A two-year investigation has finally begun to shed some light on the trail of taxpayer dollars that paid for Blackwater USA's famously ill-fated security mission in Fallujah, Iraq, in March 2004...
Blackwater was at the bottom of a four-tiered chain of contractors. The Moyock, N.C.-based company says it billed the next company up the chain $2.3 million. At the top of the chain was KBR, a subsidiary of Vice President Dick Cheney's former employer, Halliburton Co
Now the Pentagon has calculated that by the time KBR got around to billing the government, the tab to the taxpayers for private security work had reached $19.6 million...
Last week, federal investigators identified $10 billion they said has been squandered in the war because of contractor overcharges and unsupported expenses. More than a quarter of that amount, $2.7 billion, was charged by Halliburton.
Because of the Fallujah ambush and its fallout, Blackwater is center stage in a case study of the booming, multi layered world of wartime contracting and whether the safety of America's private soldiers takes a back seat to corporate profits...
Double-billing by security contractors is another concern of congressional investigators. A January 2005 audit of a different Blackwater contract, with the State Department, found that Blackwater was charging the government separately for "drivers" and "security specialists," who were in fact the same people.
The audit also found that Blackwater was improperly including profit in its overhead costs, resulting "not only in a duplication of profit, but also a pyramiding of profit because, in effect, Blackwater is applying profit to profit."...
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