European Stars and Stripes (Newspaper) - November 4, 1992, Darmstadt, Hesse                                Wednesday november 4, 1992 . The stars and stripes Page 5cia suspected Bank fraud letter says by the new York tines Washington the Cia told the agriculture department in a january 1990 letter that the Rome managers of an italian Bank had taken part in a Multi Bil lion Dollar fraudulent loan scheme involving Iraq a copy of the letter shows. But the letter was not shared with the Justice department raising questions about the Ciao a cooperation with Federal prosecutors investigating the matter. What the Cia knew about the fraud when it knew it and whether it passed on the information to the Justice department have become the focus of investigations by the department the Cia and Congress into the . Governments handling of one of the largest Bank scandals in history. Federal prosecutors were repeatedly frustrated in their efforts to elicit information from the Cia about the Case during their 18-month investigation. In recent weeks the Cia has turned up several classified reports indicating that officials of the Banca Nazionale Del Lav Oro knew about the scheme and might have been involved. The Jan. 31,1990, letter to the agriculture department is the earliest indication that the Cia concluded that Bank officials in the Rome Headquarters were involved in the scheme. Over five years the Atlanta Branch of the Bank extended $5 billion in Loans and credits to Iraq and other countries and companies in violation of Bank rules providing crucial financing for iraqis arms buildup. Federal prosecutors concluded that the Atlanta Branch carried out the scheme without the knowledge or involvement of the Bank a management in Italy. In february 1991, Christopher p. Drogoul the Bank a manager was indicted on charges that he defrauded his superiors in Rome. If the Bank in Rome had been aware then it could not have been the victim of the fraud and the prosecution would have had a much weaker Case. During the investigation the Issue became a major irritant in relations Between the United states and Italy. Italian government and Bank officials told Washington that if the Rome Bank a and therefore the italian government a were involved the scandal could have damaged Italy s banking system and toppled the government of prime minister Giulio Andreotti. The partly declassified Cia letter signed by Jack Duggan an analyst in the persian Gulf Section noted that he was including a copy of a Cia report on the scandal. Duggan added that since the in the stars and stripes 10 years ago nov. 4,1982 a american voters rejected president Reagan s pleas electing a Congress less amenable to his policies and strengthening the democratic party a base in statehouse around the nation. 20 years ago nov. 4,1972 a president Nixon said a we Are ready to conclude Quot a Vietnam peace settlement but added that he would not be pressured by an election or any other deadline. 30 years ago nov. 4,1962 a president Kennedy reported Progress in restoring peace to the Caribbean but said air and Navy reconnaissance of Cuba would continue. 40 years ago nov. 4,1952 a forecasters were predicting that More than 60 million voters would cast their ballots nov. 5, climaxing one of the most bitter presidential campaigns in . History. 50 year Sago nov. 4,1942 a the capture of a key japanese Supply base at Koko a new Guinea and a frustrated attempt to land 7,000 japanese reinforcements at Buna were reported by Gen. Douglas Macarthur s Headquarters. World War ii 50 years ago today nov. 41-9-4-2 British troops break through the mine Fields West of Al Alamein in Western Egypt and defeat italian units covering the afrika Korps Retreat. The soviet army begins attacks in the Stalingrad Region probing for German weak spots in preparation for a Winter offensive. On Guadalcanal the marines contain the 1,500 japanese soldiers who landed near Koli Point. Source 2194 Days of War w h Smith publishers inc. World almanac Book of world War ii. Bison books corp .1981 a a blast monday blew out chunks of the Walls in a Harlem apartment  known dead in blast new York a an explosion blew apart the top three floors of a Harlem apartment House monday killing at least two people and injuring about 30. A third person was believed dead in the rubble Rescue officials said. The cause of the blast in the 14-Story Brick building was not known. A there is nothing to indicate that Gas was the cause a said Rich Mulieri a con Edison spokesman. Two elderly women were killed said Christine segatto an emergency medical service spokeswoman. The injured included 17 police officers and a firefighter she said. Hundreds of rescuers searched the probably be it fire chief building to make sure that no one remained trapped. We there All night Long a assistant Edward Butler said. Towels sheets and other items blown out of the building Hung from nearby Trees. Gaylord Hassan said his wife was climbing into the Shower and he was about to eat dinner in his seventh floor apartment when the explosion occurred. A was soon As i got the first spoon in my Mouth Boom All of my windows caved in a he said. A woman on the 10th floor broke both her legs. Quot we had to dig her out a firefighter Tom Gardner said. Nov. 6, 1989, report had been prepared Quot some new information has come to  among that new information was the following conclusion Quot managers at bal Headquarters in Rome were involved in the  a the department of Justice was unaware of the existence of the letter until very recently a said Frank Shults a department spokesman. He added that the communication is part of the a scope of the inquiry by Frederick b. Lacey the former Federal judge appointed by attorney general William p. Barr to investigate the Bush administration s handling of the matter. Other department officials said the letter had not been received until last month. The letters existence was disclosed monday by rep. Henry b. Gonzalez a Texas. . Treasurer s former company got $60 million in . Contracts Washington a the company for which . Treasurer Catalina Vasquez Villalpando used to work a and still nolds Stock in a received $68.6 million in non competitive Federal contracts documents show. The release of the information monday comes amid an Fri influence peddling investigation into Villalpando the Federal governments treasurer since 1989. But there was no indication that any of the contracts figure in the inquiry nor was there any indication that Villalpando had worked on them. The company communications inter National inc., was awarded 56 telecommunications contracts under a program for minority businesses from 1983 to 1992, the Small business administration data show. The sea contracts were for work performed for various government agencies at military bases veterans hospitals and other facilities around the country. The $68.6 million includes seven contracts Worth a total of $8 million that the Atlanta based company received before August 1985, when Villalpando was hired. Villalpando 52, was a partner and senior vice president for communications International she resigned from the company in 1989, when president Bush named . Treasurer. Villalpando whose signature appears on All current paper Money was put on administrative leave thursday at her request after Fri agents raided her Washington apartment and several other locations. At Issue is whether she took compensation a including travel lodging and other benefits a from the company after she started to work for the Federal government it is a Misdemeanour for a senior Federal official to accept compensation or benefits from a former employer while working for the government. Villalpando a longtime Republican party worker was employed in the Reagan White House from 1981 to August 1985, communications International is headed by former Atlanta Falcons running Back Joe profit. It has grown greatly Over the last decade because of Federal contracts. The company participates in the Small business administrations contract set aside program for businesses owned by minorities. Under the program the sea provides technical Hel but the decision to award a contract is made by the Agency that needs the work done. That decision is not based on competitive bids