State Dept. Extends Blackwater Contract in Iraq

Raw Story

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By Stephen C. Webster

Published: September 2, 2009

The mercenary group formerly known as Blackwater International, which was banned from Iraq by its government after a Baghdad massacre which killed 17 civilians, will see its contract extended in the country by the U.S. State Department, according to a published report.

ABC News reporter Kirit Radia notes: “Sources say the department has agreed to temporarily continue using the subsidiary known as Presidential Airways to provide helicopter transport for embassy employees around Iraq until a new contract with another security company, Dyncorp International, is fully implemented. Presidential Airways is an arm of U.S. Training Center, which is a subsidiary of the company Xe, formerly and still commonly known as Blackwater.”

Controversy has surrounded the private security firm practically since it was founded, but erupted anew recently when former employees accused Blackwater’s founder and former CEO of murdering or facilitating the murders of other employees who were preparing to blow the whistle on his alleged criminal activities.

The sworn statements also say that founder Erik Prince and Blackwater executives were involved in illegal weapons smuggling and had, on numerous occasions, ordered incriminating documents, e-mails, photos and video destroyed. The former employees described Blackwater as “having young girls provide oral sex to Enterprise members in the ‘Blackwater Man Camp’ in exchange for one American dollar.” They add even though Prince frequently visited this camp, he “failed to stop the ongoing use of prostitutes, including child prostitutes, by his men.”

One of the statements also charges that “Prince’s North Carolina operations had an ongoing wife-swapping and sex ring, which was participated in by many of Mr. Prince’s top executives.”

The former employees additionally claim that Prince was engaged in illegal arms dealing, money laundering, and tax evasion, that he created “a web of companies in order to obscure wrong-doing, fraud, and other crimes,” and that Blackwater’s chief financial officer had “resigned … stating he was not willing to go to jail for Erik Prince.”

The company was also allegedly involved in the planning stages of the CIA’s assassination program, which was reportedly never used, then scrapped by CIA chief Leon Panetta.

Prince has repeatedly insisted his company has done nothing wrong and Blackwater continues to fulfill its contracts with the United States government.

For the massacre of Iraqi civilians, five Blackwater guards were arrested and charged with manslaughter. A sixth guard flipped and agreed to testify against the others. Government informants later claimed the company tried to gather up and destroy weapons involved in the slaughter.

The State Department announced last January that it would not be renewing Blackwater’s contract for security services in Iraq when it was set to expire in May, however the Obama administration decided to extend it through Sept. 3, according to The Nation Jeremy Scahill.

ABC reported the new contract extension is for an unspecified amount of time and could end “within weeks or months.”

When it is finally allowed to expire, Blackwater’s involvement with Iraq will have ended, completely.

Thomas Ricks Plays Propaganda Point-Man on Pentagon Plan for Permanent U.S. Bases in Iraq

The Official Failures of Rebuilding Iraq

Official history details failures of rebuilding Iraq
Sunday, December 14, 2008
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BAGHDAD: An unpublished, 513-page federal history of the U.S.-led reconstruction of Iraq depicts an effort crippled before the invasion by Pentagon planners who were hostile to the idea of rebuilding a foreign country, and then molded into a $100 billion failure by bureaucratic turf wars, spiraling violence and ignorance of the basic elements of Iraqi society and infrastructure.

“Hard Lessons: The Iraq Reconstruction Experience,” the first official account of its kind, is circulating in draft form here and in Washington among a tight circle of technical reviewers, policy experts and senior officials. It also concludes that when the reconstruction began to lag – particularly in the critical area of rebuilding the Iraqi police and army – the Pentagon simply put out inflated measures of progress to cover up the failures.

In one passage, for example, former Secretary of State Colin Powell is quoted as saying that in the months after the 2003 invasion, the Defense Department “kept inventing numbers of Iraqi security forces – the number would jump 20,000 a week! ‘We now have 80,000, we now have 100,000, we now have 120,000.”‘

Powell’s assertion that the Pentagon inflated the number of competent Iraqi security forces is backed up by Lieutenant General Ricardo Sanchez, the former commander of ground troops in Iraq, and L. Paul Bremer 3rd, the top civilian administrator until an Iraqi government took over in June 2004.

Among the overarching conclusions of the history is that five years after embarking on its largest foreign reconstruction project since the Marshall Plan in Europe after World War II, the U.S. government has in place neither the policies and technical capacity nor the organizational structure that would be needed to undertake such a program on anything approaching this scale.

