Big Business Theft and the CNN Deception
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One of the news items I have been following, or at least been trying to follow, is the alleged rip-off being perpetrated on small businesses by the very government agencies that were put in place to help small businesses.
It opens some old wounds. Back in the day when I was owned an IT body shop (I placed contract workers with IT departments during the pre-bust heydey) I could never seem to get a contract through the SBA even though I was told they were “there to help me.” I was told every time that I needed to hook up with the Big Contractors, like SAIC, United Technologies etc.
Recent press releases from a non-profit organization called the American Small Business League reminded me of the herky jerky dance I was forced to perform by these agencies and the major government contractors. I’ve included the release as I received it:
CNN Drops Story on Multi-billion Dollar Contracting Scandal, Says American Small Business League
Lou Dobbs Pulls Story on Diversion of Billions from America’s Middle Class
PETALUMA, Calif., Feb. 7 /PRNewswire-USNewswire/ — The following was issued today by the American Small Business League: Primetime news program Lou Dobbs Tonight dropped an investigative story exposing the diversion of billions of dollars in federal small-business set-aside contracts to some of the nation’s largest corporations and defense contractors just hours before the segment was to air on CNN.
As part of Dobbs’ series, “The Attack on the Middle Class,” the show’s producers spent several weeks researching and filming the segment featuring Lloyd Chapman, contracting expert and president of the American Small Business League. During his interview with CNN, Chapman discussed a series of 13 federal investigations — by the Government Accountability Office, Small Business Administration Office of Advocacy and the SBA Office of Inspector General — that found billions of dollars in federal small business contracts were diverted to Fortune 500 corporations.
The Bush Administration reported these contracts — awarded to firms like L3-Communications, General Dynamics, Halliburton and major CNN advertisers Boeing and Lockheed — as “small business” awards.
CNN producers told Chapman that the segment had been pulled in the wake of more pressing news stories, but assured him that it would air shortly. After three months of waiting, Chapman has concluded that the station abruptly pulled the story to avoid embarrassing its major advertisers and has nointention of ever airing the segment. “CNN is never going to run that story,” said Chapman. “I think they pulled it because it was unflattering to its major advertisers, Lockheed Martin and Boeing. CNN’s reputation as the most trusted name in news obviously doesn’t apply when you’re talking about its advertisers.”
Chapman points to a story featured on the highly rated blog, The Daily Kos: “Advertising as Payola: Who really owns CNN?,” that also suggests firms like Lockheed and Boeing, who have no products to sell to the general public, advertise on major networks to gain influence over the media outlet.
The latest government figures report Boeing with 37 federal small business awards, totaling $495,319,668. Lockheed Martin received $223,210,917 in federal small business awards, and Fortune 500 defense contractor L-3 Communications was the top recipient of small business contracts with$650,143,831. The ASBL projects that up to $65 billion a year in federal small business contracts are diverted to the top two percent of firms in the U.S. For more information about the American Small Business League, see http://www.asbl.com. For information, contact: Lloyd Chapman lchapman@asbl.com (707) 789-9575
Why did CNN pull a story they had spent so much time and effort? Inquiring minds should jump on the Editor in Chief’s desk and demand an explanation.
[tags]CNN, Small Business Administration, contracting scandal, American Small Business League, The Daily Kos, GAO, [/tags]
One Comment
Tim Hodkinson
February 7th, 2007
at 4:08pm
“Advertising as payola” -a very interesting theory and one which explains a lot of unusual advertising, not just on CNN either, but ads elsewhere by multinational companies that have no retail presence, yet “advertise” to us average folks during prime time.
CNN’s news coverage always seemed tainted to me.
We’ve had our share of government spending scandals up here in Canada, too. It’s depressing how easily government becomes corrupted, and how easily government workers can be fooled by their bosses.
At least the truth comes out, sometimes.