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<text id=93TT1932>
<title>
June 21, 1993: A Matter Of Honor
</title>
<history>
TIME--The Weekly Newsmagazine--1993
Jun. 21, 1993 Sex for Sale
</history>
<article>
<source>Time Magazine</source>
<hdr>
SCANDALS, Page 33
A Matter Of Honor
</hdr>
<body>
<p>Marianne Gasior blew the whistle on her employer because it
was selling weapons-related goods to Iraq. Now she's threatening
to reopen the Iraqgate scandal.
</p>
<p>By JOHN GREENWALD--With reporting by Jonathan Beaty/Washington and John F. Dickerson/New
York
</p>
<p> Nothing in Marianne Gasior's quiet life prepared her for the
ordeal she has undergone in the past three years. The petite
former attorney for Kennametal Inc., a Pennsylvania machine-tool
maker, says she has been harassed, followed and even run off
the road since she accused the company of illegally shipping
metal-working equipment with military uses to Iraq. But Gasior
has persisted in her whistle-blowing ways. She has now amassed
evidence that, she says, threatens to expose the misdeeds of
American companies as well as a vast Bush Administration cover-up
of how scores of firms, some using U.S.-backed loans, helped
build Saddam Hussein's war machine and even sold him materials
he desperately needed to make a nuclear bomb.
</p>
<p> After years of lonely spadework, Gasior is finally getting some
respect. Two powerful Democratic Congressmen, Jack Brooks of
Texas and Charlie Rose of North Carolina, took her findings
to the White House and Attorney General Janet Reno last month.
Their goal: to press for a re-examination of U.S. business ties
to Iraq and the role of the Justice Department in a possible
cover-up. Last week at a Washington reception, the Cavallo Foundation
honored Gasior with a $10,000 award for her "moral courage"
and for her efforts to expose wrongdoing. Said Rose at the ceremony:
"She is remarkable and courageous, and without her, much of
what we know could not have been learned."
</p>
<p> Gasior's evidence, which she claims shows a concerted government
effort to suppress information about just how much U.S.-made
war materiel ended up illegally in Saddam Hussein's hands, could
help crack the murky scandal known as Iraqgate that dogged George
Bush's final months in office. Questions still swirl around
the role that Washington and a number of U.S. companies played
in supplying Saddam's $100 billion worldwide military shopping
spree that led up to his invasion of Kuwait.
</p>
<p> At the heart of the scandal stands the outfit that financed
a large portion of it: the Atlanta branch of Italy's Banca Nazionale
del Lavoro, which extended $5.5 billion in loans to finance
Saddam's military procurement network in the U.S. Critics charge
that the Bush Administration, which was eager to support Iraq
as a counterweight to Iran, and was even more eager to assure
itself access to oil at cheap prices, turned a blind eye to
BNL's activities and allowed missile and nuclear technology
that helped Iraq's missile and nuclear development to slip out
of the country.
</p>
<p> Gasior, 31, stumbled into the hothouse world of Iraqi trade
after joining Kennametal, a Fortune 500 company, at its Latrobe,
Pennsylvania, headquarters near Pittsburgh in 1989. Gasior became
alarmed when she discovered that a shipment of carbide metal-working
tools to Baghdad--tools that could be used to cut uranium--might be illegal. She also learned of Kennametal sales to
Matrix Churchill, Iraq's main U.S. purchasing agent, which was
gathering materiel for projects like the infamous Supergun.
She says she warned company officers that Kennametal was not
following export regulations, and questioned other company practices.
Within nine months of being hired, she was asked by her superiors
to resign for being "uncooperative." Unable to find a new job,
Gasior moved back into her parents' suburban Pittsburgh home.
</p>
<p> By the time Iraq stunned the world with its invasion of Kuwait,
Gasior was about ready to blow the whistle on her former employer.
She had read about the BNL scandal and remembered a transaction
at Kennametal that involved carbide tools and a BNL letter of
credit. Appalled at the thought that U.S. companies had helped
provide Saddam with the equipment to wage war, Gasior and another
Kennametal employee took their suspicions to Justice officials
in Philadelphia in December 1990. "They listened carefully until
we got to the part about the BNL letter of credit," Gasior says.
"Then they stood up, thanked us for coming in, said they would
look into it, and ushered us out the door. They didn't even
look at the documents we brought."
</p>
<p> While the authorities seemingly ignored Gasior, she was not
forgotten. She says a few days after her Justice Department
interview, cars mysteriously started following her. One night
a car that had been shadowing her forced her off the road. The
same vehicle pursued her in a wheel-screeching, hilltop chase
until she got away by shutting off her lights. Then there were
the constant phone calls to her home from someone who only breathed
over the line, and a false newspaper report that an arrest warrant
had been issued in her name. She began to fear for her life.
"It was as if we were living in the Soviet Union," she recalls.
"My parents couldn't believe this was happening."
</p>
<p> At the height of her distress, Gasior found a sympathetic ear
in Congress. Struck by her story, Rose, who had been tracking
BNL, asked her to testify before his subcommittee. "Marianne
is a very brave lady," Rose says, "who had far too large a conscience
to work in corporate America and too much conscience, for sure,
to work for Kennametal."
</p>
<p> While Gasior's testimony in August 1991 received wide media
coverage, there still was little follow-up. She was, however,
invited to testify before an Atlanta grand jury. From Gasior's
point of view, her second experience with the Justice Department
was a disaster. She insists that the prosecutor was aggressively
hostile and refused to listen to her story. Soon after her appearance,
the U.S. Attorney's office in Atlanta sent a letter to Kennametal
stating that the grand jury found the company blameless.
</p>
<p> Gasior returned home determined to expose not just Kennametal
but everyone connected with the military supply of Iraq. For
the next year and a half, operating from her dining-room table,
she collected documents and evidence. Those documents include
internal memorandums from the Justice Department that could
prove one of the key allegations of the Iraqgate scandal: that
Justice tried to bottle up the investigation. "The issues go
beyond Iraqgate," she insists. "Top people in the Justice Department
and the Department of Agriculture obstructed justice in this
case for political reasons, and they are still there."
</p>
<p> Kennametal, meanwhile, has sued Gasior for violating her severance
agreement by accusing the company of harassment. The case is
scheduled for trial in Latrobe next month. Kennametal continues
to insist that its letter from Justice clears the company of
all wrongdoing in connection with exports to Iraq, and denies
any role in harassing Gasior.
</p>
<p> Gasior, however, has finally managed to bring her evidence to
the attention of the highest authorities. Rose was so impressed
with her "smoking gun" document that he enlisted Brooks, who
chairs the House Judiciary Committee, to help set up a meeting
with Attorney General Reno. Though Rose and Brooks presented
allegations of a Justice Department cover-up, Reno listened
impassively--and it is not clear precisely what, if anything,
she may do about it. "I know she's giving it serious consideration,"
says Rose, who realizes, just as Reno does, that a full-scale
investigation could send shock waves through Washington and
corporate suites. That hasn't deterred Jack Brooks, who has
already introduced a bill--his first of the new Administration--to renew the office of special counsel. If Reno doesn't move,
its first task may be to investigate the Justice Department's
handling of the BNL case. "This affair is not over; there is
much more to learn," Rose said in introducing Gasior last week.
"I hope the ultimate truth will be put on the table, but as
of today, it is not."
</p>
</body>
</article>
</text>