Friday, May 25, 2012

Senators grill Secret Service boss on sex scandal

Secret Service Director Mark Sullivan testified Wednesday in front of the Homeland Security and Governmental Affairs committee -- the first time he spoke publicly about the prostitution scandal involving agents in Cartagena, Colombia. NBC's Pete Williams reports.

By NBC News and news services

The alleged hiring of prostitutes?suggests a cultural problem within the Secret Service, Sen. Susan Collins said Wednesday amid reports of new evidence of law enforcement misconduct during the president's trip to Colombia.

"This was not a one-time event," Collins, the senior Republican on the Senate Homeland Security and Governmental Affairs Committee, said during?the first Senate?hearing on the matter.?"The circumstances unfortunately suggest an issue of culture."


"If only one or two individuals out of the 160 male Secret Service personnel assigned to this mission had engaged in this type of serious misconduct, then I'd think this was an aberration,"?the Maine senator?said.?"But that's not the case; there were 12 individuals involved . . . 12. That's 8 percent of the male Secret Service personnel in-country, and 9 percent of those staying at the El Caribe Hotel."

Service Service chief Mark Sullivan, who was called to testify at the inquiry, apologized "for the conduct of these employees and the distraction it has caused." But Sullivan's assertion that the agency has a "zero tolerance" policy on such conduct did not convince the lawmakers, who brought more allegations to light.

"We can only know what the records of the Secret Service reveal," said Connecticut Sen. Joe Lieberman, who is leading the hearing. The?records, however incomplete, show 64 instances of allegations or complaints of sexual misconduct made against Secret Service employees in the last five years, he said.

Lieberman cited three complaints of inappropriate relationships with a foreign national and one of "non-consensual intercourse," which he did not elaborate on. Sullivan said that complaint was investigated by outside law enforcement officers who decided not to prosecute.

?

A Columbian escort spoke publicly on the radio this week claiming to be the one at the center of the Secret Service prostitution scandal and revealing her version of events. NBC's Mark Potter reports.

?

Sullivan also told the committee an agent was fired in a 2008 Washington prostitution episode, after trying to hire an uncover police officer.

An older incident involved several Secret Service employees who were disciplined for "partying with alcohol with underage females in their hotel rooms while on assignment" at the 2002 Winter Olympics in Salt Lake City, Lieberman said.

Regarding the Colombia incident, Sullivan said the actions of a few should not taint the whole agency and its roughly 7,000 employees, and he pushed back on any suggestion that such behavior was considered acceptable when agents were on the road.

DEA agents investigated for hiring prostitutes in Colombia

The thought or the notion that this type of behavior is condoned or authorized is just absurd, in my opinion," said Sullivan, who has worked nearly 30 years at the Secret Service.

"I never one time had any supervisor or any other agent tell me that this type of behavior is condoned. I know I've never told any of our employees that it's condoned," he said.

Obama has called the Secret Service employees involved in the scandal "knuckleheads" and maintained that the vast majority of agents perform their work admirably.

The Washington Post, citing unnamed sources, reported that four of the employees involved in the incident are challenging their dismissals, saying the Secret Service has made them scapegoats for behavior that previously had been tolerated.

Sullivan told the committee that the agency's numbers differed: "We have two employees who had originally said that they were going to resign, that have now come back and said that they are going to challenge that."

Secret Service head: Prostitution scandal was 'aberration'

In addition to the two who rescinded their resignations, seven Secret Service employees retired, resigned, were fired or are in the process of having their security clearance permanently revoked because of the scandal.

Three others were cleared and a 13th employee is on administrative leave after reporting his own potential misconduct in a separate incident.

Collins said there was no excuse for "recklessness" and that the Secret Service employees had "willingly made themselves potential targets" who could easily have been drugged, kidnapped or blackmailed. Sullivan said no secret information had been compromised because of the incident.

Sullivan listened to senator after senator express concern. The agency's reputation was "badly stained" by the "sordid story," Lieberman said.

Colombia hookers not tied to cartels, terror group, Secret Service says

Lieberman and Collins, who were among lawmakers briefed on the incident, described the evening in mid-April when the men, in separate groups of two to four, went to different nightclubs and strip clubs, drinking alcohol heavily.

They returned to their hotel with women, some of whom were prostitutes, and registered them under their actual names as overnight guests as required by hotel rules.

"If one of the agents had not argued with one of the women about how much he owed her, the world would never have known this sordid story," Lieberman said.

Senator Scott Brown, a Republican, pressed Sullivan about some of the new rules announced by the agency since the scandal surfaced, such as sending a senior employee to supervise behavior on trips.

"I'm a little bit confused as to why we would be sending a $155,000 (annual salary) person, another person to basically babysit people that you say this hasn't happened before," Brown said.

A dozen U.S. military personnel also are under investigation in connection with the prostitution scandal in Colombia.

Charles Edwards, the acting inspector general of the Department of Homeland Security, which includes the Secret Service, told the hearing he would conduct an independent investigation into the events in Cartagena.

