WASHINGTON-The Justice Department last week extended for 60 days its probe into whether Labor Secretary Alexis Herman financially benefited from helping Mobile Communications Holdings Inc. obtain a global satellite phone license from the Federal Communications Commission last year.
The extension follows a three-month investigation that began Dec. 10 and ended last week.
By May 11, Attorney General Janet Reno must decide whether to drop the case or appoint an independent counsel to conduct a full-blown criminal investigation.
“Despite our efforts, voluminous records needed for a complete review of these allegations were not received until late in the preliminary investigation, and additional time is needed for their complete review,” Reno told the court in requesting the extension.
Reno added investigators need to interview witnesses that have yet to be reached and to review “new information recently received.”
Had the federal court here declined Reno’s request, it would have automatically triggered the appointment of an independent counsel.
“The secretary recognizes the attorney general’s need to conduct a careful and complete evaluation of this matter,” said Neil Eggleston, Herman’s attorney. “She knows that she does not have a hidden financial interest in Dr. Weaver’s business and has every faith that the Justice Department will shortly close this matter.”
Vanessa Weaver is a friend and former business associate of the labor secretary who bought Herman’s consulting business for $88,000 after Herman joined the White House’s public-liaison office in 1993.
In that capacity, African businessman Laurent Yene claims he gave Herman a cash-filled envelope as payment for assisting MCHI with its global satellite phone application.
Yene, who had a business and personal falling out with Weaver, also alleges Herman was to get 10 percent of fees charged to clients that she brought to her former consulting firm.
Weaver and MCHI deny any wrongdoing.
The FCC in 1995 rejected MCHI’s application to build a $1.1-billion Ellipso big low-earth-orbit satellite system because it didn’t meet financial qualifications.
That set off an aggressive lobbying effort by MCHI to line up support in Congress and in the Clinton Administration.
Before they parted company in September 1996, Weaver, who had exceptional access to the White House, and Yene were hired by Singapore businessman Abdul Rahman to help win MCHI a mobile satellite license.
Herman subsequently asked Greg Simon, former domestic policy adviser to Vice President Gore, on the MCHI matter. Simon subsequently met with MCHI’s attorneys. Simon said the White House did not try to influence the FCC regarding MCHI’s application.
The FCC, citing newfound spectrum availability, waived financial requirements and granted MCHI a big LEO license last year.
