Blackwater Created Shell Companies, NYT Reports
The security company Blackwater Worldwide formed a network of 30 shell companies and subsidiaries to try to get millions of dollars in government business after the company faced strong criticism for reckless conduct in Iraq, The New York Times reported Friday.
The newspaper said that it was unclear how many of the created companies got American contracts but that at least three of them obtained work with the U.S. military and the CIA.
Sen. Carl Levin, chairman of the Senate Armed Services Committee, has asked the Justice Department to see whether Blackwater misled the government when using the subsidiaries to gain government contracts, according to the Times.
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It said Levin's committee found that North Carolina-based Blackwater, which now is known as Xe Services, went to great lengths to find ways to get lucrative government work despite criminal charges and criticism stemming from a 2007 incident in which Blackwater guards killed 17 Iraqi civilians. A committee chart outlines the web of Blackwater subsidiaries.
Messages left late Friday with spokespeople for the Michigan Democrat and Xe were not immediately answered.
The 2007 incident and other reports of abuses by Blackwater employees in Iraq led to criminal investigations and congressional hearings, and resulted in the company losing a lucrative contract with the State Department to provide security in Iraq.
But recently the company was awarded a $100 million contract to provide security for the agency in Afghanistan, prompting criticism from some in Congress. CIA Director Leon Panetta said that the CIA had no choice but to hire the company because it underbid others by $26 million and that a CIA review concluded that the contractor had cleaned up its act.
Last year, Panetta canceled a contract with Xe that allowed the company's operatives to load missiles on Predator drones in Pakistan, and shifted the work to government personnel.
However, the Times quoted former Blackwater officials as saying that at least two Blackwater-affiliated companies, XPG and Greystone, obtained secret contracts from the CIA to provide security to agency operatives.
The newspaper said the network of subsidiaries, including several located in offshore tax havens, were uncovered as part of the Armed Services Committee's examination of government contracting and not an investigation solely into Blackwater. But Levin questioned why Blackwater would need to create so many companies with various names to seek out government business, according to the Times.
The report quoted unidentified government officials and former Blackwater employees as saying that the network of companies allowed Blackwater to obscure its involvement in government work from contracting officials and the public, and to ensure a low profile for its classified activities.
AP The newspaper said that it was unclear how many of the created companies got American contracts but that at least three of them obtained work with the U.S. military and the CIA.
Sen. Carl Levin, chairman of the Senate Armed Services Committee, has asked the Justice Department to see whether Blackwater misled the government when using the subsidiaries to gain government contracts, according to the Times.
More Blackwater Coverage
Blackwater Founder Gives Fraud Suit Statements
Blackwater Firm to Pay Gov't $42M in Fines
Blackwater Firm Gets $120M U.S. Gov't Contract
"60 Minutes" | The Flight and Crash of "Blackwater 61"
"60 Minutes" | Blackwater 61
It said Levin's committee found that North Carolina-based Blackwater, which now is known as Xe Services, went to great lengths to find ways to get lucrative government work despite criminal charges and criticism stemming from a 2007 incident in which Blackwater guards killed 17 Iraqi civilians. A committee chart outlines the web of Blackwater subsidiaries.
Messages left late Friday with spokespeople for the Michigan Democrat and Xe were not immediately answered.
The 2007 incident and other reports of abuses by Blackwater employees in Iraq led to criminal investigations and congressional hearings, and resulted in the company losing a lucrative contract with the State Department to provide security in Iraq.
But recently the company was awarded a $100 million contract to provide security for the agency in Afghanistan, prompting criticism from some in Congress. CIA Director Leon Panetta said that the CIA had no choice but to hire the company because it underbid others by $26 million and that a CIA review concluded that the contractor had cleaned up its act.
Last year, Panetta canceled a contract with Xe that allowed the company's operatives to load missiles on Predator drones in Pakistan, and shifted the work to government personnel.
However, the Times quoted former Blackwater officials as saying that at least two Blackwater-affiliated companies, XPG and Greystone, obtained secret contracts from the CIA to provide security to agency operatives.
The newspaper said the network of subsidiaries, including several located in offshore tax havens, were uncovered as part of the Armed Services Committee's examination of government contracting and not an investigation solely into Blackwater. But Levin questioned why Blackwater would need to create so many companies with various names to seek out government business, according to the Times.
The report quoted unidentified government officials and former Blackwater employees as saying that the network of companies allowed Blackwater to obscure its involvement in government work from contracting officials and the public, and to ensure a low profile for its classified activities.
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Every question you asked, shows you have been abused by the left, and the victim of a very severe brainwashing.....I would sue someone for doing what they did to you.
The U.S. Government and the our Military hires Blackwater and gives them their orders.
You need to start over....starting with kindergarten.....re-learn everything, without some liberal brainwashing you at every move.
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There is 10 calories of petrol tied to ever 1 calorie of food. You do the math, George.
Kuwait was an oil interest we defended. Saddam was trading oil in Rubles with our "enemies." It was most certainly in "our" best interest to defend our petrol suppliers and create a stable environment from which to extract said fossil fuel; but not such an easy sell to the public that remains willfully ignorant of our economy.
Simifanene, may need to learn to break up his posts into readable paragraphs, but his questions are valid.
If government policies seem to be a failure, yet continue from one administration to the next, someone is benefiting from them. The question is who, and are their interests really our interests.
"I would expect them in here saying things like "Halliburton is a true american company" and "if those iraqi civilians didn't want to get shot by blackwater mercenaries, then they shouldnt live in iraq".
They must be busy defending the oil companies and offshore drilling. Or maybe protesting helping terminally ill children with tax dollars (its communist dont ya know).
Baron's interests? Who rules America? George Bush and Dick Cheney both have known ties to Haliburton? How far do these ties goes? Far enough to go to war? Far enough to spend trillions of our American tax's on overpriced private armies, owned by the Oil Baron's and run by their powerful puppets? Was Bush and Cheney their Puppets? Can all American's create their own peronal army that is allow to kill certain people? Isn't that what Hailburton is allowed to do? Who choose's the people their allowed to kill? How do you get a permit for the super weapons Haliburton has? Are these weapons only allowed for Corporate Oil Baron's?