Report: Olympic Booster Pushed Bid
Feb. 02, 1999
NEW YORK (AP) _ A top Olympics booster pressured his copper mining company's suppliers to donate money to Salt Lake City's bid for the 1998 Winter Games, The Wall Street Journal reported today.
Frank Joklik, the former president and chief executive officer of Kennecott Corp. in Salt Lake, urged business associates to contribute to the bid and targeted companies that spurned him.
The Journal reported that Joklik, who later led the Salt Lake Organizing Committee for the 2002 Winter Games, got 12 of Kennecott's suppliers _ including Caterpillar Inc., Ingersoll-Rand Co. and Bechtel Co. _ to contribute to the unsuccessful bid for the 1998 Games.
In 1991, two weeks after Salt Lake lost the 1998 Games to Nagano, Japan, Joklik took aim at the companies that did not donate to the bid, including Goodyear Tire & Rubber Co. and Denver & Rio Grande Western Railroad.
``A number of people we do business with gave generously to the Olympic bid at our request,'' Joklik wrote in a two-page memo on Kennecott letterhead to eight of his senior managers. ``A number of companies turned us down. All other things being equal, bids by these companies should be declined.''
As for the companies that made donations, Joklik instructed the managers: ``In your future purchases of equipment and services, I would ask you, all other things being equal, to give preferences to these companies.''
Joklik, 70, who resigned Jan. 8 as president of the Salt Lake organizers amid the bribery scandal that has rocked the 2002 Games, told the Journal the signed memo was not an attempt to discriminate against companies that didn't help with the 1998 bid.
P.J. Bernhisel, Kennecott's former vice president of finance and law, said Joklik took the loss of the 1998 Games personally.
Joklik ``was putting a lot of his personal time into fund raising, and he got mad and said, `Damn it, you've got to help your friends,''' Bernhisel said.
In other developments:
_The IOC today cleared Sydney of any wrongdoing in connection with financial inducements offered on the eve of Sydney's selection as host of the 2000 Summer Games.
``It was legal, legitimate and according to the rules,'' said Jacques Rogge, the IOC executive board member with oversight over the 2000 Games. ``There is absolutely no problem in the way it was done.''
Australian Olympics chief John Coates disclosed 10 days ago that he had offered $70,000 in inducements to two African IOC members the night before the 1993 vote on the 2000 host city. Sydney beat Beijing by two votes.
_The Washington Post reported today that an ethics panel investigating the bribery scandal plans to disclose that knowledge of payments to IOC members was confined to a small number of bid committee members.
The newspaper, citing an unidentified source, said investigators found that Tom Welch, the former bid committee president, and Dave Johnson, the former vice president, acted nearly independently in many instances involving IOC members. Craig Peterson, a vice president of administration who signed bid committee checks, and Stephanie Pate, Welch's secretary, also are believed to have had access to the bid committee's inner workings.
Also, some of the investigators believe high-ranking bid committee members might have attempted to conceal their actions.
_Mitt Romney, a former Republican Senate hopeful from Massachusetts, is in the running to replace Joklik as head of the Salt Lake Organizing Committee, The Salt Lake Tribune quoted unidentified sources as saying. Romney is the son of Utah native and former Michigan Gov. George Romney and was president of a Mormon group of congregations in Massachusetts.
_The New York Times identified a second relative of an IOC member who was employed by First Security Bank of Utah. It said a son of Lamine Keita of Mali was offered a summer job in 1995. A son of Mongolian IOC member Shagdarja Magwan also worked for the bank prior to 1995, when Salt Lake secured the 2002 Games.
Scott Nelson, who was president of the bank at the time, told The Tribune that he hired the pair after they were referred to him by the bid committee. He said Spencer Eccles, chairman and CEO of First Security Corp., was unaware of the hires until after they were made. Eccles was a member of the bid committee board and is on the SLOC board.