Tuesday, September 28, 2010

US Businessman: Blackwater Paid Me to Buy Steroids and Weapons on Black Market for its Shooters

By Jeremy Scahill

A Texas businessman who has worked extensively in Iraq claims that Blackwater paid him to purchase steroids and other drugs for its operatives in Baghdad, as well as more than 100 AK47s and massive amounts of ammunition on Baghdad's black market. Howard Lowry, who worked in Iraq from 2003-2009, also claims that he personally attended Blackwater parties where company personnel had large amounts of cocaine and blocks of hashish and would run around naked. At some of these parties, Lowry alleges, Blackwater operatives would randomly fire automatic weapons from their balconies into buildings full of Iraqi civilians. Lowry described the events as a "frat party gone wild" where "drug use was rampant." Lowry says he was told by Blackwater personnel that some of the men using the steroids he purchased were on the security detail of L. Paul Bremer, the original head of the Coalition Provisional Authority (CPA). Lowry also claims that Blackwater's owner, Erik Prince, tried to enlist his help to win contracts for Blackwater with the Iraqi government using an off-shore security company, Greystone, which Prince owns. The purpose, Lowry says, was to conceal Greystone's relationship to Blackwater.
Lowry made his statements in a deposition on September 10 as part of a whistleblower lawsuit brought by two former Blackwater employees. The suit was filed in 2008 by former employees Brad and Melan Davis. They allege that Blackwater tried to bill the US government for a prostitute for its men in Afghanistan and for strippers in New Orleans in the aftermath of Hurricane Katrina. The lawsuit claims that Prince personally benefitted from alleged fraud. The Nation obtained Lowry's deposition from publicly available court filings.
Blackwater, Lowry alleges, paid for the steroids using company funds and the purchases were coordinated by Blackwater's Iraq country manager. "Not only did I purchase the pharmaceuticals," Lowry said in his deposition, "but I was also given money and asked to acquire syringes and other forms or modes of injection as well." Lowry said that Blackwater used him to purchase the drugs and other devices because, unlike Blackwater personnel, he could move freely and discreetly around Baghdad. Lowry says he personally witnessed several Blackwater operatives injecting themselves with steroids.
Lowry says in the deposition that he was a close friend of Jerry Zovko, one of the four Blackwater men killed in the infamous ambush in Fallujah, Iraq in March 2004. Zovko, Lowry says, "provided me tremendous insight into the company and confirmed that the use of steroids and human growth hormone, testosterone, were pretty endemic to them and almost companywide." Lowry said that it was a "wide-ranging problem, and this included individuals that were on [L. Paul] Bremer's personal detail." Bremer was guarded by Blackwater when he ran the CPA from 2003-2004. Lowry says he would purchase the drugs for Blackwater "by the case," adding, "It was as large a quantity as I could get, which was usually a case." He said that the "volume I was being asked to purchase on a daily basis was going up substantially as time went on."
Lowry also claims that he purchased a wide variety of weapons, ammunition and armor for Blackwater on the black market in Baghdad. "I purchased no less than a hundred AK47s for Blackwater personnel to keep them safe," Lowry says. Such purchases, he says he believed, were necessary because Blackwater was not adequately arming its personnel.
Lowry also describes instances of Blackwater personnel firing randomly at Iraqi pedestrians and into buildings for no apparent reason. He details one night where several Blackwater operatives were at his hotel drinking until 5am. When they left, Lowry says, they fired their weapons at random as they drove off. Lowry describes parties that he says some Blackwater personnel would throw at the al Hamra hotel in Baghdad that he says were like "a frat party" with rampant drug use:
One of the suites would be absolutely packed with gentlemen running around with either no clothes on, no shirt on. It was like a frat party gone wild. Drug use was rampant. There was cocaine all on the tables. There were blocks of hash, and you could smell it in the air…walking up to the door.
Lowry described one party where "there was a pile of cocaine that one Blackwater person had estimated to be over an ounce of coke." Lowry said, "to me, considering the job that these gentlemen are doing…at that time [they] were protecting the US ambassador, Ambassador Bremer, seemed a little bit out—well, beyond out of control. And these parties were a weekly ritual." Lowry alleges that at these parties on several occasions Blackwater personnel would pull out AK47s and go out onto the balcony and "would just spray the building next door, which housed Iraqi civilians."
Lowry also says that he had several meetings with Erik Prince where Prince asked him for assistance in winning contracts with the Iraqi government for an off-shore company Prince owns called Greystone. It is registered in Barbados. Lowry, who says he knew the Iraqi Interior and Defense Ministers "very well," claims Prince wanted to offer the Iraqi government Greystone's training and security services. Lowry says that Prince stated "very clearly" to him that Greystone was "set up to deflect any liability, future liability, that he may have with respect to any weapons sales or any bodily harm or anything else, contract issues with both the US and the Iraqi governments." Lowry claims the Iraqis were aware of Greystone's connection to Blackwater and "detested" the companies.
Lawyers representing the self-exiled Blackwater owner have asked a federal judge in Virginia for a protective order against the tenacious lawyer who took Lowry's deposition. For years, attorney Susan Burke has pursued Prince and Blackwater with a string of civil lawsuits. In August, Burke flew to Abu Dhabi in the United Arab Emirates, where Prince and his family have relocated, to conduct a seven-hour deposition of Prince in connection to the whistleblower claim she filed on behalf of the former Blackwater employees. After the deposition ended on August 23, according to Burke, Prince threatened to "come after" her.
Soon thereafter, Prince's lawyers declared the entirety of the transcript of Prince's deposition to be confidential material and asserted that it should be sealed. Prince's attorneys filed papers in the case asking the judge to allow Prince and his lawyers to classify any information or documents Prince provides or any information or documents Burke obtains from Prince or Blackwater as "confidential" and therefore barred from public dissemination. Prince's lawyers have also asked that all documents they provide in the case be destroyed or returned within 120 days of the conclusion of the case.
Prince's lawyers have alleged that Burke intends to use the media to embarrass Prince and to litigate her case outside of court and have asked for a "gag order" against her and the other attorneys litigating the case. Burke, in her court filing, points out that the actions of Prince and his companies have generated tremendous publicity and attention. Burke writes:
Defendant Prince and his companies create the media stir by their own actions. Indeed, their misconduct has led to a series of indictments, charging letters from the State Department, and criminal trials. Indeed, Defendant Prince seeks publicity that serves his own ends. He voluntarily participated in a Vanity Fair interview, pressing his view that anyone who criticizes his misconduct must have a "political agenda." Defendant Prince voluntarily cooperated with a book about his life, called Master of War. In the book, he voluntarily revealed, among other things, that he fathered a child out of wedlock and cheated on his wife who was dying of cancer.
On September 22, Burke filed a motion opposing the gag order and what she sees as Prince's attempt to "seal everything." In her motion, Burke reveals that she provided the US State Department with a transcript of the deposition for review of potentially classified material. A State Department contracting official wrote, "As contracting officer I do not require any redactions to the subject transcript of the Erk Prince deposition before it is made publicly available."
In arguing against a gag order, Burke writes that media coverage results in witnesses coming forward who will "be helpful in showing the jury that [her clients'] claims of widespread fraud and misconduct have merit." To support her argument, Burke cited Howard Lowry, whom she says contacted her after seeing media reports on Prince and Blackwater.
Lowry says he contacted Burke "because I believe there is a tremendous lack of moral and business ethics on behalf of the owner of the company and, I believe, companywide." He added, "Because of that, I feel that numerous families of individuals of Blackwater employees that have been killed on the job are not getting the true story."

