Wednesday, June 30, 2010

BLACKWATER, US MILITARY WORKING FOR TALIBAN DRUG LORDS

Sunday, 27 June 2010 10:20

According to The Daily Mail’s investigations, Maulvi Fazaluallah is spotted residing in Kamdesh district of Nooristan along with 300 militants and other middle level Commanders. These finding also disclose that Maulvi Fazlullah had remained under treatment in a medical facility under US troops in Bagram airbase before he returned to Kamdesh district.

The Daily Mail’s findings indicate further that it is the same area where US troops vacated their posts with the intention of allowing the fleeing Pakistani militants space to regroup. His escape was made possible with the active support of the Afghan intelligence, financially supported by Indian Intelligence agency R&AW and executed by the operatives of Xe-Services while the Xe-Services also work for the Afghan drug mafia and warlords.

The Daily Mail’s investigations further reveal that similarly, the other militant Commander of Tehrik Taliban Pakistan Qari Hussain surfaced in Afghanistan soon after the launching of operation “Rah-e-Nijat” . These findings reveal that the Blackwaters or the Xe-Services even used the choppers to evacuate the top militant to Afghanistan. According to credible sources in South Waziristan (Pakistan’s tribal area) who requested not to be named, few helicopters were seen entering Pakistan territory from neighbouring Afghan province of Paktia, close to Pak-Afghan border which landed on Pakistani soil and evacuated Qari Hussain and a few others, then departed immediately towards Afghanistan. Some other sources have also reported spotting foreign helicopters in the area while the locals, when contacted also confirmed to have witnessing landing, take off and flying of helicopters in the aerial direction of the bordering Afghan province of Paktika and Paktia. A notable of Makeen (Resident), Abdul Samad Khan who attended local Jirga in area close to the border and stayed there for a few days, revealed that since start of military operation in South Waziristan, the helicopters traffic of USA/Afghan Government had increased manifold in the war zone for unknown reasons.

It is worth mentioning here that the US troops vacated posts in Paktika at the crucial time when operation “Rah-e-Nijat” was progressing well, again thus allowing fleeing militants space on Afghan soil to regroup and escape capture.



DAILY MAIL: BLACKWATER, US MILITARY WORKING FOR TALIBAN DRUG LORDS

January 23, 2010 posted by Gordon Duff · 33 Comments

BLACKWATER/XE ACCUSED OF COMPLICITY IN TERRORISM AND WAR AGAINST US TROOPS

TOP TALIBAN MILITANTS RECEIVE MEDICAL CARE AT BAGRAM AIR FORCE BASE

From Sabrina Elkhani & Steve Nelson

Introduction and Editorial note: Gordon Duff, Senior Editor Veterans Today

Secretary of Defense Robert Gates has been briefed by the Pakistani Military High Command that they are being overwhelmed by highly trained and extremely well armed militants in the border regions and terrorists operating across the country. We have been told by the highest sources that Blackwater/Xe and other US based mercenary groups have been actively attacking police, military and intelligence organizations in Pakistan as part of operations under employment of the Government of India and their allies in Afghanistan, the drug lords, whose followers make up the key components of the Afghan army.

Investigations referenced in the Pakistan Daily Mail by abrina Elkani and Steve Nelson indicate that, rather than hunt terrorists who have been killing Americans, these groups have actually taken key militant leaders into Afghanistan where they are kept safe and even offered medical treatment by the United States military. Years ago, we all heard the rumor that Osama bin Laden had received care at a US hospital in Qatar after leaving Sudan to take over what we claim was the planning of 9/11. FBI transcripts verify that bin Laden, according to testimony by former FBI translator Sibel Edmonds, was working for the US at that time and had maintained contact with his CIA handlers through the fateful summer of 2001.

The Army of Pakistan has been regularly capturing advanced weapons of Indian manufacture from militants in the border region. India maintains 17 “consular” camps inside Pakistan, near the border, adjacent to Blackwater facilities, falsely designated as CIA or USAID stations. Pakistan claims these operations train Taliban soldiers and terrorists for operations against civilian targets in Pakistan. Thousands have died in Pakistan over recent months during these attacks. Pakistan also contents these same groups are, not only fighting the Pakistan military but the Americans as well.

General Stanley McChrystal had withdrawn American forces from key areas in Afghanistan across from enemy held regions under attack by the Army of Pakistan. We are now told that this allowed those areas to become safe havens for forces formerly operating in Pakistan, who are now enjoying the freedom and hospitality of, not only Afghanistan but are being ignored by the NATO forces in the region.

The untold story is the massive complicity of Americans with their private airline, now suspected in yet another war, not Vietnam, not Central America/Iran Contra but Afghanistan, for a third time, of smuggling narcotics. The pattern is impossible to ignore.

