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Is Blackwater Leaving the Security Biz?
If his controversial company exits the private security business, Blackwater president Gary Jackson wants you to know exactly who's to blame: "If you could get it right," he told the AP, referring to the journalists covering Blackwater, "we might stay in the business." According to the AP, which recently visited the company's Moyock, North Carolina headquarters, Blackwater is planning to refocus its operations on aviation, logistics, and training, moving away from the security work that has earned the firm hundreds of millions of dollars in federal contracts since 9/11. "The experience we've had would certainly be a disincentive to any other companies that want to step in and put their entire business at risk," Erik Prince, the company's founder and CEO, told the wire service.
The company has been a magnet for controversy, the subject of negative news coverage, sustained congressional scrutiny, and activist outcry. Its shoot-first-ask-questions-later rep has at times obscured the company's better deeds, such as when Blackwater operators swooped in to Kenya to rescue three young American women who'd gotten stranded in a part of the country that had descended into violence. But while Blackwater has at times served, unfairly, as a stand-in for all the security contractors working in Iraq and Afghanistan—some of them fly by night operations that you probably wouldn't want protecting your local Target—and as the Left's favorite punching bag, its bitter experience in the protection field has more often than not been of its own making.
Blackwater operators have been at the center of a number of questionable incidents, culminating with last September's shooting in Baghdad's Nisour Square that left 17 civilians dead and more than 20 wounded. (The episode remains under investigation by the FBI, and the Justice Department is mulling whether to bring charges.) Its aviation branch, Presidential Airways, meanwhile, is the subject of an ongoing lawsuit filed by the widows of three American soldiers who died when one of its planes crashed in Afghanistan, after its pilot allegedly took the aircraft on a low altitude joyride through mountainous terrain. (Adding to the controversy, Blackwater has attempted to derail the case by requesting that it be decided using Islamic, or Shari'a, law.) Then there's Blackwater's shadowy sister company, Greystone, which has scoured the Third World for discount soldiers to supplement its ranks, dealing with some unsavory characters along the way.
Despite all this, business remains good for Blackwater (though profit margins industry-wide appear to be slimming). Since last September, Presidential Airways has snagged at least three Pentagon contracts, worth close to $160 million, to provide its services in Afghanistan, Kyrgystan, Pakistan, and Uzbekistan, the latest of which was awarded in April. And, this spring, even as the company remained under investigation in connection with the Nisour Square shooting, the State Department renewed Blackwater's lucrative contract to provide security to diplomats in Iraq.
If Blackwater does ease out of the protection biz, bad PR likely has little to with it. While other of Blackwater's competitors have focused almost exclusively on security, Prince has anticipated the day when the security boom created by the wars in Iraq and Afghanistan inevitably begins to dry up. He has spent recent years diversifying his operations, branching out into manufacturing (of, among other things, armored vehicles), testing the waters in the humanitarian aid sector, and opening a private intelligence firm that caters to corporate clients. Security work currently makes up about 30 percent of Blackwater's business, but according Gary Jackson, "If I could get it down to 2 percent or 1 percent, I would go there."
With headlines like this one in today's Washington Post—"Iraq Points to Pullout in 2010"—Prince and Jackson probably see the writing on the wall and are plotting a graceful exit strategy, though not necessarily a prompt one. After the AP story went out on the wire, Blackwater spokeswoman Anne Tyrrell told the Virginia-Pilot that the company is not leaving the security business—or Iraq—in the near term. "As long as we're asked, we'll do it," she said.
FOR IMMEDIATE RELEASE ? September 6, 2008
"McCain's Ties to Shadowy Security Company Confirmed"
John McCain makes occasional mention of his friend, Admiral Chuck Larson, whose distinguished career includes the command of nuclear submarines and the management of the Naval Academy.
Not as well known but by no means concealed is Larson's link to Washington's ViaGlobal Group, the successor company to ViaFinance and Galway Partners.
ViaGlobal was serving as the "business incubator" for Rosetta Research and Consulting LLC, best known as the company involved in luring Afghan tribal chieftain and accused drug kingpin Haji Bashar Noorzai to the U.S., where he was arrested in April of 2005.
One of Rosetta's Department of Defense sponsors, believed to be a senior staff member in the Office of the Secretary of Defense, brokered an introduction to CNN military commentator General David Grange, who serves as an advisor to ViaGlobal.
Grange made the initial arrangements between Rosetta, represented by former Katten Muchin Zavis Rosenman partner and ex-NSC attorney Joseph Myers, now with the International Monetary Fund, and ViaGlobal's chairman, Frank Gren.
Another former Katten Muchin Zavis Rosenman partner, Carole Van Cleefe, brokered a deal between Rosetta and Oracle. Oracle project managers Barbara Bleiweiss and Peter Bloom attempted to establish a joint venture using an existing contract vehicle with the Foreign Terrorist Tracking Task Force (FTTTF), but was unsuccessful due to Rosetta's cost demands.
