Buck Naked Politics

How KBR Got Paid $1 Billion in 'Noncredible' Costs

by Damozel | Those wacky government contractors.  Will we ever tire of of their sportive tricks?

I'll never understand why Republicans --- who worry obsessively about taxes --- aren't apoplectic over the amounts of tax dollars being flushed down the latrine in Iraq. 

For example: During the first two years of the Iraq war, a certain army official, Charles M. Smith, was  in charge of overseeing a 'multibillion dollar contract' in Iraq.  After army auditors determined that KBR didn't have credible records to justify more than $1 billion in spending he refused to pay them.(NYT)  Specifically, the auditors said that the claims were 'noncredible.'  (After all, you wouldn't want the government to pay out the tax dollars formerly known as 'yours' and 'mine' without verifying that the recipients delivered the goods, would you?)  But $1 billion in insufficiently documented costs?  That's a whole lot of missing invoices.

BBC: Around $23 Billion Lost in Iraq Due to Contractor Fraud & Mismanagement

by Damozel | My colleague D. Cupples has been all over this issue from the get-go, but it's good to see that the mainstream press --- the mainstream British press, anyway --- is on the case. 

A BBC investigation estimates that around $23bn may have been lost, stolen or just not properly accounted for in Iraq.

For the first time, the extent to which some private contractors have profited from the conflict and rebuilding has been researched by the BBC's Panorama using US and Iraqi government sources.  (BBC news)   

Good for them.  This is information the American public is entitled to have. Sadly, '[a] US gagging order is preventing discussion of the allegations. The order applies to 70 court cases against some of the top US companies.'  (BBC news)  ('While George Bush remains in the White House, it is unlikely the gagging orders will be lifted,' the article adds.)

Bush-tied, Saudi Fugitive Gets $80 Million U.S. Contract

by D. Cupples |  Can you imagine being wanted by the FBI and still getting a government contract worth millions?  ABC News reports:

"The US military has awarded an $80 million contract to a prominent Saudi financier who has been indicted by the US Justice Department. The contract to supply jet fuel to American bases in Afghanistan was awarded to the Attock Refinery Ltd, a Pakistani-based refinery owned by Gaith Pharaon.

"Pharaon is wanted in connection with his alleged role at the failed Bank of Credit and Commerce International (BCCI), and the CenTrust savings and loan scandal, which cost US tax payers $1.7 billion."

House Includes Waxman Amendment in Defense Bill

by Deb Cupples |   The House Oversight Committee reports:

"The House of Representatives voted to include in the Defense Authorization bill the Waxman Clean Contracting amendment, which is a response to pervasive waste, fraud, and abuse uncovered by congressional, GAO and Inspector General investigations.

"The Clean Contracting amendment would (1) require agencies to enhance competition in contracting, (2) limit the use of abuse-prone contracts, (3) rebuild the federal acquisition workforce, (4) strengthen anti-fraud measures, and (5) increase transparency in federal contracting."

True, it has to make it through the Senate intact -- which may not be easy, given the number of contractor-friendly Republicans there -- but it's a start.  Bravo Henry Waxman!

The House Oversight Committee has links to the amendment's text an a summary.

Iraq Contracts: $7.8 billion Spent, Little Evidence or Oversight or Completed Work

by Deb Cupples |   As much as government-contractor fraud bothers me, our government's failure to properly prevent or deal with said fraud bothers me even more.  We taxpayers pay their salaries, but whose side are our bureaucrats on?  Via CBS, the Associated Press reports:

"An internal audit of some $8 billion paid to U.S. and Iraqi contractors found that nearly every transaction failed to comply with federal laws or regulations aimed at preventing fraud, in some cases lacking even basic invoices explaining how the money was spent.

"Of the money paid during a five-year period - from 2001 through 2006 - $7.8 billion in payments skirted billing rules with some violations egregious enough to invite potential fraud, warned the Defense Department's inspector general....

"'There is something very wrong when our wounded troops have to fill out forms in triplicate for meal money while billions of dollars in cash are handed out in Iraq with no accountability,' said Rep. Henry Waxman, chairman of the House Oversight and Government Reform Committee. " (See the rest of the story here)

Something very wrong, indeed!