Blackwater/Xe cells conducting false flag terrorist attacks in Pakistan

A Washington-based investigative journalist- Wayne Madsen- has claimed that a CIA contractor firm- XE Services- formerly Blackwater, has been carrying out false flag terrorist attacks in Pakistan.

"WMR has learned from a deep background source that Xe Services, the company formerly known as Blackwater, has been conducting false flag terrorist attacks in Pakistan that are later blamed on the entity called Pakistani Taliban," The News quoted Madsen, a member of the Society of Professional Journalists (SPJ), Association for Intelligence Officers (AFIO), and the National Press Club, as saying.

"However, it is Xe cells operating in Karachi, Peshawar, Islamabad and other cities and towns that have, according to our source who witnessed the US-led false flag terrorist operations in Pakistan. Bombings of civilians is the favoured false flag event for the Xe team and are being carried out under the orders of the CIA," he claimed, adding that the source was now under threat from the FBI and CIA for revealing facts about the false flag operations in Pakistan.

Earlier this year, Wayne Madsen Report (WMR) had claimed that "intelligence sources in Asia and Europe are reporting that the CIA contractor firm XE Services, formerly Blackwater, has been carrying out false flag terrorist attacks in Afghanistan, Somalia, the Sinkiang region of China, Pakistan, Iran, and Iraq, in some cases with the assistance of Israeli Mossad and Indian RAW personnel. "

He also stated that although the Pakistan Taliban had taken responsibility for the recent bomb attack of a pro-Palestine Shia rally in Quetta that killed 54 people, it was "actually carried out by one of the Xe covert cells in the country, acting in concert with the CIA, Israeli Mossad, and Indian Research and Analysis Wing (RAW)."

Madsen said that the ultimate goal of those cells was "to destabilize Pakistan to the point where it has no choice but to allow the Western powers to secure its nuclear weapons and remove them from the country, in a manner similar to the procurement by the West of South Africa's nuclear weapons, prior to the stepping down of the white minority government in the early 1990s." (ANI)

http://www.sananews.net/english/2010/09/20/blackwater-conducting-terrorist-attacks-in-pakistan-report/

