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BusinessWeek: No Bush Left Behind: The President's brother Neil is making hay from school reform

AP: Neil Bush makes one-day profit over $170,000

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More stories by Bill Berkowitz

PERC receives Templeton Freedom Award for promoting 'enviropreneurs'

Neil Bush of Saudi Arabia

Newt Gingrich's back door to the White House

American Enterprise Institute takes lead in agitating against Iran

After six years, opposition gaining on George W. Bush's Faith Based Initiative

Frank Luntz calls Republican leadership in Washington 'One giant whining windbag'

Spooked by MoveOn.org, conservative movement seeks to emulate liberal powerhouse

Ward Connerly's anti-affirmative action jihad

Tom Tancredo's mission

Institute on Religion and Democracy slams 'Leftist' National Council of Churches

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ORIGINAL RESEARCH

Bill Berkowitz
October 29, 2006

Neil Bush's family values

Despite a record of past scams and other controversial business deals, Neil Bush is now benefiting directly from President's Bush's No Child Left Behind Act and his father's international network

Two years ago, when Neil Bush and his mother, the former first lady Barbara Bush, were featured guests at a $1,000-a-table fundraiser for the Western Heights School District in Oklahoma City, proceeds from the event were specifically earmarked for the purchase of products from Neil's company, Ignite! Learning. Late last year, when Neil's mom agreed to make a contribution to a Hurricane Katrina relief foundation for those victims that had relocated to Texas, she stipulated that her donation had to be used by local schools to acquire Ignite products.

Most of Ignite's business has been obtained through sole-source contracts without competitive bidding. Neil Bush has been directly involved in marketing the product.

It must have been a long time ago that Neil Bush, the son of Bush 41 and the younger brother of Bush 43, discovered that the key to unlocking the entrepreneurial vault was to take full advantage of the Family. While entrepreneurial nepotism is as American as apple pie and Thomas Kinkade paintings, the Bush Family has honed it into a science.

Over the past two decades, while Neil Bush has made impressive amounts of money in all sorts of interesting business deals, he has always seemed like the kid who was caught red-handed throwing chalk at the teacher, got sent to the principal and yet returned to the classroom unscathed.

These days, with the help of the Saudi Royal Family, a former junk bond dealer, a Russian mobster, the Rev. Sum Myung Moon, and mom and dad, family string-pulling is again paying off.

The Los Angeles Times recently reported that Ignite! Learning, a company headed by Neil Bush "and partly owned by his parents is benefiting from Republican connections and federal dollars targeted for economically disadvantaged students under the No Child Left Behind Act."

The company has managed to "place its products in 40 U.S. school districts and now plans to market internationally," the Times reported.

"Interviews and a review of school district documents obtained under the Freedom of Information Act," by the Los Angeles Times, "found that educators and legal experts were sharply divided over whether Ignite's products were worth their cost or qualified under the No Child law."

According to the Times, "Most of Ignite's business has been obtained through sole-source contracts without competitive bidding. Neil Bush has been directly involved in marketing the product."

A story about these developments also appeared in a mid-October issue of BusinessWeek. Headlined "No Bush Left Behind", the magazine reported that "after five years of development and backing by investors like Saudi Prince Alwaleed Bin Talal and onetime junk-bond king Michael R. Milken, Neil Bush aims to roll his high-tech teacher's helpers into classrooms nationwide. He calls them ‘curriculum on wheels,' or COWs. The $3,800 purple plug-and-play computer/projectors display lively videos and cartoons: the XYZ Affair of the late 1790s as operetta, the 1828 Tariff of Abominations as horror flick. The device plays songs that are supposed to aid the memorization of the 22 rivers of Texas or other facts that might crop up in state tests of ‘essential knowledge.'

