Daschle: Scandals to figure in election

Thursday, Aug. 15, 2002 | 11:16 a.m.

Senate Majority Leader Tom Daschle, D-S.D., made it clear that Democrats will use the issue of corporate scandals in efforts this fall to retain the Senate majority and wrest control of the House from the Republicans.

He was joined Wednesday in Las Vegas by Senate Majority Whip Harry Reid, D-Nev., who introduced two local residents who have been stung by the faltering stock market.

At a rally at the MGM Grand Conference Center to promote Nevada Democratic candidates, Daschle credited congressional Democrats with taking the lead on legislation that increased penalties for corporate wrongdoing.

"I am outraged at what I saw in these corporate scandals over the past eight months," Daschle said.

Although the rally was held in conjunction with the 67th anniversary of Social Security, Daschle's brief remarks were centered on the collapse of major corporations and their toll on pensions.

"First, those people responsible ought to go to jail," he said. "The second thing we have to do is make sure justice needs to be served."

Daschle expressed displeasure that chief executive officers of bankrupt corporations walked away with an estimated $3.3 billion combined.

"I tell you we ought to go after every dollar and pay it to you," he said. "We have to make sure the laws are tougher and stronger than they are today. We have to make sure they are never given the opportunity to try to deal with your pensions the way they have the past several years."

He related the story of a Turkish native who moved to the United States and taught his children to play by the rules. But he said the same man lost his $400,000 pension with the collapse of WorldCom Inc., the Mississippi-based telecommunications giant that filed for bankruptcy.

"By the end of this year we are going to pass pension security to make sure they can't steal from pensions again," Daschle said.

Following the rally the Nevada State Democratic Party issued a release stating that Daschle and Reid were proposing legislation to give employees the right to sell off their company stock at the same time company executives sell their shares.

"We have a plan that allows workers to get rid of company stock when executives do, to get independent, unbiased investment advice and get their money back if the people responsible for protecting their investments abuse that trust," Daschle stated in the release.

"Just like with corporate accountability, we're the ones who have a real plan that offers real protections."

The rally was attended by about 125 party faithful, including union members wearing T-shirts with the slogan, "No More Business As Usual."

Reid introduced retired laborer Ed Halifko of Las Vegas, whose hefty stock market losses put a dent in his retirement plans.

"He's always wanted to travel to Alaska," Reid said. "He can't do that now."

The senator also introduced Larry Huff, whose wife, Toni, lost a major chunk of her pension from her job as an urban planner for the city of North Las Vegas.

"She'll never get the money back she lost," Reid said. "The economy in America is affecting real people."

John Hunt, a Democratic candidate for attorney general, picked up on the theme of "corporate avarice and greed" by vowing to prosecute individuals guilty of such acts.

While promising to protect Social Security, Daschle and fellow Democrats criticized Republicans for wavering on the issue of whether individuals should be allowed to invest Social Security payroll taxes on their own.

Many Republicans have favored the investment option because of its flexibility and the argument that the stock market has outperformed increases in Social Security benefits. Democrats have opposed private investment of Social Security taxes on grounds that the stock market is not always reliable.

"They were opposed to Social Security when it was created," Daschle said of Republicans. "They were opposed to Medicare when it was created. They were wrong then. They are wrong now."

Daschle blamed Republicans for wanting to raid the Social Security trust fund in order to cut taxes.

"We have to stop the raiding of the Social Security trust fund," he said.

Clark County Commissioner Dario Herrera, a Democratic candidate for the newly created 3rd Congressional District, criticized Republican foe Jon Porter for initially favoring some form of privatization of Social Security and then reversing his position.

Porter has said he reversed his position because of the war on terrorism and its impact on the economy. But Herrera said that when Porter was a state senator, he voted with Republican leadership 93 percent of the time. Herrera, who said he would protect Social Security, questioned whether Porter would "stand up to his leaders in Washington."

Other candidates at the rally included Rep. Shelley Berkley, D-Nev., who is seeking re-election in the 1st Congressional District, Clark County Commissioner Erin Kenny, a candidate for lieutenant governor, and Assemblyman John Lee, D-Las Vegas, who is running for state controller.