Friday, September 17, 2010

Blackwater/Xe cells conducting false flag terrorist attacks in Pakistan

By Wayne Madsen
Online Journal Contributing Writer

Sep 16, 2010, 00:22

(WMR) -- WMR has learned from a deep background source that Xe Services, the company formerly known as Blackwater, has been conducting false flag terrorist attacks in Pakistan that are later blamed on the entity called “Pakistani Taliban.”
Only recently did the US State Department designate the Tehrik-i-Taliban Pakistan (TTP), also known as the Pakistani Taliban, a terrorist group. The group is said by the State Department to be an off-shoot of the Afghan Taliban, which had links to “Al Qaeda” before the 9/11 attacks on the United States. TTP’s leader is Hakimullah Mehsud, said to be 30-years old and operating from Pakistan’s remote tribal region with an accomplice named Wali Ur Rehman. In essence, this new team of Mehsud and Rehman appears to be the designated replacement for Osama Bin Laden and Ayman Zawahiri as the new leaders of the so-called “Global Jihad” against the West.
However, it is Xe cells operating in Karachi, Peshawar, Islamabad and other cities and towns that have, according to our source who witnessed the U.S.-led false flag terrorist operations in Pakistan. Bombings of civilians is the favored false flag event for the Xe team and are being carried out under the orders of the CIA.
However, the source is now under threat from the FBI and CIA for revealing the nature of the false flag operations in Pakistan. If the source does not agree to cooperate with the CIA and FBI, with an offer of a salary, the threat of false criminal charges being brought for aiding and abetting terrorism looms over the source.
The Blackwater/Xe involvement in terrorist attacks in Pakistan have been confirmed by the former head of the Inter Services Intelligence (ISI), General Hamid Gul, according to another source familiar with the current Xe covert operations. In addition, Pakistani ex-Army Chief of Staff, General Mirza Aslam Beg, reportedly claimed that while serving as president, General Pervez Musharraf approved Blackwater carrying out terrorist operations in Pakistan. Blackwater has been accused of smuggling weapons and munitions into Pakistan.
Earlier this year WMR reported that ”intelligence sources in Asia and Europe are reporting that the CIA contractor firm XE Services, formerly Blackwater, has been carrying out ‘false flag’ terrorist attacks in Afghanistan, Somalia, the Sinkiang region of China, Pakistan, Iran, and Iraq, in some cases with the assistance of Israeli Mossad and Indian Research and Analysis Wing (RAW) personnel . . . A number of terrorist bombings in Pakistan have been blamed by Pakistani Islamic leaders on Blackwater, Mossad, and RAW. Blackwater has been accused of hiring young Pakistanis in Peshawar to carry out false flag bombings that are later blamed on the Pakistani Taliban, also known as Tehreek-i-Taliban Pakistan. One such bombing took place during the Ashura procession in Karachi last month. The terrorist attacks allegedly are carried out by a secret Blackwater-XE/CIA/Joint Special Operations Command forward operating base in Karachi. The XE Services component was formerly known as Blackwater Select, yet another subsidiary in a byzantine network of shell and linked companies run by Blackwater/Xe on behalf of the CIA and the Pentagon. On December 3, 2009, the Pakistani newspaper Nawa-i-Waqtreported: ‘Vast land near the Tarbela dam has also been given to the Americans where they have established bases for their army and air forces. There, the Indian RAW [Research and Analysis Wing] and Israeli Mossad are working in collaboration with the CIA to carry out extremist activities in Pakistan.’”
The bombing of a CIA base in Khost, Afghanistan last December was blamed on the TTP but may have actually involved the covert Xe/CIA program to stage false flag attacks and something went drastically wrong with the operation that resulted in the deaths of seven CIA personnel, including the Khost station chief. The TTP was also linked to the failed Times Square “bombing” last May.
Responsibility for the recent bomb attack of a pro-Palestine Shi’a rally in Quetta that killed 54 people was claimed by the Pakistan Taliban, but it was actually carried out by one of the Xe covert cells in the country, acting in concert with the CIA, Israeli Mossad, and Indian Research and Analysis Wing (RAW). The ultimate goal is to destabilize Pakistan to the point where it has no choice but to allow the Western powers to secure its nuclear weapons and remove them from the country in a manner similar to the procurement by the West of South Africa’s nuclear weapons prior to the stepping down of the white minority government in the early 1990s.
WMR has been informed that any American, whether or not he or she holds a security clearance, is subject to U.S. national security prohibitions from discussing the U.S.- sponsored terrorist attacks in Pakistan. In one case, a threat was made against an individual who personally witnessed the Xe/CIA terrorist operations but is now threatened, along with family members.
Previously published in the Wayne Madsen Report.
Copyright © 2010 WayneMadenReport.com

Thursday, September 16, 2010

Blackwater's Black Ops

by Jeremy Scahill

Over the past several years, entities closely linked to the private security firm Blackwater have provided intelligence, training and security services to US and foreign governments as well as several multinational corporations, including Monsanto, Chevron, the Walt Disney Company, Royal Caribbean Cruise Lines and banking giants Deutsche Bank and Barclays, according to documents obtained by The Nation. Blackwater's work for corporations and government agencies was contracted using two companies owned by Blackwater's owner and founder, Erik Prince: Total Intelligence Solutions and the Terrorism Research Center (TRC). Prince is listed as the chairman of both companies in internal company documents, which show how the web of companies functions as a highly coordinated operation. Officials from Total Intelligence, TRC and Blackwater (which now calls itself Xe Services) did not respond to numerous requests for comment for this article.

One of the most incendiary details in the documents is that Blackwater, through Total Intelligence, sought to become the "intel arm" of Monsanto, offering to provide operatives to infiltrate activist groups organizing against the multinational biotech firm.

