Buck Naked Politics

Waxman Wages War Against Waste, Fraud & Abuse

Posted by D. Cupples |  While most Americans are frustrated by Congress's failure to make major changes since Democrats took so-called "control" in January, at least one Dem congressman has accomplished a lot -- and precisely because Dems attained a majority: the gentleman from California, Henry Waxman.

Just hearing Waxman's name makes me smile, because he generates hope that we taxpayers really can discover and combat government waste, fraud, abuse and corruption.

Since the Dems gained "control" and gave Waxman control of the House Oversight & Government Reform Committee, all hell's been breaking loose.  Though Waxman has diligently investigated issues for years, he didn't have control of the spotlight until he got control of the Oversight Committee.  Whatever our party affiliation, we taxpayers should be glad that Waxman wields said control, because it's our best hope for learning how our tax dollars are being spent.

Today's Washington Post  lists more than 20 issues that Waxman's committee has investigated since January, issues that otherwise may have remained under the rug.... 

Hearing Today, and Head Rolls at State Dept.

Posted by D. Cupples |  Today, Secretary of State Condoleezza Rice may testify before the House Oversight Committee about the State Department's mismanagement of billions in federal contracts (and other things). Yesterday, a Department staffer resigned, perhaps because of contract-related issues.

The New York Times reports:

"The State Department official responsible for overseeing Blackwater USA and other private security contractors in Iraq resigned abruptly today.

"Richard J. Griffin, who has been the director of the department’s diplomatic security bureau since June 2005, faced stiff criticism from Congress over his handling of a Sept. 16 shooting episode involving Blackwater that left 17 Iraqis dead and other acts of violence by the State Department’s security guards.

"A special panel appointed to investigate the handling of diplomatic security in Iraq found a glaring lack of oversight and accountability that was hindering the American diplomatic and military mission there....      

Are  all the State Department's problems are Mr. Griffin's fault? Just last month, we learned that State Department inspector general Howard Krongard may have repeatedly blocked investigations into contractor waste and fraud.... 

DynCorp Joins Blackwater as Probe Target, State Department Stonewalls Congress

Posted by D. Cupples |  The U.S. State Department reportedly failed to manage a billion-dollar contract with DynCorp International -- a contractor involved in the CivPol program, which trained Iraqi police forces.  The State Department has also repeatedly failed to give the House Oversight Committee information on the DynCorp contracts, which the Committee has repeatedly asked for since March 2007.
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Yesterday, the Committee wrote a letter to Secretary of State Condoleezza Rice, asking (again) for the information.  In part, the letter states:

"Questions about the State Department’s management of the CivPol contract were raised by Stuart Bowen, the Special Inspector General for Iraq Reconstruction, at a February 15, 2007, hearing before the Oversight Committee.  Mr. Bowen testified that DynCorp had performed unauthorized work at a residential camp for police trainers and that the State Department had failed to catch overcharges because of inadequate contractor management...."

Blackwater Seeks More Tax Dollars, Govt. Corruption More Evident

Posted by D. Cupples |  Yesterday's New York Times ran a dot-connecting op-ed by Frank Rich about Blackwater USA's plans to grab more tax dollars and the defense industry's incestuous nature.

According to Rich, Blackwater CEO Erik Prince "staged a rapid-fire media blitz" last week.  Prince also told Rupert Murdoch's Wall Street Journal that (in Rich's words):

"Blackwater no longer cares much about its security business; it is expanding into a 'full spectrum' defense contractor offering a “one-stop shop” for everything from remotely piloted blimps to armored trucks."

Just what we taxpayers need: another middleman to jack up prices. In 2000, Blackwater had  $200,000 in federal contracts.  Since then, it has enjoyed $1 billion in contracts. Prince told the House Oversight Committee that 90% of Blackwater's business came from federal contracts. We taxpayers already funded one Blackwater growth spurt: now, the company wants us to pay for it to become a defense mega-mall?

Blackwater's  track record makes this a frightening proposition....

Blackwater Took Iraqi Planes & CEO Misled Congress?

Posted by D. Cupples |  Yesterday, the House Oversight Committee sent a letter to Blackwater CEO Erik Prince, asking for information about its government dealings and other things. (Washington Post)  The letter also states:

"According to a military official who has contacted the Committee, in 2005 Blackwater attempted to transport at least two Iraqi military aircraft out of lraq. The official stated that the Iraqi Ministry of Defense attempted to reclaim the aircraft, but that Blackwater would not comply. Please provide the Committee with … All documents related to efforts by Blackwater to remove Iraqi aircraft from Iraq and the current whereabouts of such aircraft."

