Correction
An article in the April 23, 2004 edition of The Progress Report titled "Under the Influence" contained a reference to a USA Today story that asserted that Sheikh Khalid bin Mahfouz was among Saudi businessmen who "continued to transfer tens of millions of dollars to bank accounts linked to indicted terrorist Osama bin Laden" after the bombing of the USS Cole. The USA Today article in question has since been retracted. Under the circumstances, we should not have based our article on the USA Today story. Mr. Mahfouz, through his representatives, denies any involvement in financing Al-Qaeda or terrorism of any description.
In addition, the April 23, 2004 edition of The Progress Report also noted that "former CIA Director James Woolsey testified to the Senate on 9/3/98 that Mahfouz's sister was married to Osama bin Laden." While Woolsey did submit this testimony, he has since retracted it and acknowledged that he was in error. Mahfouz's sister is not married to Osama bin Laden and we apologize for our repetition of Mr. Woolsey's testimony.
Finally, the April 23, 2004 edition of The Progress Report noted that Mr. Mahfouz was a principal of the Bank of Credit and Commerce International (BCCI) and was indicted for conduct related to his involvement with BCCI. The Progress Report also noted that, according to U.S. officials who investigated the bank in the 1980s, "BCCI was the mother and father of terrorist financing operations." All these statements are accurate; however, representatives of Mr. Mahfouz believe that these statements created the incorrect impression that Mr. Mahfouz's indictment derived from BCCI's terrorist connections when they in fact arose from alleged violations of banking regulations. Although The Progress Report never claimed Mr. Mahfouz was linked to BCCI's financing of terrorism, we would like to dispel any impressions to the contrary. Mr. Mahfouz, through his representatives, denies any connections to any activities by BCCI that financed terrorism.