Read the list of accusations. Note that many of them have been corroborated from 5 or more sources already:

From Sabrina Elkhani & Steve Nelson

NKabul—While the Pakistan government continues to deny that the infamous private army of the United States, known as the Blackwaters or the Xe Services, Islamabad would defiantly be having no answer if questioned that in that case, how is it always possible for deeply injured, half dead commanders of the Tehreek-e-Taliban Pakistan etc, manage to be evacuated safely to US-run military facilities in Afghanistan after being hit hard back in the tribal belts of Pakistan and started resurfacing in the country where thousands of US led NATO/ISAF troops are apparently engaged in “Hot Pursuit” of the same militant elements, at least two such cases have recently surfaced, reveal the findings of The Daily Mail.

The Daily Mail’s findings reveal that at least 2 most wanted militant, being persuaded by the Pakistan Defence Forces in the tribal belt that connects the nuke powered Pakistan with the war ravaged Afghanistan, after being badly hit by the Pakistani troops, managed to get evacuated to Afghanistan in very safe and composed manner.

The Daily Mail’s findings indicate that the 2 Most Wanted militant Commanders including Maulvi Fazlullah and Qari Hussain were earlier reported to have been seriously injured during Pakistan Army’s anti militancy operation, code-named “Operation Rah-e-Rast” and their hideouts were destroyed by law enforcing agencies in Swat, were secretly taken to Afghanistan by the operatives of Blackwater’s or the Xe-Service and have recently surfaced in Afghanistan.

According to The Daily Mail’s investigations, Maulvi Fazaluallah is spotted residing in Kamdesh district of Nooristan along with 300 militants and other middle level Commanders. These finding also disclose that Maulvi Fazlullah had remained under treatment in a medical facility under US troops in Bagram airbase before he returned to Kamdesh district.

The Daily Mail’s findings indicate further that it is the same area where US troops vacated their posts with the intention of allowing the fleeing Pakistani militants space to regroup. His escape was made possible with the active support of the Afghan intelligence, financially supported by Indian Intelligence agency R&AW and executed by the operatives of Xe-Services while the Xe-Services also work for the Afghan drug mafia and warlords.



The Daily Mail’s investigations further reveal that similarly, the other militant Commander of Tehrik Taliban Pakistan Qari Hussain surfaced in Afghanistan soon after the launching of operation “Rah-e-Nijat” . These findings reveal that the Blackwaters or the Xe-Services even used the choppers to evacuate the top militant to Afghanistan. According to credible sources in South Waziristan (Pakistan’s tribal area) who requested not to be named, few helicopters were seen entering Pakistan territory from neighbouring Afghan province of Paktia, close to Pak-Afghan border which landed on Pakistani soil and evacuated Qari Hussain and a few others, then departed immediately towards Afghanistan. Some other sources have also reported spotting foreign helicopters in the area while the locals, when contacted also confirmed to have witnessing landing, take off and flying of helicopters in the aerial direction of the bordering Afghan province of Paktika and Paktia. A notable of Makeen (Resident), Abdul Samad Khan who attended local Jirga in area close to the border and stayed there for a few days, revealed that since start of military operation in South Waziristan, the helicopters traffic of USA/Afghan Government had increased manifold in the war zone for unknown reasons.

It is worth mentioning here that the US troops vacated posts in Paktika at the crucial time when operation “Rah-e-Nijat” was progressing well, again thus allowing fleeing militants space on Afghan soil to regroup and escape capture.

The Daily Mail’s findings indicate that the Xe-Services were also tasked to evacuate many RAW sponsored militants from the Balochistan province of Pakistan and all these “evacuated” militants and separatists are being dubbed as “missing people” by their families and courts back in Pakistan. These findings indicate that around three thousand, “evacuated” Pakistanis are being trained further by the operatives of RAW and the personnel of India’s Military Intelligence that are present in Afghanistan for more than five years. These findings further elaborate that RAW’s Special Operations Division Chief Chhota Rajan is personally supervising the training and facilitation process. These findings indicate that the evacuated militants are later reorganized and trained further at different camps that are being run under the joint supervision of Chhota Rajan and a senior Indian MI officer with the rank of Major General.

Saturday, June 26, 2010

CIA hires Xe, formerly Blackwater, to guard facilities in Afghanistan, elsewhere

By Jeff Stein
Washington Post Staff Writer

The CIA has hired Xe Services, the private security firm formerly known as Blackwater Worldwide, to guard its facilities in Afghanistan and elsewhere, according to an industry source.

The previously undisclosed CIA contract is worth about $100 million, said the source, who spoke on the condition of anonymity to discuss the deal, which is classified.

"It's for protective services . . . guard services, in multiple regions," the source said.

Two other security contractors, Triple Canopy and DynCorp International, put in losing bids for the CIA's business, the source said.

The revelation comes only a day after members of a federal commission investigating war-zone contractors blasted the State Department for granting Xe a new $120 million contract to guard U.S. consulates under construction in Afghanistan.

CIA spokesman Paul Gimigliano stopped short of confirming the contract, saying only that Xe personnel would not be involved in operations.

