Obama's Blackwater? Chicago Mercenary Firm Gets Millions for Private "Security" in Israel and Iraq

By Jeremy Scahill, AlterNet. Posted April 2, 2009

Federal records obtained by AlterNet reveal a multi-million dollar contract for a private U.S. paramilitary force operating out of Jerusalem.

On the campaign trail, Barack Obama's advisers said he "can't rule out [and] won't rule out" using mercenary forces, like Blackwater. Now, it appears that the Obama administration has decided on its hired guns of choice: Triple Canopy, a Chicago company now based in Virginia. It may not have Blackwater's thuggish reputation, but Triple Canopy has its own bloody history in Iraq and a record of hiring mercenaries from countries with atrocious human rights records. What's more, Obama is not just using the company in Iraq, but also as a U.S.-government funded private security force in Israel/Palestine, operating out of Jerusalem.

Beginning May 7th, Triple Canopy will officially take over Xe/Blackwater's mega-contract with the U.S. State Department for guarding occupation officials in Iraq. It's sure to be a lucrative deal: Obama's Iraq plan will inevitably rely on an increased use of private contractors, including an army of mercenaries to protect his surge of diplomats operating out of the monstrous U.S. embassy in Baghdad.

The Iraq contract may come as no surprise. But according to federal contract records obtained by AlterNet, the Obama administration has also paid Triple Canopy millions of dollars to provide "security services" in Israel. In February and March, the Obama administration awarded a "delivery order" to Triple Canopy worth $5.5 million under State Department contract SAQMPD05F5528, which is labeled "PROTECTIVE SERVICES--ISRAEL." According to one government document, the contract is scheduled to run until September 2012. (Another document says September 2009.) The contract is classified as "SECURITY GUARDS AND PATROL SERVICES" in Israel. The total value of the contract was listed at $41,556,969.72. According to a January 2009 State Department document obtained by AlterNet labeled "Sensitive But Unclassified," the Triple Canopy contract is based out of Jerusalem.

According to federal records, the original arrangement with Triple Canopy in Israel appears to date back to at least September 2005 and has been renewed every year since. The company is operating under the State Department's Worldwide Personal Protection Program (WPPS), which provides for private security/military companies to operate on the U.S. government payroll in countries such as Afghanistan, Bosnia, Iraq, and Israel. Triple Canopy, according to an internal State Department report, also worked under the program in Haiti, though that task order is now listed as "closed." In State Department documents the WPPS program is described as a government initiative to protect U.S. officials as well as "certain foreign government high level officials whenever the need arises." The State Department spent some $2 billion on the WPPS program from 2005-2008.

Triple Canopy's Growing Footprint in Iraq

Triple Canopy is hardly new to the Iraq occupation. Founded in Chicago in 2003 by "U.S. Army Special Forces veterans," the company won its first Iraq contract in 2004. In 2005, with its business expanding, Triple Canopy relocated its corporate headquarters from Obama's home state to Herndon, Virginia, placing it much closer to the center of U.S. war contracting. (On several U.S. government contracts, however, including the Israel security contracts, its Lincolnshire, Illinois address is still used.) 

Along with Blackwater and DynCorp, Triple Canopy has had armed operatives deployed in Iraq on a major U.S. government contract since the early stages of the occupation. At one point during this arrangement, Blackwater was responsible for Baghdad (the largest share of the work), DynCorp covered northern Iraq and Triple Canopy southern Iraq. Triple Canopy also worked for KBR and other corporations. As of 2007, Triple Canopy had about 2,000 operatives in Iraq, but only 257 on the State Department contract. However, its new contract, which takes effect May 7, will greatly expand Triple Canopy's government presence in Iraq. (Meanwhile, Blackwater is scheduled to continue to work in Iraq under Obama through its aviation division and in Afghanistan, where it has security and counter-narcotics contracts. It also holds millions of dollars in other U.S. government contracts around the world and in the U.S. In February alone, the Obama administration paid Blackwater nearly $70 million in security contracts.) The Obama administration may have traded Blackwater for Triple Canopy in Iraq, but it is likely that some of Blackwater's operatives, too, will simply jump over to Triple Canopy to keep working as armed security guards for occupation officials.

