WASHINGTON, Nov. 11, 2009

Report: Blackwater Sent $1M Bribe to Iraq

Former Top Execs Tell New York Times Contractor Wanted to Buy Officials' Silence After Civilian Deaths

  • Gary Jackson, President of Blackwater Worldwide, is seen at Blackwater's offices in Moyock, N.C., July 21, 2008.

    Gary Jackson, President of Blackwater Worldwide, is seen at Blackwater's offices in Moyock, N.C., July 21, 2008.  (AP Photo/Gerry Broome)

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(AP)  Former top executives at Blackwater Worldwide say the U.S. security contractor sent about $1 million to its Iraq office with the intention of paying off officials in the country who were angry about the fatal shootings of 17 civilians by Blackwater employees, The New York Times reported Tuesday.

Four former executives described the plan under the condition of anonymity, the newspaper said.

Iraqis had long complained about ground operations by the North Carolina-based company, now known as Xe Corp. Then the shooting by Blackwater guards in Baghdad's Nisoor Square in September 2007 left 17 civilians dead, further strained relations between Baghdad and Washington and led U.S. prosecutors to bring charges against the Blackwater contractors involved.

The State Department has since turned to DynCorp and another private security firm, Triple Canopy, to handle diplomatic protective services in the country. But Xe continues to provide security for diplomats in other nations, most notably in Afghanistan.

The former executives told the Times that the payments were approved by the company's then-president, Gary Jackson. They did not know if he came up with the idea.

It's also not clear whether the payments were actually delivered, or which Iraqi officials were intended to receive them. Any payments would have been illegal under the U.S. Foreign Corrupt Practices Act, which bans bribes to foreign officials. The company has paid legitimate compensation to several victims of the shootings, the Times reported.

Two of the former executives said they were directly involved in discussions about paying Iraqi officials, and the other two said they were told about the discussions by others at Blackwater.

Jackson, who resigned as president of Blackwater early this year, criticized the newspaper when reached by phone and said, "I don't care what you write."

Xe spokesman Mark Corallo said the company disputes "these baseless allegations" and had no comment on former employees.

The plan to pay Iraqi officials caused a rift within the company, the former executives said.

They said ex-Blackwater vice chairman Cofer Black, a former top CIA and State Department official, learned of the plan while in Baghdad discussing compensation with U.S. Embassy officials. The sources said he confronted Prince, who acknowledged the plan, and Black resigned the next year.

But in a statement to The Associated Press late Tuesday, Black said he never confronted Prince "or any other Blackwater official regarding any allegations of bribing Iraqi officials and was unaware of any plot or guidance for Blackwater to bribe Iraqi officials."

Five Blackwater guards involved in the Nisoor Square shooting are scheduled to face trial on federal manslaughter charges in February in Washington. A sixth guard pleaded guilty in December. Iraqi victims are also suing the company and its founder, Erik Prince.

The Iraqi government suspended the firm's license after the shooting and demanded that Blackwater be expelled from the country within six months. Iraqi authorities denied Xe an operating license in early 2009, but the company has continued to have some presence in the country. In September, the State Department announced it had extended a contract with a Xe subsidiary to provide air support for protecting U.S. diplomats in Iraq.

A wide-ranging federal grand jury investigation is being conducted on Xe's operations. The U.S. Attorney's Office in Raleigh declined to comment to the Times on the probe and did not return calls seeking comment Tuesday evening by The Associated Press.

Several former Blackwater employees told the Times they have been interviewed by prosecutors or the grand jury on various topics, including alleged weapons smuggling. Two former employees have pleaded guilty to weapons charges and are believed to be cooperating with prosecutors.

