|
|
POLITICS-US: One-Fifth of Iraq Funding Paid to Contractors
By William Fisher
NEW YORK, Aug 14, 2008 (IPS) - As a new report forecasts that the 190,000 private contractors in Iraq and
neighbouring countries will cost U.S. taxpayers more than 100 billion dollars by
the end of 2008, an under-the-radar Florida court case suggests that U.S.
President George W. Bush - a staunch contractor supporter - is preparing to
throw security contractors such as Blackwater under the political bus.
In the Florida case, relatives of three American servicemen killed in the 2004
crash of an aircraft owned by Blackwater Aviation in Afghanistan are suing
the company for damages, based in part on U.S. government reviews that
concluded that errors committed by Blackwater staff were responsible for the
deaths. This week, despite Bush’s support for what he has called the critical
roles played by overseas contractors, his administration failed to meet a
deadline for presenting the court with any defence of Blackwater.
The administration’s silence has caused consternation for Blackwater and its
supporters. Erik Prince, Blackwater’s chairman, told TIME magazine, "After the
president has said that, as commander-in-chief, he is ultimately responsible
for contractors on the battlefield it is disappointing that his administration
has been unwilling to make that interest clear before the courts."
Some observers have speculated that the Administration’s silence can be
attributed to the controversial nature of the contractor issue and a reluctance
to address it during a hotly contested presidential election year.
The Florida battle, which could eventually find its way to the U.S. Supreme
Court, turns on the question of whether Blackwater and other overseas
contractors are subject to U.S. law. That question arises because of a decree
issued in 2005 by the then U.S. Iraq administrator, L. Paul Bremer, granting
contractors legal immunity.
The Iraqi government claims that Blackwater and other contractors have been
responsible for the deaths of Iraqi civilians and wants to make them subject
to Iraqi law. The U.S. has resisted this move, which is thought to be part of
the ongoing stalemate in negotiations with Iraq over the future status of U.S.
forces in that country.
The White House has also attacked a bill recently passed by the House of
Representatives that would place combat-zone contractors under the
jurisdiction of U.S. courts. It called the measure an unacceptable extension of
federal jurisdiction overseas, and said it would place additional burdens on
the military.
Blackwater’s argument is that the company should be covered by the same
"sovereign immunity" that protects the U.S. military from lawsuits because
the downed flight in question in the Florida case was under the command
and control of the U.S. military.
Last month, this argument was rejected by three federal judges, who cited the
U.S. government’s failure to take a position in defence of Blackwater as one of
their reasons. In their decision to allow the lawsuit to proceed, the judges
ruled, "The apparent lack of interest from the United States… fortifies our
conclusion that the case does not yet present a political question."
Lawyers for many major contractors including DynCorp, Kellogg Brown and
Root (KBR), Blackwater and others, say a dangerous precedent would be
established if this and similar cases are allowed to go forward. Such a
decision, they say, would open contractors to large money damages and
greatly higher risk insurance costs that could adversely affect their ability to
carry out the jobs the U.S. government has hired them to do.
As the Florida case made its way through the U.S. legal system, a new report
from the Congressional Budget Office (CBO) contends that the cost of having
military personnel provide security services in Iraq might be little different
from the prices charged by private security contactors.
The report said that 6-10 billion dollars has been spent on security
contactors thus far in 2008 and estimated that about 25,000-30,000
employees of security firms were in Iraq as of early this year. It estimates that,
if spending for contractors continues at about the current rate, 100 billion
dollars will have been paid to military contractors for operations in Iraq.
The CBO report revealed that about 20 percent of funding for operations in
Iraq has gone to contractors. Currently, it said, there are at least 190,000
contractors in Iraq and neighbouring countries - a ratio of about one
contractor per U.S. service member. It noted that the U.S. has relied more
heavily on contractors in Iraq than in any other war for functions ranging
from food service to guarding diplomats.
The report also noted that the legal status of contractor personnel is a grey
area of U.S. law, particularly for those who are armed. It said that military
commanders have less direct authority over contractors because a
government contracting officer rather than a military commander manages
their contracts.
The CBO review was requested by Senator Kent Conrad, a North Dakota
Democrat who is chairman of the Senate Budget Committee. In a statement,
Conrad said the Bush administration’s reliance on military contractors has set
a dangerous precedent. The use of contractors "restricts accountability and
oversight; opens the door to corruption and abuse; and, in some instances,
may significantly increase the cost to American taxpayers," he said.
The report comes at a time when the actions of contractors in Iraq and
Afghanistan are coming under increased scrutiny. Contractors - including
Blackwater and KBR - have been investigated in connection with shooting
deaths of Iraqis and the accidental electrocutions of U.S. troops. The Senate
Democratic Policy Committee heard testimony a few weeks ago from a former
Defence Contract Audit Agency (DCAA) contract overseer who was effectively
fired because he refused to authorise 1 billion dollars in unsubstantiated
charges from KBR. The Government Accountability Office released a report
that confirmed whistleblower complaints of DCAA supervisors issuing
unsupported findings that were favourable to contractors. And last week,
Government Executive magazine reported that nearly a dozen former DCAA
employees see DCAA as a very troubled agency that is more concerned with
performance goals than actually overseeing contracts.
The death of a U.S. soldier, who was electrocuted in January while showering
in Iraq, prompted a House committee oversight hearing last month into
whether KBR has properly handled the electrical work at bases it maintains.
The military has also said that five other deaths were due to improperly
installed or maintained electrical devices, according to a congressional report.
Contractors’ activities have drawn sharp criticism from private non-
governmental watchdog groups, such as OMB Watch. OMB stands for the
Office of Management and Budget, which prepares and presents the
president’s budget to congress.
Craig Jennings, OMB’s Federal Fiscal Policy Analyst, told IPS, "100 billion
dollars is a very large amount of money - in fact, Iraq’s GDP was just over
100 billion dollars in 2007. But what staggers my imagination is how sober
adults would be willing to divert such vast sums of America’s financial
resources to the bank accounts of private firms whose dealings are opaque to
taxpayers and, for the most part, held unaccountable."
Jennings added, "I think advocates of unaccountable privatisation are
beginning to reap what they have sown: defending privatisation of war-
making on such an enormous scale is becoming tenuous. It’s hard to paint a
picture of contractors providing taxpayers value when so many instances of
contractor misconduct have found their way into the public’s consciousness."
Jennings also called attention to the shortcomings of the military auditing
process. He told IPS, "This magnitude of expenditures on private contractors
is especially striking in light of recent government and media reports of
dysfunction in the DCAA. The protection of the interests of American
taxpayers is apparently suffering a number of impediments."
(END)
|
|
|
|
|
| |
|
|
What is RSS?