Like Blackwater, Triple Canopy has had its share of bloody incidents, among them  allegations that operatives have gone on missions where they shot at civilian vehicles, including one after a briefing where a team leader cocked his M-4 and said to his men, "I want to kill somebody today. ... Because I'm going on vacation tomorrow." (The man in question denied any wrongdoing). While Triple Canopy fired some employees for not reporting shooting incidents in Iraq, none have been criminally prosecuted in Iraq or the U.S. (For a full report on this and other incidents involving Triple Canopy, check out the great work of Washington Post foreign correspondent Steve Fainaru, author of Big Boy Rules.)

Also like Blackwater, Triple Canopy has hired mercenaries from countries with atrocious human rights records and histories of violent counter-insurgencies. Among them: Peru, Chile, Colombia and El Salvador. In fact, in Iraq, Triple Canopy hired far more "Third Country Nationals" than Blackwater and DynCorp and has used more TCNs than US citizens or Iraqis. As I reported in my book, Triple Canopy used the same Chilean recruiter (who served in Augusto Pinochet's military) Blackwater used when it hired Chilean forces, including some "seasoned veterans" of the Pinochet era. In El Salvador, the company reportedly used "a U.S.-trained former paratrooper and officer of the Salvadoran special forces during the country's civil war" where the U.S. backed a brutal right wing dictatorship in a war that took the lives of some 75,000 Salvadorans. A Triple Canopy spokesperson reportedly said of the Salvadorans, "They've got the right background for the type of work we are doing." A Triple Canopy subsidiary in Latin America has also reportedly used a former CIA base in Lepaterique, Honduras as a training center. In the 1980s, the facility was used by the CIA and Argentinian military intelligence in training Contra death squads to attack Nicaragua. The base also served as the headquarters for the notorious Battalion 316, a CIA-trained Honduran military unit responsible for torture and disappearances.

There is also cause for concern about Triple Canopy's attitude towards accountability for its forces in Iraq, particularly in light of new rules which, on paper, give Iraqi courts jurisdiction over contractor crimes. Blackwater has, at times, conspired with the U.S. State Department to whisk its forces out of Iraq when they are facing potential prosecution for alleged crimes committed in the country, as in the case of a drunken Blackwater operative who was alleged to have shot and killed a bodyguard to Iraqi Vice President Adel Abdel-Mahdi on Christmas Eve 2006.

According to one Triple Canopy operative, "We were always told, from the very beginning, if for some reason something happened and the Iraqis were trying to prosecute us, they would put you in the back of a car and sneak you out of the country in the middle of the night." Another Triple Canopy operative said U.S. contractors had their own motto: "What happens here today, stays here today."

The use of mercenaries by Hillary Clinton's State Department stands in stark contrast to her co-sponsorship as a Senator of a bill last year that sought to ban the use of such companies in U.S. war zones, specifically Iraq. Last February Clinton said, "The time to show these contractors the door is long past due." Now, Clinton will be relying on these hired guns for protecting her and her staff in various countries.

It's hardly a surprise that Obama is continuing the use of mercenaries in Iraq and beyond (Triple Canopy itself maintains offices in Abu Dhabi, Nigeria, Peru, Jordan and Uganda); nevertheless, members of Congress -- whose actions when Bush deployed these private armies were too little, too late -- have a responsibility to investigate his use of companies whose profits are intimately linked to a continuation of war. Moreover, Obama's choice of this particular company should be investigated, both by the House and Senate, before May 7th when Obama's mercenaries become the official paramilitary force in Iraq. As for Triple Canopy's role in Israel, Obama's administration should explain exactly what these forces are doing on the U.S. government payroll.

Jeremy Scahill, an independent journalist who reports frequently for the national radio and TV program Democracy Now!, has spent extensive time reporting from Iraq and Yugoslavia. He is currently a Puffin Writing Fellow at The Nation Institute. Scahill is the author of Blackwater: The Rise of the World's Most Powerful Mercenary Army.

http://www.alternet.org/waroniraq/134594/obama%27s_blackwater_chicago_mercenary_firm_gets_millions_for_private_%22security%22_in_israel_and_iraq_/

President Obama, Why Did You Pay Blackwater $70 Million in February?