"While this agency does not, as a rule, comment on contractual relationships we may or may not have, we follow all applicable federal laws and regulations," Gimigliano said.

The spokesman added: "We have a very careful process when it comes to procurement, and we take it seriously. We've also made it clear that personnel from Xe do not serve with the CIA in any operational roles."

Mark Corallo, a spokesman for Erik Prince, chairman of the board at Xe and owner of Prince Group -- which owns Xe -- said the firm had no comment.

"Blackwater has undergone some serious changes," said a U.S. official who is familiar with the deal and spoke on the condition of anonymity to discuss it freely.

"They've had to prove to the government that they're a responsible outfit. Having satisfied every legal requirement, they have the right to compete for contracts. They have people who do good work, at times in some very dangerous places. Nobody should forget that, either."

The firm, based in Moyock, N.C., has been fighting off prosecution and lawsuits since a September 2007 incident in Baghdad, when its guards opened fire in a city square, allegedly killing 17 unarmed civilians and wounding 24.

Two weeks ago, Prince announced that he was putting the company on the block. A spokeswoman said "a number of firms" are interested in buying but declined to elaborate.

Saturday, June 19, 2010

US: Manslaughter case against Blackwater guards should have gone forward

By The Associated Press

There was more than enough untainted evidence to justify a trial for five Blackwater Worldwide guards involved in a deadly 2007 shooting in Baghdad, the Justice Department told a federal appeals court.

In court papers seeking to reinstate criminal charges, the department asserted that some of the evidence tainted by immunized statements in the case was harmless and did not justify scuttling the manslaughter charges against the guards.

In December, a federal judge dismissed the case against the security guards, who had opened fire on a crowded Baghdad street. Seventeen people were killed, including women and children, in a shooting that inflamed anti-American sentiment in Iraq.

In the filing released Wednesday by the appeals court, the government said the judge who dismissed the charges lost sight of the key question of whether the defendants' testimony given under a grant of immunity from prosecution was actually used against them.

Friday, June 18, 2010

Is Blackwater's Erik Prince Moving to the United Arab Emirates?

Jeremy Scahill

Sources close to Blackwater and its secretive owner Erik Prince claim that the embattled head of the world's most infamous mercenary firm is planning to move to the United Arab Emirates (UAE). The Middle Eastern nation, a major hub for the US war industry, has no extradition treaty with the United States. In April, five of Prince's top deputies were hit with a fifteen-count indictment [1] by a federal grand jury on conspiracy, weapons and obstruction of justice charges. Among those indicted were Prince's longtime number-two man, former Blackwater president Gary Jackson, former vice presidents William Matthews and Ana Bundy and Prince's former legal counsel Andrew Howell.

The Blackwater/Erik Prince saga took yet another dramatic turn last week, when Prince abruptly announced [2] that he was putting his company up for sale.

While Prince has not personally been charged with any crimes, federal investigators and several Congressional committees clearly have his company and inner circle in their sights. The Nation learned of Prince's alleged plans to move to the UAE from three separate sources. One Blackwater source told The Nation that Prince intends to sell his company quickly, saying the "sale is going to be a fast move within a couple of months."

Mark Corallo, a trusted Prince advisor and Blackwater spokesperson would neither confirm nor deny the allegation that Prince is planning to move to the United Arab Emirates. "I have a policy on not discussing my client’s personal lives—especially when that client is a private citizen," Corallo, who runs his own crisis management and PR firm [3], said in an e-mail to The Nation. "It is nobody’s business where Mr. Prince (or anyone else) chooses to live. So I’m afraid I will not be able to confirm any rumors."

A source with knowledge of the federal criminal probe into Blackwater's activities told The Nation that none of Prince's indicted colleagues have flipped on Prince since being formally charged, but rumors abound in Blackwater and legal circles that Prince may one day find himself in legal trouble. Former Blackwater employees claim they have provided federal prosecutors with testimony about what they allege is Prince's involvement in illegal activity.

If Prince's rumored future move is linked to concerns over possible indictment, the United Arab Emirates would be an interesting choice for a new home—particularly because it does not have an extradition treaty with the United States. "If Prince were not living in the US, it would be far more complicated for US prosecutors to commence an action against him," says Scott Horton [4], a Columbia University Law lecturer and international law expert who has long tracked Blackwater. "There is a long history of people thwarting prosecutors simply by living overseas." The UAE, Horton says, is "definitely a jurisdiction where Prince could count on it not being simple for the US to pursue him legally."

The UAE is made up of seven states, the most powerful among them being Dubai and Abu Dhabi. Since 9/11, they have emerged as hubs for the US war industry. "Global service providers" account for some three-quarters of Dubai's GDP, while oil represents only 3 percent. "They have established themselves as the premiere location in the Middle East for offshore banking and professional services," says Horton, who has legal experience in the UAE. "If you have connections to the royal families, then the law doesn't really apply to you. I would be very surprised if Erik Prince does not have those kinds of connections there."

