Army Probes Wide-Ranging Contractor Fraud
Officials Open Nearly 50 Investigations Of Battlefield Contractors Involved In Iraq
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A private contractor gestures to their colleagues flying over in a helicopter as they secure the scene of a roadside bomb attack in Baghdad, Iraq Tuesday, July 5, 2005. (AP)
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Senior contracting officials, government employees, residents of other countries and, in some cases, U.S. military personnel have been implicated in millions of dollars of fraud allegations.
“All of these involve operations in Iraq, Afghanistan and Kuwait,” Chris Grey, a spokesman for the U.S. Army Criminal Investigation Command, confirmed Saturday to the AP.
“CID agents will pursue leads and the truth wherever it may take us,” Grey said. “We take this very seriously.”
Battlefield contractors have been implicated in allegations of fraud and abuse since the war in Iraq began in spring 2003. A special inspector general office that focused solely on reconstruction spending in Iraq developed cases that led to four criminal convictions.
The problems stem in part from the Pentagon's struggle to get a handle on the unprecedented number of contractors now helping run the nation's wars. Contractors are used in battle zones to do nearly everything but fight. They run cafeterias and laundries for troops, move supplies, run communication systems and repair weapons systems.
Special agents from the Army's major procurement fraud unit recently were dispatched to Iraq, Afghanistan and Kuwait, where they are “working closely and sharing information with other law enforcement agencies in the region,” Grey said.
One case involves an Army chief warrant officer accused of taking a $50,000 bribe to steer a contract for paper products and plastic flatware away from a government contractor and to a Kuwaiti company, according to an indictment unsealed Thursday in federal court at Rock Island, Ill.
Prosecutors say the officer took the bribe while at Camp Arifjan in Kuwait, while he was the Army's food service adviser for Iraq, Afghanistan and Kuwait, according to the indictment. The officer is also accused of trying to smuggle $40,000 in undeclared cash into the United States on a December 2005 flight from Kuwait to Dover, Del.
Other cases involve a government officer manipulating a contract in exchange for large bridges, a contractor making false claims against the government and an official accepting gratuities. The cases range in type, seriousness and complexity and involve contractors both inside and outside the United States.
The Pentagon has viewed outsourcing a wide variety of military tasks as much more efficient, leaving troops trained in combat to the business of war.
But the Government Accountability Office reported in December that the military has been losing millions of dollars because it cannot monitor industry workers in far-flung locations.
The Defense Department's inability to manage contractors effectively has hurt military operations and unit morale and cost the Pentagon money, the GAO said.
Some 60,000 contractors have been supporting the Army in Southwest Asia, which includes Iraq. That compares with 9,200 contractors in the 1991 Persian Gulf War.
Commanders are often unsure how many contractors use their bases and require food, housing and protection, according to the report. One Army official said the service estimates losing about $43 million each year on free meals provided to contractors who also get a food allowance.
The new Democratic Congress plans to ramp up oversight of the billions of dollars being spent in Iraq, including dollars awarded to contractors. Rep. Ike Skelton, D-Mo., chairman of the House Armed Services Committee, has said he plans to target contractor abuse.
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Best-selling author Mitch Albom on his first nonfiction work since "Tuesdays with Morrie."





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See all 25 CommentsThis operational site is "Managed" by a retired WO-5, now making $150,000 a year, but is too st............
1944, I have a serious reason for this inquiry. Is this W0-5"s first initial a "D" as in David ?????????
* Environmental: Water well systems would be compromised with generators leaking oil and or fuel being spilt nearby. *Health: Discovered contaminated sources.(ie Chromium 6, Water, Fuel, Silicosis, Histoplasmosis etc. ) in populated US Military settings also having US civilians working in these areas, the lack of urgency and complacency of those in charge, both military and civilian, bordered on criminal. The tests were always in favor of those so eager to put the situation behind them.
*Safety; Minimal at best.*Human Rights: Contractor from other countries gather in this environment and create at times what I call the %u201CLord of the Flies%u201D society. The losers and the ones on the bottom are the Local Nationals. They will put up with the most severe abuses so that they can provide for their family*Waste: A whole host of waste in many %u201Crehabilitation%u201D projects. The truth is that most projects have had huge delays and waste because of mismanagement, extortion, embezzlement and corruption.
I was penalized (threatened &terminated) internally for bringing these issues up with both the contractor and the military.
BUSH BUSINESS VENTURE REAPS GLOBAL PROFITS!!
Quit covering these animals in the Middle East and let them butcher themselves off camera. We have spent 50 years of time blood and money trying to civilize them to western standards and it does not work. Do they own your Job or what? Quit Covering them!
Just as the greed of the Bu$h administration is never satisfied.
History will never be kind to the USA for the huge abortion called Iraq.
If Bu$h is allowed to invade Iran, the abortion will be named Armageddon....
Anybody catch how Bush consistently presents himself as a modern-day Truman: low poll numbers but the gumption to fight the good fight. What a joke! Truman was an unknown senator from Missouri who ecked out an election in 1940. When the war ramped up and we converted our industries over to war production, Truman knew that rampant fraud not only cost us money but jeopardized the safety of the troops. The select committee formed to investigate came to be known as the Truman Committee. Truman personally drove all over the country to inspect plants, military bases, etc. to make sure war profiteering did not damage the war effort. He saved billions of dollars and countless lives. George Bush, I hate to break it to you pal, but you ain't got a drop of Truman in you.
Posted by bellaL at 12:59 AM : Jan 28, 2007
And you are including Halliburton, correct?
Posted by haneyr at 07:43 AM
Our founding father never anticipated the professional politician. Thus, we have no constitutional term limit provision except for the presidency which was written in because many feared Washington would stay on until death.
When the constitution was framed, representatives left their farm or business, went to serve as a citizen and then returned to their private life.
I'm with you - one term and out.
Quit covering these animals in the Middle East and let them butcher themselves off camera. We have spent 50 years of time blood and money trying to civilize them to western standards and it does not work. Do they own your Job or what? Quit Covering them!
OK here is your chance, don%u2019t just set in front of your computer and complain spouting meaningless rants of sludge, do something about it! This is the contact address for your Senator! Send them a message of your opinion. All Class Two Senators are up for Reelection in 2008. Be respectful even if they do not deserve it because their office does! http://www.senate.gov/general/contact_in
formation/senators_cfm.cfm
Warfare is supported only by the right wing republicans and we lose billions of dollars in fraud.
Welfare is supported only by the left wing democrats and we lose billions of dollars in fraud.
So everyone stop your whining. Corruption is not a political idealogy but a human failing. You don't like it then do something more than cuddle up to a group of people that are just as corrupt at the pork barrell as the other.
My solution is term limits on all politicians. Greed is a disease that grows with time and the only vacine is termination.
Flat taxes on everyone who works or makes money in the USA period. No deductions. You work harder you keep more. You don't work you get workfare.
Accountability is the key word here. And I agree with the person who said throw the crooks in jail. We are too quick to seek financial damages than personal responsibility. And here is where my last suggestion comes in. Penal colonies where they work to live.
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