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.