As a matter of policy the Justice Department will not discuss possible investigations of people who have not yet been charged with a crime.

Two former employees made serious allegations against Prince last August in sworn declarations [5] filed as part of a civil lawsuit against Prince and Blackwater. One former employee alleged that Prince turned a profit by transporting "illegal" or "unlawful" weapons into Iraq on his private planes. A four-year employee of Blackwater, identified in his declaration as "John Doe #2," stated that "it appears that Mr. Prince and his employees murdered, or had murdered, one or more persons who have provided information, or who were planning to provide information, to the federal authorities about the ongoing criminal conduct." He also stated that "Mr. Prince feared, and continues to fear, that the federal authorities will detect and prosecute his v! arious criminal deeds," adding: "On more than one occasion, Mr. Prince and his top managers gave orders to destroy emails and other documents. Many incriminating videotapes, documents and emails have been shredded and destroyed."

John Doe #2's identity was concealed in the sworn declaration because he "fear[s] violence against me in retaliation for submitting this Declaration." He also alleged, "On several occasions after my departure from Mr. Prince's employ, Mr. Prince's management has personally threatened me with death and violence." Doe #2 stated in his declaration that he provided the information contained in his statement "in grand jury proceedings convened by the United States Department of Justice."

Prince is also facing civil lawsuits brought by Iraqi victims of Blackwater. Among these is a suit filed in North Carolina by the family of 9-year-old Ali Kinani [6]. Kinani's family alleges he was shot in the head and killed by Blackwater operatives in the infamous Nisour Square massacre in Baghdad in 2007. Earlier this year, Prince claimed [7] he was spending $2 million a month in legal fees and on what he described as a “giant proctological exam” by nearly a dozen federal agencies.

Even if prosecutors believed they had enough evidence to charge Prince with a crime, because of the classified nature of some of Blackwater and Prince's work for the CIA and other agencies of the US government, prosecuting him could prove challenging. Prince has deep knowledge of covert US actions that the US government or military may not want public, which could be revealed as part of a potential defense Prince could offer. Blackwater—and Prince specifically—long worked on the CIA's assassination program.

Some observers believe that Prince has already engaged in "graymail [8]" by revealing some details of his classified work for the CIA and military, specifically in a January 2010 article [7] in Vanity Fair, written by a former CIA lawyer. Graymail is a legal tactic that has been used for years by intelligence operatives or assets who are facing prosecution or fear they soon will be. In short, these operatives or assets threaten to reveal details of sensitive or classified operations in order to ward off indictments or criminal charges, based on the belief that the government! would not want these details revealed.

After Jackson and the other former Blackwater executives were indicted, their lawyers claimed [9] that the US government approved of their conduct. "All of this was with the knowledge of, the request of, for the convenience of, an agency of the US government," Jackson's lawyer Ken Bell told the judge during a bond hearing in April. Bell did not reveal which agency he was referring to and did not answer questions from reporters.

The latest developments in the Blackwater story come after a two-year campaign by Blackwater to rebrand itself [10] as "Xe Services" and the "US Training Center." In March 2009, Prince announced [11] he was stepping down as CEO of the company, though he has remained its sole owner. While Blackwater continues to be a significant player in US operations in Afghanistan under the Obama administration—working for the State Department, Defense Department and CIA—it is facing increased scrutiny [12] on Capitol Hill and continued pressure from the Justice Department.

On June 11, federal prosecutors filed a massive brief in their appeal of last year's dismissal [13] by a federal judge of manslaughter charges against the Blackwater operatives alleged to be the "shooters" at Nisour Square. In the brief, prosecutors asked that the indictment of the Blackwater men be reinstated. Meanwhile, two other Blackwater operatives were indicted [14] in January on murder charges [15] stemming from a shooting in Afghanistan in May 2008. Senator Carl Levin, chair of the Senate Armed Services Committee has called on the Justice Department [16] to investigate Blackwater's use of a shell company, Paravant, to win training contracts in Afghanistan.

Blackwater has been spending heavily this year on lobbyists—particularly Democratic ones. In the first quarter of 2010, the company spent more than $500,000 [17] for the services of Stuart Eizenstat [18], a well-connected Democratic lobbyist who served in the Clinton and Carter administrations. Eizenstat heads the international practice for the powerhouse law and lobbying firm Covington and Burling.

Prince sold [19] Blackwater's aviation division earlier this year for $200 million. In announcing last week that the rest of Blackwater was up for sale, the company said in a statement [20] that Blackwater's "new management team has made significant changes and improvements to the company over the last 15 months, which have enabled the company to better serve the US government and other customers, and will deliver additional value to a purchaser." While Blackwater has tried to shed the Blackwater name in many aspects of its business, the company has recently opened a series of Blackwater "Pro-Shop" retail stores [21], offering merchandise bearing the Blackwater name and original logo. Among the items for sale: pink Blackwater baby onesies [22], Blackwater pint glasses [23], Blackwater beach towels [24] and, of course, rifles [25].