Gren and his colleagues sought to obtain additional funding for Rosetta, as millions of dollars in investment money had been spent on payments to secure the confidence of Noorzai. Myers, Gren, and others sought sources of funding such as a contract with the FBI as well as an investment from fallen tobacco lawyer Dickie Scruggs.
ViaGlobal appears to have used McCain, acting through staffer Chris Paul, to divert a 2004 FBI internal investigation into dealings between Rosetta contractors and certain FBI employees. This was the subject of a meeting held with the FBI's Deputy Director John Pistole in late 2004.
In mid 2006, the Department of Justice's Office of the Inspector General conducted an investigation into criminal activities of the same FBI employees. Rosetta's phone, email, and contractual records were subpoenaed. In addition, several Rosetta officials and advisors were questioned for several weeks.
Papers filed as part of the Noorzai case show that Rosetta, acting under the orders of senior U.S. officials, promised Noorzai he would not be arrested. Rosetta also paid substantial sums to various foreign government officials who then lied to Noorzai about the actual purpose of the meetings. Noorzai had been indicted as a drug kingpin, and since efforts to secure his cooperation in other matters had failed, the decision was made to bring him to the United States and arrest him.
The papers also show that Rosetta sought and obtained in excess of ten million dollars from investors, who believed they were investing in a security company. Instead, the money was being used to finance the lavish and extensive travel needed to locate Noorzai and gain his confidence. The investors are understandably upset, but since the Rosetta principals are known only as "Mike" and "Brian" no success has been had in locating them.
Rosetta also had improper relationships with a handful of FBI employees, who were later investigated for contributing to Rosetta's alleged violations of the Foreign Corrupt Practices and Neutrality Acts.
As part of the incubation arrangement, ViaGlobal sought to obtain ownership of Rosetta's proprietary database of terrorist financiers as well as access to the extensive network of contacts in the Middle East developed as part of the dealings with Noorzai.
###
FOR IMMEDIATE RELEASE ? September 6, 2008
"McCain's Ties to Shadowy Security Company Confirmed"
John McCain makes occasional mention of his friend, Admiral Chuck Larson, whose distinguished career includes the command of nuclear submarines and the management of the Naval Academy.
Not as well known but by no means concealed is Larson's link to Washington's ViaGlobal Group, the successor company to ViaFinance and Galway Partners.
ViaGlobal was serving as the "business incubator" for Rosetta Research and Consulting LLC, best known as the company involved in luring Afghan tribal chieftain and accused drug kingpin Haji Bashar Noorzai to the U.S., where he was arrested in April of 2005.
One of Rosetta's Department of Defense sponsors, believed to be a senior staff member in the Office of the Secretary of Defense, brokered an introduction to CNN military commentator General David Grange, who serves as an advisor to ViaGlobal.
Grange made the initial arrangements between Rosetta, represented by former Katten Muchin Zavis Rosenman partner and ex-NSC attorney Joseph Myers, now with the International Monetary Fund, and ViaGlobal's chairman, Frank Gren.
Another former Katten Muchin Zavis Rosenman partner, Carole Van Cleefe, brokered a deal between Rosetta and Oracle. Oracle project managers Barbara Bleiweiss and Peter Bloom attempted to establish a joint venture using an existing contract vehicle with the Foreign Terrorist Tracking Task Force (FTTTF), but was unsuccessful due to Rosetta's cost demands.
Gren and his colleagues sought to obtain additional funding for Rosetta, as millions of dollars in investment money had been spent on payments to secure the confidence of Noorzai. Myers, Gren, and others sought sources of funding such as a contract with the FBI as well as an investment from fallen tobacco lawyer Dickie Scruggs.
ViaGlobal appears to have used McCain, acting through staffer Chris Paul, to divert a 2004 FBI internal investigation into dealings between Rosetta contractors and certain FBI employees. This was the subject of a meeting held with the FBI's Deputy Director John Pistole in late 2004.
In mid 2006, the Department of Justice's Office of the Inspector General conducted an investigation into criminal activities of the same FBI employees. Rosetta's phone, email, and contractual records were subpoenaed. In addition, several Rosetta officials and advisors were questioned for several weeks.
Papers filed as part of the Noorzai case show that Rosetta, acting under the orders of senior U.S. officials, promised Noorzai he would not be arrested. Rosetta also paid substantial sums to various foreign government officials who then lied to Noorzai about the actual purpose of the meetings. Noorzai had been indicted as a drug kingpin, and since efforts to secure his cooperation in other matters had failed, the decision was made to bring him to the United States and arrest him.