NBC News national investigative correspondent Michael Isikoff, Reuters and The Associated Press?contributed to this report.

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Thursday, May 24, 2012

"True Blood" gets a new showrunner

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No, university doesn't have school of 'pubic' affairs

By Frank Heinz, NBCDFW.com

Officials at the University of Texas' Lyndon B. Johnson School of Public Affairs?are apologizing for an embarrassing typo on a commencement program.

Guests to Saturday's ceremony were handed a printed program that read, "Lyndon B. Johnson School of Pubic Affairs."

"Obviously, we are mortified. It's beyond embarrassing," Susan Binford, the school?s assistant dean for communications, told TheBlaze.com, which published a photograph of?the typo. ?As soon as we realized the mistake, everybody went into overdrive and we went to work to reprint it.?


The school also issued an apology on Twitter that said, "Our deepest apologies to our 2012 graduates for the egregious typo in our commencement program. We are working to distribute new programs."

Read NBCDFW.com's story on the typo

Media blogger Jim Romenesko also mentioned that the school misspelled egregious as "eggregious" in their apology tweet.?That tweet has since been corrected, according to NBCDFW.com.

Texas Tribune editor Evan Smith was first to post the image to Twitter.

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Wednesday, May 23, 2012

SAP to buy Ariba, boosts cloud bet

SAN FRANCISCO (Reuters) - Top European software company SAP AG plans to buy Ariba Inc in a deal valuing the business and commerce network company at $4.3 billion, its latest maneuver against Oracle in the fast-growing Internet-based computing market.

SAP is taking aim at Oracle, the world's No. 2 maker of business management software, as they vie with Salesforce.com Inc in the multibillion dollar cloud-computing services market, one of the industry's hottest area of growth.

Shares in Ariba, which were halted briefly, leapt 20 percent to SAP's offer price of about $45 per share.

"This deal puts them more on the radar screen and gives them another big customer base they can sell additional services into. These are not inexpensive moves but it signals they are really tilting more toward the cloud," said Evercore analyst Kirk Materne.

SAP's announcement comes just weeks before Oracle CEO Larry Ellison is due to announce the Silicon Valley company's latest cloud software strategy, on June 6.

The $45-per-share offer for Ariba, a darling of the first dotcom boom that has since reinvented itself as a major networking and online commerce software developer, values Ariba at 6.9 times expected 2013 revenue, according to Roth Capital Partners.

Salesforce.com trades around 5.5 times expected revenue.

The purchase of Sunnyvale, California-based Ariba would be the latest in a string of acquisitions by German technology company SAP to help fuel its revenue growth and expand its cloud computing business.

SAP said it expected the deal, already approved by Ariba's board, to close in the third quarter.

But Cross Research analyst Richard Williams said that since many of Ariba's customers use Oracle services, there is good reason -- and precedence -- to expect the U.S.-based Oracle to make a rival bid.

In 2005, Oracle snatched retail software maker Retek away from SAP after a bidding war that reached $630 million.

"Strategically it's a valuable asset and would disadvantage Oracle if SAP were to close the deal, so I can see a case for why Oracle would feel the need to enter into the bidding to protect its own potential growth opportunities," Williams said.

SHARES HALTED

Cloud computing refers to providing software, storage, computing power and other services to customers from remote data centers over the Web.

Oracle and SAP are locking horns as both transform themselves into major players in the cloud and reduce their reliance on traditional business software. SAP's purchase of Web-based software company SuccessFactors Inc, announced late last year, was seen as accelerating their running battle.

In February, Oracle increased its bet on cloud computing by agreeing to purchase Taleo Corp, a maker of Web-based software for recruiting employees, for about $1.9 billion.

SAP's deal puts Ariba's enterprise value at about $4.3 billion. Enterprise value is market capitalization plus debt and other considerations.

Demand for cloud-based software is rising rapidly because the approach allows companies to start using new programs faster and at lower cost than traditional products that are installed at a customer's own data center.

SAP intends to integrate Ariba into Hana, a business intelligence tool to help companies analyze large quantities of data quickly. Hana came to market last year and generated 160 million euros in sales through the end of 2011, surpassing SAP's own expectations of 100 million euros.

"We are looking forward to optimizing Ariba so it can be used in real-time. This is a new category of the cloud. We want to accelerate the platform for collaboration between companies," SAP co-chief executive Jim Hagemann Snabe said on a conference call.

SAP said its transaction would be funded from its free cash and a 2.4 billion euro ($3.06 billion) term loan facility.

The European company also said it would consolidate its cloud-based supplier assets under Ariba, which would continue to operate as an independent business.

Ariba shares closed up 19.2 percent to $44.87 on Nasdaq on Tuesday, suggesting investors expect the deal to be completed around that price. ($1 = 0.7838 euros)

(Additional reporting by Jim Finkle in Boston and Sayantani Ghosh in Bangalore; Editing by Viraj Nair, Carol Bishopric, David Gregorio, Phil Berlowitz and Bob Burgdorfer)

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Tuesday, May 22, 2012