"Bush's Ignite! Inc. has sold 1,700 COWs since 2005, mainly in Texas, where Bush lives and his brother was once governor. In August, Houston's school board authorized expenditures of up to $200,000 for COWs. The company expects 2006 revenue of $5 million. Says Bush about the impact of his name: ‘I'm not saying it hasn't opened any doors. It may have helped with some sales.' (In September, the U.S. Education Dept.'s inspector general accused the agency of improperly favoring at least five publishers, including The McGraw-Hill Companies, which owns BusinessWeek. A company spokesman says: ‘Our reading programs have been successful in advancing student achievement for decades; that's why educators hold them in such high regard.')"

According to the Los Angeles Times, "The law provides federal funds to help school districts better serve disadvantaged students and improve their performance, especially in reading and math." However, Bush's company "does not offer reading instruction, and its math program will not be available until next year."

Unfortunately, the Department of Education "does not monitor individual school district expenditures under the No Child program, but sets guidelines that the states are expected to enforce, spokesman Chad Colby said."

Ignite executive Tom Deliganis admitted that "some districts seem to feel OK" about using No Child money for the Ignite purchases, "and others do not."

BusinessWeek also pointed out that the Washington Times Foundation, "A foundation linked to the controversial Reverend Sun Myung Moon has donated $1 million for a COWs research project in Washington (D.C.)-area schools. In 2004 a Shanghai chip company agreed to give Bush stock then valued at $2 million for showing up at board meetings. (Bush says he received one-fifth of the shares.) In 1988 a Colorado savings and loan failed while he served on its board, making him a prominent symbol of the S&L scandal. Neil calls himself ‘the most politically damaged of the [Bush] brothers.'"

The Rev. Moon, Saudi Prince Alwaleed Bin Talal and Milken aren't the only controversial financial participants. Fugitive Russian billionaire Boris Berezovsky, who has been accused of having strong tries to the Chechen mafia, has been an investor in Bush's Ignite! project since at least 2003.

And then, there's mom and dad. The former first lady got herself in a bit of hot water when she contributed to a Hurricane Katrina relief foundation for storm victims who had relocated to Texas. However, she stipulated that her donation had to be used by local schools for purchases of COWs.

"In January 2004," according to the Los Angeles Times, Neil and his mom "were guests of honor at a $1,000-a-table fundraiser in Oklahoma City organized by a foundation supporting the Western Heights School District. Proceeds were earmarked for the purchase of Ignite products."

While Mary Blankenship Pointer, the organizer of the event "said she planned the event because district students were ‘utilizing Ignite courseware and experiencing great results [and].our students were thriving,' ... Western Heights school Supt. Joe Kitchens said the district eventually dropped ... Ignite because it disagreed with changes Ignite had made in its products. ‘Our interest waned in it,' he said."

In addition to investors and high-powered international connections, Bush Family ties have provided the sometimes star-crossed Neil with an always accessible escape route from responsibility. Escape from prison was the operative term in 1988, when as a director of the Denver, Colorado-based Silverado Savings and Loan Association Bush presided over a monumental scam that actually cost taxpayers something north of $1 billion. A Resolution Trust Corporation suit against Bush and other officers of Silverado was settled in 1991 -- during the time his father was president -- for $26.5 million. Bush was fined $50,000 and banned from future banking activities.

He managed, however, to avoid going to the hoosegow. Instead, he left the state for the greener pastures of Texas, and the opportunity to get back on the entrepreneurial horse.

It would no doubt be difficult, even for the notoriously loyal Bush Family, to find anyone not concerned by Neil's numerous character flaws; blemishes that oozed into the public domain when Neil decided to divorce his wife of 23 years, Sharon Bush. The story goes that Neil, in one of the more fetid "You've Got Mail" moments in recent years, informed Sharon of his intentions in an e-mail.

The Bush's divorce threatened to spill over into a tell-all book by his former wife because Neil was being downright tightfisted with the financials. He ultimately loosened his purse-strings and Sharon's book was shelved.

Nevertheless, the public's right-to-know was advanced -- although some might argue that it was set back -- when it was revealed in Bush's deposition that during numerous business trips to Asia, Neil was a serial recipient of late-night visits by anonymous prostitutes; assignations that he apparently didn't have to pay for.

