Security and Privacy
   
FBI Guidelines
 

Secrecy and Immunity Proposal Shields Corporate Malfeasance

CENTER FOR DEMOCRACY AND TECHNOLOGY � ELECTRONIC PRIVACY INFORMATION CENTER � ENVIRONMENTAL DEFENSE � NATIONAL ENVIRONMENTAL TRUST � NATURAL RESOURCES DEFENSE COUNCIL � OMB WATCH � U.S. PUBLIC INTEREST RESEARCH GROUP

July 10, 2002

United States Senate
Washington DC 20515

Dear Senator:

On the very day that the President unveils a program to punish corporate malfeasance, the Administration has proposed legislation that would grant new secrecy and immunity protections for corporate wrongdoing. The Administration's proposed Protection of Voluntarily Submitted Critical Infrastructure Information Act (and similar language in Section 724 of the Republican leadership's substitute for HR 5005, The Homeland Security Act) would allow corporations to conceal damaging information from the public and courts and avoid accountability for their actions. It would have a devastating effect on law enforcement and we urge Congress to reject this overly broad secrecy and immunity proposal.

The proposed legislation intends to encourage companies to voluntarily share information with the government about potential vulnerabilities to terrorist attacks. In practice, however, it creates new hurdles to enforcing the law by:

  • Tying the government's hand in pursuing corporate wrongdoing by granting corporations unprecedented immunity from the civil consequences of violating the nation's securities, tax, civil rights, environmental, labor, consumer protection, and health and safety laws.
  • Keeping the public in the dark by sweeping aside disclosure requirements under federal laws. Government agencies would not be able to tell the public about spills, fires, explosions and other accidents without obtaining written consent from the company that had the accident. Even information required by the government could be concealed under this overly broad proposal.
  • Overriding state and local laws by preempting any state and local open records laws. State and local authorities would be barred from disclosing information that is required to public under state or local law.

The result is that companies with something to hide will race to voluntarily disclose information about potential violations to the government. By stamping it critical infrastructure information the information could not be made public or given to the courts without the permission of the corporation. This is a recipe for more and bigger Enron's in the future.

Corporations acting in good faith don't need additional secrecy or immunity in order to protect national security. The Freedom of Information Act already protects national security and trade secrets information. No additional secrecy law is needed to protect national security interests.

Don't let bad actors off the hook. We urge you to oppose these new and unnecessary attempts to hide corporate irresponsibility.