The bitterest message of all for the reconstruction program may be the way the history ends. The hard figures on basic services and industrial production compiled for the report reveal that for all the money spent and promises made, the rebuilding effort never did much more than restore what was destroyed during the invasion and the convulsive looting that followed.

By mid-2008, the history says, $117 billion had been spent on the reconstruction of Iraq, including some $50 billion in U.S. taxpayer money.

The history contains a catalog of new revelations that show the chaotic and often poisonous atmosphere prevailing in the reconstruction effort.

When the Office of Management and Budget balked at the U.S. occupation authority’s abrupt request for about $20 billion in new reconstruction money in August 2003, a veteran Republican lobbyist working for the authority made a bluntly partisan appeal to Joshua Bolten, then the Office of Management and Budget director and now the White House chief of staff. “To delay getting our funds would be a political disaster for the President,” wrote the lobbyist, Tom Korologos. “His election will hang for a large part on show of progress in Iraq and without the funding this year, progress will grind to a halt.” With administration backing, Congress allocated the money later that year.

In an illustration of the hasty and haphazard planning, a civilian official at the U.S. Agency for International Development was at one point given four hours to determine how many miles of Iraqi roads would need to be reopened and repaired. The official searched through the agency’s reference library, and his estimate went directly into a master plan. Whatever the quality of the agency’s plan, it eventually began running what amounted to a parallel reconstruction effort in the provinces that had little relation with the rest of the U.S. effort.

Money for many of the local construction projects still under way is divided up by a spoils system controlled by neighborhood politicians and tribal chiefs. “Our district council chairman has become the Tony Soprano of Rasheed, in terms of controlling resources,” said a U.S. Embassy official working in a dangerous Baghdad neighborhood, referring to the popular TV mob boss. “‘You will use my contractor or the work will not get done.”‘

The United States could soon have reason to consult this cautionary tale of deception, waste and poor planning, as both troop levels and reconstruction efforts in Afghanistan are likely to be stepped up under the new administration.

The incoming Obama administration’s rebuilding experts are expected to focus on smaller-scale projects and emphasize political and economic reform. Still, such programs do not address one of the history’s main contentions: that the reconstruction effort has failed because no single agency in the U.S. government has responsibility for the job.

Five years after the invasion of Iraq, the history concludes, “the government as a whole has never developed a legislatively sanctioned doctrine or framework for planning, preparing and executing contingency operations in which diplomacy, development and military action all figure.”

“Hard Lessons” was compiled by the Office of the Special Inspector General for Iraq Reconstruction, led by Stuart Bowen Jr., a Republican lawyer who regularly travels to Iraq and has a staff of engineers and auditors based here. Copies of several drafts of the history were provided to reporters at The New York Times and ProPublica by two people outside the inspector general’s office who have read the draft but are not authorized to comment publicly.

Bowen’s deputy, Ginger Cruz, declined to comment for publication on the substance of the history. But she said it would be presented Feb. 2 at the first hearing of the Commission on Wartime Contracting, which was created this year as a result of legislation sponsored by Senators Jim Webb of Virginia and Claire McCaskill of Missouri, both Democrats.

The manuscript is based on about 500 new interviews, as well as more than 600 audits, inspections and investigations on which Bowen’s office has reported individually over the years. Laid out for the first time in a connected history, the material forms the basis for broad judgments on the entire rebuilding program.

In the preface, Bowen gives a searing critique of what he calls the “blinkered and disjointed prewar planning for Iraq’s reconstruction” and the botched expansion of the program from a modest initiative to improve Iraqi services to a multibillion-dollar enterprise.

Bowen also swipes at the endless revisions and reversals of the program, which at various times gyrated from a focus on giant construction projects led by large Western contractors to modest community-based initiatives carried out by local Iraqis. While Bowen concedes that deteriorating security had a hand in spoiling the program’s hopes, he suggests, as he has in the past, that the program did not need much outside help to do itself in.

Despite years of studying the program, Bowen writes that he still has not found a good answer to the question of why the program was even pursued as soaring violence made it untenable. “Others will have to provide that answer,” Bowen writes.

“But beyond the security issue stands another compelling and unavoidable answer: The U.S. government was not adequately prepared to carry out the reconstruction mission it took on in mid-2003,” he concludes.

The history cites some projects as successes. The review praises community outreach efforts by the Agency for International Development, the Treasury Department’s plan to stabilize the Iraqi dinar after the invasion and a joint effort by the Departments of State and Defense to create local rebuilding teams.