In a post dated October 6, Wonkette pointed to several of Neil Bush's unusual business assignations:

  • "He earned $2 million from a semiconductor company in China -- owned by the son of former Chinese president Jiang Zemin -- proving once again the long-term value of Poppy's years as U.S. ambassador to communist China."
  • He started up "a new company created just for him with $2.3 million from Bush Family confidant Louis Marx. Neil burned through that money in two years and Apex Energy was no more."
  • "Then he moved on to the Middle East, using Poppy's oil-sheik connections to get millions from the royalty and politicians of Qatar, Kuwait, Lebanon, Syria, Dubai and of course Saudi Arabia."
  • "Neil ran some shadowy Swiss ‘ecumenical foundation' [the Foundation for Interreligious and Intercultural Research and Dialogue] in the 1990s" with Joseph Ratzinger, now Pope Benedict XVI.

On January 2, 2004, the Associated Press reported, in a story headlined "Neil Bush makes one-day profit over $170,000", that Neil Bush "made at least $798,218 on three stock trades in [the Kopin Corp. of Taunton, Massachusetts] a small U.S. high-tech company where he had been a consultant, according to his tax returns, including $171,370 buying and selling the company's shares in a single day."

AP pointed out that "Unlike the ordinary investor who buys at the market price...Bush benefited from the fact that his stock purchase costs in some cases were minimal because he got a bargain, paying $13 a share when he exercised stock options that were part of his consulting compensation from Kopin. The company's stock price was selling for many times that amount during much of the time Bush was trading. The company granted him 20,000 stock options."

In an e-mail responding to the Los Angeles Times story, Bush said that Ignite's program had improved the test scores of economically disadvantaged children and he denied that his family's political connections helped grow the company.

"As our business matures in the USA we have plans to expand overseas and to work with many distinguished individuals in Asia, Europe, the Middle East and Africa," he wrote. "Not one of these associates by the way has ever asked for any access to either of my political brothers, not one White House tour, not one autographed photo, and not one Lincoln bedroom overnight stay."

He also characterized the Times' piece as "entirely political."

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MORE ORIGINAL RESEARCH

Bill Berkowitz
March 16, 2007

PERC receives Templeton Freedom Award for promoting 'enviropreneurs'

Right Wing foundation-funded anti-environmental think tank grabbing a wider audience for 'free market environmentalism'

On the 15th anniversary of Terry Anderson and Donald Leal's book "Free Market Environmentalism" -- the seminal book on the subject -- Anderson, the Executive Director of the Bozeman, Montana-based Property and Environment Research Center (PERC - formerly known as the Political Economy Research Center) spoke in late-January at an event sponsored by Squaw Valley Institute at the Resort at Squaw Creek in California. While it may have been just another opportunity to speak on "free market environmentalism" and not the kickoff of a "victory tour," nevertheless it comes at a time when PERC's ideas are taking root.

In a story written just before Anderson's northern California appearance, Truckee Today's Karen Sloan described PERC as an organization that "contends that private property rights encourage good stewardship of natural resources." The story, headlined "'Enviroprenuer' scholar to speak at Resort at Squaw Creek," pointed out that "PERC scholars argue that government subsidies often degrade the environment, that market incentives can spur individuals to conserve and protect the environment and that polluters should be liable for the harm they cause others."

On its website, PERC -- a non-profit, tax-exempt 501(c)(3) organization founded in 1980 -- calls itself "the nation's oldest and largest institute dedicated to original research that brings market principles to resolving environmental problems." PERC maintains that it "pioneered the approach known as free market environmentalism."

Read the full report >

Bill Berkowitz
March 10, 2007

Neil Bush of Saudi Arabia

During recent visit, President’s brother describes the country as a 'kind of tribal democracy'

In late February, only a few days after Saudi Arabia beheaded four Sri Lankan robbers and then left their headless bodies on public display in the capital of Riyadh, Neil Bush, for the fourth time in the past six years, showed up for the country's Jeddah Economic Forum. The Guardian reported that Human Rights Watch "said the four men had no lawyers during their trial and sentencing, and were denied other basic legal rights." In an interview with Arab News, the Saudi English language paper, Bush described the country as "a kind of tribal democracy."

