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Blackwater Used Shell Companies to Win Contracts

Posted on Sep 4, 2010
AP / Gerry Broome

Erik Prince, who founded Blackwater, at company headquarters in Moyock, N.C., in 2008.

It turns out that even after Blackwater security personnel gunned down 17 Iraqi civilians in Baghdad in 2007—and eluded criminal charges—the mercenary company still managed to win lucrative government contracts through a web of more than 30 shell companies. —JCL

The New York Times:

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.

The network of companies — which includes several businesses located in offshore tax havens — allowed Blackwater to obscure its involvement in government work from contracting officials or the public, and to assure a low profile for any of its classified activities, said former Blackwater officials, who, like the government officials, spoke only on condition of anonymity.

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bparker001's avatar

By bparker001, September 6, 2010 at 3:17 pm Link to this comment

I actually wonder who was using who? (And for what purpose?) I wonder how many will draw the same conclusion?;=&ck;=

(If a link doesn’t appear copy the above URL above into your browser.)

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By purplewolf, September 5, 2010 at 9:28 am Link to this comment

Of course this happened on Bush’s watch or reign of terror, depending on your views of past history. To bad these clown were not tried in the World Court, as they should have been. Blackwater, Cheney’s private for hire killers, comes as no surprise that they also used several bogus companies to steal more money for illicit purposes. All this private contractor crap started with the former administration for our military activities should be illegal, especially after seeing how much money they have stolen during that time.

Eric, that prince of a guy, professed Christian, who cheated on his wife with his childrens caregiver, then married her. Wonder how long it will take him to repeat this with another hired help. He must have taken lessons from Newt G.

I feel blessed he left the state of Michigan, where his roots came from and moved elsewhere. He is a blight on the face of the earth.

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By berniem, September 4, 2010 at 5:22 pm Link to this comment

Failure to investigate and prosecute Amerika"s SS and it’s Reichfuhrer, Herr Prinze, is just another example of Obama carrying out Bush’s 3rd term as regards foreign policy. Our system of governance, the stupidity of so many of this country’s citizens in believing the devisive crap and lies fed them by a corrupt government and toady press, and the perverse role of money in directing all decision making irregardless of the ill effects on society as a whole are just some of the myriad reasons for hoping that this obscene caricature of a democratic society implodes before it causes any more harm to the rest of humanity!

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By Maani, September 4, 2010 at 2:35 pm Link to this comment

This is truly life imitating art.  Have any of you seen the film “State of Play” with Russell Crowe and Ben Affleck?  Here is a bit of dialogue, in which a Senator (Affleck) tells his reporter friend (Crowe) what he suspects about military contracts:

“Last year, 47 companies bid on major Homeland Security contracts. Of those, 16 companies were granted the bids. Of those, I could make connections between 14 companies, and I’m not just talking about
someone leaving one company and go work for another. I’m talking about shared banking practices. I’m talking about collusive behavior. Now, my belief is, when all’s said and done and when the veil is pulled away, you will not see individual companies. You will see one company.”

Eerie, huh?

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By ofersince72, September 4, 2010 at 12:56 pm Link to this comment

Patrick…..Don’t we just wish it was imagination!!!

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PatrickHenry's avatar

By PatrickHenry, September 4, 2010 at 11:46 am Link to this comment

The U.S. Governments version of conceptual justice sucks. 

They will investigate, eavsdrop, and strip search you for entrance into one of their buildings.  They now have mass murderers win multimillion dollar contracts by simply changing the corporate name without scrutiny of the crimes of the previous company committed.

Is it my imagination of is our country getting more fucked up by the day?

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Queenie's avatar

By Queenie, September 4, 2010 at 11:06 am Link to this comment

Erik Prince, a self professed “Christian” is nothing more than a thug and a sociopath. He should be strung up by the balls along with anyone using his “services”.

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bogglesthemind's avatar

By bogglesthemind, September 4, 2010 at 10:49 am Link to this comment


Oh! No.  Say it isn’t so.

How could have happened?

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