Katrina Contractor Indicted

by Deb Cupples  |  It's the only case of criminal wrongdoing that the Justice Department has prosecuted so far relating to New Orleans levee work.  I wonder why.  Given the confluence of motives and opportunity, surely the rebuilding of levees in New Orleans is rife with illegal acts.  The Associated Press reports:

"Durwanda Elizabeth Morgan Heinrich, a dirt, sand and gravel subcontractor, was accused of conspiring with two former corps workers to get confidential bid information for a $16.8 million levee project southwest of New Orleans in September 2006."

Step in the Right Direction: Judge Decides KBR Rape Case Should Go to Court

Yesterday, ABC News reported:

"A Houston woman [Jamie Leigh Jones]  who says she was gang raped by co-workers at a Halliburton/KBR camp in Baghdad won a major court battle late Friday when a Texas judge ordered that she can bring her case to court instead of forcing her into secretive arbitration proceedings with Halliburton and KBR.

"After months of waiting for criminal charges to be filed, Jones decided to file suit against Halliburton and KBR."

Shoddy Work by Military Contractors Killing US Troops?

Posted by Damozel | D Cupples has typed her little fingers to the bone on the subject of the government's use of contractors, but I don't think we will ever be able to repeat too many times exactly how detrimental to the interests of taxpayers has been the Bush Administration's use of military contractors in Iraq.  I'm always glad to see the mainstream press on the case.  How long before the outrage begins?  How long before it reaches critical mass so something is done?   

We can but try:

In October 2004, the United States Army issued an urgent bulletin to commanders across Iraq, warning them of a deadly new threat to American soldiers. Because of flawed electrical work by contractors, the bulletin stated, soldiers at American bases in Iraq had received severe electrical shocks, and some had even been electrocuted.

'Appreciative' Constituents Happy to Finance House Reps' Luxury Vehicles?

Posted by Damozel | It's all about respect, according to Congressman Charles Rangel.

""When I'm in New York, my car is my office. I use it to conduct Congressional business. It really pleases me that (my constituents) appreciate driving in a comfortable car, especially the senior citizens. "I could probably find something for ... one of those red cars and then I think my constituents would say, 'With all the money that he gets, this is the respect he shows us?'" (WBCBSTV.com)

This, then, he is telling himself --- respect for his constituents --- is why he must spend  $774 tax dollars per month to lease a Cadillac DeVille.  You and I, of course, know what his constituents would really think if they knew they were paying for his expensive car:  "With all the money that he gets, can't he afford to finance the cost of his own luxury vehicle?"  Or at least part of it?

Doan Forced out of GSA

by D. Cupples |   Lurita Doan, head of the General Services Administration (which oversees billions in government contracts) has been forced out of her position.  The New York Times reports:

"In a stormy two-year tenure as the agency's administrator, Ms. Doan has been accused of improperly mixing government business with politics and of trying to steer government contracts to her friends. Democrats in Congress said she violated the Hatch Act, which makes it illegal for government employees to take action that could influence an election."

First Civilian Contractor on Trial for Allegedly Stabbing another Contractor

Reuters reports:

"Alaa Mohammad Ali, who holds Iraqi and Canadian citizenship, has been charged with aggravated assault, accused of stabbing another interpreter while working for U.S. forces at a combat outpost in the western Iraqi town of Hit."

IRS Contractors Cost Taxpayers More than They Collect

by D. Cupples |  Sen. Byron Dorgan called the IRS's debt-collection program  a "hood ornament for incompetence."  Maybe.  Or maybe it was an intentionally wasteful funneling of our tax dollars to private contractors that make healthy donations to politicians.  The Washington Post reports:

"The Internal Revenue Service expects to lose more than $37 million by using private debt collectors to pursue tax scofflaws through a program that has outraged consumers and led to charges on Capitol Hill that the agency is wasting money for work that IRS agents could do more effectively."

State Dept. to Renew Blackwater's Contract?

by D. Cupples |   To say that security contractor Blackwater is "troubled" is a polite understatement.  Among other things, the company became rock-star-famous in September after its guards allegedly shot 17 civilians in Iraq.

The House Oversight Committee received reports that Blackwater contractors might have essentially stolen an Iraqi military plane.  The Justice Department was investigating Blackwater for alleged illegal gun smuggling.  Then there's the issue of cost: in some cases, Blackwater paid its guards $600 a day but billed us taxpayers $1200 a day.  Wouldn't it be cheaper for the State Department to directly hire those same guards for $600 a day?