In a speech in January [26], obtained by The Nation, Prince said that he intends to publish a book this fall. He was originally slated [27] to come out with a book in June 2008 with the title We Are Blackwater.

Source URL: http://www.thenation.com/blog/blackwaters-erik-prince-moving-united-arab-emirates
Links:
[1] http://www.justice.gov/usao/nce/press/2010-apr-16_2.html
[2] http://www.thenation.com/blog/blackwater-sale
[3] http://www.corallocomstock.com/
[4] http://harpers.org/subjects/NoComment
[5] http://www.thenation.com/article/blackwater-founder-implicated-murder
[6] http://www.thenation.com/article/blackwaters-youngest-victim
[7] http://www.vanityfair.com/politics/features/2010/01/blackwater-201001?printable=true
[8] http://www.thenation.com/article/erik-prince-graymailing-us-government
[9] http://www.newsobserver.com/2010/04/22/448778/blackwater-exec-blames-feds.html
[10] http://www.alternet.org/blogs/waroniraq/126863/
[11] http://www.huffingtonpost.com/jeremy-scahill/mercenary-king-erik-princ_b_171105.html
[12] http://www.washingtonpost.com/wp-dyn/content/article/2010/03/08/AR2010030803706.html
[13] http://www.thenation.com/article/federal-judge-dismisses-all-charges-ira! q-massacre
[14] http://www.justice.gov/opa/pr/2010/January/10-crm-011.html
[15] http://rebelreports.com/post/322008047/two-blackwater-guards-arrested-by-fbi-on-murder-charges
[16] http://levin.senate.gov/newsroom/release.cfm?id=322765
[17] http://www.thenation.com/blog/bipartisan-mercs-blackwater-hires-powerful-democratic-lobbyist
[18] http://www.cov.com/seizenstat/
[19] http://www.thenation.com/blog/mercenary-owners-they-are-changin-sort
[20] http://www.wtop.com/?nid=111&sid=1974791
[21] http://www.wired.com/dangerroom/2010/06/retail-guns-for-hire-blackwater-opens-storefronts/
[22] http://proshop.blackwaterusa.com/Babys-Onesies-P1781.aspx
[23] http://proshop.blackwaterusa.com/BW-Pint-Glass-P1507.aspx
[24] http://proshop.blackwaterusa.com/BW-Beach-Towel-P1747.aspx
[25] http://proshop.blackwaterusa.com/bw15.aspx
[26] http://www.thenation.com/blog/secret-erik-prince-tape-exposed
[27] http://ww! w.humanevents.com/article.php?id=24834

Friday, June 11, 2010

A Blackwater by Any Other Name Is Still a Blackwater

David Isenberg

Yesterday's news, announced initially in a report from the Associated Press, that Xe Services, formerly known as Blackwater, is being put up for sale tempts me to modify the old cliché, when the going gets tough, the tough sell out. Of course, I don't really believe that. In fact, it would be grossly unfair.

There is a lot to be said about Blackwater and yes, much of it is unflattering, and a fair amount of that is true. But it is also true that over the years that much of what has been said and written about Blackwater and other private security contractors is grossly inaccurate, biased, misleading, and legally libelous, i.e. jackbooted thugs, mercenaries, Christian crusaders, et cetera.

Someday, a dispassionate and objective reporter or academic will sift through the mountains of paperwork that are doubtlessly stored in various government archives and give us a real history of how Blackwater operated, what contracts it had, who it worked for, what its people did right and wrong. To date we don't have this; only hysterical screeds masquerading as investigative reporting.

At this point a lot of questions remain unanswered. It's not clear if all of Blackwater's branches are up for sale or just its security and training business. One of the most lucrative parts, Presidential Airways, was sold earlier this year for $200 million.

Also unknown is what will happen to Blackwater's contracts for the CIA and the Joint Special Operations Command. Jeremy Scahill of The Nation writes that, "Prince has shifted some of Blackwater's clandestine work to companies he does not own but which are run by former Blackwater executives or allies. Among these are Blackbird Technologies, which now employs former Blackwater executive J. Cofer Black (former head of the CIA's Counterterrorism Center) and Constellation Consulting, which is run by former Blackwater executive Enrique "Ric" Prado, a veteran of the CIA's paramilitary division, the Special Operations Group." And it unclear whether Blackwater will seek to sell its remaining parts as a package or a la carte.

Another interesting question is who might buy Blackwater? CNN reports that:

With most of Xe's revenue dependent upon a few large public entities that are subject to public pressure, its future contracts and revenues can easily be threatened, notes Aswath Damodaran, a professor of finance at NYU's Stern School of Business. "If I ran a public company, I would not touch Blackwater with a ten-foot pole," he said. "The danger to my other businesses from contamination would be way too high.

