Harken Energy Scandal
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In 1990, the US energy company Harken Energy entered into a business partnership with Harvard University which ultimately became the vehicle by which Harken Energy could transfer $20 million in debt to Harvard. Though made public, investors did not directly equate the transferred debt as a decrease in equity, allowing the share value of Harken stock to rise, and senior Harken managers liquidated their shares. See market liquidity.
It is seemingly identical to the modus operandi of most recent US Corporate accounting scandals, though a Bush spokesperson denied any connection to Enron's practices, citing that Harken did not conceal its partnership with Harvard.
George W. Bush formerly held several top positions at Harken Energy, primarily as Chairman and CEO. This company was owned by Khalid bin Mahfouz. At the time of the scandal, Bush was a consultant to Harken Energy.
George Soros was a major investor in Harken when it bought Bush's ailing oil venture, Spectrum 7.
External links
- Harken energy at the Modern History Project (http://www.modernhistoryproject.org/mhp/EntityDisplay.php?Entity=HarkenEner&Start=1987)
- Reuters report (http://biz.yahoo.com/rb/021009/bush_harvard_5.html/)
- Harvardwatch report (http://www.people.fas.harvard.edu/~skomarov/harvardwatch/)
- GuardianUK report (http://www.guardian.co.uk/business/story/0,3604,808899,00.html)
- Washington Post report (http://www.washingtonpost.com/wp-dyn/articles/A3818-2002Oct9.html)