Did Blackwater contractors try to steal another nation's airplanes?

The letter mentioned that Prince had testified at the Committee's October 2 hearing that two of Blackwater's federal contracts -- worth a combined $600+ million -- were competitively bid.  The Committee has since learned that they were sole-source contracts (i.e., not competitively bid). 

Unfortunately, there's more....

Probe re: Embassy in Iraq & State Dept. Officials

Posted by D. Cupples |  The U.S. State Department has major problems.  McClatchy reported:

"A mortar shell smashed into the hulking new U.S. Embassy that's under construction in Baghdad last May, damaging a wall and causing minor injuries.... It also exposed enormous problems in the management of what's become a $592 million government construction project.

"The State Department contractor in charge of the project, James L. Golden, attempted to alter the scene of the blast, according to government officials familiar with the incident. The State Department inspector general prevented Department officials from investigating the incident, according to interviews and documents....

"U.S. Ambassador Ryan Crocker banished Golden from Iraq, but he continues to oversee the construction of the embassy in Baghdad... and to supervise other projects for the State Department."

Based on State Department staff information, the House Oversight Committee accused State Department Inspector General Howard Krongard of blocking multiple investigations into contractor waste and fraud, among other things....

Another Questionable Campaign to Privatize Social Security?

Posted by D. Cupples |  The Bush Administration is creating a news story of Kathleen Casey-Kirschlingthe, the "first" baby boomer to apply for Social Security benefits. Unfortunately, some media are reporting questionable guesses as fact (ABC, WaPo, Fox). Charles at Mercury Rising reported:

"One moment they’re arguing that it’s [Social Security's] going to run out of dough in the 2040s — a scenario that only happens if —  the country has sluggish Depression-era growth levels from now until the 2040s -- and the next they’re touting the alleged high rates of return on private (privatized) accounts, rates which would only be possible if the economy grew at peak-of-the-Clinton-boom levels forever. In short, they’re predicting both permanent recession AND permanent boom at the same time. (What Michael Kinsley has famously called “the Meathead Proposition.")

"... Social Security has less than 1% overhead costs whereas the private US life-insurance plans (as well as privatized plans in places like the UK and Chile) have around 12% to 14% overhead costs." (links in original)

Sadly, this story has more angles to consider....

Private Insurers Milking Medicare (i.e., Seniors & Taxpayers)

Posted by D. Cupples |  If nothing else, that the 2003 so-called "Medicare Modernization" Act barred Medicare from negotiating discounts from drug makers was a sign that private companies would end up slurping down tax dollars like a kid with an Oreo milkshake.

Yesterday, the House Oversight Committee released a report about the costs of allowing private insurance companies to handle Medicare Part D (prescription drugs for seniors).  In part, the report said:

"Taking into account the costs to the government of monitoring the private insurers, total administrative expenses, sales costs, and profits will reach $4.6 billion in 2007, with the profits of the Part D insurers alone accounting for $1 billion." (Report overview and  full report.)

Private insurers' expenses are six times higher than those of traditional Medicare, according to the report. Consider just the $1 billion in company profits: how many prescriptions could that money buy for seniors if it weren't funneled to insurance companies?...

State Dept.'s Odd & Untimely Reactions to Blackwater Scandals

Posted by D. Cupples |  The State Department is reacting oddly to the scandals involving contractor Blackwater USA.  The Associated Press reported:

"The State Department may phase out or limit the use of private security guards in Iraq, which could mean canceling Blackwater USA's contract or awarding it to another company in line with an Iraqi government demand...."

In another breath, officials said they likely won't cancel the contract, because the Department  lacks "manpower and equipment, notably helicopters." 

Last week's House Oversight Committee hearing revealed that the Department paid  $1,200+ per day for each Blackwater guard -- about six times what a soldier would cost. (See invoice.)  That price covers Blackwater's overhead (e.g., helicopters) and profits. Blackwater CEO Erik Prince said that he hires ex-soldiers -- people, incidentally, with taxpayer-funded training. (See hearing video.)

Couldn't the State Department beef up and save money (at least the amount of Blackwater's profits) by directly hiring ex-soldiers and buying its own helicopters?

TT#14 | 13 Examples of Taxpayer-Funded Luxury Travel for Bureaucrats

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Justice Department Let Contractors in Iraq Misbehave?

Posted by D. Cupples |  A couple weeks ago, Truthout's Matt Renner wrote an article featuring interviews with attorney Alan Grayson, who pursues whistleblower cases against government contractors. The article highlights acting-Attorney General Peter Keisler, who -- while working as a Justice Department supervisor -- had "purposely delayed investigations into Iraq contractor fraud" because they would mean bad press for President Bush. 

