WASHINGTON -- The chairman of the House Banking Committee urged Tuesday that Attorney General William Barr resign 'at once,' charging that the integrity of the Justice Department has been brought into question by its handling of the Banca Nazionale de Lavoro (BNL) case.
Rep. Henry Gonzales, D-Texas., the chairman, charged that Barr and others in the administration had delayed indictments, sought to prevent cooperation with several investigations, and refused to appoint an independent counsel.
Gonzales said that the Banking Commitee has spent two years investigating what he called about $4 billion in illicit loans from the Atlanta office of BNL.
At the same time, the Senate Intelligence Committee, looking into the very politically sensitive case, is conducting its own investigation to determine whether the Justice Department, in collusion with the CIA, concealed information in the case from Atlanta prosecutors, the federal judge and the public.
Sen. David Boren, D-Okla., chairman of the Intelligence Committee, also wants to know why the CIA did not turn over to the Justice Department all its intelligence reports about the Atlanta branch bank.
Some $5 million in loans from the bank, which is almost wholely owned by the Italian government, were used to finance the arms program of President Saddam Hussein of Iraq.
But what has irked Boren the most is the public feuding by Justice and CIA and concerns that some of the recent documents submitted to the panel appear much more important than earlier ones. Boren said he will get sworn statements from both Justice and CIA officials this week on the government investigation that began in 1989.
In a letter to Barr, Gonzales said, 'The evidence is that high levels of the Justice Department were in regular contact with the Italian government concerning the BNL case, and that these same political levels of the Department were aware of the Italian government's desire for 'some kind of damage control.'
'This is consistent with the various decisions by the Justice Department, including accepting the 'rogue bank' theory which absolved BNL-Rome and its governnent owner of responsibility, as well as numerous actions to prevent, delay and frustrate the investigation of this committee.
'Likewise political considerations may well account for delays in the BNL indictment, and even for the infamous CIA report that intentionally misinterpreted what was known about possible involvement of BNL-Rome,' Gonzales said. 'Most certainly, your refusal to appoint an independent counsel was a political decision.'
He again urged Barr to appoint an independent counsel, saying, it would make it clear to all that the case will 'be dealt with free of any political taint or consideration.'
Gonzales added, 'Finally, there is the need to address the repeated clear failures and obstruction of the leadership of the Justice Deparment. The Department's reputation for integrity is clearly in question, and responsibility for that must rest squarely with you.
'I urge you to accept that reponsibility, do the right thing and submit your resignation at once,' Gonzales said.'