One exception would be a large strategic buyer that is engaged in similar high-risk fields and that could find value in subsuming Xe Services into its ranks. For instance, DynCorp (DCP), which had over $3 billion in revenue in 2009 and just reported more than $1 billion in quarterly revenue, is an active competitor in Xe Services' main business areas. Buying Xe Services would further increase DynCorp's manpower and give the company access to additional contracts, such as the lucrative DOD narcotics intervention contract, for which it was not pre-qualified.
...

The Carlyle Group, which owns several defense contractors, including United Defense Industries, could be a buyer. But Cerberus [see below for more on Cerberus], with $23 billion under management, seems to fit the bill especially nicely. Since it plans to take control of DynCorp, and already runs IAP Worldwide, which provides logistical support for the Pentagon, Cerberus will have a deep bench of capable management at its disposal.

What can we learn from the news? For starters, like it or not, dealing with the media is a critical part of your work. Companies that don't answer questions quickly and fully allow critics to get away with making all sorts of wild charges which are endlessly repeated in the echo chamber known as the Internet. Admittedly, this is not always the fault of the companies. Many contracts stipulate that queries about a company's work can only be answered by the client, which is often the U.S. government, and it is not anxious to answer questions. Still, the no comment policy only hurts companies and they need to be far more active in engaging with the media.

As an example of why this is important consider, as MarketWatch reported that two years ago, Cerberus Capital Management turned down a chance to invest in the company when it was still called Blackwater. Though no reason was given, it was speculated that the reclusive private-equity firm shied away from the unwanted attention that would have come with such a purchase.

Given that Cerberus is now in the process of acquiring DynCorp International, another private military and security contractor, it couldn't have been the prospect of acquiring such a firm in and of itself that bothered Cerberus. Rather it was Blackwater's reputation.

A corollary to this is that rebranding doesn't work. As we all know Blackwater changed its name in the aftermath of the September 2007 incident in which Blackwater contractors killed 17 Iraqi civilians at Nisoor Square in Baghdad during a firefight. By that time, rightly or wrongly, Blackwater was widely viewed as a sort of corporate pig. The name change was seen as putting lipstick on a swine. It did not help. Xe Services was still seen as Blackwater.

Another lesson is that companies really need to have a business model from the very beginning. It was always a bit unclear what was Erik Prince's [Blackwater's founder] real motivation was. Yes, to be sure, it was to make money. But he had scads of money to begin with. Many thought that he simply thought it was a cool thing to do. That may be fine for an Internet startup but when you are talking about a company involved in military issues, as in periodically killing people and destroying things, you need to be as serious as a heart attack.

Finally, Blackwater/Xe Services or whatever it is called in the future is unlikely to be filing for Chapter 7 relief. It simply is too important to the U.S. government and holds too many contracts worth a lot of money. That alone guarantees someone will be buying it, even if the government has to provide an incentive.

Wednesday, June 9, 2010

The Nation: Blackwater For Sale

by Jeremy Scahill

After nearly a decade of working overtly and covertly for the US government across the globe, the infamous mercenary firm Blackwater is apparently for sale. The company made the announcement in a brief statement Monday followed by an even briefer statement from the company's owner, Erik Prince. "Performance doesn't matter in Washington, just politics," Prince said.

Blackwater's statement does not make clear if all of Blackwater's various entities are up for sale or just its security and training business, which currently operates under the names Xe Services and the US Training Center. Prince also owns a private intelligence company, Total Intelligence Solutions, an offshore mercenary operation, Greystone Limited, a construction company, Raven Development and Paravant, which has been used as a shell company to win training contracts in Afghanistan. Prince sold his aviation division earlier this year for $200 million.

In announcing Blackwater was for sale, the company stated Monday: "Xe's new management team has made significant changes and improvements to the company over the last 15 months, which have enabled the company to better serve the US government and other customers, and will deliver additional value to a purchaser."

The most interesting aspect of this story is what will happen to Blackwater's clandestine/covert work for the CIA and the Joint Special Operations Command. The OGA (Other Government Agency) division of Blackwater has gone by different names over the years. Among these are: Blackwater SELECT, Blackwater PTC and, most recently XPG. It was this division of the company that Blackwater used for its role in the US drone bombing campaign. XPG holds a classified contract to provide security at seven US Special Forces sites along the Afghan/Pakistan border, for which Blackwater is paid $17,000 a day. Additionally, Prince has boasted that Blackwater controls four Forward Operating Bases in Afghanistan, including the closest US facility to Pakistan's border. Prince has also bragged that Blackwater runs a counter-narcotics force that has called in NATO air strikes in Afghanistan against suspected drug sites.

After 9-11, Prince set up what amounted to small CIA assassination teams that operated in various countries across the globe, including in Germany. In some cases, Prince says he personally bankrolled the operations, giving the Bush administration an ultimate plausible deniability machine. Evidence of Blackwater's ongoing involvement with, and access to, highly sensitive US operations was clear when two Blackwater operatives were killed in December 2009 when the CIA station at Forward Operating Base Chapman in Khost, Afghanistan, was bombed by a Jordanian double agent. The CIA believed that its personnel were meeting with a "golden goose" of intelligence who had recently met with Al Qaeda's number-two man, Ayman al Zawahiri.