© MMIX, The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
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by veteran71 November 15, 2009 12:30 AM EST
Go read about "Dick Cheney and the Self-Licking Ice Cream Cone".
Cheney single-handedly concocted, designed, and implimented, the private war contractor system, WHILE he was Sec of Defense in Poppy Shrub's Administration......AND, the Taxpayers PAYED HIM TO DO IT!!!!!!!!!!
If you hear a Reich Wingnut Clown Party drooler ranting about Obama's expensive socialist agenda, and how Shrub and Darth kept 'Merr'ca safe, just bit*h-slap the nitwit.....
Reply to this comment
by talltimber41 November 11, 2009 1:34 PM EST
Edgar (now deceased) and Elsa Prince (now remarried) did not raise their children to be what Eric turned into, I believe. The children are second generation wealth and I think it corrupted them. They were raised to be patriotic and conservative and value life, but I fear Eric became tainted.
Reply to this comment
by sleepyric November 11, 2009 11:48 AM EST
This type of "company" should be illegal. Imagine a coup in this country by someone like Cheney, with muscle provided by the religious nut right wing president of Blackwater. Think that can't happen?? Think some more. Crazier things have happened. Mercs. No honor or allegience except to the big bloody paycheck.
Reply to this comment
by AK-47_Justice November 11, 2009 11:42 AM EST
by unbanable:
How does SeeBS justify trying to link his resignation with this ordeal?
*********************************





Hey einstein --this is an Associated Press story so the CBS attacks are baseless, and just because you didn't hear it on the murdoch propaganda network, doesn't make it false.

Besides, "four former top executives at Blackwater Worldwide say the U.S. security contractor sent about $1 million to its Iraq office with the intention of paying off officials in the country who were angry about the fatal shootings of 17 civilians by Blackwater employees," is the largest part of this story -- not a silly resignation by a top christian crusader for the blackwater thugs!
Reply to this comment
by AK-47_Justice November 11, 2009 11:35 AM EST
Former top executives at Blackwater Worldwide say the U.S. security contractor sent about $1 million to its Iraq office with the intention of paying off officials in the country who were angry about the fatal shootings of 17 civilians by Blackwater employees
********************************************





So top executives of the blackwater killers are spilling the beans about the bushie christian crusade against the Muslims, and the murdoch propaganda network fails to report this breaking news!

Oh that's right -- they are still reporting non-stop on the usual attacks against President Obama, since they are still whining about losing the 2008 election! What sore losers we have in America!
Reply to this comment
by lovenpeace1 November 11, 2009 11:20 AM EST
American Greed At Work

Please do not Disturb
Reply to this comment
by jimbom121 November 11, 2009 10:59 AM EST
No shocker here...Blackwater is about as corrupt as you get. Too bad Acorn gets more press than these crooks
Reply to this comment
by johns6797 November 11, 2009 10:44 AM EST
It is high time to quit f'g around with Blackwater. Hit them with a charge of bribery and then hit them with a fine equivalent to what the US government has paid them over the years and get the taxpayers money back from these mercenaries....and put a dent in the deficit too while we're at it.
Reply to this comment
by hungry1968-17 November 11, 2009 10:40 AM EST
It's more pathetic and sad, than it is funny, that idiots like chevyhotrod sit here and defend "crony capitalism", while it's breaking our national bank.



And he compares the HUNDREDS OF BILLIONS spent in Iraq, with the TENS OF MILLIONS spent in Bosnia, like that's some sort of fair and even comparison, all while ignoring the fact that our military used to do those same services - fuel supply, food supply, laundry, etc - much, much more effectively, and at 1/5 the cost.
Reply to this comment
by hungry1968-17 November 11, 2009 10:28 AM EST
by chevyhotrod November 11, 2009 9:34 AM EST
hey hungry,
Why don't you libs tell the whole story? Go back and read what was happening with Haliburton during the Clinton administration?

http://www.freerepublic.com/focus/f-news/1184989/posts

very interesting read, you should do some research before you scream Cheney-Haliburton-no bid-blah-blah-blah

And liberials only tell you what they think is the truth, I wonder why?







So YOUR contention is that a website that posts several comments from no name / never heard of individuals, is proof of something?

Here's a MUCH BETTER link for you:

http://www.cbsnews.com/stories/2003/04/25/60minutes/main551091.shtml
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