War in Context

Fine and inquiry possible for Blackwater successor
By Mark Mazzetti and James Risen, New York Times, November 19, 2009

The international security company formerly called Blackwater Worldwide is facing large government fines for unlicensed arms shipments to Iraq, as a key Congressional committee is asking for a separate investigation into whether the company bribed Iraqi officials.

In talks likely to result in millions of dollars in penalties, executives from the company, now known as Xe Services, are negotiating with government regulators over years of violations of export laws. According to government officials and former company employees, many of the violations involve arms shipments to Iraq, to outfit company security guards operating inside the country.

In addition, former company officials say that other penalties could result from violations of licensing requirements for the transfer of other forms of military technology and training expertise to foreign countries.

Senator John Kerry, the Massachusetts Democrat who is chairman of the Foreign Relations Committee, wrote in a letter on Wednesday that his committee was told by a top State Department official that the company had engaged in “broad violations” of export laws and that the unlicensed shipments “went beyond weapons for personal use.” [continued...]