Blackwater Founder: I Was Thrown Under Bus

(AP)  The man who built Blackwater USA into one of the world's most respected and reviled defense contractors feels that he was thrown under the bus after serving the nation's security interests for years.

Erik Prince's company, which renamed itself Xe Services in February after an uproar over its Iraq operations, has worked closely for years with the CIA, the State Department and the U.S. military. But it became the target of a series of federal investigations and congressional probes, primarily for its Iraq work. Most recently, officials disclosed that the CIA tapped the company to work under a program to capture or kill terrorists.

The 40-year-old heir to a Michigan auto parts fortune told Vanity Fair in an interview released Wednesday that Xe now pays $2 million a month in legal bills. The company is headquartered in Moyock in northeastern North Carolina,

"I put myself and my company at the CIA's disposal for some very risky missions," Prince told Vanity Fair for its January issue. "But when it became politically expedient to do so, someone threw me under the bus."

Prince likened his case to the leak of former CIA operative Valerie Plame's identity - a disclosure that led to a special prosecutor investigating the matter.

"Well, what happened to me was worse," Prince said. "People acting for political reasons disclosed not only the existence of a very sensitive program but my name along with it."

With his auto parts inheritance, Prince founded Blackwater in 1997 along with former colleagues from the Navy SEALs. After the Sept. 11 attacks, the company quickly developed a presence providing security and later won a lucrative contract to protect diplomats in Iraq.

A September 2007 shooting in a Baghdad square that led to federal charges against company contractors triggered outrage in Iraq and the United States and prompted the eventual State Department decision not to renew Blackwater's contract protecting diplomats in Iraq. Executives at the company bemoaned that the work had tarnished the company's image.

"The experience we've had would certainly be a disincentive to any other companies that want to step in and put their entire business at risk," Prince said in a 2008 interview with The Associated Press.

The company's work for the U.S. government was lucrative. The Iraq contract at one point consisted of one-third of company revenues, and executives have for years been eyeing a goal of $1 billion in annual revenues, although the privately owned company does not release financial figures.

Prince announced earlier this year that he would relinquish involvement in the company's day-to-day business as part of a management shake-up, and company spokeswoman Stacy DeLuke said Wednesday that Prince also plans to give up some of his ownership rights. He is considering becoming a high school teacher.

Joseph Yorio, recently a vice president at DHL and a former Army special forces officer, is Xe Services' new president and CEO. Danielle Esposito, who has worked within Xe for nearly 10 years, is serving as chief operating officer and executive vice president.

[WiseWidget]

He belongs in prison...or worse.

[PVperson2]

"I Was Thrown Under Bus"........oh but I wish that was literal.

[dwath]

lloydbest1. I am dithering on the computer and I need to get out the door, but, Re illegitimacy of (Iraq) war. I believe there were numerous reasons why this war was both moral and just. Time and space preclude getting into that arguement which is not the point of this forum. Unfortunately, the problem was always, "What does a dog do with the car when he catches it?" The Bush admin executed the war well but failed to do any significant planning for the victory. Also, they must have known the Shiites would be in power after the war ended and they are controlled from Iran. We are seeing this problem daily in Iraq now.

As to why pay more (MUCH MORE) for "mercenairy forces?" It is a simple answer. You pay more upfront but absolve yourself of the carry on expenses downline. It is actually pretty smart. Also, the nature of the people who do this job is they are very hard to control. You do not play these games unless you are a bit of a wildman. They (jobs) are too dangerous, they demand too much of your time (Divorce rates are beyond horrendous), you live in a constant state of high stress and keeping these guys on the range can be very tough. Many leave the service long before their 20 years are up. Further, the government lacks the flexibility to respond to the daily operational requirements. I can attest to that from one job where I had to keep people (military) guys in living cash. If we did it strictly by the book, the mission would have been over and done weeks before they would have had their money. We had to find ways to work around the system because you could not work through the system. Private companies are not constrained to the same extent as the government. There is some sort of inverse equation where The Bigger the Operation the Greater the Loss in Efficiency.

Having said that, I agree with the poster regarding management failures--not across the board--but in some instances w/ Blackwater. If you raise wild cattle, you better have some good cowboys in place to herd them and strong corrals to keep them on the range. That really is the area where I fault Blackwater.

Do keep in mind your term, "Under American Jurisdiction." We use a lot of tools to get the job done. Even in 1972, 3 and briefly late 74 when I was in Vietnam, we used civilian contractors. This is not something new.

Appreciate your respectful discourse.

[dwilson59]

While Backwater was operating was their any loss of US Diplomats that they were guarding? No..... I say Backwater did a good job. A lot of people Hate Erik Prince because yes he is rich and got his money from his Father. It is easy to hate him because he has it so easy. Did you know before the US went into Afghanistan Backwater was already there!

I guess what I am trying to say if you were worth a billion would you lay your life on the line for the US? A lot of people that hate him forget that he was a Navy SEAL. Just sit back and think for one min about what it takes to become a Navy SEAL, Father, Successful Businessman and a Patriot.

Just my thought!

[nomealaska]

There is more room under the bus! Halliburten Inc., Dick Cheney, W .

[Oregon_State_OSU]

OH WWWWWWaaaaaaa Blackwater Founder: I Was Thrown Under Bus, How Sad.

I am so sorry you were thrown under the Bus with the Money you have been making for the last 8+ years on the tax payers backs.

I hope the bus runs you over !

[fedup12]

amen to that. W's admin had to deflect some blame from themselves you were the most likely target.

I think you and Scooter should now throw W and Cheney under the bus. Ol good ol Scooter is too good an ol boy to do that tho.

[CarlosdelGato]

Just like almost every "business" these days, they are run in a very sophomoric manner by those in charge and when chaos happens they need to lay the blame somewhere else. BLACKWATER may have done some good but at the same time the lack of a consistent management presence and a structure that MADE their employees follow the law and the company's procedures they too got their A-S-S-E-S in a wringer - and Prince won't take responsibility; he has to lay the blame at the feet of others.

So that's why he changed the name of his company - "it was their fault, not mine" he was heard crying.

[Skruffy1]

Awwwww, poor, poor, Erik. While he's under that bus, would somebody please fire it up and put it in gear?

[liberalme]

Obviously he wasn't thrown far enough under the bus--he's still operating.

[thesevenveils]

Karma put him where he belongs.