NATION : Meese Takes Stand for Wallach in Wedtech Racketeering Scandal

Former U.S. Atty. Gen. Edwin Meese III took the stand today as a witness for his longtime friend and former lawyer, E. Robert Wallach, who is charged with racketeering in the Wedtech scandal.

In testimony in U.S. District Court in Manhattan, Meese said Wallach, 55, told him in 1981, when Meese was a high-ranking adviser to President Ronald Reagan, that he was impressed by the Wedtech Corp. because it employed minorities in the slums of the South Bronx.

He said that Wallach had suggested it would be a good company for the Administration to spotlight in its proposals for urban enterprise zones.

Wedtech, once a small South Bronx machine shop, grew into a $100-million government contractor through a special Small Business Administration program that set aside contracts without competitive bidding for minority-controlled companies.

But evidence at earlier trials has shown that Wedtech continued to receive the no-bid contracts through a series of bribe schemes even after it ceased to be minority-owned. The company is defunct.

Meese has never been charged with any crimes in connection with the Wedtech case.

Meese said Wallach never asked him to give preferential treatment to Wedtech.

Wedtech’s former chairman, Fred Neuberger, testified at an earlier trial that Wedtech paid Wallach $300,000 while he was serving as Meese’s personal attorney during Meese’s confirmation hearings for the attorney general post.