Blackwater Used Shell Companies to Win Contracts
Posted on Sep 4, 2010
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.
AP / Gerry Broome
Erik Prince, who founded Blackwater, at company headquarters in Moyock, N.C., in 2008.