The papers also show that Rosetta sought and obtained in excess of ten million dollars from investors, who believed they were investing in a security company. Instead, the money was being used to finance the lavish and extensive travel needed to locate Noorzai and gain his confidence. The investors are understandably upset, but since the Rosetta principals are known only as "Mike" and "Brian" no success has been had in locating them.
Rosetta also had improper relationships with a handful of FBI employees, who were later investigated for contributing to Rosetta's alleged violations of the Foreign Corrupt Practices and Neutrality Acts.
As part of the incubation arrangement, ViaGlobal sought to obtain ownership of Rosetta's proprietary database of terrorist financiers as well as access to the extensive network of contacts in the Middle East developed as part of the dealings with Noorzai.
###
There is just something inherently depraved about this and other companies making profits from depravity such as the Iraq invasion. It is difficult to visualize something starting out of depravity heading anywhere except toward more depravity. These corporations speak volumes about the underlying character of our government, as well as about the current status of capitalism in general. There is just nothing good one can really say about these operations.
"There is just nothing good one can really say about these operations."
Well, there may be some good that comes out of it, though it's probably of little value or comfort to the innocent people of Iraq and Afghanistan who've lost everything because of it, or the American troops and their families who have likewise suffered.
Many decent Republicans (yes there ARE many, whether we want to admit to it or not...) have come to the conclusion that the NeoCon version has nothing to do with the Republicanism that people like Senator Barry Goldwater Sr., & 'Mr. Republican', Senator Robert Taft believed in and promoted.
Ron Paul was right on target when he said the current crop of NeoCon 'Repubs' in DC have hijacked the party, and don't belong in the GOP, given their penchant for launching foreign wars, running up enormous deficits and expanding the role of federal government in every conceivable direction.
I think many of the more 'traditional' Republicans will take a long, hard look at any so-called 'Republican' they send to Washington in the future.
Neocons are exposed for what they are, and that ain't a bad thing.
how many trained fighters without a job are returning? could these folks be our new guards?
If the media are responsible for Blackwater getting out of the security business, then three cheers for the media
Rescind their immunity from murder charges and watch them fold like a drunkard
The only thing worse than militarizing police functions is privatizing military functions. Still, it's nice to know that when mercenary work is in the doldrums these covert assassins can find employment in smuggling and spying.
You live by the sword and the sword can be your end. Crimes against Humanity will at the end serve justice.
Strongly you refer to/include information/comments by JEREMY SCAHILL in the 7/23/08 THE GUARDIAN,UK that begins with the following....:BLACKWATER IS HERE TO STAY.....".It provides a perspective not apparent in this report.
I think that Corporate and Industrial intelligence gathering for hire is dangerous to all our liberties in an obleque way. I can envision vast improprieties as Blackwater will offer services to various competitors in ever escalating bids, sort of like professional athletes in a continuing decline of client loyality.
Maybe there is hope.
Perhaps their expertise could be used in a less rapacious, political, and para-military context. If our ports are as unguarded as is widely believed, maybe a contract to Blackwater to assist in this area will go far to take the 'bravado' they feel they must project in their efforts to fit into a military model out of their business mission.
Waaaaaa, poor Republican Storm Troopers. I wouldn't count them out for too long tho.... Always another war somewhere against brown folk to look forward to.
As a long time fan of science fiction, I've seen many plot lines where military powers don't serve governments, they serve corporations. As usually, some of these good authors has accurately predicted the not too distant future.
I call a lot of what I've read about concerning Iraq nothing less than bare-nekkid war profiteering, for Pete's sake, we've got what, 4 branches of the military there, all with guns and so forth, and they still need for-profit mercenaries besides? What kind of monkey circus ARE they running, over there, what gives? I hope Congress has the whole entire apparatus audited right down to the nub in a no-mercy effort to bring anything/everything to light that even looks halfway sleazy. The United States is bleeding money, and if the only reason that our troops are still in that country is because some parties are stuffing money down the front of their pants like there's no tomorrow, then recall our troops in toto and have done with it. How do you LOSE 15 billion dollars? Anyone? Anyone? Bueller? Anyone? I don't even think the word 'fraud' really quite encompasses what's apparently been going on. That, and I just don't like mercenaries, and that's what Blackwater is, I think.
I still think they may be coming home because the action may be here.
You know I was a big fan of BlackWater at first but I can not say that now. Especially since they want there court caseto be heard in one instance in an Islamic court using sharia Law? Fvcking cprporate whore sell outs! Yes I am afriad these are the countries new security guards that will be coming to Federal and State buildings near you. Now if only a terror attack on UnitedStates soil will justify them being brought here for use! Scary though isn't it!
Fred some day one of those Republican Storm Troopers maybe saving your life. When as you say the (brown people) come here to cut off your head.
Blackwater, the name says it all,they are nothing but evil MF.