November's Vanity Fair has an article based on interviews with Grayson, called The People vs. the Profiteers.  Here's a tiny quote :

"Over the past 16 years, Grayson has litigated dozens of cases of contractor fraud. In many of these, he has found the Justice Department to be an ally in exposing wrongdoing. But in cases that involve the Iraq war, the D.O.J. has taken extraordinary steps to stand in his way. Behind its machinations, he believes, is a scandal of epic proportions-one that may come to haunt the legacy of the Bush administration long after it is gone."

See the posts linked on next page for other examples of waste, fraud and abuse that we taxpayers have endured.

Novak Eyeing Some Other Ball re: Blackwater

Posted by D. Cupples |  Robert Novak's opinion piece in yesterday's Washington Post evinces either ignorance of the various investigations into Blackwater USA (and government contracting generally) or a knee-jerk defense of Blackwater --  motivated by what, I cannot fathom.

Maybe Mr. Novak didn't watch all 5 hours of the House Oversight Committee hearings last week, which made two things clear: 1) both the committee and the Justice Department are still  investigating Blackwater, and 2) the Committee is also addressing the broader question of whether use of contractors in Iraq and Afghanistan is a good deal for us taxpayers.

After discussing a couple lawyers who stand to make money from the private lawsuit against Blackwater (filed by family members of Blackwater contractors who died in Iraq), Novak bizarrely concluded:

Blackwater to Blame for Shootings, State Dept. Plans to Start Monitoring Blackwater?

Posted by The Crux | Military reports about the recent shooting of Iraqi civilians by guards working for Blackwater USA indicate that they "opened fire without provocation and used excessive force." The U.S. State Department:

"responded yesterday to escalating criticism of Blackwater security guards in Iraq, announcing new measures to more closely monitor their operations as a new Pentagon report depicted a troubling lack of coordination between private security contractors and the U.S. military." (WaPo)

Shouldn't the State Department have started closely monitoring Blackwater a while ago?  Iraqi officials repeatedly complained about Blackwater's questionable violence for some time, yet State Department officials did not respond (BN-Politics-1).  That and Blackwater has contracts worth many millions of tax dollars.

Will the State Department objectively monitor Blackwater?  Two weeks ago, evidence surfaced indicating that...

Tax Dollars Funding Luxury Travel?

Posted by Damozel & Crux |  The Government Accountability Office (GAO) recently found that "the federal government spent over $230 million on about 53,000 premium class [airline] tickets from July 1, 2005 through June 30, 2006 -- and $146 million of it was for improper premium-class travel" (i.e., unjustified or improperly authorized). Would government employees have spent less if it were their own money? 

Every hundred-million saved would help, given that our national debt exceeds $9 trillion. President Bush wants another $190 billion for wars, and he just vetoed funding increases for children's healthcare (SCHIPS) claiming fiscal reasons (though in July, he said he opposed SCHIPS to protect private insurance companies).

"Premium class tickets are costly," explains the GAO with wonderful restraint.  Perhaps the unnamed Dept. of Agriculture official who flew business class from DC to Zurich for 7,500 tax dollars (instead of the $900 that a coach seat cost) didn't realize that those few hours of extra comfort cost eight times more. (GAO )   Below are a few other examples.

House Passes Contractor-Accountability Bill

Despite presidential opposition, the U.S. House passed a bill today that would make private contractors working in combat zones subject to prosecution where wrongdoing occurred.  The bill had broad bipartisan support, passing 389-30, but all "nay" votes came from Republicans (roll call vote).  House Judiciary Committee Chairman John Conyers commented:

"We have never fought a war in which private contractors not only outnumber U.S. troops as they do in Iraq, but perform many tasks that are very similar to those historically performed by our troops. A critical difference, however, is that these contractors, unlike our troops, are not subject to the requirements of military discipline and U.S. law governing the conduct of warfare."

Called the Military Extraterritorial Jurisdiction Act (MEJA) Expansion and Enforcement Act of 2007, the bill responds to reports of government contractors' questionably shooting civilians in Iraq.  Blackwater USA is only one example of contractors that acted questionably without facing legal consequences, due to a regulation that made contractors largely immune from prosecution.  Recently, Blackwater has faced trouble on several fronts....

Blackwater Hearings: Poor Media Coverage, Republicans Oppose Probe

Some newspapers today gave readers no idea of what happened at yesterday's House Oversight Committee hearing involving Blackwater USA . One salient comment came from Republican Congressman John J. Duncan (yesterday's version of a WaPo article and hearing video):

"... [Duncan] observed that Army Gen. David H. Petraeus, the top U.S. commander in Iraq, earns about $180,000 a year, less than half the salary of a Blackwater official in charge of a 34-member security team.

