Groups say dual Wackenhut security role an insurance risk

Washington (Platts)--5Oct2004

The firm that underwrites nuclear liability insurance was warned by several
advocacy groups that there is a financial interest at stake in having the
industry use a company other than Wackenhut Corp. to play the adversaries in
mock attack exercises. In a letter sent today to American Nuclear Insurers,
four groups led by the Union of Concerned Scientists asserted that the risk of
catastrophic damage "could significantly and unnecessarily increase" because
of a potential conflict of interest that exists with Wackenhut's dual role of
providing the attacking team at sites where it has security guard contracts.
The groups said the situation sets up a scenario where Wackenhut could try to
influence the results of drills. NRC said in a Sept. 30 letter released
yesterday that the agency would ensure there were administrative controls and
separation of functions in place and that NRC is in charge of designing and
evaluating the exercises. Moreover, NRC will take prompt action if Wackenhut
adversary contractors "are not performing rigorously in their role," said NRC
Executive Director for Operations Luis Reyes.

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