[Washington, D.C.] U.S. Senator Dick Durbin (D-IL) today sent a letter to the top Bush Administration official who headed the government’s review process that approved the sale of six American ports to Dubai Ports World, questioning whether the official followed the law.

Durbin believes that the Committee on Foreign Investment in the United States (CFIUS) ignored two sections in the law. Durbin said that “Even though Dubai Ports World is clearly owned by a foreign government, a 45-day detailed review was not conducted,” and that “no written report was submitted to the Secretary of the Senate to notify Congress of the results” of the CFIUS review.”

“I write to request an explanation as to why, in the case of the Dubai Ports World purchase of the American port operations of Peninsular & Oriental Steam Navigation Co., you did not adhere to the processes that have been established by law for reviewing commercial transactions that might impact the national security of the United States,” Durbin wrote to Robert Kimmett, Deputy Secretary of the Treasury.

The full text of the letter is attached:

[attached]

February 28, 2006

Honorable Robert Kimmett
Deputy Secretary of the Treasury
1500 Pennsylvania Avenue NW
Washington, D.C. 20220

Dear Secretary Kimmett:

I write to request an explanation as to why, in the case of the Dubai Ports World purchase of the American port operations of Peninsular & Oriental Steam Navigation Co., you did not adhere to the processes that have been established by law for reviewing commercial transactions that might impact the national security of the United States.

It is my belief that the Committee on Foreign Investment in the United States (CFIUS) ignored two sections of the relevant statute (50 USC App. Sec. 2170) (emphasis added):

(b) Mandatory investigations

The President or the President's designee shall make an investigation, as described in subsection (a), in any instance in which an entity controlled by or acting on behalf of a foreign government seeks to engage in any merger, acquisition, or takeover which could result in control of a person engaged in interstate commerce in the United States that could affect the national security of the United States. Such investigation shall -

(1) commence not later than 30 days after receipt by the President or the President's designee of written notification of the proposed or pending merger, acquisition, or takeover, as prescribed by regulations promulgated pursuant to this section; and

(2) shall be completed not later than 45 days after its commencement.

(g) Report to the Congress

The President shall immediately transmit to the Secretary of the Senate and the Clerk of the House of Representatives a written report of the President's determination of whether or not to take action under subsection (d), including a detailed explanation of the findings made under subsection (e) and the factors considered under subsection (f). Such report shall be consistent with the requirements of subsection (c) of this Act.

Even though Dubai Ports World is clearly owned by a foreign government, a 45-day detailed review was not conducted. Further, no written report was submitted to the Secretary of the Senate to notify Congress of the results of the CFIUS review.

I am pleased that Dubai Ports World has voluntarily asked for a more thorough 45 day review; however, this does not allay my broader concerns that the mandated CFIUS processes were not properly followed in this instance. I would therefore appreciate your explanation as to why the two highlighted requirements were not followed. Furthermore, I would also like to know in how many other cases over the past year has CFIUS not met each of these requirements.

Thank you for your attention to this request. I look forward to your prompt reply.

Sincerely,