I have heard from sources that over the past two years, Prince has shifted some of Blackwater's clandestine work to companies he does not own but which are run by former Blackwater executives or allies. Among these are Blackbird Technologies, which now employs former Blackwater executive J. Cofer Black (former head of the CIA's Counterterrorism Center) and Constellation Consulting, which is run by former Blackwater executive Enrique "Ric" Prado, a veteran of the CIA's paramilitary division, the Special Operations Group. Prado was instrumental in setting up the Blackwater-CIA assassination program.

There is no doubt Erik Prince maintains deep contacts within the US military and intelligence community, but the Blackwater name is mud. Despite the rebranding efforts, Blackwater has remained Blackwater. The sale of the company would undoubtedly represent the end of an era. But Blackwater did not rise to prominence in a vacuum and it did not create the demand for the kinds of forces and services it offers. Even if Erik Prince leaves the mercenary game, Blackwater will continue on—almost certainly under a different name and, it seems, new ownership. The type of clandestine operations and top-tier special forces operators Blackwater has provided to the US government and military will be in increasing demand in the years ahead, particularly as the Obama administration expands the operations of US special forces globally. The bottom line is that there are a finite number of top-level operators and Blackwater employed a lot of them.

I have heard from Congressional sources that the Obama administration is not enthusiastic about its ongoing relationship with Blackwater, but that the company provides services and personnel the White House has determined it cannot live without—particularly in Afghanistan. In that way, the sale of Blackwater would benefit the Obama administration.

Saturday, June 5, 2010

Discrete Interventions

www.german-foreign-policy.com

The scandal caused by the planned dispatching of more than 100 German mercenaries to Somalia, is further evidence of the expansion of German private security companies. The CEO of the Asgaard German Security Group (based in Telgte, close to Muenster in North Rhine Westphalia) has confirmed that the company plans to dispatch a triple-digit sized group of armed personnel to Somalia to support a local warlord, who has declared himself the country's president. Whereas the German foreign ministry dissociates itself from the action, demands are growing in the West that alternatives be sought considering the policies of the EU and the USA toward Somalia to be fruitless. Activities of security companies, such as Asgaard, are intensifying abroad. They are cooperating on a regular basis with several foreign business associations, such as the German-Africa Business Association or the German-Iraqi Business Association (MIDAN), protecting German personnel in war and crisis zones. Berlin's Federal College for Security Studies is closely observing the development of this private industry of repression, which, according to its president, allows interventions that are "much less noticeable" than the usual military deployments.

Full Battle Gear

As the CEO of the German security company "Asgaard German Security Group" confirmed, the company plans to dispatch a triple-digit size group of armed personnel to Somalia. Asgaard had already declared in December 2009 that in Somalia, they will accomplish "wide-ranging and exclusive tasks" on behalf of the self-proclaimed president of the country. The activities range "from strategic consulting and planning for security to operational implementation and execution of all measures" necessary "to ensure safety and restore peace." "Training measures" and combating piracy are among these.[1] Not least of all, they will be engaged - in full battle gear - in militarily providing security for persons, property and convoys, according to the CEO.[2] Armed combat is not to be ruled out. The Somali employer declared that, under certain circumstances, the German mercenaries could also be "ordered to fight" alongside his militia.

Exploring Alternatives

The political conditions of their planned deployment of mercenaries remain unclear. For years, Germany and the EU have been supporting the Transitional Federal Government (TFG) in Somalia, which also enjoyed the backing of the USA. (german-foreign-policy.com reported.[3]) The Asgaard mercenaries' Somali employer, Galadid Abdinur Ahmad Darman has refused to recognize the TFG's legitimacy, declaring himself, in 2003, president of Somalia. He lives in exile, but apparently has control over militia in Somalia. Until now, Darman has not received international recognition. The United Nations claims to have information to the effect that he has provided access to Somalia for foreign companies and has counterfeited money, while his militia is accused of attacking independent journalists. A dubious agency ("SOMA-MEDIA" with a telephone number in the vicinity of Cologne) is making publicity for Darman, naming on their press releases the same contact person as the "Asgaard German Security Group". Whether the Asgaard has an official German green light is unknown. As a matter of fact, a growing number of voices - particularly in the USA - are considering the years of support of the so-called TFG to be fruitless and are demanding that alternatives be explored. For example the influential Council on foreign Relations, headquartered in New York declared that a new approach to Somalia should be pursued.[4]