Why is Black water evil? They are doing the job that the gov is paying them to do. You should blame Congress for passing the funding bill. If I'm not mistaken The Dem's said they would stop the war, by stoping the funding. Just like the Dem's they say one thing and do another.
These Killers for Hire SHOULD go out of the security business. Their business is ripping off taxpayers and killing civilians. They should go out of business altogether
Blackwater has added two new facilities, one in Illinois and one in Colorado. Come to your own conclusions.
Many of the men with these paramilitary organizations are former U. S. Militart Special Operations Soldiers i.e. Army/Air Force Special Forces, Navy Seals, Marine Force Recon and are very highly trained in their respective fields. The U. S. Congress can not and will not let our military do the things that need to be done for political reasons so they contract these paramilitary organizations to do it covertly at times and sometimes with immunity from our government and other governments. I can see the need for them and I can appreciate that they are some of the best of the best at what they do. As an ex SpecOps operative I only wish I were twenty years younger. I'd be over there with them helping to protect the rights and safety of these bleeding heart liberal pukes at home
FOR IMMEDIATE RELEASE September 6, 2008
"McCain's Ties to Shadowy Security Company Confirmed"
John McCain makes occasional mention of his friend, Admiral Chuck Larson, whose distinguished career includes the command of nuclear submarines and the management of the Naval Academy.
Not as well known but by no means concealed is Larson's link to Washington's ViaGlobal Group, the successor company to ViaFinance and Galway Partners.
ViaGlobal was serving as the "business incubator" for Rosetta Research and Consulting LLC, best known as the company involved in luring Afghan tribal chieftain and accused drug kingpin Haji Bashar Noorzai to the U.S., where he was arrested in April of 2005.
One of Rosetta's Department of Defense sponsors, believed to be a senior staff member in the Office of the Secretary of Defense, brokered an introduction to CNN military commentator General David Grange, who serves as an advisor to ViaGlobal.
Grange made the initial arrangements between Rosetta, represented by former Katten Muchin Zavis Rosenman partner and ex-NSC attorney Joseph Myers, now with the International Monetary Fund, and ViaGlobal's chairman, Frank Gren.
Another former Katten Muchin Zavis Rosenman partner, Carole Van Cleefe, brokered a deal between Rosetta and Oracle. Oracle project managers Barbara Bleiweiss and Peter Bloom attempted to establish a joint venture using an existing contract vehicle with the Foreign Terrorist Tracking Task Force (FTTTF), but was unsuccessful due to Rosetta's cost demands.
Gren and his colleagues sought to obtain additional funding for Rosetta, as millions of dollars in investment money had been spent on payments to secure the confidence of Noorzai. Myers, Gren, and others sought sources of funding such as a contract with the FBI as well as an investment from fallen tobacco lawyer Dickie Scruggs.
ViaGlobal appears to have used McCain, acting through staffer Chris Paul, to divert a 2004 FBI internal investigation into dealings between Rosetta contractors and certain FBI employees. This was the subject of a meeting held with the FBI's Deputy Director John Pistole in late 2004.
In mid 2006, the Department of Justice's Office of the Inspector General conducted an investigation into criminal activities of the same FBI employees. Rosetta's phone, email, and contractual records were subpoenaed. In addition, several Rosetta officials and advisors were questioned for several weeks.
Papers filed as part of the Noorzai case show that Rosetta, acting under the orders of senior U.S. officials, promised Noorzai he would not be arrested. Rosetta also paid substantial sums to various foreign government officials who then lied to Noorzai about the actual purpose of the meetings. Noorzai had been indicted as a drug kingpin, and since efforts to secure his cooperation in other matters had failed, the decision was made to bring him to the United States and arrest him.
The papers also show that Rosetta sought and obtained in excess of ten million dollars from investors, who believed they were investing in a security company. Instead, the money was being used to finance the lavish and extensive travel needed to locate Noorzai and gain his confidence. The investors are understandably upset, but since the Rosetta principals are known only as "Mike" and "Brian" no success has been had in locating them.
Rosetta also had improper relationships with a handful of FBI employees, who were later investigated for contributing to Rosetta's alleged violations of the Foreign Corrupt Practices and Neutrality Acts.
As part of the incubation arrangement, ViaGlobal sought to obtain ownership of Rosetta's proprietary database of terrorist financiers as well as access to the extensive network of contacts in the Middle East developed as part of the dealings with Noorzai.
###
I would rather see them out of business. They would not be doing what they are doing if they were not making huge amounts of money. As Jeremy Scahill said on Democracy Now! "Blackwater paid its men, they told me, $350 a day. They billed the federal government $950 a day per Blackwater man. At one point, they had 600 men stretched from Texas all the way to Mississippi through the Gulf. Blackwater was raking in sometimes $240,000 a day.
Why should we feel like we need to accommodate these greedy money grubbers?