But the portrait that emerges overall is one of a program’s officials operating by the seat of their pants in the middle of a critical enterprise abroad, where the reconstruction was supposed to convince the Iraqi citizenry of U.S. good will and support the new democracy with lights that turned on and taps that flowed with clean water. Mostly, it is a portrait of a program that seemed to grow exponentially as even those involved from the inception of the effort watched in surprise.

On the eve of the invasion, as it began to dawn on a few U.S. officials that the price for rebuilding Iraq would be vastly greater than they had been told, the degree of miscalculation was illustrated in an encounter between Donald Rumsfeld, then the defense secretary, and Jay Garner, the retired lieutenant general who had hastily been named the chief of what would be a short-lived civilian authority called the Office of Reconstruction and Humanitarian Assistance.

The history records how Garner presented Rumsfeld with several alternative rebuilding plans, including one that would include projects across Iraq.

“What do you think that’ll cost?” Rumsfeld asked of the more expansive plan.

“I think it’s going to cost billions of dollars,” Garner said.

“My friend,” Rumsfeld replied, “if you think we’re going to spend a billion dollars of our money over there, you are sadly mistaken.”

In a way he never anticipated, Rumsfeld turned out to be correct: Before that year was out, the United States had appropriated more than $20 billion for the reconstruction, which would indeed involve projects across the entire country.

Rumsfeld declined comment on the report, but a spokesman, Keith Urbahn, said quotes attributed to him in the document “appear to be accurate.” Powell also declined to comment.

The secondary effects of the invasion and its aftermath were among the most important factors that radically changed the outlook. Tables in the history show that measures of things like the production of electricity and oil; public access to potable water, mobile and landline telephone service; and the presence of Iraqi security forces all plummeted at least 70 percent, and in some cases all the way to zero, in the weeks after the invasion. Subsequent tables in the history give a fast-forward view of what happened as the avalanche of money tumbled into Iraq over the next five years. By the time a sovereign Iraqi government took over from the Americans in June 2004, none of those services – with a single exception, mobile phones – had returned to prewar levels. And by the time of the security improvements in 2007 and 2008, electricity output had, at best, a precarious 10 percent lead on its levels under Saddam Hussein; oil production was still below prewar levels; and access to potable water had increased about 30 percent, although with the nation’s ruined piping system it was unclear how much actually reached people’s homes uncontaminated.

Whether the rebuilding effort could have succeeded in a less violent setting will never be known. In April 2004, thousands of the Iraqi security forces that had been oversold by the Pentagon were overrun, abruptly mutinied or simply abandoned their posts as the insurgency broke out, sending Iraq down a violent path from which it has never completely recovered.

At the end of his narrative, Bowen chooses a line from “Great Expectations” by Charles Dickens as the epitaph of the U.S.-led attempt to rebuild Iraq: “We spent as much money as we could, and got as little for it as people could make up their minds to give us.”

James Glanz reported from Baghdad, and T. Christian Miller, of the nonprofit investigative Web site ProPublica, reported from Washington.

General Barry McCaffrey Exposed For The Ultimate Spineless Shill That He Is

THE NEW YORK TIMES

November 30, 2008

One Man’s Military-Industrial-Media Complex

In the spring of 2007 a tiny military contractor with a slender track record went shopping for a precious Beltway commodity.

The company, Defense Solutions, sought the services of a retired general with national stature, someone who could open doors at the highest levels of government and help it win a huge prize: the right to supply Iraq with thousands of armored vehicles.

Access like this does not come cheap, but it was an opportunity potentially worth billions in sales, and Defense Solutions soon found its man. The company signed Barry R. McCaffrey, a retired four-star Army general and military analyst for NBC News, to a consulting contract starting June 15, 2007.

Four days later the general swung into action. He sent a personal note and 15-page briefing packet to David H. Petraeus, the commanding general in Iraq, strongly recommending Defense Solutions and its offer to supply Iraq with 5,000 armored vehicles from Eastern Europe. “No other proposal is quicker, less costly, or more certain to succeed,” he said.

Thus, within days of hiring General McCaffrey, the Defense Solutions sales pitch was in the hands of the American commander with the greatest influence over Iraq’s expanding military.

“That’s what I pay him for,” Timothy D. Ringgold, chief executive of Defense Solutions, said in an interview.

[Read more…]

President-Elect Barack Obama’s Press Conference | Dec 1 2008

Part Two

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