GE to Halt New Business Orders in Iran

[rainbow4321]

http://www.forbes.com/business/healthcare/feeds/ap/2005/02/02/ap1800163.html

General Electric Co., which has been accused of collecting "blood money" by doing business in Iran, will stop accepting any new orders for business in the country, company officials said Wednesday.

The move by the world's largest company by market value comes just days after another conglomerate, Halliburton Co., announced the company will wind down its operations in Iran.

"We're seeing a turnaround by a number of U.S. companies operating in Iran," said Dan Katz, chief counsel to U.S. Sen. Frank Lautenberg, D-N.J. Katz said the moves may signal an imminent change in U.S. policy that has allowed foreign subsidiaries of American companies to do business in Iran.

GE did about $270 million in business last year in Iran, representing less than 1 percent of its revenue, Sheffer said. Through a foreign subsidiary, GE has provided hydroelectric equipment, medical equipment, and oil and gas equipment in Iran.

[MisterP]

1. huh, my money was on invading Syria first.

what's St. Sharon up to?

[Sandpiper]

2. The Invasion is on the way

The corporations have been given the heads up.

[rainbow4321]

10. Yep---now shrub promises to line their pockets once bombs start to fall

http://www.ge.com/en/company/investor/ge_social_responsibility_and_citizenship.htm



By contrast, GE, through its wholly owned foreign subsidiaries in Italy, France, and Canada, sells oil-and-gas equipment, hydropower, and medical equipment to Iran, a country that the U.S. government has identified as a state sponsor of terrorism. The Iranians are said to be developing nuclear weapons, financing the Hezbollah terrorist group, and quite possibly supporting people who are trying to kill U.S. soldiers in Iraq. Frank Gaffney, a former Reagan administration Defense Department official who now runs the Center for Security Policy, wants pension funds to divest companies like GE that do business in rogue states. "One doesn't do business in a country like Iran without the acquiescence of the regime," he says. "Typically, that means doing business with the regime, its cronies, or others who enrich the powers that be."

While American firms are barred by law from doing business in Iran, GE notes that their foreign-owned subsidiaries are permitted to do so. What's more, unlike Myanmar, Iran is a big and potentially wealthy country where GE would like to expand someday, and where its European competitors generate substantial sales. A 2003 shareholder proposal from the pension funds of New York City police officers and firefighters asked GE to review its operations in Iran with respect to the reputational and financial risks. The proposal was defeated, at GE's urging. Immelt told FORTUNE, "This is an issue that is under constant review by the company and the board." GE executives note that some foreign-policy experts believe that "constructive engagement" in places like Iran is the best way to bring about reform.

In the old GE, that would have been a sufficient response. But Immelt wants today's GE to be held to higher standards of goodness and virtue. Ordinarily such pursuits are not subject to cost-benefit analysis. How GE goes about untangling knotty questions like these will be fascinating. You can be sure that much of corporate America will be watching.

[cthrumatrix]

3. oh I see.... they were working with the "Axis of Evil" for two years !!!!!

and now they decide to stop....what a bunch of BS.

Cut from the same cloth as Haliburton...it's all about the money.

[cthrumatrix]

4. what about existing business ....?

[prolesunited]

5. That's OK

GE will *more* than make up for its losses when we open a new battlefront. War is good for business, when you're a weapons manufacturer, that is.

[rainbow4321]

6. You're not kidding..look at their Pentagon contract info...

http://store.publicintegrity.org/pns/db.aspx?act=cinfo&coid=001367960


Type of Contract awarded/amount

Fixed Price $9,308,765,691
Cost-Plus $1,108,513,378
Time and Materials $36,494,435
Other $47,628,876
No Information $98,604,721

[0007]

7. War is good for business, when the Carlyle Boys are doing the bidding

and selling. GE and Halliburton know what's coming down the pike in Iran, who's shittin' who?

[rainbow4321]

9. Carlyle and a bunch of others cashing in.....

http://store.publicintegrity.org/pns/report.aspx?aid=425

WASHINGTON, November 18, 2004 — Following the extraordinary success of the Washington-based Carlyle Group, which has built a private equity empire that's earned billions for its investors, a number of firms have lined up rosters of former government officials and high ranking military officers as they pursue companies that are in the national security business.

The homeland security industry is currently the fastest growing sector of the U.S. economy, predicted to grow from a $5 billion industry in 2000 to $130 billion in 2010, according to the Homeland Security Research Corporation, a private California think tank.

"The war on terrorism and possible confrontation with Iraq have focused investors' attention on defense and homeland defense," Bob Grady and Jay Koh, members of Carlyle Venture Partners, wrote in a February 2003 article in the Venture Capital Journal. "The events of Sept. 11 have drawn many new investors into the sector, spawned a host of new companies and redefined some old companies."

According to Briody, author of The Iron Triangle: Inside the Secret World of the Carlyle Group, there's something ominous about Carlyle's success. "What's dangerous about the success of Carlyle is that other companies are beginning to understand that this is the way to make a killing," he told the Center. "These former politicians are coming out of office and they are in heavy demand. How far this goes is what I fear. I already feel that it has gone too far."

[daleo]

8. There's a message coming in on the telegraph.

I got it - war on Iran is imminent.

[nodictators]

11. Did NBC, 80% owned by GE, tell it's viewers that ugly truth?

My guess is NO!

[rainbow4321]

12. Yeah, a disclaimer would be good...

Hmm..maybe MSNBC should announce a disclaimer like they do when they tell a Microsoft news story (that "Just a reminder, Microsoft owns part of our ass")..next time they say how well the war is going they can tell how much $$ they get from the Pentagon/war.