Governmental recipients of intelligence services and counterterrorism training from Prince's companies include the Kingdom of Jordan, the Canadian military and the Netherlands police, as well as several US military bases, including Fort Bragg, home of the elite Joint Special Operations Command (JSOC), and Fort Huachuca, where military interrogators are trained, according to the documents. In addition, Blackwater worked through the companies for the Defense Intelligence Agency, the Defense Threat Reduction Agency and the US European Command.

On September 3 the New York Times reported that Blackwater had "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." The documents obtained by The Nation reveal previously unreported details of several such companies and open a rare window into the sensitive intelligence and security operations Blackwater performs for a range of powerful corporations and government agencies. The new evidence also sheds light on the key roles of several former top CIA officials who went on to work for Blackwater.

The coordinator of Blackwater's covert CIA business, former CIA paramilitary officer Enrique "Ric" Prado, set up a global network of foreign operatives, offering their "deniability" as a "big plus" for potential Blackwater customers, according to company documents. The CIA has long used proxy forces to carry out extralegal actions or to shield US government involvement in unsavory operations from scrutiny. In some cases, these "deniable" foreign forces don't even know who they are working for. Prado and Prince built up a network of such foreigners while Blackwater was at the center of the CIA's assassination program, beginning in 2004. They trained special missions units at one of Prince's properties in Virginia with the intent of hunting terrorism suspects globally, often working with foreign operatives. A former senior CIA official said the benefit of using Blackwater's foreign operatives in CIA operations was that "you wouldn't want to have American fingerprints on it."

While the network was originally established for use in CIA operations, documents show that Prado viewed it as potentially valuable to other government agencies. In an e-mail in October 2007 with the subject line "Possible Opportunity in DEA—Read and Delete," Prado wrote to a Total Intelligence executive with a pitch for the Drug Enforcement Administration. That executive was an eighteen-year DEA veteran with extensive government connections who had recently joined the firm. Prado explained that Blackwater had developed "a rapidly growing, worldwide network of folks that can do everything from surveillance to ground truth to disruption operations." He added, "These are all foreign nationals (except for a few cases where US persons are the conduit but no longer 'play' on the street), so deniability is built in and should be a big plus."

The executive wrote back and suggested there "may be an interest" in those services. The executive suggested that "one of the best places to start may be the Special Operations Division, (SOD) which is located in Chantilly, VA," telling Prado the name of the special agent in charge. The SOD is a secretive joint command within the Justice Department, run by the DEA. It serves as the command-and-control center for some of the most sensitive counternarcotics and law enforcement operations conducted by federal forces. The executive also told Prado that US attachés in Mexico; Bogotá, Colombia; and Bangkok, Thailand, would potentially be interested in Prado's network. Whether this network was activated, and for what customers, cannot be confirmed. A former Blackwater employee who worked on the company's CIA program declined to comment on Prado's work for the company, citing its classified status.

In November 2007 officials from Prince's companies developed a pricing structure for security and intelligence services for private companies and wealthy individuals. One official wrote that Prado had the capacity to "develop infrastructures" and "conduct ground-truth and security activities." According to the pricing chart, potential customers could hire Prado and other Blackwater officials to operate in the United States and globally: in Latin America, North Africa, francophone countries, the Middle East, Europe, China, Russia, Japan, and Central and Southeast Asia. A four-man team headed by Prado for countersurveillance in the United States cost $33,600 weekly, while "safehouses" could be established for $250,000, plus operational costs. Identical services were offered globally. For $5,000 a day, clients could hire Prado or former senior CIA officials Cofer Black and Robert Richer for "representation" to national "decision-makers." Before joining Blackwater, Black, a twenty-eight-year CIA veteran, ran the agency's counterterrorism center, while Richer was the agency's deputy director of operations. (Neither Black nor Richer currently works for the company.)

As Blackwater became embroiled in controversy following the Nisour Square massacre, Prado set up his own company, Constellation Consulting Group (CCG), apparently taking some of Blackwater's covert CIA work with him, though he maintained close ties to his former employer. In an e-mail to a Total Intelligence executive in February 2008, Prado wrote that he "recently had major success in developing capabilities in Mali [Africa] that are of extreme interest to our major sponsor and which will soon launch a substantial effort via my small shop." He requested Total Intelligence's help in analyzing the "North Mali/Niger terrorist problem."

In October 2009 Blackwater executives faced a crisis when they could not account for their government-issued Secure Telephone Unit, which is used by the CIA, the National Security Agency and other military and intelligence services for secure communications. A flurry of e-mails were sent around as personnel from various Blackwater entities tried to locate the device. One former Blackwater official wrote that because he had left the company it was "not really my problem," while another declared, "I have no 'dog in this fight.'" Eventually, Prado stepped in, e-mailing the Blackwater officials to "pass my number" to the "OGA POC," meaning the Other Government Agency (parlance for CIA) Point of Contact.

What relationship Prado's CCG has with the CIA is not known. An early version of his company's website boasted that "CCG professionals have already conducted operations on five continents, and have proven their ability to meet the most demanding client needs" and that the company has the "ability to manage highly-classified contracts." CCG, the site said, "is uniquely positioned to deliver services that no other company can, and can deliver results in the most remote areas with little or no outside support." Among the services advertised were "Intelligence and Counter-Intelligence (human and electronic), Unconventional Military Operations, Counterdrug Operations, Aviation Services, Competitive Intelligence, Denied Area Access...and Paramilitary Training."

