NBC failed to report the significance of DPW's government ownership

[ProSense]

NBC failed to report the significance of Dubai Ports World's government ownership

Fri, Feb 24, 2006 10:09am EST

NBC's Williams and Gregory failed to report the significance of Dubai Ports World's government ownership

Snip...

In his introduction to a February 22 report on the ports controversy, NBC's Nightly News anchor Brian Williams described Dubai Ports World (DPW) as "a company from the United Arab Emirates" (UAE). But in leaving out the key fact that DPW is owned by the government of Dubai, a member state of the UAE -- rather than simply based in the UAE -- Williams obscured the source of the controversy surrounding the Bush administration's approval of a deal that would grant the company control of six U.S. ports. Indeed, critics of the deal have noted that because the company is state-owned, the law requires the administration to conduct a more thorough investigation of the sale than the review that was carried out.

Snip...

Further, CNN reporters and anchors continued to refer to DPW as "Arab-controlled" and "Dubai-based," without noting that it is owned by the government of a foreign nation.

Last week, DPW acquired British company Peninsular and Oriental Steam Navigation Co. (P & O), which currently manages six U.S. ports in Baltimore, Miami, New Jersey, New Orleans, New York, and Philadelphia. Until its acquisition by the state-owned UAE company, P & O was a publicly traded corporation listed on the London Stock Exchange.

The fact that a foreign government owns the acquiring company is crucial because U.S. law mandates additional investigation in such cases if the acquisition might affect national security. Prior to the administration's approval, the DPW transaction was examined by the Treasury Department's 12-member Committee on Foreign Investment in the United States (CFIUS). CFIUS reportedly conducted a 23-day review before signing off on the deal. A bipartisan group of lawmakers, however, has claimed that an additional review should have been undertaken. In a February 16 letter to Treasury Secretary John W. Snow, these seven members of Congress cited a 1993 amendment known as the Exon-Florio provision, which requires an additional 45-day investigation if "the acquirer is controlled by or acting on behalf of a foreign government" and the acquisition "could result in control of a person engaged in interstate commerce in the U.S. that could affect the national security of the U.S." These lawmakers have requested that the administration conduct this additional 45-day review before completing the transfer. Others have specifically criticized CFIUS for not carrying out the full investigation before approving the transaction. In a February 22 letter to Snow, Sen. John Kerry (D-MA) accused CFIUS of having apparently approved the sale "as expeditiously as possible, without even using the additional 45 day investigation process that was clearly warranted under the circumstances."

more...

http://mediamatters.org/items/200602240001

[Kagemusha]

1. Well how owned is it?

100% owned, partially owned like Canada's 'Crown Corporations' used to be with a controlling stake? I'm curious.

Though honestly I'm kinda dismayed at the entire issue.

[TomClash]

2. Maybe that's because most people

in and out of Government who work in port security don't see any significance.