Neil Mallon Bush, the son of President George H. W. Bush and the brother of President George W. Bush, attended the forum to renew old family friendships and to drum up a little business for his educational software company. "The Jeddah Economic Forum has been very productive," Bush told Arab News. "I have been to this conference four times since 2002. I have seen it develop from the very beginning. There was less participation in the past, now there is more international participation."

These days, Neil Bush is the chairman and CEO of Ignite Learning, a company devoted to developing technology-assisted curriculum. Ignite calls it COW: "Curriculum on Wheels." In an interview with Arab News' Siraj Wahab, Bush talked enthusiastically about his company's mission: "We are building a model in the United States for developing curriculum that is engaging to grade-school kids, and our model is to deploy this engaging content through a device. So it is easy for any teacher to use our device through projectors and speakers. The curriculum is loaded on the device. We use animation and video and those kinds of things to light up learning in classrooms for kids. It helps teachers connect with their kids. We are planning to develop an Arabic version of that model."

A video on Ignite!'s website makes clear the enervating, rote approach to learning taken by the Bush family. While this may not be an advance in actual education, it does serve to enrich Neil Bush and commodify teachers. In concept it is much like Channel One, whereby Chris Whittle enriched himself forcing millions of primary school students to watch repackaged TV News sandwiched between corporate advertising.

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Bill Berkowitz
March 2, 2007

Newt Gingrich's back door to the White House

American Enterprise Institute "Scholar" and former House Speaker blames media for poll showing 64 percent of the American people wouldn't vote for him under any circumstances

Whatever it is that former House Speaker Newt Gingrich has come to represent in American politics, the guy is nothing less than fascinating. One day he's espousing populist rhetoric about the need to cut the costs of college tuition and the next day he's talking World War III. One day he's claiming that the "war on terror" may force the abridgement of fundamental first amendment rights and the next he's advancing a twenty-first century version of his Contract with America. At the same time he's publicly proclaiming how "stupid" it is that the race for the presidency has already started you know that he's trying to figure out how to out finesse Rudy, McCain and Romney for the nomination. And last week, when Fox News' Chris Wallace cited a poll showing that 64 percent of the public would never vote for him, he was quick to blame those results on how unfairly he was treated by the mainstream media back in the day.

These days, Gingrich, who is simultaneously a "Senior Fellow" at the American Enterprise Institute and a "Distinguished Visiting Fellow" at the Hoover Institution, is making like your favorite uncle, fronting a YouTube video contest offering "prizes" to whoever creates the best two-minute video on why taxes suck. Although the prizes may not be particularly attractive to the typical YouTuber, nevertheless Gingrich recently launched the "Winning the Future, Goose that laid the Golden Egg, You Tube Contest." According to Newt.org, participants are to "Create a 120 second video explaining why tax increases will hurt the American economy, leading to less revenue for the government, not more. Or in other words, explain why we shouldn't cook the goose that laid the golden eggs (the American economy) by raising taxes."

Although he hasn't formerly announced his candidacy -- and he probably won't anytime soon -- Gingrich definitely has his eyes on the White House. He's just still figuring out how he will get there. Over the past several months Gingrich has been ubiquitous on the media and political scenes.

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Bill Berkowitz
February 25, 2007

American Enterprise Institute takes lead in agitating against Iran

Despite wrongheaded predictions about the war on Iraq, neocons are on the frontlines advocating military conflict with Iran

After doing such a bang up job with their advice and predictions about the outcome of the war on Iraq, would it surprise you to learn that America's neoconservatives are still in business? While at this time we are not yet seeing the same intense neocon invasion of our living rooms -- via cable television's news networks -- that we saw during the run-up to the invasion of Iraq, nevertheless, a host of policy analysts at conservative think tanks -- most notably the American Enterprise Institute -- are being heeded on Iran by those who count - folks inside the Bush Administration.