The Nation has previously reported on Blackwater's work for the CIA and JSOC in Pakistan. New documents reveal a history of activity relating to Pakistan by Blackwater. Former Pakistani Prime Minister Benazir Bhutto worked with the company when she returned to Pakistan to campaign for the 2008 elections, according to the documents. In October 2007, when media reports emerged that Bhutto had hired "American security," senior Blackwater official Robert Richer wrote to company executives, "We need to watch this carefully from a number of angles. If our name surfaces, the Pakistani press reaction will be very important. How that plays through the Muslim world will also need tracking." Richer wrote that "we should be prepared to [sic] a communique from an affiliate of Al-Qaida if our name surfaces (BW). That will impact the security profile." Clearly a word is missing in the e-mail or there is a typo that leaves unclear what Richer meant when he mentioned the Al Qaeda communiqué. Bhutto was assassinated two months later. Blackwater officials subsequently scheduled a meeting with her family representatives in Washington, in January 2008.

Through Total Intelligence and the Terrorism Research Center, Blackwater also did business with a range of multinational corporations. According to internal Total Intelligence communications, biotech giant Monsanto—the world's largest supplier of genetically modified seeds—hired the firm in 2008–09. The relationship between the two companies appears to have been solidified in January 2008 when Total Intelligence chair Cofer Black traveled to Zurich to meet with Kevin Wilson, Monsanto's security manager for global issues.

After the meeting in Zurich, Black sent an e-mail to other Blackwater executives, including to Prince and Prado at their Blackwater e-mail addresses. Black wrote that Wilson "understands that we can span collection from internet, to reach out, to boots on the ground on legit basis protecting the Monsanto [brand] name.... Ahead of the curve info and insight/heads up is what he is looking for." Black added that Total Intelligence "would develop into acting as intel arm of Monsanto." Black also noted that Monsanto was concerned about animal rights activists and that they discussed how Blackwater "could have our person(s) actually join [activist] group(s) legally." Black wrote that initial payments to Total Intelligence would be paid out of Monsanto's "generous protection budget" but would eventually become a line item in the company's annual budget. He estimated the potential payments to Total Intelligence at between $100,000 and $500,000. According to documents, Monsanto paid Total Intelligence $127,000 in 2008 and $105,000 in 2009.

Reached by telephone and asked about the meeting with Black in Zurich, Monsanto's Wilson initially said, "I'm not going to discuss it with you." In a subsequent e-mail to The Nation, Wilson confirmed he met Black in Zurich and that Monsanto hired Total Intelligence in 2008 and worked with the company until early 2010. He denied that he and Black discussed infiltrating animal rights groups, stating "there was no such discussion." He claimed that Total Intelligence only provided Monsanto "with reports about the activities of groups or individuals that could pose a risk to company personnel or operations around the world which were developed by monitoring local media reports and other publicly available information. The subject matter ranged from information regarding terrorist incidents in Asia or kidnappings in Central America to scanning the content of activist blogs and websites." Wilson asserted that Black told him Total Intelligence was "a completely separate entity from Blackwater."

Monsanto was hardly the only powerful corporation to enlist the services of Blackwater's constellation of companies. The Walt Disney Company hired Total Intelligence and TRC to do a "threat assessment" for potential film shoot locations in Morocco, with former CIA officials Black and Richer reaching out to their former Moroccan intel counterparts for information. The job provided a "good chance to impress Disney," one company executive wrote. How impressed Disney was is not clear; in 2009 the company paid Total Intelligence just $24,000.

Total Intelligence and TRC also provided intelligence assessments on China to Deutsche Bank. "The Chinese technical counterintelligence threat is one of the highest in the world," a TRC analyst wrote, adding, "Many four and five star hotel rooms and restaurants are live-monitored with both audio and video" by Chinese intelligence. He also said that computers, PDAs and other electronic devices left unattended in hotel rooms could be cloned. Cellphones using the Chinese networks, the analyst wrote, could have their microphones remotely activated, meaning they could operate as permanent listening devices. He concluded that Deutsche Bank reps should "bring no electronic equipment into China." Warning of the use of female Chinese agents, the analyst wrote, "If you don't have women coming onto you all the time at home, then you should be suspicious if they start coming onto you when you arrive in China." For these and other services, the bank paid Total Intelligence $70,000 in 2009.

TRC also did background checks on Libyan and Saudi businessmen for British banking giant Barclays. In February 2008 a TRC executive e-mailed Prado and Richer revealing that Barclays asked TRC and Total Intelligence for background research on the top executives from the Saudi Binladin Group (SBG) and their potential "associations/connections with the Royal family and connections with Osama bin Ladin." In his report, Richer wrote that SBG's chair, Bakr Mohammed bin Laden, "is well and favorably known to both arab and western intelligence service[s]" for cooperating in the hunt for Osama bin Laden. Another SBG executive, Sheikh Saleh bin Laden, is described by Richer as "a very savvy businessman" who is "committed to operating with full transparency to Saudi's security services" and is considered "the most vehement within the extended BL family in terms of criticizing UBL's actions and beliefs."

