Daniel Schulman

Senior Editor

Based in DC, Dan covers politics and national security. His work has appeared in the Boston Globe Magazine, the Village Voice, the Columbia Journalism Review, and other publications. He is the author of the new Koch brothers biography, Sons of Wichita (Grand Central Publishing). Email him at dschulman (at) motherjones.com.

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Blackwater's Fired Up by Audit Coverage

| Tue Jun. 16, 2009 1:09 PM EDT

Bruce Falconer and I reported yesterday that a federal audit [PDF] of Blackwater's security contracts in Iraq concluded, among other things, that the firm had regularly failed to meet staffing requirements on two of its State Department task orders and could owe the government $55 million. Blackwater's spokeswoman, Anne Tyrrell, just emailed an "amended statement" on the audit, disputing how its conclusions were characterized in some media reports. I saw this one coming when I read the Wall Street Journal's coverage this morning, which carried the headline, "Audit Finds That U.S. Overpaid Blackwater." (Similarly, ABC is now reporting: "There is no assurance that personnel staffing data was accurate or complete and that correct labor rates were paid.")

Here's what Tyrrell had to say:

The joint audit by the Special Inspector General for Iraq Reconstruction and the United State Department of State Inspector General released yesterday does not, as some press reports have suggested, allege that Blackwater was ever complicit in overbilling the United States government for work it performed in Iraq in 2006 and 2007. The audit does not even state that the government overpaid Blackwater for staffing issues.  All it suggests is that invoices spanning a period of time are reviewed. A $55 million penalty has in no way been determined. 

In fact, the government contracting officer determined that Blackwater was compliant with the terms of the contract at the time for which they were reviewing and the therefore did not apply any deductions or penalties. Blackwater only billed for services provided. 

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The Alleged Cuban Spies' Sweet-Looking Boat

| Fri Jun. 5, 2009 5:27 PM EDT

The Justice Department just announced a major espionage bust, indicting a former State Department intelligence official and his wife on charges of spying for the Cuban government for nearly 30 years. After launching a sting on the couple in April, the feds swooped in yesterday afternoon and arrested 72-year-old Walter Kendall Myers (a.k.a. "Agent 202") and his 71-year-old wife, Gwendolyn ( a.k.a. "Agent 123" and "Agent E-634").

Beginning his career with State in 1977 at the department's Foreign Service Institute, Kendall, whose top secret clearance allowed him to view sensitive compartmentalized information (SCI), eventually worked his way to become a senior analyst, focusing on Europe, in the agency's Bureau of Intelligence and Research.

Congressional Climate Change Games

| Fri Jun. 5, 2009 10:37 AM EDT

A couple weeks back, the Center for Public Integrity reported on the massive lobbying effort targeting the Waxman-Markey climate change bill, which literally hundreds of businesses and interest groups are vying to influence. And—surprise, surprise—some congressional have responded by quietly tweaking the bill in industry friendly ways. Today, the Washington Post singles out a handful of interesting provisions slipped into the bill by Democrats on the House energy and commerce committee. Take this sly maneuver by Rep. Gene Green, the Texas Democrat:

During the final days of the drafting of a 946-page climate bill,  Rep. Gene Green (D-Tex.) won support for an amendment that deleted a single word and inserted two others. The words could be worth millions of dollars to U.S. oil refiners.

The Green amendment deleted the word "sources" and inserted "emission points." In the arcane world of climate legislation, that tiny bit of editing might one day give petroleum refiners valuable rights to emit carbon dioxide when it otherwise might not have been allowed. Refiners could get the extra allowances in return for cutting carbon emissions by 50 percent at a single point of a vast refinery complex instead of slashing emissions by 50 percent for the entire facility.

Mixed Reviews for Obama's Speech

| Thu Jun. 4, 2009 12:07 PM EDT

How did Obama's hard truths play in Cairo? Over at Politico, Roger Simon notes that his speech, at times, "fell flatter than a piece of pita bread." And when the president did move his audience to applause, it came at predictable moments. For instance, when Obama spoke of outlawing torture, "applause and whistles of approval" followed. But on other topics--9/11, confronting and isolating "violent extremists," America's "strong bonds" with Israel--silence.

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