Long before the Bush Administration began escalating its rhetoric and upping the ante about the supposed "threat" posed to the US by Iran, well-paid inside-the-beltway think tankers were agitating for some kind of action against that country. Some have argued for ratcheting up sanctions and freezing bank accounts, others have advocated increasing financial aid to opposition groups, and still others have argued that a military strike at Iran's nuclear facilities is absolutely essential. For all, the desired end result is regime change in Iran.

If President Bush plunges the U.S. into some kind of military conflict with Iran, you can thank the Washington, D.C.-based American Enterprise Institute (AEI), a key player in the current debate over Iran.

President Bush acknowledged as much when he recently appeared at the AEI for a much-publicized speech on his War on Terror, which focused on the front in Afghanistan.

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Bill Berkowitz
February 18, 2007

After six years, opposition gaining on George W. Bush's Faith Based Initiative

Unmentioned in the president's State of the Union speech, the program nevertheless continues to recruit religious participants and hand out taxpayer money to religious groups

With several domestic policy proposals unceremoniously folded into President Bush's recent State of the Union address, two pretty significant items failed to make the cut. Despite the president's egregiously tardy response to the event itself, it was nevertheless surprising that he didn't even mention Hurricane Katrina: He didn't offer up a progress report, words of hope to the victims, or come up with a proposal for moving the sluggish rebuilding effort forward. There were no "armies of compassion" ready to be unleashed, although it should be said that many in the religious community responded to the disaster much quicker than the Bush Administration. In the State of the Union address, however, there was no "compassionate conservatism" for the victims of Hurricane Katrina.

The other item that didn't get any State of the Union play is a project that was once envisioned to be the centerpiece of the president's domestic agenda: his faith-based initiative. As Joseph Bottum, editor of the conservative publication First Things -- "The Journal of Religion, Culture, and Public Life" -- pointed out, Bush "didn't mention faith-based initiatives, which...[he] once claimed would be his great legacy."

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February 10, 2007

Frank Luntz calls Republican leadership in Washington 'One giant whining windbag'

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He doesn't make great art; nothing he does elevates the human spirit; he doesn't illuminate, he bamboozles. He has become expert in subterfuge, hidden meanings, word play and manipulation. Frank Luntz has been so good at what he does that those paying close attention gave it its own name: "Luntzspeak."

In a 10-page addendum to his new book ""Words that Work -- It's Not What You Say Its What People Hear," Luntz, formerly a top political pollster for the Republican Party, may have written so critically of the party's recent efforts that he has become persona non grata. Luntz used to be one of the party's go-to-guys for political guidance and strategy, a counselor to such GOP stalwarts as former House Speaker Newt Gingrich, former New York City Major Rudy Giuliani and Trent Lott.

"The Republican Party that lost those historic elections was a tired, cranky shell of the articulate reformist, forward-thinking movement that was swept into office in 1994 on a wave of positive change," Luntz wrote. According to syndicated columnist Robert Novak, Luntz went on to say that the Republicans of 2006 "were an ethical morass, more interested in protecting their jobs than protecting the people they served. The 1994 Republicans came to 'revolutionize' Washington. Washington won."

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Bill Berkowitz
February 4, 2007

Spooked by MoveOn.org, conservative movement seeks to emulate liberal powerhouse

Fueled with Silicon Valley money, TheVanguard.org will have Richard Poe, former editor of David Horowitz's FrontPage magazine as its editorial and creative director

As Paul Weyrich, a founding father of the modern conservative movement and still a prominent actor in it, likes to say, he learned a great deal about movement building by closely observing what liberals were up to in the late 1960s and early 1970s.

Flash forward some 30-plus years and an Internet entrepreneur believes that it is time for a new conservative movement. He too has seen an entity on the left he admires enough to want to emulate: MoveOn.org.

"The left has been brilliant at leveraging technology," said Rod Martin, founder of TheVanguard.org, "and so have we to a point: our bloggers and news sites are amazing, and the RNC's get-out-the-vote software is unparalleled. But no one on our side has even begun to create anything like MoveOn. And after 2006, if we want to survive, much less build a long-term conservative majority, we better start, and fast."