In August Blackwater and the State Department reached a $42 million settlement for hundreds of violations of US export control regulations. Among the violations cited was the unauthorized export of technical data to the Canadian military. Meanwhile, Blackwater's dealings with Jordanian officials are the subject of a federal criminal prosecution of five former top Blackwater executives. The Jordanian government paid Total Intelligence more than $1.6 million in 2009.

Some of the training Blackwater provided to Canadian military forces was in Blackwater/TRC's "Mirror Image" course, where trainees live as a mock Al Qaeda cell in an effort to understand the mindset and culture of insurgents. Company literature describes it as "a classroom and field training program designed to simulate terrorist recruitment, training, techniques and operational tactics." Documents show that in March 2009 Blackwater/TRC spent $6,500 purchasing local tribal clothing in Afghanistan as well as assorted "propaganda materials—posters, Pakistan Urdu maps, etc." for Mirror Image, and another $9,500 on similar materials this past January in Pakistan and Afghanistan.

According to internal documents, in 2009 alone the Canadian military paid Blackwater more than $1.6 million through TRC. A Canadian military official praised the program in a letter to the center, saying it provided "unique and valid cultural awareness and mission specific deployment training for our soldiers in Afghanistan," adding that it was "a very effective and operationally current training program that is beneficial to our mission."

This past summer Erik Prince put Blackwater up for sale and moved to Abu Dhabi, United Arab Emirates. But he doesn't seem to be leaving the shadowy world of security and intelligence. He says he moved to Abu Dhabi because of its "great proximity to potential opportunities across the entire Middle East, and great logistics," adding that it has "a friendly business climate, low to no taxes, free trade and no out of control trial lawyers or labor unions. It's pro-business and opportunity." It also has no extradition treaty with the United States.

Sunday, September 5, 2010

State Department details Blackwater violations of U.S. laws

Warren P. Strobel | McClatchy Newspapers

WASHINGTON — The company formerly known as Blackwater violated U.S. export control laws nearly 300 times, ranging from attempts to do business in Sudan while that country was under U.S. sanctions to training an Afghan border patrol official who was a native of Iran, the State Department said Monday.

The alleged violations were spelled out in documents released Monday by the State Department as part of a $42 million settlement with Blackwater that will allow the company, now known as Xe Services LLC, to continue receiving U.S. government contracts.

The agreement appears to spell the end of a three-and-a-half-year, multi-agency federal probe into Xe Services' unauthorized exports of defense technologies and services. While elements of the case were presented to a federal grand jury, the company and its currently serving officers have avoided criminal prosecution.

The State Department said Monday that Xe Services' alleged violations, while widespread, "did not involve sensitive technologies or cause a known harm to national security." Additionally, it said, they took place while Xe "was providing services in support of U.S. government programs and military operations abroad."

Under the agreement with the U.S. government, the Moyock, N.C., company was levied a $42 million fine, but Xe is allowed to use $12 million of that to strengthen the company's export control compliance programs. Xe won't be barred from further U.S. government contracts, and a government policy of denying most of the firm's export control applications, in place since December 2008, will be lifted.

Mark Corallo, a spokesman for Blackwater founder Erik Prince, didn't immediately return a phone call seeking comment. Prince recently moved to the United Arab Emirates, and has put Xe Services up for sale.

McClatchy first reported in June that Xe Services and the U.S. government were negotiating a multimillion-dollar fine to settle allegations that it violated laws regulating the export of defense equipment and know-how overseas. The article detailed Blackwater's extensive efforts to secure business in southern Sudan at a time when the country was under U.S. sanctions for its sponsorship of terrorism.

A 41-page State Department document released Monday provides some new details about Blackwater's Sudan plans and provides a peek into the secretive company's training of foreign military personnel around the globe.

For example, an October 2006 Blackwater proposal to the south Sudanese government called for the company to provide military training to individuals who held citizenship in both Sudan and neighboring Uganda, but "would be deemed Ugandans for training purposes." Blackwater obtained Ugandan passports for the prospective trainees from the south Sudanese government.

At the time, Sudan was under U.S. sanctions, but Uganda wasn't.

Most of the 288 violations of export control laws cited in the document involve Blackwater providing unauthorized military or security training to foreign nationals or failing to vet adequately the backgrounds of those it was training. The concern is that U.S. enemies could benefit inadvertently from such training.

Persons trained by Blackwater under a U.S. government contract to train the Afghan Border Police included "one (who) was born in Pakistan and the other in Iran, a proscribed country," the document says.

Blackwater provided military training to security forces in almost every corner of the globe, often without proper authorization from the U.S. government, the documents show. Countries that received those services included Azerbaijan, Canada, Japan, Jordan, Kuwait, Niger, the Philippines and Taiwan.

Blackwater also violated firearms regulations on numerous occasions, the documents allege. In one case, it diverted weapons intended for use in supporting U.S. military operations in Iraq to the company's private contracts in that country.

The company "did not fully cooperate" during the first 18 months of the State Department investigation, which began in February 2007, and made several false statements to the government that it later revised, the documents said.

Blackwater Won Contracts Through a Web of Companies

By JAMES RISEN and MARK MAZZETTI

WASHINGTON — 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.

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.

Senator Carl Levin, the Michigan Democrat who is chairman of the Armed Services Committee, said in a statement that it was worth “looking into why Blackwater would need to create the dozens of other names” and said he had requested that the Justice Department investigate whether Blackwater officers misled the government when using subsidiaries to solicit contracts.

