Could the Carlyle Group Buyout of Booz Allen Government Consulting Arm Be a Threat...

Could the Carlyle Group Buyout of Booz Allen Government Consulting Arm Be a
Threat to National Security?

Reported deal between global buyout firm in which Abu Dhabi government owns
significant stake and top government contractor warrants close scrutiny,
tightening of standards for review of national security concerns

WASHINGTON, Jan. 17 /PRNewswire/ -- Global buyout firm the Carlyle Group's
announcement that it seeks to acquire Booz Allen's government consulting
business should raise serious questions about the ramifications for national
security and demands immediate government oversight to ensure adequate
controls exist should the deal be completed.

This arm of Booz Allen had $1.2 billion in Department of Defense contracts
last year. The Carlyle Group already owns a large number of US defense
contractors.

Last September, Carlyle announced the Mubadala Development fund of the
Government of Abu Dhabi paid $1.35 billion for a 7.5% ownership stake in
Carlyle. Driven by rising oil prices, the falling dollar, and political
opportunism, foreign countries are increasingly investing in the US economy
through the purchase of stakes in leading American companies by huge sovereign
wealth funds.

The potential for a Carlyle Group-Booz Allen buyout demands urgency on the
part of lawmakers and regulators to examine the risks faced by the US when
foreign governments potentially have access to classified and other sensitive
national security information through their stake in US companies.

The potential risks are becoming alarmingly high, as Carlyle Group has
announced its intention to invest billions in developing infrastructure such
as toll roads, water and sewer systems, bridges, tunnels, highways and
airports across the US.

"We shouldn't allow the unchecked greed of buyout billionaires like David
Rubenstein to put our communities at risk," said Stephen Lerner, Director,
SEIU Private Equity Project. "With billions of taxpayer dollars at stake in
these contracts, accountability and transparency is a primary concern since
the Carlyle Group operates behind a veil of secrecy."

The US economy is becoming increasingly tied to sovereign wealth funds. In the
wake of the subprime mortgage crisis, Citigroup Inc and Merrill Lynch &
Co Inc announced Monday that they are raising $20 billion in capital
from investors in Asia and the Middle East. Such transactions are likely to
gain additional scrutiny as the economy worsens and becomes the subject of
election-year discussion. In Tuesday's Democratic presidential debate, all
three top candidates called for transparency and accountability with respect
to sovereign wealth funds and related financial transactions.

With 1.9 million members, the Service Employees International Union (SEIU) is
the fastest-growing labor union in North America. Together with elected and
community leaders around the country, we're leading efforts to hold The
Carlyle Group and other buyout firms accountable to taxpayers, workers and
communities. For more information, visit http://www.CarlyleExposed.org

SOURCE Service Employees International Union

Lisa Hubbard of the Service Employees International Union, +1-213-716-2172,
Lisa.Hubbard@seiu.org