House blocks former Arthur Andersen $10b contract b/c its based in Bermuda

[rawstory]

Found on Raw Story, the liberal Drudge, http://www.rawstory.com

House Panel Votes to Block Accenture From Huge IT Contract

By TSC Staff
6/9/2004 3:57 PM EDT

A key congressional committee approved a measure Wednesday to prevent Accenture (ACN:NYSE - news - research) from receiving one of the largest federal IT contracts because the firm is based in Bermuda, Reuters reported.

The House Appropriations Committee voted 35-17 to modify the Department of Homeland Security's budget to bar Accenture from implementing the $10 billion contract awarded to the company last week, according to the wire service.

Shares of Accenture were recently down 79 cents, or 3.1%, to $24.69.

Before the contract was awarded, some questions were raised about whether Accenture should receive it because its headquarters is outside the U.S. But when asked about that a press conference, a Homeland Security Department official said the company is located in Reston, Va., employs 24,000 U.S. citizens and pays U.S. taxes.

Full article: http://www.thestreet.com/_tscs/markets/marketfeatures/10165369.html

Accenture's government division is based in Reston.

[rawstory]

1. LOL...

It's funny what DU seems to deem important -- like an airspace violation. This is a $10 BILLION contact ... and a HUGE deal that the House controlled GOP committee voted to deny a contract b/c they're based out of the country -- maybe a first...and certainly a sign of things to come...

[samhonk]

2. Awesome!

Now, as an encore, how about closing that goddam offshore tax loophole?

[samsingh]

3. this is huge

Accenture is also a heavily aligned with the repugs, so it surprising.

this is such a large sum of money. Wonder if they could actually move back.

[acmavm]

4. Maybe this is just a 'sop' being thrown to the American public because

of all the heat over Halliburton.

[salin]

5. Finally!

Make there be some "costs" to these business decisions to where they have to weigh the relative costs to the benefits of moving headquarters (and taxes) off shore.

[abelenkpe]

6. reston?

That's where my family lives. I know the building. It certainly doesn't look big enough to hold 24,000 US workers. Perhaps they have multiple buildings. Or they are just full of crap.

The article made it seem as if the deal would go through anyway.

(edited fer spelling)

[salin]

7. This could be a really important direction

if attention is paid (and praise made known). Looks like the story was being missed - hope a few more read it.

[Don_G]

8. It's About Time

Now, what about the rest of the companies that are headquartered in the Bahamas and Cayman Islands? Caterpillar is just one of many that are pulling the same stunt.

[ItsMyParty]

9. I truly am beginning to wonder what is up

I, too, thought I was hearing the news wrong this morning and supposed that this is simply to disarm any Kerry criticism about going after these offshore loopholes that he has been vigorously attacking. I'm wondering after the election, what they will do with said, same contract?? But, I was also surpised at the republican talk about making drugs coming from other nations (Canada) legal. The drug companies didn't line their pockets with untold millions for that. Thus, I have the suspicion that it, too, is an election year ploy. I simply do not trust these people. They have given me no reason to trust them.

[Just Me]

10. All I gotta' say is, IT'S ABOUT TIME!!! (and I hope this is a trend!) n/t

[drscm]

11. *Bush, if he gets his way, is certainly not going to let this stand. eom

[Eurobabe]

12. excellent