The C.I.A.’s continuing relationship with the company, which recently was awarded a $100 million contract to provide security at agency bases in Afghanistan, has drawn harsh criticism from some members of Congress, who argue that the company’s tarnished record should preclude it from such work. At least two of the Blackwater-affiliated companies, XPG and Greystone, obtained secret contracts from the agency, according to interviews with a half dozen former Blackwater officials.

A C.I.A. spokesman, Paul Gimigliano, said that Xe’s current duties for the agency were to provide security for agency operatives. Contractors “do the tasks we ask them to do in strict accord with the law; they are supervised by C.I.A. staff officers; and they are held to the highest standards of conduct” he said. “As for Xe specifically, they help provide security in tough environments, an assignment at which their people have shown both skill and courage.”

Congress began to investigate the affiliated companies last year, after the shooting deaths of two Afghans by Blackwater security personnel working for a subsidiary named Paravant, which had obtained Pentagon contracts in Afghanistan. In a Senate hearing earlier this year, Army officials said that when they awarded the contract to Paravant for training of the Afghan Army, they had no idea that the business was part of Blackwater.

While Congressional investigators have identified other Blackwater-linked businesses, it was not the focus of their inquiry to determine how much money from government contracts flowed through the web of corporations, especially money earmarked for clandestine programs. The former company officials say that Greystone did extensive work for the intelligence community, though they did not describe the nature of the activities. The firm was incorporated in Barbados for tax purposes, but had executives who worked at Blackwater’s headquarters in North Carolina.

The former company officials say that Erik Prince, the business’s founder, was eager to find ways to continue to handle secret work after the 2007 shootings in Baghdad’s Nisour Square and set up a special office to handle classified work at his farm in Middleburg, Va.

Enrique Prado, a former top C.I.A. official who joined the contractor, worked closely with Mr. Prince to develop Blackwater’s clandestine abilities, according to several former officials. In an internal e-mail obtained by The New York Times, Mr. Prado claimed that he had created a Blackwater spy network that could be hired by the American government.

“We have a rapidly growing, worldwide network of folks that can do everything from surveillance to ground truth to disruption operations,” Mr. Prado wrote in the October 2007 message, in which he asked another Blackwater official whether the Drug Enforcement Administration might be interested in using the spy network. “These are all foreign nationals,” he added, “so deniability is built in and should be a big plus.”

It is not clear whether Mr. Prado’s secret spy service ever conducted any operations for the government. From 2004 to 2006, both Mr. Prado and Mr. Prince were involved in a C.I.A. program to hunt senior leaders of Al Qaeda that had been outsourced to Blackwater, though current and former American officials said that the assassination program did not carry out any operations. Company employees also loaded bombs and missiles onto Predator drones in Pakistan, work that was terminated last year by the C.I.A.

Both Mr. Prince and Mr. Prado declined to be interviewed for this article.

The company is facing a string of legal problems, including the indictment in April of five former Blackwater officials on weapons and obstruction charges, and civil suits stemming from the 2007 shootings in Iraq.

The business is up for sale by Mr. Prince, who colleagues say is embittered by the public criticism and scrutiny that Blackwater has faced. He has not been implicated in the criminal charges against his former subordinates, but he has recently moved his family to Abu Dhabi, where he hopes to focus on obtaining contracts from governments in Africa and the Middle East, according to colleagues and former company officials.

After awarding Blackwater the new security contract in June, the C.I.A. director, Leon E. Panetta, publicly defended the decision, saying Blackwater had “cleaned up its act.”

But Rep. Jan Schakowsky, an Illinois Democrat and a member of the House Intelligence Committee, said she could not understand why the intelligence community had been unwilling to cut ties to Blackwater. “I am continually and increasingly mystified by this relationship,” she said. “To engage with a company that is such a chronic, repeat offender, it’s reckless.”

It is unclear how much of Blackwater’s relationship with the C.I.A. will become public during the criminal proceedings in North Carolina because the Obama administration won a court order limiting the use of classified information. Among other things, company executives are accused of obtaining large numbers of AK-47s and M-4 automatic weapons, but arranging to make it appear as if they had been bought by the sheriff’s department in Camden County, N.C. Such purchases were legal only if made by law enforcement agencies.

But defense lawyers say they hope to argue that Blackwater had a classified contract with the C.I.A. and wanted at least some of the guns for weapons training for agency officers.

Wednesday, September 1, 2010

Another False Ending

By BILL QUIGLEY and LAURA RAYMOND

Another false ending to the Iraq war is being declared. Nearly seven years after George Bush’s infamous “Mission Accomplished” speech on the USS Abraham Lincoln, President Obama has just given a major address to mark the withdrawal of all but 50,000 combat troops from Iraq. But, while thousands of US troops are marching out, thousands of additional private military contractors (PMCs) are marching in. The number of armed security contractors in Iraq will more than double in the coming months.

While the mainstream media is debating whether Iraq can be declared a victory or not there is virtually no discussion regarding this surge in contractors. Meanwhile, serious questions about the accountability of private military contractors remain.

In the past decade the United States has dramatically shifted the way in which it wages war – fewer soldiers and more contractors.

