European Stars and Stripes (Newspaper) - November 4, 1992, Darmstadt, Hesse                                Wednesday november 4, 1992 . The stars and stripes b Page 5 Cia suspected Bank fraud letter says _. _. M a. I. It / 4 non  Hamm by the new York times 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 Cia s 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 . Government s handling of one of the largest Bank scandals in history. Federal prosecutors were repeatedly frustrated in their efforts to elicit info in the stars and stripes mation from the Cia about the Case Dur ing 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 s 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 and therefore the italian government a were involved the scandal could have damaged Italy a 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 10 years ago nov. 4,1982 a american voters rejected president Reagan a 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 Quot 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 a Headquarters. World War ii 50 years ago today nov. 4194 2 British troops break through the mine Fields West of Al Al Mem 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_ap a blast monday blew out chunks of the Walls in a Harlem apartment  smell linked to fatal blast new York a tenants of a Harlem apartment House said they smelled Gas before an explosion ripped through the upper floors and killed three people. Thirty five people including 27 firefighters and police officers were reported injured monday night. The cause of the blast was under investigation. Consolidated Edison spokesman Richard Mulieri said that the Utility had no evidence natural Gas caused the explosion but that nothing had been ruled out. The explosion blew Walls off the top three floors of the 12-Story Brick building exposing apartments. Towels sheets and other items Hung from Trees and fires burned for two hours after the blast. A 93-year-old woman was found dead at the scene and a 92-year-old woman died shortly after arriving at a Hospital both were tenants of the building. On tuesday police reported a third death but had no immediate details on who it was or where he or she died. The building is part of a 1,232-unit apartment Complex built in 1947 for mid Lle class Blacks. A mayor David n. Dinkins former army Secretary Clifford l. Alexanderjr. And former housing and Urban development Secretary Samuel r. Pierce or. Are among former tenants. 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  Quot the department of Justice was unaware of the existence of the letter until very recently Quot said Frank Shults a department spokesman. He added that the communication is part of the Quot scope of the inquiry Quot by Frederick b. Lacey the former Federal judge appointed by attorney general William p. Barr to investigate the Bush administrations 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 $68 million in . Contracts Washington a the company for which . Treasurer Catalina Vasqucz Villalpando used to work a and still nolds Stock in a received $68.6 million in non competitive Federal contracts documents show. A the release of the information monday comes amid an Fri influx acc paddling 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 Villal Pando had worked on them. The company communications inter National inc., was awarded 56 Tel com i Mun cations 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 com Kany in 1989, when president Bush named or . 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 _ 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 administration s 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