Giuliani Resigns As Chairman Of Firm Amid Controversy

Des Moines, IA (AHN) - Former New York City Mayor Rudy Giuliani has stepped down as chairman of his consulting firm, Giuliani Partners, after growing accusations against the Republican presidential contender of conflicts-of-interest.

The development was reported early Tuesday by the Wall Street Journal, which published a story in November alleging that a subsidiary of the firm called Giuliani Safety and Security recently provided the Qatar government, a current U.S. ally but previously accused of harboring suspected terrorists, with security advice to a large natural-gas processing facility in the Persian Gulf country.

The firm's new chairman is now Peter Powers, a close friend and former aide of Giuliani Partners, according to a company spokeswoman interviewed by the Associated Press.

Giuliani founded the firm in 2002 when he vacated his seat as mayor of New York. He has repeatedly declined to disclose his role in the company, or to provide a list of the firm's clients, since he began his bid for the White House.

"Everything I did with Giuliani Partners has been totally legal, totally ethical. They are a very ethical and law-abiding business ... There's nothing for me to explain about it. We've acted honorably, decently, " he told the AP the same week the Wall Street Journal story came out. "There are some things that a law firm and security firm do that are confidential. You can't release it because the client asks for confidentiality. We do sensitive work."

Earlier this year, Bloomberg had reported that Giuliani's law firm, Bracewell & Giuliani, allegedly earned $125,000 to $250,000 lobbying for Citgo, which is owned by outspoken U.S. critic Venezuelan president Hugo Chavez. Giuliani reportedly receives an annual income of $1 million from the firm.

Karen Finney, Communications Director for the Democratic National Committee, has said: "As the list of shady alliances grows, from the government of Qatar, to the pharmaceutical industry, to Hugo Chavez, so do the questions... Rudy should stop hiding the truth...his failure to come clean reads like the latest chapter in the Bush Republican culture of corruption."

A Des Moines poll released on Monday showed Giuliani at third place with 13 percent, after former Arkansas governor Mike Huckabee at 29 percent, and former Massachusetts Gov. Mitt Romney at 24 percent.