Last month, the Congressional Research Service reported that the Department of Defense (DoD) workforce has 19% more contractors (207,600) than uniformed personnel (175,000) in Iraq and Afghanistan, making the wars in these two countries the most outsourced and privatized in U.S. history.

According to a recent State Department briefing to Congress’s Commission on Wartime Contracting, from now on, instead of soldiers, private military contractors will be disposing of improvised explosive devices, recovering killed and wounded personnel, downed aircraft and damaged vehicles, policing Baghdad’s International Zone, providing convoy security, and clearing travel routes, among other security-related duties.

Worse, the oversight of contractors will rest with other contractors. As has been the case in Afghanistan, contractors will be sought to provide “operations-center monitoring of private security contractors (PSCs)” as well as “PSC inspection and accountability services.”

The Commission on Wartime Contracting, a body established by Congress to study the trends in war contracting, raised fundamental questions in a July 12, 2010 “special report” about the troop drawdown and the increased use of contractors:

“An additional concern is presented by the nature of the functions that contractors might be supplying in place of U.S. military personnel. What if an aircraft-recovery team or a supply convoy comes under fire? Who determines whether contract guards engage the assailants and whether a quick-reaction force is sent to assist them? What if the assailants are firing from an inhabited village or a hospital? Who weighs the risks of innocent casualties, directs the action, and applies the rules for the use of force?

“Apart from raising questions about inherently governmental functions, such scenarios could require decisions related to the risk of innocent casualties, frayed relations with the Iraqi government and populace, and broad undermining of U.S. objectives.”

We’d like to pose an additional question to the ones listed above: when human rights abuses by private military contractors occur in the next phase of the occupation of Iraq, which certainly will happen, what is the plan for justice and accountability?

This massive buildup of contractors in Iraq takes place at a time when the question of contractor immunity – or impunity - is at a critical point.

In one example, since 2004 our organization, the Center for Constitutional Rights, has been demanding- in US courts and through advocacy- that private military contractors who commit grave human rights abuses be held accountable. Contractors have responded by claiming something known as the “government contractor defense,” arguing that because they were contracted by the US government to perform a duty they shouldn’t be able to be held liable for any alleged violations that occurred while purportedly performing those duties – even when the alleged violations are war crimes. Contractors also argue that the cases CCR has brought raise “political questions” that are inappropriate for the courts to consider. These technical legal arguments have been the focus of human rights lawsuits for years – and so far the question of the contractors’ actual actions have not been reviewed by the federal courts.

One case that should be watched closely this fall is Saleh v. Titan, a case brought by CCR and private attorneys against CACI and L-3 Services (formerly Titan), two private military contractors who military investigations implicated as having played a part in the torture at Abu Ghraib and other detention centers throughout Iraq.

Saleh v. Titan was filed six years ago on behalf of Iraqis who were tortured and otherwise seriously abused while detained and currently includes hundreds of plaintiffs, including many individuals who were detained at the notorious “hard site” at Abu Ghraib. The plaintiffs in Saleh v. Titan, many of whom still suffer from physical and psychological harm, are simply seeking their day in court, to tell an American jury what happened to them.

The Court of Appeals for the District of Columbia dismissed the case last September and the Supreme Court will be deciding whether or not to take the case this fall. This and a handful of other cases will signal how civil lawsuits on behalf of those injured or killed by contractors will be handled in US courts –and decide whether victims of egregious human rights violations will obtain some form of redress and whether contractors who violate the law will be held accountable or be granted impunity.

And how will human rights abuse by contractors be handled by criminal prosecutors in the coming years? Given its track record, it is safe to say that Iraqi civilians cannot count on the Department of Justice (DOJ) to prosecute many contractor abuse cases. The DOJ was given an “F” by Human Rights First in their 2008 report Ending Private Contractor Impunity: Report Cards on the U.S. Government Response since Nisoor Square. The DOJ has never pursued criminal prosecutions for contractor involvement in the crimes of Abu Ghraib; something CCR still demands today.

Iraq’s Parliament signed the Status of Forces Agreement (SOFA) in 2008 which gave it the power to prosecute some US contractors who commit crimes against Iraqi civilians. We can all hope Iraq’s justice system will be able to overcome the political challenges involved in prosecuting US companies or US contractors and other foreigners in Iraq’s courts. But even that will not stop the common practice of contractor companies simply pulling their employees out of the country when a crime happens.

With these fundamental questions left unanswered and legal loopholes left open, thousands more armed contractors will soon be filing into Iraq, onto the streets where Iraqis work, study and go about their everyday lives.

As Senator, Obama called for less dependence on private military contractors and for accountability when they committed human rights abuses. He told Defense News in 2008 that he was “troubled by the use of private contractors when it comes to potential armed engagements.” Senator Clinton co-sponsored legislation to phase out the use of security contractors in war zones.

As President, Obama pretends the occupation of Iraq is ending with the withdrawal of combat troops while he and Secretary of State Clinton quietly hire a shadow army to replace them.

For more information about Saleh v. Titan, please see: http://ccrjustice.org/ourcases/current-cases/saleh-v-titan

Bill Quilgley and Laura Raymond work at the Center for Constitutional Rights. Contact Bill at quigley77@gmail.com and Laura at lauraraymond21@gmail.com