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Bill Berkowitz
January 29, 2007

Ward Connerly's anti-affirmative action jihad

Founder and Chair of the American Civil Rights Institute scouting five to nine states for new anti-affirmative action initiatives

Fresh from his most recent victory -- in Michigan this past November -- Ward Connerly, the Black California-based maven of anti-affirmative action initiatives, appears to be preparing to take his jihad on the road. According to a mid-December report in the San Francisco Chronicle, Connerly said that he was "exploring moves into nine other states."

During a mid-December conference call Connerly allowed that he had scheduled visits to Arizona, Colorado, Missouri, Nebraska, Nevada, Oregon, South Dakota, Wyoming and Utah during the upcoming months to get a handle on how many campaigns he might launch.

"Twenty-three states have systems for putting laws directly before voters in the form of ballot initiatives," the Chronicle pointed out. "Three down and 20 to go," Connerly boasted. "We don't need to do them all, but if we do a significant number, we will have demonstrated that race preferences are antithetical to the popular will of the American people."

"The people of California, Washington and Michigan have shown that institutions that implement these [affirmative action] programs are living on borrowed time," Connerly said.

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Bill Berkowitz
January 25, 2007

Tom Tancredo's mission

The Republican congressman from Colorado will try to woo GOP voters with anti-immigration rhetoric and a boatload of Christian right politics

These days, probably the most recognizable name in anti-immigration politics is Colorado Republican Congressman Tom Tancredo. Over the past year, Tancredo has gone from a little known congressman to a highly visible anti-immigration spokesperson. "Tancredo has thoroughly enmeshed himself in the anti-immigration movement and with the help of CNN talk show host Lou Dobbs, he has been given a national megaphone," Devin Burghart, the program director of the Building Democracy Initiative at the Center for New Community, a Chicago-based civil rights group, told Media Transparency.

Now, Tancredo, who has represented the state's Sixth District since 1999, has joined the long list of candidates contending for the GOP's 2008 presidential nomination. In mid-January Tancredo announced the formation of an exploratory committee -- Tom Tancredo for a Secure America -- the first step to formally declaring his candidacy. While his announcement didn't cause quite the stir as the announcement by Illinois Democratic Senator Barak Obama that he too was forming an exploratory committee, nevertheless Tancredo's move did not go completely unnoticed.

While voters' concerns over the war in Iraq and the GOP's "culture of corruption" predominated in the 2006 midterms, Tancredo will be doing his best to make immigration an issue for the presidential campaign of 2008.

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Bill Berkowitz
January 18, 2007

Institute on Religion and Democracy slams 'Leftist' National Council of Churches

New report from conservative foundation-funded IRD charges the NCC with being a political surrogate for MoveOn.org, People for the American Way and other liberal organizations

If you prefer your religious battles sprinkled with demagoguery, sanctimoniousness, and simplistic attacks, the Institute on Religion and Democracy's (IRD) latest broadside against the National Council of Churches (NCC) certainly fits the bill.

For those who remember a similar IRD-led attack on the World Council of Churches two decades ago the IRD's latest blast appears to be -- to borrow a phrase from New York Yankee great Yogi Berra -- "déjà vu all over again."

The IRD excoriated the World Council of Churches (WCC) for allegedly being tools of the anti-American left over its support of the Nelson Mandela-led African National Congress in South Africa, and its opposition to President Ronald Reagan's contra wars in Central America; wars that destabilized governments and were responsible for the deaths of hundreds of thousands of civilians. And now it is doing a similar job on the NCC.

"The institute, a Washington-based think tank, is allied with conservative groups on issues such as same-sex marriage. From its founding in 1981, its primary effort has been to challenge what it calls the 'leftist' political positions of mainline Protestant denominations, such as the United Methodist Church and the Presbyterian Church (U.S.A.)," the Washington Post recently reported.

Author and longtime right wing watcher Frederick Clarkson recently described the IRD as an "inside the beltway, neoconservative agency [that] has waged a war of attrition against the historic mainline protestant churches in the U.S."

Read the full report >

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