By Jeremy Scahill, AlterNet. Posted March 17, 2009.

Obama may keep the company on the government payroll months after its Iraq contract expires. Not bad for a firm supposedly going down in flames.

For those already outraged at the AIG bonus scandal, here is a fact that should add more fuel to the fire: The Obama administration has paid the mercenary firm formerly known as Blackwater nearly $70 million to operate in Iraq and, according to The Washington Times, may keep the company on the payroll months past the official expiration of its Iraq contract in May. I reviewed Blackwater's recent transactions with the Obama State Department and discovered a $45 million payment to Blackwater on February 4, 2009 for "protective services-Iraq." It is described as a "funding action only." Here is the interesting part: The estimated "Ultimate Completion Date" is 5/07/2011.

The Washington Times (as described below) reported on a $22 million payment to Blackwater on February 2. Combined with the $45 million payment I discovered, that's nearly $67 million in 72 hours. Not bad for a company supposedly going down in flames.

With the U.S. economy in shambles and millions of Americans struggling to make ends meet and keep their homes, Obama and Secretary of State Hillary Clinton need to explain to U.S. taxpayers how they justify these mega-payments to a scandal-plagued mercenary company. (At the very least, someone should ask Robert Gibbs about it).

It has been widely reported that the Bush administration's preferred mercenary company, which recently renamed itself Xe, will soon be leaving Iraq. That news came early this year after the State Department, under immense public pressure, announced it would not renew the company's lucrative deal to act as the private paramilitary force for senior U.S. occupation officials. The Iraqi government has said it wants the company to leave Iraq and says it has revoked the company's operating license. The Obama administration continues to use Blackwater in Afghanistan and the company has extensive domestic training contracts with the military and law enforcement agencies inside the borders of the U.S.

Earlier this week, The Washington Post reported that some of Blackwater's armed operatives may simply be rehired by two other US mercenary firms that are expected to take over Blackwater's work in Iraq under the Obama administration: Triple Canopy and DynCorp. Now, The Washington Times reports that the State Department has signed contracts with Blackwater that appear to extend the company's presence in Iraq at least until September 2009.

According to the paper:

"On Feb. 2, a department spokesman was asked whether officials planned to renew one of Blackwater's contracts past May. The spokesman, Robert Wood, said the department had told Blackwater 'we did not plan to renew the company's existing task force orders for protective security details in Iraq.'

"But records available through a federal procurement database show that on that same day, the State Department approved a $22.2 million contract modification for Blackwater 'security personnel' in Iraq, with a job completion date of Sept. 3, 2009."

"Why would you continue to use Blackwater when the Iraqi government has banned the highly controversial company and there are other choices?" said Melanie Sloan, executive director of the nonpartisan Citizens for Responsibility and Ethics in Washington.

State Department spokesman Noel Clay told The Washington Times the contract modification involves aviation services. "The place of performance is Iraq, but it is totally different than the Baghdad one that expires in May," he said. Sloan called the State Department's explanation of the Feb. 2 deal a "parsing of words" and said "they should just be straight with us." Xe spokeswoman Anne Tyrell declined to comment on the status of the company's work in Iraq or the Feb. 2 contract modification. She said the company was aware that the State Department had indicated that it did not plan to renew its contracts in Iraq but that Xe officials had not received specific information about leaving the country. "We're following their direction," she said.

Blackwater recently renamed itself Xe and its owner Erik Prince "resigned" as CEO, though he remains its sole owner and chairman.

UPDATE: Could Arlen Specter's Logic on AIG Bonuses Be Applied to Blackwater?

Several people have written me asking what the Obama administration should do with Blackwater, following reports that the State Department paid the company some $70 million over a 72 hour period in February.

Many people take the position that Obama is dealing with remnants of the Bush administration's disastrous policies and that it will take time to unravel. Fair enough. But, with the U.S. economy in shambles, is it really a priority to make good on payments to a company like Blackwater?

