Oregon daily emerald. (Eugene, Or.) 1920-2012, October 02, 1984, Page 4, Image 4

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    inter/national
Donovan faces
137 counts
WASHINGTON (AP) — Ad
ministration sources said Mon
day that Secretary of Labor Ray
mond Donovan has been in
dicted by a county grand jury in
New York in connection with a
subway project by the construc
tion company he formerly serv
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ed as executive vice president.
NBC News reported that the
indictment alleges one count of
grand larceny, 125 counts of
false documents and 11 counts
of false statements. Federal
authorities were asking
Donovan to surrender at 8 a.m.
today at the Bronx courthouse,
the network said.
Six officials of the Schiavone
Construction Co. of Secaucus,
N.J., were also named in the in
dictment, one source said. The
source spoke on condition he
not be identified.
Labor Department and White
House spokesmen declined to
comment on the matter.
In Biloxi. Miss., traveling
with Pres. Ronald Reagan.
White House deputy press
secretary Peter Roussel said,
“We have not received any in
formation or been informed”
about the indictment.
The source said Donovan was
flying to Houston on Monday to
make a series of speeches when
the indictment was handed up.
“The secretary was notified
by telephone during an airport
stopover” in Atlanta, and im
mediately headed back to
Washington, this source said.
He said the secretary planned to
meet with his attorney. Dean
Burch.
The grand jury in the Bronx
was investigating charges that
the Schiavone Co. falsified
records in a federally-funded
subway project in New York
i^ny.
Donovan, who was a part
time owner as well as executive
vice-president of the construc
tion company before he joined
the Reagan cabinet in 1981, had
been investigated for nearly a
year by a special prosecutor in
1982.
In two separate 1982 reports
on allegations that Donovan, as
a construction executive, had
ties to organized crime figures,
special prosecutor Leon Silver
man concluded there was “in
sufficent credible evidence” on
which to prosecute the
secretary.
Donovan had testified before
the grand jury for 4 hours on
Sept. 24. At that time, he releas
ed the results of a lie-detector
test that the secretary said
cleared him of any involvement
in an alleged scheme — before
Donovan joined the Cabinet —
to misrepresent the work of a
minority subcontractor on the
subway project.
‘‘It is my hope that my ap
pearance today and the presen
tation of the polygraph results
will put an end once and for all
to the baseless allegations that
have unfairly plagued me
throughout my public life,”
Donovan had said after emerg
ing from the courthouse.
The focus of the Bronx grand
jury probe was the relationship
between the Schiavone Co. and
the Jopel Construction and
Trucking Co. of the Bronx.
In its work at subway excava
tions in New York City,
Schiavone hired Jopel to assist
in hauling dirt. Under federal
regulations, 10 percent of the
contract had to go to minority
owned companies. Jopel was
co-owned by a Bronx politician
and by a reputed organized
crime figure.
The investigation involved
allegations that Schiavone
overstated the amount of work
that Jopel performed.
The lie-detector test on
Donovan was performed at the
secretary’s request on Sept. 11
by Joseph Buckley of John Reid
and Associates of Chicago.
Donovan described the firm
as "one of the premier lie
detector experts in the
country.”
“I answered during that test
all of the specific questions”
raised by the district attorney
and “needless to say I was not
surprised that 1 had passed it
with flying colors,” he said last
Monday.
In his report, Buckley said
Donovan had denied that he
knew about the circumstances
of the hiring of Jopel or any il
legal arrangements between the
two companies. Buckley also
said that Donovan denied any
participation in Jopel’s hiring
and denied that Schiavone gave
incorrect information about
Jopel’s work or misrepresented
it.
The Schiavone Co. had
sought to quash the grand jury
investigation, charging that it
was politically motivated and
noting that Bronx District At
torney Mario Meroia is a
Democrat. But a judge refused
the request, leading to
Donovan’s testimony and
indictment.
High court
begins term
WASHINGTON (AP) — The
Supreme Court Monday agreed
to decide whether states may
empower local public school
boards to fire teachers who ad
vocate, encourage or promote
homosexuality.
The justices, tackling a case
involving gay rights for the first
time in 17 years, said they will
review a federal appeals court
ruling that such an Oklahoma
law violated teachers’ free
speech rights.
The Oklahoma law stated that
a teacher could be fired or other
wise denied work for engaging
in “public homosexual conduct
or activity.”
In other orders issued in a
flood of actions on the first day
of the 1984-85 term the justices:
• Refused to reinstate the at
tempted murder conviction of
socialite Claus von Bulow, who
had been accused of trying to
murder his wife in order to in
herit $14 million and marry his
ex-actress lover.
•Agreed to consider making it
easier for the federal govern
ment to recover potentially hun
dreds of millions of dollars in
education aid allegedly miss
pent by the states.
• Refused to bar manufacturers
from using favorable reviews
from Consumer Reports
magazine in their advertising.
• Agreed to decide if the states
may force an individual to have
his or her photograph on a
driver's license if that violates
the individual's religious
beliefs.
•Left intact federal regulations
aimed at providing consumers
more information about prices
in the funeral industry and barr
ing unfair and deceptive prac
tices by funeral home operators.
• Barred U.S. businesses from
answering questionnaires used
by Arab nations to help carry
out their trade boycott of Israel.
Cosmonauts
return today
MOSCOW (AP) — Three
Soviets will return to Earth to
day. the official Tass news
agency said, completing a
238-day voyage that set an en
durance record for space travel.
Leonid Kizim, Vladimir
Solovyev and Oleg Atkov hold
the endurance record for space
flight, having been in space
since Feb. 8, when their Soyuz
T-10 capsule was launched
from Baikonur.
The cosmonauts "have fully
accomplished the program of
scientific research on board
Salyut 7 and return to Earth
tomorrow,” Tass said Monday.
Radio Moscow said the
cosmonauts' research had con
centrated in the fields of
medicine, biology, en
vironmental protection, space
technology and astrophysics.
Tass did not say where the
cosmonauts’ Soyuz T-ll re
entry vehicle would land or
when it would separate from the
orbiting Salyut 7 space com
plex. where it has been docked.
Soviet space officials rarely
release such information in
advance.
The previous endurance mark
in space. 211 days, was set in
1982 by cosmonauts Valentin
Lebedev and Anatoly
Berezovoy.
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