Business Risks

Regardless of the concrete significance of the plans for mercenaries in Somalia, the Asgaard affair has once again pointed to the expansion of German private security companies (PSCs). Asgaard declared that it has been in business since 2004, maintaining a subsidiary in Nigeria and is in the process of preparing another. BA Enterprises (formerly Bodyguard Academy [5] with headquarters in Luebeck) is running a Nigerian subsidiary. BA Enterprises is among the cooperation partners of the German-Iraqi Business Association. German companies seeking to expand to the Iraq market are also being supported by other PSCs, among them the Result Group (based in Grünwald, close to Munich).[6] The Result Group is also a cooperation partner of the German-African Business Association, for which it provides "behavior and security training". The business association explains that "the very promising business opportunities" are "in numerous African countries, often linked to considerable security risks for the representatives of foreign companies." During training, the Result Group has the participants practice, among other things, how to "behave in the event of criminal attacks and political unrest."[7]

Preference for Combat Units

The Asgaard scandal also demonstrates the very close proximity between private security companies and official agencies of repression. Asgaard's prerequisites for applicants include at least four years of regular military service, with a "preference for combat or special unit experience." The Result Group is directed by a veteran of the SEK Special Weapons and Tactics unit of the German police and has other members who are not only veterans of the special German federal anti-terrorist GSG-9 police unit and the German military's KSK elite special forces unit, but also veterans of the German BND foreign secret service.[8] The CEO of the mercenary Asgaard company is an NCO of the German military reserves In Muenster, Sergeant Major Thomas Kaltegärtner, who, on the official internet portal of the local reserves unit gives the Asgaard contact address.

Much Less Noticed

The proximity between private security companies and official repressive state organs reflects the interests with which Berlin's planers are carefully observing the development of the private industry of repression. The Federal College for Security Studies, in particular, which sees itself as the hub of the German "strategic community,"[9] has for several years been closely observing the "privatization of the security sector". Its President, Ret. Lt. Gen. Kersten Lahl, praised, as usual, the advantages of the privatization of warfare,[10] which not only provides more cost efficiency and greater flexibility, but also a much more discrete management in regards to the mercenaries. "In democratic societies each military engagement is (...) very controversially discussed and (...) eyed with suspicion" according to Lahl. The president of the college considers that "the activities of private companies" are comparatively "much less noticed." "In this way, the political structures will be relieved of an element of pressure in decision-making and even of some of the responsibility." Therefore private security companies are deliberately opening possibilities for military forces to be deployed in situations, where deployment of the German Bundeswehr would be politically unfeasible - such as in Somalia.

[1] Sicherheit in Somalia unter deutscher Leitung; Presse-Mitteilung der Asgaard German Security Group vom 16.12.2009
[2] Deutsche Söldner für Bürgerkrieg in Somalia; www.tagesschau.de 22.05.2010
[3] see also Interests of the Superpowers and Soldaten für Somalia
[4] United States Should Pursue New Approach to Somalia, Argues CFR Report; www.cfr.org 10.03.2010
[5] see also Expanding Periphery
[6] see also Sicherheitsberatung
[7] see also Zivil-militärische Netzwerke
[8] see also Sicherheitsberatung
[9] see also Strategic Community
[10] "Aktuell 2008". Privatisierung im Sicherheitssektor. Einführungsvortrag des Präsidenten der Bundesakademie für Sicherheitspolitik GenLt a.D. Kersten Lahl am 5. September 2008 in Berlin

Wednesday, June 2, 2010

DoD Investigating Nine Cases of "Terrorism-Related Acts" by US Military and Contractors?

Jeremy Scahill

Buried within the new Department of Defense Inspector General's report, "Contingency Contracting: A Framework for Reform [1]," is the eye-opening revelation that the Defense Criminal Investigative Service has nine open investigations into alleged "Terrorism-Related Acts" by "U.S. contractor personnel, U.S. Military, Government personnel." No other details are provided. DCIS is the criminal investigative agency working for the DoD's Inspector General.

I called the IG's office and asked them for information on these nine "terrorism-related" cases. "When it comes to individual cases or ongoing investigations, they're not going to comment on that," a spokesperson told me.

The "terrorism-related" investigations are part of more than 220 open investigations in DCIS's "Global War on Terror Investigations." Many of these relate to bribery, false claims, theft and export violations. DCIS agents have federal law enforcement authority and have authority to make arrests.

I have asked the Inspector General's office in writing to provide any details on the terrorism investigations and will update this post if I receive a response.

Meanwhile, in a not shocking revelation, the IG report also documents how private contractors working for US Special Forces have been allowed to "perform inherently governmental functions:"

"Specifically, management and contracting personnel allowed contractors to administer task orders, determine what supplies or services the Government required, and approve contractual documents. The contractors performing inherently governmental functions did not identify themselves as contractors. For example, in 3 of 46 task orders, valued at approximately $18 million, contractors working for the Special Operations Forces Support Activity signed contractual documents as a Special Operations Forces Support Activity representative. In addition, contracting personnel took direction and implemented contract changes from contractors working for their customers. These conditions occurred because the Special Operations Forces Support Activity lacked internal controls and standard operating procedures on the performance of inherently governmental functions. As a result, Special Operations Forces Support Activity may not have correctly administered and protected the best interests of the Government for approximately $82 million in task orders issued under the Special Operations Forces Support Activity contracts."