokia Corp., the Finnish cellphone company, in the second half of 2008, Ben Roome, a spokesman for the joint venture, confirmed. (The Wall Street Journal, Iran's Web Spying Aided By Western Technology, Christopher Rhoads and Loretta Chao, June 22, 2009)

Two European companies - a major contractor to the U.S. government and a top cell-phone equipment maker - last year installed an electronic surveillance system for Iran that human rights advocates and intelligence experts say can help Iran target dissidents. Nokia Siemens Networks (NSN), a joint venture between the Finnish cell-phone giant Nokia and German powerhouse Siemens, delivered what is known as a monitoring center to Irantelecom, Iran's state-owned telephone company. (Washington Times, Fed contractor, Cell Phone Maker Sold Spy System to Iran, Eli Lake, April 13, 2009)

* Since 2005, Siemens had done more than $900 million worth of business with the U.S. government and employs about 70,000 people in the United States. Nokia is one of the leading mobile handset providers in the United States.

Siemens Expects To Receive Billions In U.S. Taxpayer Dollars

German industrial conglomerate Siemens AG said it expects to land about $21 billion globally in new orders as governments seek to help industries cut energy consumption. The company could receive $8 billion in revenue from the U.S. stimulus spending plan alone...Siemens estimates it is vying for about $208 billion of the global stimulus spending. In the U.S., Siemens thinks it can compete for $110 billion of the $787 billion in the American Recovery and Restoration Act that Congress passed in February. (The Wall Street Journal, Siemens Expects To Land $21 Billion From Global Stimulus Spending, Paul Glader, June 22, 2009)

Billions Of Taxpayer Dollars Funneled To European Banks

[T]he revelations that-billions of U.S. taxpayer dollars were funneled through AIG to Goldman Sachs -- one of Wall Street's most politically connected firms -- and to European banks including Deutsche Bank, France's Societe Generale and the UK's Barclays could stoke further outrage at the entire U.S. bank bailout. (Reuters, AIG Payments To Banks Stoke Bailout Rage, John O'Callaghan and Lilla Zuill, March 16, 2009)

* Through three separate types of transactions, Goldman received an aggregate U.S. $12.9-billion. Among European banks, SocGen was the biggest recipient at U.S. $11.9-billion, Deutsche got U.S. $11.8-billion and Barclays was paid U.S. $8.5-billion. The AIG disclosures are still incomplete in that they do not include payments to the banks since December 31.

Reports Of Barclays In Iran

There are nine other banks that we think were doing this, said Mr. Morgenthau in an interview, including Barclays PLC of the U.K. A Barclays spokesman had no comment beyond a prior disclosure confirming the inquiry. Other banks under scrutiny in the probe include Credit Suisse and Deutsche Bank, people with knowledge of the inquiries said. (The Wall Street Journal, Fresh Clues of Iranian Nuclear Intrigue, Glenn R. Simpson and Jay Solomon, January 16, 2009)

It also emerged at the end of March that three European banks--Barclays and Lloyds TSB, both of the UK, and Credit Suisse of Switzerland--face investigation by the U.S. Justice Department and the New York district authorities over whether they purposely hid the origins or destinations of transactions in order to circumvent sanctions against Iran, Cuba, Sudan and Libya. The investigations follow a federal probe into a Dutch bank, ABN Amro, in 2005, after it was fined for obscuring references in wire transfers and processing payments involving Iran and Libya. The U.S. Treasury Department said in a warning to financial institutions in March that banks in Iran disguised their involvement in proliferation and terrorism. Like many other European banks, Credit Suisse moved to cut ties with Iran at the end of 2005. (Economist Intelligence Units Country Commerce)

Reports Of Deutsche Bank In Iran

There are nine other banks that we think were doing this, said Mr. Morgenthau in an interview, including Barclays PLC of the U.K. A Barclays spokesman had no comment beyond a prior disclosure confirming the inquiry. Other banks under scrutiny in the probe include Credit Suisse and Deutsche Bank, people with knowledge of the inquiries said. (The Wall Street Journal, Fresh Clues of Iranian Nuclear Intrigue, Glenn R. Simpson and Jay Solomon, January 16, 2009)

Another step the Obama administration should take is to sustain American pressure on foreign banks and oil companies to halt their dealings with Iran's energy sector. This effort has led such major firms as Germany's Deutsche Bank and Commerzbank, England's HSBC, Credit Suisse and Royal Dutch Shell to halt or limit their business with Iran. (The Baltimore Sun, Facing The Iranian Threat, Jennifer Laszlo Mizrahi, December 9, 2008)

U.S. outreach to foreign banks and to oil companies considering investing in Iran's energy sector has reportedly convinced more than 80 banks and several major potential oil-field investors to cease all or some of their business with Iran. Among them: Germanys two largest banks (Deutsche Bank and Commerzbank), London-based HSBC, Credit Suisse, Norwegian energy company StatoilHydro, and Royal Dutch Shell. (The Wall Street Journal, How To Put The Squeeze On Iran, Orde F. Kittrie, 11/13/08)

Listed by U.S. Government as doing business in Iran. (U.S. Securities and Exchange Commission, List of Companies Doing Business With State Sponsors Of Terror, Removed from the internet in July of 2007)

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