I have long written that the Obama Iraq policy will necessitate using mercenary forces. This is true for a number of reasons, not the least of which is Obama's refusal to scrap that monstrous U.S. fortress they are calling an embassy. If it's not going to be Blackwater guarding Obama's occupation officials, it will be Triple Canopy and DynCorp (who will in turn hire a bunch of the "fired" Blackwater guys anyway). The point here is this: I disagree that the reality is simply that Obama needs time to phase out Blackwater and his hands are tied when it comes to paying them on existing contracts. I believe Obama needs them to sustain his bad Iraq policy, which will continue the occupation, albeit with a softer face. If Obama wanted to, he could outright fire Blackwater. Henry Waxman and others have called for that. He certainly would have the support of the American people, particularly given how much money Blackwater has milked from the U.S. treasury.

All of this brings me to Republican Sen. Arlen Specter, former chair of the Judiciary Committee. Yesterday, he was interviewed on MSNBC by Andrea Mitchell about the AIG bonuses. Read what he says about the AIG contracts not having to be honored and then apply the logic to Obama's Blackwater situation:

Mitchell: What say you when it comes to these bonuses? Should they be taxed back? Should the AIG executives who approved the bonuses have to commit hari-kari? With whom do you side?

Specter: Andrea, they're not enforceable under the law. They are against public policy. It is obviously against public policy to pay bonuses to people who caused the problem. If you have, for example, a contract for the sale of heroin, that's not enforceable. You take those cases to court, they won't be enforced. It's just that plain. It's set out very simply in the restatement of the law on contracts

(.....)

Mitchell: Well, you know, there's been a lot ventilating on all sides, but you're a former district attorney, a former prosecutor, experienced lawyer and we tend to trust your judgment on this, former Judiciary Chairman. So let me hear you out on when you say they're not enforceable, the top economic adviser and the Treasury Secretary said that these were contracts that if the government broke the contracts, there would be greater expense in going to court and suing to get the money back.

What would the next steps be in a practical way to get the money back and break the contracts?

Specter: The top economic adviser and the Secretary of the Treasury are wrong again. It happens too often to be excusable. I'd like to argue this as a legal matter. If you have a contract, which is against public policy, it is not enforceable. I gave you an extreme example. If you have a contract for the delivery of heroin, the use of heroin, the delivery of heroin is against the law, you can't enforce it.

Let those individuals who claim that they're entitled to bonuses go to court and the government will defend the case and will say these are against public policy. How can you pay a bonus to this individual in this company, which raised the problem and caused this $180 billion bailout and now they want bonuses on top? It is simply unenforceable.

Jeremy Scahill, an independent journalist who reports frequently for the national radio and TV program Democracy Now!, has spent extensive time reporting from Iraq and Yugoslavia. He is currently a Puffin Writing Fellow at The Nation Institute. Scahill is the author of Blackwater: The Rise of the World's Most Powerful Mercenary Army.

http://www.alternet.org/waroniraq/132171/president_obama,_why_did_you_pay_blackwater_$70_million_in_february/

Also Read: (from http://www.legitgov.org/)

Obusha quietly gave Blackwater (Xe) $70M in February: Blackwater still works for U.S. in Iraq 17 Mar 2009 The U.S. State Department re-signed the security mercenary firm formerly known as Blackwater despite Iraq saying it didn't want the company there, records show. The State Department said $22.2 million deal signed with Blackwater, since renamed Xe, in February was a contract modification concerning aviation work, The Washington Times first reported. The contract expires in September, months after its contract for work in Baghdad was to have run out.

New deal for Blackwater 17 Mar 2009 Days after the Baghdad government decided it no longer wanted the mercenary contractor then known as Blackwater in Iraq, the State Department signed a $22.2 million deal in February to keep the embattled contractor working there through most of the summer, contract records show. The decision keeps Blackwater - since renamed Xe - in Iraq months longer than anyone has suggested publicly, while raising questions about why the U.S. would pay a contractor terrorists for work in Iraq if it may not be able to operate there legally.