Bush National Guard questions revived

George W. Bush in Texas Air National Guard

The question of whether political power was used to keep George W. Bush out of combat service in Vietnam could be unlocked in two separate investigations that likely will seek the testimony of Larry Littwin, a former Texas Lottery commissioner, WND has confirmed.

The two probes are a Missouri state inquiry into GTECH, the Connecticut lottery firm that operates the Texas Lottery, and the lawsuit brought by former CBS News anchorman Dan Rather for $70 million.

Rather accuses the network of making him a "scapegoat" for the discredited 2004 election campaign story about Bush's National Guard service. As WND reported, CBS News initially stood by its claims in the face of widespread accusations – brought first by bloggers – that early 1970s documents used in the story to discredit Bush were forgeries, created with a modern word-processing program.

But neither of the new investigations depends on the authenticity of the documents.

Eric Wilhoit, a contract investigator, has been hired by the state of Missouri to conduct an investigation of GTECH.

In a telephone interview, Wilhoit told WND he is seeking a release from GTECH that would permit Littwin to speak directly with him on the record.

In April, Missouri awarded GTECH an $11 million five-year contract to provide Internet hook-ups with the 3,000 lottery retailers throughout the state of Missouri. Wilhoit's investigation is focused on Lottomatica, an Italian company that agreed in February 2006 to acquire GTECH.

Missouri is concerned that the acquisition involves a globalization of lottery service providers that would prevent the state from having full and complete access to GTECH internal information, as would be the case if GTECH were operated solely as a U.S. corporation.

WND has also confirmed that attorneys for Rather are considering pursuing Littwin, 72, for a deposition.

Rebecca Hughes Parker – an associate at Sonnenschein Nath & Rosenthal LLP in New York City where partner Martin Gold has been retained to represent Rather – told WND the legal team is researching Littwin's background and has not decided whether to seek his testimony.

To prove damages, Rather's attorneys may only need to prove the story about Bush's Air National Guard service was essentially true, not that the disputed documents were authentic.

Littwin, who now lives in New York City, has confirmed to WND he wants to cooperate with the Missouri investigation and is in negotiations with GTECH to obtain a formal legal release so he can speak directly with Wilhoit.

In 2004, during the controversy that swirled around President Bush's nomination of White House counsel Harriet Miers to the Supreme Court, Littwin arose as a figure with testimony – and possibly documents – that could undermine the Bush presidency.

WND reported Miers withdrew her nomination to the Supreme Court after mainstream media news sources confirmed the WND story that Littwin had been released from a gag order to testify to the Senate Judiciary Committee on Miers' nomination.

Littwin alleges then-Gov. Bush and Miers, appointed by Bush to the Texas Lottery Commission, allegedly conspired to fire him.

How does this tie back to Bush's National Guard service?

At the center of the Texas Lottery scandal was former Democratic Lt. Gov. Ben Barnes, who GTECH was paying to exercise political influence and make sure it kept the Texas lottery deal.

Barnes turned out to be the politician George H.W. Bush allegedly contacted to get his son into the Texas Air National Guard ahead of other candidates.

At that time, service in Bush's unit of the National Guard was known to be one of the few sure paths to avoid combat duty in Vietnam.

Rather featured Barnes prominently on camera in a near-tears claim that he held young Bush's life in his hands and chose life, rather than have him face the danger of possible death in Vietnam.

On June 10, 1997, Littwin was hired from a field of 700 applicants.

He was to be paid an annual salary of $100,000, largely because of his credentials working 25 years for Control Data, including time spent with CD's subsidiary lottery company, Automated Wagering International, or AWI.

When Littwin was hired, the Texas Lottery Commission was in the process of putting the GTECH contract out to bid, even though the contract did not expire until 2002.

By June 1997, AWI was GTECH's leading competitor around the country. Seen from GTECH's perspective, the Texas Lottery Commission had hired the enemy.

Determined to hit the ground running, Littwin almost immediately opened the window for competitive bids. AWI announced a bid would be made.

Next, Littwin moved to begin a thorough records search within the Lottery Commission, aimed at uncovering any patterns of influence peddling or corruption.

When it became apparent Littwin was going to examine Democratic Party campaign contributions, Commissioner Harriet Miers seemed initially supportive.

On Sept. 18, 1997, the Dallas Morning News reported Miers said Littwin "is doing the right thing for the right reason."

Littwin was investigating Barnes, a Democrat.

Then, on Sept. 21, 1997, the Morning News reported Gov. Bush was becoming nervous about Littwin, who was moving fast.

"I don't think any of us understand what he was doing," Bush told the paper. "If in fact he was gathering data to try to embarrass a member of the House or Senate or the executive branch, it's inappropriate behavior. I just don't understand what was gong on there, and I don't think anybody does yet. I think that'll be clarified by the commission."

On Oct. 29, 1997, the commission voted to fire Littwin, though he had been on the job less than five full months.

Littwin objected, loudly.

On Oct. 30, 1997, the Austin American-Statesman reported Littwin believed he was being fired for political reasons.

"The commission really showed little or no backbone in dealing with the political process in the state of Texas," he asserted. "Everybody got very upset when I started to look at GTECH's campaign contributions. I think I stirred up concerns that perhaps something might be going on."

The Houston Chronicle reported on the same day Littwin's claims that the competitive bidding process would not succeed.

"In every state where GTECH has been present and the lottery director has not become a close friend of theirs, something happens to the lottery director before the procurement process is complete," he told the Houston paper.

GTECH sued for breach of contract, refusing to bid in the open competition.

On Feb. 19, 1998, the Texas Lottery Commission voted to end the competitive bidding and stay with GTECH, just as Littwin predicted.

The commission had received three competitive bids, including one from AWI, which the company claimed would have saved the commission $92 million over five years. AWI also would have installed a new computer system at its own expense.

Littwin hired a lawyer who sued GTECH in federal court.

He pressed to get a deposition from Miers, but she resisted the subpoena.

A federal magistrate ruled Miers did not have to testify. Still, Littwin succeeded in taking a deposition with Barnes.

Under oath, Barnes discussed his alleged involvement with the Bush National Guard controversy and his political influence peddling for GTECH.

Littwin won. GTECH settled out of court, agreeing to pay Littwin $300,000.

As a condition of the settlement, Littwin agreed to destroy all documents produced by the litigation, including any copies he may have had of the Barnes deposition.

The Barnes deposition in the Littwin case has never come to light.

In 1997, GTECH bought out Barnes' contract for $23 million.

Accusations continue to this day that Miers was Bush's "cover-up artist," placed by Bush on the Texas Lottery Commission to make sure GTECH never lost the Texas contract and Barnes never had a motivation for going public with his version of the Bush National Guard story.

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Rather: Bush Guard story 'absolutely true'

Dan Rather unrepentant: Story on Bush 'accurate'

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No apology in Rather response