"The war in Iraq has produced some of the most 'lavish' and 'excessive' contracts in U.S. history, Duncan said.  'Fiscal conservatives should feel no obligation to defend this kind of contract.... In fact, fiscal conservatives should be the ones most horrified by this.'"

This is a Republican talking to Republicans. Today's online version of WaPo's article doesn't contain Duncan's comments.  Today's New York Times article also failed to emphasize important points.

Instead, both newspapers focused on Blackwater CEO Erik Prince's pre-written statement, which defended his company's shooting of Iraqi civilians on September 16 -- though that topic was deemed off limits after Prince spoke. 

The hearing brought out thought-provoking details and bizarre comments, which said more about the commenters than the issues.  For example,...

Hearing Today: New Evidence of Blackwater's Bad Behavior and Protection by Officials

Posted by The Crux |  As it prepared for today's hearing (10 am) about contractor abuses, the House Oversight Committee released a 14-page memo containing evidence that government officials were protective of Blackwater USA, a company that received $1+ billion in contracts and has been involved in questionable killing and billing.

According to The Hill, Republican committee members wanted to delay the hearing.  (Photo by Adam Henning.)

New evidence indicates that after a drunk Blackwater employee shot and killed the Iraqi Vice President's guard in 2006, U.S. officials responded as follows:

"Within 36 hours after the shooting, the State Department had allowed Blackwater to transport the Blackwater contractor out of Iraq. The State Department Charge d'Affaires recommended that Blackwater make a 'sizeable payment' and an 'apology to avoid this whole thing becoming even worse.' The Charge d'Affaires suggested a $250,000 payment to the guard's family, but the Department's Diplomatic Security Service said this was too much and could cause Iraqis to 'try to get killed.' In the end, the State Department and Blackwater agreed on a $15,000 payment." (memo, page 2)

It gets worse....

Officials Allowed Oil Companies to Underpay Royalties Owed to Taxpayers

Posted by D. Cupples  |   Even Jed Clampet didn't give away oil. When oil companies drill on government lands, they're supposed to pay royalties, but for years they've underpaid.  It might be different if oil companies lowered gas prices out of respect for us taxpayers who allow them to drill on our lands, but they haven't.

Interior Department Inspector General Earl Devaney recently reported on an investigation of the Bureau of Minerals Management Services (MMS), an agency that has failed to collect oil royalties. In May, after this scandal's seeds sprouted, MMS director Johnnie Burton resigned. 

Friday's NY Times reported that Devaney attributed MMS's failures largely to "lazy management, ethical lapses and a culture of secrecy that hid mistakes" and found that officials seemed more concerned with protecting the oil industry than the taxpayers. Some officials reportedly "blocked" auditors' efforts to recover unpaid royalties.

This is not a new issue: by 2001 fifteen oil companies had paid a combined $438 million to settle Justice Department lawsuits over underpaid royalties.  There's more.
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State Dept. Staff Threatened for Cooperating with Congress

Posted by The Crux | It's like a Georges Seurat painting: if enough dots end up on the canvas and we take a step back, we'll see a clearer picture.   

Last week, the U.S. House Oversight Committee accused State Department Inspector General Howard Krongard of blocking investigations into contractor waste and fraud in Iraq (see committee letter-1 and BN-Politics). Based on evidence from 7 people who work(ed) for Krongard's office, the accusations are detailed and the letter directly asked for Krongard's and his staff's cooperation with the Committee's investigation.

Some of the cooperative State Department staffers have been threatened, according to a letter that Oversight Committee chairman Henry Waxman sent to Krongard today.  In part, this new letter states:

Another Official Turned Blind Eye to Contractor Fraud?

Posted by The Crux  |  Two things: 1) laws are only as good as the enforcers, and 2) every tax dollar going toward fraud is one less dollar for legitimate needs. According to attorney Alan Grayson, who represents whistleblowers against government contractors, acting U.S. Attorney General Peter Keisler had not taken action against contractors reportedly involved in fraud. Truthout's Matt Renner reports:

"Grayson said Keisler has purposely delayed investigations into Iraq contractor fraud because of Keisler's political allegiance to the Bush administration. Keisler has refused to prosecute whistleblower lawsuits because Bush 'does not want more bad news coming out of Iraq,' Grayson said, adding 'to have an entire class of cases treated this way is truly unprecedented....'

"Keisler was appointed by President Bush ...