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Herman testifies in MSS probe

WASHINGTON-The probe into whether Labor Secretary Alexis Herman influenced the mobile satellite system licensing process for Mobile Communications Holdings Inc. may be entering a critical phase.

Herman, who is under investigation to determine whether she used her political clout and sought campaign contributions to help MCHI get an MSS license from the Federal Communications Commission, testified before a federal grand jury here late last month, the Washington Post reported. Investigators questioned President Clinton Sept. 8.

Ralph Lancaster, a Maine lawyer and one of the few remaining independent counsels, is conducting the probe. The independent counsel law expired earlier this year.

Herman’s press spokesman declined to comment and referred all questions to the Labor secretary’s lawyer, W. Neil Eggleston. Eggleston did not return calls for comment.

In previous statements, Herman and her attorney have denied any wrongdoing.

“I have no idea how [the investigation] is going,” said Gerald Helman, vice president of MCHI.

Laurent Yene, a Cameroon businessman, alleges Herman used her political sway as a White House aide in 1996 (before being picked to head the Labor Department) to help MCHI secure an MSS license from the FCC. He also claims Herman solicited political contributions-including some from illegal foreign sources-for the 1996 Clinton-Gore re-election campaign in exchange for her aid.

The FCC in 1995 rejected MCHI’s application on financial grounds, but subsequently waived financial requirements and granted the Washington, D.C., firm a permit to build a $1.1 billion global satellite system, called Ellipso.

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