Schumer, Graham Announce Key Senate Panel On Eve Of Passing Their Measure To Sanction Companies That Sell Iran Technology To Spy On Its Citizens

Press Release

European Companies Have Sold Iran Cutting-Edge Systems That Enabled Regime to Jam Cell Phone Signals, Block Email, and Monitor Internet Activity During Last Spring's Presidential Election Protests

Schumer-Graham Legislation Would Bar Any International Company that Sells Such Technology to Iran from Securing US Gov't Contracts

Banking Chairman Dodd Included Measure As Part of Comprehensive Iran Sanctions Bill Scheduled For Mark-Up Tomorrow

WASHINGTON, DC -- U.S. Senators Charles E. Schumer (D-NY) and Lindsey Graham (R-SC) announced Wednesday that their legislation cracking down on companies that sell cyber-spy technology to the Iranian government is expected to pass the Senate Banking Committee tomorrow as part of a comprehensive Iran sanctions package. Schumer and Graham's measure would bar any foreign company that provides Iran's government with the technology to monitor or block internet or phone communications from receiving a U.S. government contract.

The measure is expected to come before the panel for a vote tomorrow as part of a comprehensive Iran sanctions bill offered by Banking Chairman Chris Dodd (D-CT).

"It's about time Congress took action to help the President and the Iranian people fight back against this violent, nuclear-hungry regime," said Schumer. "The government crackdown on its own citizenry last June showed just how far this government will go to stifle dissent and hide the extreme measures it must take to quite its citizenry. We can help undermine their authoritarian hold on their people by making sure the companies who profit from selling Iran this spy technology are not allowed to do business with the U.S government."

"Our legislation would weaken the Iranian regime's ability to control the Internet," said Graham. "The Internet has proven to be one of the strongest weapons in the hands of the Iranian people seeking freedom and trying to chart a new destiny for their country. Companies that provide technology to the Iranian regime to control the Internet must be forced to pay a heavy price. While strong statements made in support of the Iranian people are critically important, it is equally important to have strong action to aid their cause. Our legislation is a constructive proposal that empowers the people of Iran and weakens the regime."

Under Schumer and Graham's bill, the Administration would be required to identify foreign companies that export to Iran sensitive technology that jams or monitors communications. Those companies would not be allowed to apply for procurement contracts with the U.S. government, or renew expiring ones, unless they first terminated those exports to Iran. The President could waive this requirement if he determines that such a waiver would be in the national interest of the United States, but he would have to report to Congress on the reasons for the waiver.

Last June, Iranian citizens staged demonstrations protesting the results of the presidential election. The Iranian government used high-tech systems to spy on its citizens and stifle communications coming out of the country in an attempt to dismantle the protests and hide the violent, government crackdown from international critics. The spy technology used was installed by two major Western technology companies, Nokia and Siemems. While American companies are already banned from doing business with the Iranian government, there is no global effort to prevent companies from aiding the Iranian regime in its suppression of free speech.

According to a federal government spending website, Siemens has almost 2,000 contracts with the U.S. government, including 300 contracts with the Pentagon as well as other deals with the Department of Homeland Security, Department of Justice, and the Department of Energy. The deals total over $250 million in 2009 alone. The joint venture, Nokia Siemens Networks, has at least 6 contracts with the federal government, totaling $5 million.

Schumer and Graham's bill will be included in the Comprehensive Iran Sanctions, Accountability, and Divestment Act, which the Banking Committee is marking up this Thursday. Spearheaded by Dodd and Ranking member Richard Shelby (R-AL), this legislation will include provisions that will help the President fight Iran's nuclear and terrorist activities.

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