This was on Lou Dobbs last night and this is what Gregory Kutz said :
GREGORY KUTZ, GAO INVESTIGATOR: You have nuclear applications, guided-missile applications, improvised explosive devices potentially being used in Iraq against our own soldiers.

[quote:3u85lf1c]
/TRANSCRIPTS/0906/04/ldt.01.html
(COMMERCIAL BREAK)

DOBBS: Congressional investigators today confirmed what we've been reporting here for years, that terrorists and foreign spies can easily obtain some of our most sensitive military technologies and obtain them, of course, legally. The Government Accountability Office set up fake companies. They bought U.S. military equipment, and then they shipped it overseas. Some of that equipment can be used in nuclear weapons. Chris Lawrence reports from the Pentagon.

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN CORRESPONDENT (voice-over): You don't need night-vision goggles to see there's a problem here -- American companies selling these lenses and other weapons parts to potentially hostile governments and terrorists.

GREGORY KUTZ, GAO INVESTIGATOR: You have nuclear applications, guided-missile applications, improvised explosive devices potentially being used in Iraq against our own soldiers.

LAWRENCE: The Government Accountability Office says American parts are bought, sold, and sent who knows where.

UNIDENTIFIED MALE: They're items that were shipped to places like Pakistan, China, and Iran or Hezbollah.

LAWRENCE: To prove the lack of oversight, GAO investigators set up a fake company, address and e-mail. They used a credit card to buy parts from American companies, like equipment used in smart bombs. These chips helped steer guided missiles and even after a real American company was punished for selling them to China, GAO's fake company got an order for 10.

UNIDENTIFIED MALE: We never really had to meet with anybody, talked to them on the phone.

LAWRENCE: Some parts were strictly military, others had dual uses. This high voltage switch has medical applications; it can also be used to detonate nuclear weapons. The GAO got approval for 100.

REP. BETTY SUTTON (D), OHIO: It's as if our own country has become a terrorist bazaar.

LAWRENCE: Some distributors do ask buyers to sign an end-use agreement, which just states how you plan to use the equipment. UNIDENTIFIED MALE: So, if I wanted to do something bad, with what I got, I'd just sign this and say I promise not to use this to create a nuclear, biological or chemical weapon, honest.

(CROSSTALK)

UNIDENTIFIED MALE: Signed Osama bin Laden. It would be believable and enforceable.

UNIDENTIFIED MALE: Well, we signed it in all cases, and I don't believe there are any other checks done.

LAWRENCE: But there are hardly any restrictions on buying this equipment in the U.S., so the distributors who sold to GAO's fake company didn't break any laws.

UNIDENTIFIED MALE: The scandal here may be what is legal, not what is illegal.

(END VIDEOTAPE)

LAWRENCE: Now, you're not allowed to export a lot of this stuff, but the GAO proved that's laughable. Investigators shipped fake, dummy versions of some of the chips and smart bomb equipment that they bought to a country in Southeast Asia, a country known to be a transit point for terrorists. And, Lou, they did it all from the post office and FedEx right here in Washington, D.C.

DOBBS: Quite a government, huh? Chris, thank you very much -- Chris Lawrence reporting from the Pentagon.

[/quote:3u85lf1c]
http://transcripts.cnn.com