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For a brief time, in 1996, it was legal for corporations to make contributions to political parties in unlimited amounts. The oil companies, the Democratic Party and Tony Knowles, decided to use that legal loophole for a purpose that was not legal. While it was legal for the corporations to make large contributions to the Democratic Party at the time, it was not legal to give the money to a political party with the agreement that the money be passed on for a purpose the corporations could not have legally contributed to without the middleman.
Money laundering and bribery; that’s what the oil companies did in1996. They used a willing Democratic Party to launder money for the personal use of Tony Knowles. Involving a middleman didn’t make it legal. Delivery and acceptance of the money by Tony Knowles for his personal use made it bribery.
In recent statements, all three oil companies denied knowing anything about Veco’s bribery. From the evidence presented thus far in the trials of Pete Kott and Vic Kohring, it’s conceivable that the North Slope producers could argue their way off the hook claiming they knew nothing of Veco’s conduct. They would argue that those fat no bid exclusive contracts they gave Veco for years and years had nothing to do with the fact that Veco spent decades bribing Alaska’s legislators to save the Producers from paying a fair price for Alaska’s oil.
One need look on further back than 1996, to the Knowles administration, to find a clear demonstration that ARCO and British Petroleum were, at one time willing participants in a money laundering scheme, writing big checks directly to an account they knew to be controlled by and for the personal use of Governor Tony Knowles. If you clicked on the above link, you saw that Alaska’s oil producers were much bolder when Knowles was Governor. Back then, they didn’t launder all of their checks through Veco. If you clicked the link, you saw that BP, Arco, and Veco wrote a total of $59,000 in checks intended for Tony’s personal use to laundered through the “Governor’s Fund.”
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