Booz Allen Hamilton Holding Corporation (NYSE:BAH) shares tanked on Monday after its employee Edward Snowden admitted to have leaked classified information on the National Security Agency’s surveillance programs to various media outlets. It indicates that Carlyle Group LP (NASDAQ:CG) still has significant ties with government agencies. The private equity firm has been trying hard for the past several years to get rid of its reputation as a specialist in purchasing defense firms and as a second home for government officials, reports Michael J. De La Merced of the New York Times.

Booz Allen Hamilton Logo

Booz Allen Hamilton Holding Corporation (NYSE:BAH) said in a statement that Snowden has been its employee for only about three months, working with a team in Hawaii. The government consultancy firm is working with government authorities and clients to investigate the leaks. It said that Edward Snowden’s act is a grave violation of Booz Allen’s core values and code of conduct.

Booz Allen and Carlyle Group

Booz Allen, in which Carlyle Group LP (NASDAQ:CG) owns 67.3 percent stake, is currently valued at about $2.6 billion. The leaks of highly confidential work at the National Security Agency, where Snowden was working on an assignment, has turned people’s attention to Carlyle Group. The private equity firm acquired it for $2.5 billion in 2008. It has proven a good investment for Carlyle Group as Booz Allen Hamilton Holding Corporation (NYSE:BAH)  paid over $612 million in special dividends before going public in 2010.

Booz Allen Hamilton Holding Corporation (NYSE:BAH) provides consultancy services to the government and corporate clients. The company has grown steadily over the past few years. It posted $219 million in profits on revenue of $5.8 billion for the year ending March 31. And the biggest part of its revenues have come from the federal government.

Strong Connections of Carlyle with Government

The company’s strong connections with the government are highlighted by the fact that the chief intelligence officer in the Obama Administration, James R. Clapper Jr. is a former executive at Booz Allen. John M. McConnell, the chief intelligence officer during the Bush Administration, now works for Booz Allen.

Despite the connections, Carlyle Group LP (NASDAQ:CG) has worked hard to put an end to questions about its influence over the U.S. government. In the past, the private equity firm has hired George H.W. Bush and James A. Baker III to focus on government contractors. But now it is known as a global private equity powerhouse with more than $176 billion of assets under management.

Booz Allen Hamilton Holding Corporation (NYSE:BAH) shares were down 2.94 percent to $17.47 at 3:32 PM EDT.