All that said, the State Department has decided to renew Blackwater's contract(s).  The Associated Press reports:

Contractor Supplies Bad Ammo, Gets Hundreds of Millions

by D. Cupples |   Two Days ago, the New York Times reported on yet another private contractor that seems to have taken advantage of  ripped off us taxpayers.  Rep. Henry Waxman's House Oversight Committee wasted no time inviting company officials to testify at a hearing on April 17.

The company in question is AEY, run by a 22-year-old who reportedly has little or no experience in the military or in the arms-dealing arena.  One company vice president is a licensed masseur.  Allegedly, during its several years' work for us taxpayers, the company has provided decades-old ammunition in decomposing packaging, some of which was Chinese-made (apparently a violation of law).  The New York Times reports:

Contractor Provided Dirty Water in Iraq, Troops Got Sick

by D. Cupples |  We've known for a while that some government contractors charge high prices.  Now, it seems that some contractors  failed to properly do the jobs that we taxpayers handsomely paid them to do.  The Associated Press reports:

"Dozens of U.S. troops in Iraq fell sick at bases using 'unmonitored and potentially unsafe' water supplied by the military and a contractor once owned by Vice President Dick Cheney's former company, the Pentagon's internal watchdog said.

"A report obtained by The Associated Press said soldiers experienced skin abscesses, cellulitis, skin infections, diarrhea and other illnesses after using discolored, smelly water for personal hygiene and laundry at five U.S. military sites in Iraq."

Halliburton/KBR: Getting us Taxpayers Coming and Going

by  D. Cupples | Defense contractor Kellogg, Brown and Root ("KBR," formerly a Halliburton subsidiary) has received more than $15 billion in federal government contracts.  Instead of being grateful for the contracts (some of which the company won without going through the competitive-bidding process), the company allegedly and repeatedly overcharged us taxpayers by many millions of dollars. 

Now, it turns out that KBR dodged paying taxes, which other American businesses have to pay, by hiring employees through off-shore shell corporations.  The Boston Globe reports:

Clinton Sponsors Bill to Limit Private Mercenaries

by D. Cupples  | Sen. Hillary Clinton sponsored a bill that would require federal government personnel (instead of private contractors) to provide security services for diplomats in Iraq.  Clinton commented, in part:

"...This administration has permitted thousands of heavily-armed military contractors to march through Iraq without any law or court to rein them in or hold them accountable.  These private security contractors have been reckless and have compromised our mission in Iraq....  We need to stop filling the coffers of contractors in Iraq, and make sure that armed personnel in Iraq are fully accountable to the U.S. government..." (U.S. Senate)

Defense Contractor Sentenced for Bribery

by D. Cupples  | Wednesday, the Washington Post reported:

"Brent R. Wilkes, a California defense contractor and prominent GOP campaign contributor, was sentenced to 12 years in federal prison yesterday for lavishing a Republican congressman with money, prostitutes and other bribes in exchange for nearly $90 million in work from the Pentagon...."

Oversight Committee Subpoenas Iraq Embassy Documents

Posted by D. Cupples |  After repeated State Department stonewalling, the House Oversight Committee issued a subpoena yesterday, seeking documents related to construction and safety problems at the new U.S. Embassy in Iraq. 

In July, we learned that the $592 million embassy (our nation's largest in the world) suffered major construction problems due to shoddy work on the part of contractors, including faulty wiring that caused fires. In October, we learned that the embassy project was months behind schedule and about $140 million over budget, bringing the cost of the poorly constructed complex up to more than $730 million.

Fortunately, Grayson Fever is Spreading

by D. Cupples |  I first learned about whistle-blower attorney Alan Grayson in September, when he explained to Truthout that our Justice Department had shirked its duty to prosecute fraud cases involving certain government contractors.  Weeks later, Vanity Fair did an in-depth piece on Grayson's one-man crusade against war profiteers and other contractors who've robbed us taxpayers as though we were blind, paralyzed, unarmed  bank guards.

Contractor waste and fraud are huge issues at BN-Politics (see posts here), so I was thrilled to learn that Grayson decided to run for Congress in Florida.  I'm even more thrilled that Grayson fever is spreading: about a week ago, he received endorsements from blogosphere heavy-hitters  including Blue America, Crooks and Liars, Digby, Down with Tyranny, and Firedoglake.