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"Blackwater Worldwide created a web of more than 30 shell companies or subsidiaries in part to obtain millions of dollars in American government contracts after the security company came under intense criticism for reckless conduct in Iraq."

Erik Prince, founder of the private military company Xe, formerly known as Blackwater, 08/06/09. (photo: Tim Sloan/AFP/Getty)
Erik Prince, founder of the private military company Xe, formerly known as Blackwater, 08/06/09. (photo: Tim Sloan/AFP/Getty)


Blackwater Using Shell Companies to Obtain New Contracts

James Risen and Mark Mazzetti, The New York Times

04 September 10

Blackwater Worldwide created a web of more than 30 shell companies or subsidiaries in part to obtain millions of dollars in American government contracts after the security company came under intense criticism for reckless conduct in Iraq, according to Congressional investigators and former Blackwater officials.

While it is not clear how many of those businesses won contracts, at least three had deals with the United States military or the Central Intelligence Agency, according to former government and company officials. Since 2001, the intelligence agency has awarded up to $600 million in classified contracts to Blackwater and its affiliates, according to a United States government official.

The Senate Armed Services Committee this week released a chart that identified 31 affiliates of Blackwater, now known as Xe Services. The network was disclosed as part of a committee's investigation into government contracting. The investigation revealed the lengths to which Blackwater went to continue winning contracts after Blackwater guards killed 17 Iraqi civilians in Baghdad in September 2007. That episode and other reports of abuses led to criminal and Congressional investigations, and cost the company its lucrative security contract with the State Department in Iraq.

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Comments  

 
+9 # Guest 2010-09-04 09:12
I firmly believe Chaney's Halliburton sabboraged the oil rig before, and now and blamed BP.
 
 
+4 # Guest 2010-09-04 09:31
You probably right another problem for Obama.
 
 
+18 # Guest 2010-09-04 09:39
When, oh when will we get out of the mercenary business completely? Using hired guns is ugly in so many ways. I am begining to believe that we need to reinstate the draft and absolutely require that the offspring of every member of the executive and legislative branch physically fit to be in the service, be drafted and sent to the front...without exception. It's so easy to shed other peoples blood for us. Its so easy to wage war when someone else has to do the fighting and dying for us. It's so easy for the citizen to become complacent when the acts of their government require no price or consequence to the average citizen. Yes, let's bring back the draft and require that the families of politicians must also serve.
 
 
+10 # Guest 2010-09-04 10:03
Brought to us by another "good christian man" from Western Michigan, who was the featured speaker at this year's Tulip Time ... he told the welcoming crowd of his "christian values" learned at his Daddy's knees and nurtured in the faithfulness of Western Michigan.
 
 
+14 # Guest 2010-09-04 10:12
Congress is failing once again on oversight duties. We cannot have secret contracts in the name of national security unless there is scrutiny by responsible officials and journalists. We still have a shadow government with a shadow budget with little or no accountability. The public needs to be aware of the costs not just in money but damage to our image and ideals. National security should not be a cover for looting the treasury and off shoring the loot.
 
 
+9 # Guest 2010-09-04 10:34
These actions are ALL for the sole reason to de fraud the people(USA)Ther efore the people involed are guiltie
of crimmial fraud of the U.S.A.
So when do the arrest start?
 
 
+16 # angelfish 2010-09-04 10:55
The reason we have no decent Oversight agencies in America anymore is because Reagan and the "shrub" (Thank You, Mollie Ivins!) deregulated and eviscerated most of our oversight provisions. THIS is what we have to look forward to if and when the "Know Nothings" get elected come November. The regressive Republi-WON'T Party of NO! has sat on it's hands since Obama's election waiting for him to "fail" so they can rush in and continue their rescue of BIG BUSINESS while the rest of us go begging. Go America!
 
 
+7 # Guest 2010-09-04 12:32
The federal government could sponsor a much more interesting reality show on cable, and call it "Blackwater Wives". This is not well known - but there are female Army Officers married to operatives working for Blackwater/XE. That is all I will say. I refer you to http://humantrafficking.change.org, and read how Blackwater/XE uses U.S. taxpayer contracted dollars for sex while in theatre. You can also google Blackwater Wives for interesting reads.
 
 
+8 # Guest 2010-09-04 12:57
Why should Blackwater be any different from the big chemical, biotech and pharma corporations that are tying up most of the SBIR research and business grants and contracts that are intended for the American small businesses. It is done by using the corporate personhood to create several new DBA's. Thus qualifying as a small business DBA. This is done solely to control market share innovation development and government contract dollars. The mother corporation also funds the expensive grant writers and lobbyists to influence the government funding of their new little DBA's (which are really them). Most small businesses can not financially compete with them.

Unfortunately this takes away the majority of money and thus the innovative opportunity from the small businesses that it was intended.

This is one of the reasons more healthy and environmentally sound products and practices that are usually invented by a small business or individuals never get to market.
 
 
0 # Guest 2010-09-09 04:41
Please explaine more- thanks

they are promoting climate chaos...
 
 
+7 # Guest 2010-09-04 15:56
This is a good article and confirms all previous information about this company and its founder -- that he talks about laissez-faire capitalism but can only seem to survive on government contracts. It's nice to see he hasn't been operating without people taking notice.

BR also makes a good point, and it's to the point.
 
 
+8 # Guest 2010-09-04 20:46
Again, more projectile vomiting at the exploitation of the U.S. taxpayers and desecration of the world by Eric Prince and Blackwater & affiliates. This kind of horrendous crap couldn't have been dreamed up on drugs by even the likes of John LeCarre, Kunstler and other novelists who knew how vacuous, greedy, manipulative and insane most of our covert/mercenary organizations are. Shame on Congress and shame on this Administration for continuously enriching this little ugly sociopathic bastard and his evil empire.
 
 
+5 # Guest 2010-09-05 09:13
I'm never sure if these poor excuses for humanity are totally devoid of morals, or religious zealots who truly believe that "God" is on their side. Maybe some of each (ie. Cheney/ Bush).
 

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